28th May 2015 07:33
LONDON (Alliance News) - PayPoint PLC Thursday reported higher pretax profit in its last financial year, driven by growth in its retail networks, and hiked its dividend on the back of the results.
The FTSE 250-listed payments services company said it made a GBP49.6 million pretax profit in the year ended March 31, compared with GBP46.0 million in the prior year. Revenue increased by 3.0% to GBP218.5 million due to growth across its retail networks, with margins improving.
Operating costs increased by 8.0% to GBP56.9 million, mainly due to IT, development and marketing for new products, and investment in mobile and online.
The company increased its dividend for the year to 38.5 pence from 35.3p.
PayPoint said it has decided to sell its parking and online payment processing companies to sharpen its focus on multi-channel payments and services, where it has retail networks.
"We have already reorganised the continuing business to focus on developing multi-channel payments and services for the blue chip clients of our retail networks following the decision to sell the parking and online payment processing businesses. We have developed and sold the first multi-channel product and will look to extend the application across our varied client base," Chairman Nick Wiles said in a statement.
"Our new terminal, now under development, will be piloted this year and will bring with it wider opportunities for new products for clients, retailers and consumers. We will also be continuing the search for retail expansion in new geographies," Wiles said.
Shares in PayPoint were up 3.3% to 907.15 pence on Thursday, the best performer in the FTSE 250.
By Samuel Agini; [email protected]; @samuelagini
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