25th Nov 2021 10:52
(Alliance News) - PayPoint PLC on Thursday raised its interim dividend after a surging first half trading performance which saw healthy revenue growth and profit more than double.
Pretax profit in the six months ended September 30 jumped to GBP54.8 million from GBP20.6 million a year before. Revenue rose 16% annually to GBP70.2 million from GBP60.7 million.
Growth was ascribed to a "proactive recovery" from the prior year impacts of Covid-19, a positive contribution from the Handepay/Merchant Rentals card payments businesses and supported by the acquisitions of i-movo and RSM 2000.
Shares in the Hertfordshire, England-based payment services provider were down 2.1% at 636.40 pence in London on Thursday morning.
On the back of the strong trading performance, PayPoint hiked its interim dividend to 17.0p from 15.6p a year ago.
"The group has continued to perform well in the first half of the year, with further progress made on the numerous growth opportunities across our expanded business," commented Chief Executive Nick Wiles.
"We have delivered this positive performance against the backdrop of continued uncertainty in our energy markets and its impact on our clients, as well as responding in a number of areas of the business to the impact of changing consumer behaviours as Covid-19 restrictions have eased."
Looking ahead, PayPoint said there will be a higher level of uncertainty as to the outlook for the second half of the year, with the dislocation in energy markets and its impact on energy clients expected to continue.
By Will Paige; [email protected]
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