Results for the half year ended 30 September 2025

Core Insights - PayPoint Plc reported a resilient half-year performance with significant progress on key growth projects despite a challenging economic backdrop [1][3][33] - The company anticipates underlying EBITDA for FY26 to exceed the previous year, although achieving the £100 million target may take longer than expected due to operational disruptions and slower growth in new business pipelines [4][34] Financial Highlights - Revenue increased by 6.7% to £144.1 million compared to £135.0 million in H1 FY25 [2] - Net revenue remained stable at £84.7 million, a slight increase of 0.1% from £84.6 million [2] - Underlying EBITDA decreased by 0.5% to £37.3 million, while underlying profit before tax fell by 4.5% to £25.7 million [2][6] - Profit before tax dropped by 13.9% to £19.9 million, with diluted underlying earnings per share down 2.6% to 26.7 pence [2][6] - Net corporate debt decreased by 3.2% to £84.0 million from £86.8 million [2][6] Business Performance - The Shopping division's net revenue increased by 0.6% to £33.1 million, while the E-commerce division saw a 7.5% rise to £8.6 million [10][11] - Payments & Banking division net revenue grew by 4.4% to £26.0 million, and Love2shop division net revenue decreased by 9.6% to £17.0 million [13][14] - Collect+ parcel transactions grew by 20.0% to 74.3 million, supported by a strategic investment from Royal Mail [12][47] Key Growth Projects - The successful launch of the BankLocal service for Lloyds Banking Group, enabling cash deposits via app across over 30,000 locations, processed over £10 million in deposits since launch [21][22][43] - Royal Mail's strategic investment in Collect+ valued at £90 million, with plans to expand Royal Mail services across the network [24][25][47] - The partnership with InComm Payments has led to a 43.5% increase in Love2shop physical gift card billings [27][56] Challenges and Strategic Focus - The company faced challenges from the disruption caused by the harmonization of InPost and Yodel services, impacting parcel volumes [16][49] - Focus areas for the second half include cost discipline, project execution, and operational agility to adapt to market conditions [8][36] - The obconnect business is refocusing on growth areas after disappointing opportunities in Verification of Payee [17][51] Future Outlook - The company aims for net revenue growth of 5% to 8% per annum through enhanced operational frameworks and automation [37][38] - Plans for a share buyback program and a reduction of at least 20% of issued share capital are in place to enhance shareholder returns [39]