Trading update for the three months ended 31 December 2025

Core Insights - PayPoint Plc has shown significant progress in Q3 FY26, with a focus on operational delivery despite a challenging market environment, and is on track to achieve record profits for the year [3][6]. Key Group Metrics - Net revenue for Q3 FY26 was £52.7 million, a slight decrease of 0.5% compared to £53.0 million in Q3 FY25 [2]. - The Shopping division maintained revenue at £16.1 million, while the E-commerce division grew by 2.4% to £4.2 million [2]. - Payments and Banking division saw a revenue increase of 2.1% to £14.3 million, whereas the Love2shop division experienced a decline of 3.2% to £18.1 million [2]. Divisional Performance Shopping Division - Service fee net revenue increased by 7.3% to £5.9 million, driven by growth in PayPoint One/Mini sites [8]. - Card processed value decreased by 6.8% to £1.6 billion, reflecting lower consumer spending patterns [8]. E-commerce Division - Parcels net revenue rose by 2.4% to £4.2 million, with parcel transactions increasing by 6.7% to 38.2 million [9]. - The rollout of the Royal Mail Shop brand is expected to enhance service offerings [9]. Payments & Banking Division - Digital net revenue increased by 18.2% to £5.3 million, with significant growth in the MultiPay platform [10]. - Cash net revenue decreased by 9.0% to £6.9 million, aligning with market expectations [10]. Love2shop Division - Billings for Love2shop Business increased by 5.2% to £74.9 million, supported by strong performance in Managed and Major Accounts [11][12]. - InComm Payments billings surged by 238.9% to £6.1 million, reflecting expanded distribution [12]. Financial Position - As of 31 December 2025, the Group reported net corporate debt of £131.3 million, an increase from £97.4 million as of 31 March 2025 [13]. - The Board declared an interim dividend of 19.8p per share, a 2.1% increase from the previous year [14]. Share Buyback Program - The Group has initiated an extended share buyback program, targeting at least £30 million per annum until March 2028, aiming to reduce the equity base by at least 20% [15][16].