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].

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]

Core Insights - PayPoint Plc reported an encouraging start to the financial year, with confidence in achieving a £100 million EBITDA target and long-term growth goals through FY28 [2][5] Group and Divisional Highlights - Group net revenue increased by 7.5% to £42.2 million compared to £39.2 million in Q1 FY25, driven by strong performances in E-commerce, Payments and Banking, and Love2shop divisions [5] - Shopping divisional net revenue rose by 0.6% to £16.5 million, with service fee net revenue increasing by 7.8% to £5.7 million due to growth in PayPoint One/Mini sites [6] - E-commerce divisional net revenue surged by 20.8% to £5.1 million, with parcel transactions growing by 19.4% to 38.2 million [7] - Payments and Banking divisional net revenue increased by 4.9% to £12.8 million [7] - Love2shop divisional net revenue grew by 21.7% to £7.8 million [8] Growth Initiatives - The company signed a new 3-year agreement with InPost/Yodel to enhance parcel delivery services and is preparing for increased parcel volumes through a partnership with Royal Mail [3] - In Open Banking and Digital payments, new contracts were secured with Thirteen Group and the Department for Work and Pensions, contributing to a growing business pipeline [3] - Local Banking initiatives are set to launch consumer deposits with the first High Street Bank in August 2025 [3] Financial Performance - The Group's net corporate debt as of 30 June 2025 was £109.6 million, an increase from £97.4 million as of 31 March 2025 [11] - The Board declared an increased final dividend of 19.6 pence per share, up from 19.2 pence per share in the previous year [12] - An enhanced share buyback program commenced on 1 July 2025, aiming to return at least £30 million per annum to shareholders [13][14] Market Conditions - The company is actively monitoring consumer uncertainty and cautious behavior in various markets, maintaining tight cost discipline while executing growth plans [4]

Core Viewpoint - PayPoint Plc has demonstrated a resilient financial performance for the year ended 31 March 2025, making significant progress towards achieving its target of £100 million EBITDA by the end of FY26, while also establishing new growth targets for the next three years [3][20][44]. Group Financial Highlights - Revenue increased by 1.4% to £310.7 million from £306.4 million in FY24 [2] - Net revenue rose by 3.7% to £187.7 million compared to £181.0 million in FY24 [2] - Underlying EBITDA grew by 10.7% to £90.0 million from £81.3 million in FY24 [2] - Underlying profit before tax increased by 10.2% to £68.0 million from £61.7 million in FY24 [2] - Profit before tax decreased by 45.4% to £26.3 million from £48.2 million in FY24, impacted by adjusting items [2] - Net corporate debt rose by 44.2% to £97.4 million from £67.5 million in FY24 [2] Strategic Outlook - The company aims for net revenue growth of 5% to 8% per annum through FY28, supported by a robust business mix and growth opportunities [4][20] - An organizational framework will be established to enhance automation and agility in operations [4][21] - A share buyback program will be enhanced to return at least £30 million per annum to shareholders until the end of March 2028, targeting a reduction of at least 20% of issued share capital [4][8][22] Business Division Highlights - The Shopping division's net revenue increased by 1.2% to £65.2 million [10] - E-commerce division net revenue surged by 39.0% to £16.4 million [14] - Payments & Banking division net revenue grew by 1.7% to £54.4 million [14] - Love2shop division net revenue increased by 0.8% to £51.7 million [15] Key Performance Indicators - Underlying EBITDA reached £90.0 million, up from £81.3 million in FY24 [48] - Underlying profit before tax was £68.0 million, compared to £61.7 million in FY24 [48] - Diluted underlying earnings per share increased to 69.1 pence from 62.6 pence in FY24 [48] - Net corporate debt stood at £97.4 million, up from £67.5 million in FY24 [48]