PayPoint reports robust profits for 2024 fiscal

PayPoint Plc, a leading provider of payment and retail technology services, has announced strong financial results for the fiscal year ending March 31, 2024.

The company achieved a significant increase in its underlying EBITDA and profit before tax, highlighting the effectiveness of its strategic initiatives and operational improvements.

Underlying EBITDA rose by 32.6 per cent to £81.3 million, up from £61.3 million in FY23. Underlying profit before tax increased by 21.5 per cent to £61.7 million, compared to £50.8 million the previous year.

“This has been another year of progress for PayPoint where we have delivered a robust financial performance and made further progress towards delivering £100m EBITDA by the end of FY26,” Nick Wiles, chief executive of PayPoint, said.

“These results reflect both the resilience of our businesses and the transformation delivered over the past three years as we unlock further opportunities and growth across our four business divisions.”

The group’s UK retail network increased to 29,149 sites in the year (31 March 2023: 28,478), with 70 per cent in independent retailer partners and 30 per cent in multiple retail groups.

Divisional Performance

Shopping Division: Net revenue increased by 3.9 per cent to £64.4 million. Service fee revenue grew by 10.1 per cent to £19.7 million, and card payment revenue increased by 2.8 per cent to £32.7 million.

E-commerce Division: Saw a remarkable 61.6 per cent rise in net revenue to £11.8 million, driven by a record year for Collect+ with parcel transactions up by 77.5 per cent.

Payments & Banking Division: Experienced a slight decline in net revenue by 4.8 per cent to £53.5 million, but saw growth in its MultiPay platform with net revenue up 29.3 per cent.

Love2shop Division: Reported net revenue of £51.3 million, with Park Christmas Savings achieving billings growth and Love2shop Business seeing a slight decline due to broader economic challenges.

Despite subdued consumer behavior due to tighter family budgets and a flat economy, PayPoint remains optimistic about future growth. The company plans to enhance shareholder returns through a share buyback program of at least £20 million over the next 12 months. Additionally, a streamlined organisational structure is expected to deliver efficiencies and enable future reinvestment in the business, projecting a gross cost saving of approximately £4 million for FY25.