Key highlights:

• Turnover of £89.1 million up 33%
• Transactions processed up 27% to 259 million with strong growth in all sectors
• Net revenues^1,4 up 29% with operating margins^{3, 4} increased to 33%
• Operating profit before exceptional items nearly doubled to £12 million
• Adjusted earnings per share^{2, 4}  of 15.5p up 70%
• PayPoint terminal outlets have increased to over 13,000 up 15% on March 2004
• 4,700 second generation terminals rolled out to agents

David Newlands, Chairman of PayPoint, said “We are pleased to report strong growth in all sectors, generating improved margins and excellent cash flow.  We are confident of continued growth, bringing on new revenue streams and expanding the existing trade in the coming year.”

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1. Net revenue is turnover net of the deduction of commissions paid to retail agents and the cost of e-vouchers for mobile top-ups where PayPoint is the principal.
2. Adjusted earnings per share are based on profits before exceptional items after taxation.
3. Operating margins are calculated as operating profit before exceptional items as a percentage of net revenue.
4. Net revenue, operating profit before exceptional items (£4.6 million, mainly the costs of the flotation), adjusted earnings per share and operating margins are measures which the directors believe assist with a better understanding of the underlying performance of the Group. The reconciliation to statutory amounts can be found in notes 2 and 6 and on the face of the profit and loss account.

Click here to download PayPoint plc Preliminary Results.