HALF YEARLY FINANCIAL REPORT FOR THE 6 MONTHS ENDED 26 SEPT 25 November 2010 Highlights | | 6 months
ended
26 September
2010 | 6 months
ended
27 September
2009 | Increase /
(decrease) | | Transaction value | £4,831m | £4,446m | 8.7% | | Revenue | £92.9m | £96.4m | (3.6)% | | Net revenue1 | £38.7m | £36.0m | 7.6% | | Gross margin | 35.3% | 29.9% | 5.4ppts | | Operating profit | £15.3m | £14.7m | 4.4% | | Profit before tax | £14.6m | £13.8m | 5.4% | | Diluted earnings per share | 14.8p | 14.3p | 3.5% | | Interim divident | 7.8p | 7.4p | 5.4% |
• Transactions processed have increased by 6%
• In the UK, we have successfully launched our first cash pay-out schemes which allow clients to refund money to consumers through our retail network
• In Romania, we have processed over 5 million bill payment transactions in the period (2009: 1.8 million)
• Internet payment transactions have grown by 33%
• Collect+ transactions have reached an annualised run rate of over 1 million per annum2
• 7 million PayByPhone transactions processed in the period
• Consumer satisfaction3 of 98% (2009: 97%)
David Newlands, Chairman of PayPoint, said: “PayPoint has delivered another strong set of results with growth in net revenue, operating profit and profit before tax. This has allowed us to increase our interim dividend payment by 5% to 7.8p per share. These results demonstrate our ability to execute strategy, delivering improved yield in our established business streams and growth in our developing businesses. In our established business streams, we have focused our attention on growing retail services and contracting with new internet merchants. In Romania, cost reduction and growth in bill payment has put us on track to profitability. In Collect+, we have contracted with large retail merchants and in PayByPhone, we have continued to invest as planned. Taken together, our businesses provide a solid foundation from which we aim to deliver long term value for shareholders. Trading since the period end is in line with the company’s expectations.” The condensed financial statements cover the six months from 29 March 2010 to 26 September 2010, the last Sunday in the month (2009: 6 months covering the period 30 March 2009 to 27 September 2009).
1 Net revenue is revenue less the cost of mobile top-ups and SIM cards where PayPoint is principal and costs incurred by PayPoint which are recharged to clients and merchants. These costs include retail agent commission, merchant service charges levied by card scheme sponsors and costs for the provision of call centres for PayByPhone clients. Net revenue and operating margin are measures which the directors believe assist with a better understanding of the underlying performance of the group.
2 Based on October 2010 transaction volumes.
3 UK terminal sites, source: Ipsos MORI September 2010.
To view the full half yearly financial report please click here | 
