David Newlands, Chairman of PayPoint plc said:

“Our retail network continues to perform well, processing 5% more transactions overall in the period, despite there being 5 million fewer mobile top-ups. Internet payments contributed to overall growth in transactions of 8% in the established business (the UK and Ireland retail networks and internet payments). Net revenue in the established business increased by 7%.

Our developing business, consisting of our Romanian retail network, Collect+ parcel service and PayByPhone, also made good progress. In Romania, we made a small profit following 69% growth in bill payments and since the period end, we have introduced Western Union money transfer. Collect+, our award-winning parcels joint venture, has won 44 new merchants and processed nearly five times as many parcels as in the same period last year. PayByPhone has been selected by 33 new clients in the period, with a substantial number of tender decisions still awaited.

For the current financial year, trading is in line with the company’s expectations. Our established business is strong. We will pursue further opportunities to enhance our retail yield by introducing new technology and services, while enhanced transaction management and information services should help our internet sales in the next financial year. Continuing progress is expected in our developing business. Our Romanian retail network will focus on improving market share and further modest network growth to improve yield. PayByPhone will continue to pursue new clients and enhance its technology to grow revenue and improve customer satisfaction. Collect+ will continue its intensive marketing to new clients, to extend deliveries to its existing returns clients and to promote its consumer-to-consumer proposition. We expect PayByPhone and the Collect+ parcel service to turn to profit in the next financial year.

I am pleased to announce an interim dividend of 8.7pence per share.”

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