The board is pleased to report on events, transactions and trading since last year end.  Over the period, a number of key contracts have been renewed and good progress made on a number of business initiatives to expand our product offering.

Material events and transactions
As noted in our annual report, since the end of our last financial year on 25 March 2007 PayPoint acquired Pay Store SRL. Pay Store is a leading Romanian mobile top-up supplier selling both electronic top-ups and scratch cards through over 6,000 retail outlets, 4,000 of which have electronic terminals. The consideration for the company was €16 million with the potential for a further €1 million payable or recoverable subject to performance post-acquisition.

Terminal sites (excluding Romania) have increased by over 1,000 since the year end. We have renewed contracts with Spar and extended our retail coverage with new contracts for multiples and independent retailers.

Five regional transport companies signed contracts with PayPoint, all of which are exclusive. Contracts have been concluded with the Light Agency (Shop Scan Save electronic vouchers), with Coinstar for gift cards and with several prepay debit card providers. Western Union money transfer volumes have continued to grow and we now have more than 500 agents.

Performance1 for the period from 26 March to 29 July 20072and financial position1 as at 29 July 20073

Bill and general payment transaction volume was 95 million (up 28%). The BBC TV Licence contract, which was exclusive from 1 August 2006, contributed strongly to this growth.

Mobile volume was 48 million (up 12 %), mainly as a result of the increase in terminals sites.

ATM volume was 5 million (up 20 %), mainly as a result of the increase in ATMs to 1,979 at 29 July 2007.

The reorganisation and restructuring of the newly acquired internet payment and Romanian businesses are proceeding according to plan.

Earnings to date are in line with market expectations.

After the payment of the consideration for Pay Store of £10 million and the final dividend of £6 million, net cash at 29 July was £15 million (including client cash of £7 million).