PayPoint reports positive quarter in trading update

Shopping divisional net revenue increased by 0.6% to £16.5m (Q1 FY25: £16.4m).

• Service fee net revenue increased by 7.8% to £5.7m (Q1 FY25: £5.3m) driven by a combination of further PayPoint One/Mini site growth to 20,388 (31 March 2025: 20,275) and the annual RPI service fee increase
• New Store Growth Specialist team rollout now live, supporting retailer partners to deliver further revenue growth through store visits driven by targeted data and support
• Focus on FMCG pipeline build, with strong engagement across multiple consumer brands for campaign delivery over the coming months
• Card payments net revenue decreased by 1.3% to £8.2m (Q1 FY25: £8.3m), with a greater focus now being placed on the long-term value of our card estates and the retention of our highest value merchants. There was further site growth in the PayPoint Lloyds Cardnet estate to 10,597 (31 March 2025: 10,552) and a reduction in the Handepay EVO/Lloyds Cardnet estate to 19,062 (31 March 2025: 19,478)
• Card processed value decreased by 3.6% overall to £1.7bn (Q1 FY25: £1.8bn), with the Handepay EVO estate -1.7% and the Lloyds Cardnet estate -7.3% versus the prior year, reflecting lower than anticipated consumer spending patterns
• Good progress made on delivering further proposition enhancements, with 7-day settlement launching imminently, real-time transaction data now live in our merchant mobile app and app registrations on course for our target of 10,000 merchants by the end of FY26
• Strong growth in Business Finance via YouLend, with £7.4m lent to merchants in the quarter, +63% year on year

Nick Wiles, chief executive of PayPoint Plc, said: “As we indicated at our full year results in June 2025, the Group has had an encouraging start to the current financial year.

“We remain confident in our operational plans, continued progress towards the delivery of our £100m EBITDA target in the current year and our longer-term growth targets for the next three years to the end of FY28.

“Our focus for H2 2025 is on the delivery of our growth plans across a number of our business divisions: in Parcels, we have signed a new 3-year agreement with InPost/Yodel, with a harmonised network delivered and fully operational, and we are preparing our network for a ramp up in parcel volumes through our Royal Mail partnership.

“We are continuing to build new business pipelines for PayPoint, Love2shop Business and obconnect and in Community Services for Retailers, we have continued to rollout our Store Growth Specialist team with a positive early transaction impact and expanded our Love2shop physical gift card proposition into more locations with new display units and additional commission earning opportunities ahead of the peak gifting season.

“In the meantime, against the background of a generally weak economy, there continues to be consumer uncertainty and cautious behaviour in a number of our markets, which we are actively monitoring and seeking to mitigate, with tight cost discipline and a focus on the strong execution of our growth plans.”