PayPoint reports “robust” annual results, but ATMs disappoint

PayPoint has delivered strong full-year results, with underlying EBITDA up 32.6% to £81.3 million. Highlighting record growth for Collect+, the group claimed to have made progress towards delivering £100m EBITDA by the end of FY26, although its ATM performance was described as “disappointing”.

Collect+ saw year of growth in parcel transactions, up 77.5% to 100.1 million (FY23: 56.4 million), including regularly achieving over 2 million parcels processed per week

The firm noted that this was “positive momentum” on its journey to achieving a 250m+ parcel network with new strategic partnerships agreed with Royal Mail, Yodel/Vinted and InPost.

However, the group’s ATM business saw net revenue decrease by 8.2% year on year. The decline was attributed to the continued reduced demand for cash across the economy.

Paypoint claimed to have delivered additional value to retailers through a 21.5% increase in commission paid year on year.

The firm’s FMCG consumer engagement proposition, PayPoint Engage, has delivered its first seven figure net revenue contribution, delivering brand campaigns for major consumer brands, leveraging the PayPoint One platform, advertising screens and vouchering capability.

In addition, the group launched Love2shop physical gift cards for the first time in over 2,600 locations for the Christmas 2023 gifting season, partnering with key multiple retailers, including One Stop, MFG, Henderson’s Retail and CJ Lang, with a further rollout to independent retailers underway in the current year.

Within cards, PayPoint stated that the “positive momentum has continued to grow”, driven by the company’s recently launched Handepay Rewards scheme, a “strengthened pricing governance approach” and a continued focus on “proactive churn management driven by AI and analytics”.

Nick Wiles, Chief Executive of PayPoint Plc, said:

“This has been another year of progress for PayPoint where we have delivered a robust financial performance and made further progress towards delivering £100m EBITDA by the end of FY26. These results reflect both the resilience of our businesses and the transformation delivered over the past three years as we unlock further opportunities and growth across our four business divisions.

“In the current year, consumer behaviour across a number of our businesses remains subdued, reflecting continued tighter family budgets and a generally flat economy. Our expectation is that the consumer outlook will improve during the course of the year.

“Against this background, our streamlined organisational structure and cost base will support the delivery of our medium-term growth plans. Strong earnings growth and cash flow generation, combined with a sustainable dividend policy provide a robust platform for the Board to propose further steps to enhance shareholder returns through a share buyback programme of at least £20 million over the next 12 months, all underpinned by the delivery of further progress in the current year.” 

PayPoint’s retail network of over 28,000 convenience stores is larger than all the banks, supermarkets and Post Offices put together.