PayPoint Group has reported 18.5 per cent increase in net revenue and 25 per cent increase in pre-tax profits for the year ended 31 March 2022, driven by a strong contribution from Handepay/Merchant Rentals and supported by the acquisitions of i-movo and RSM 2000.
Net revenue from continuing operations stood at £115.1 million (2021: £97.1m) and profit before tax, excluding exceptional items, increased by £9.1m to £45.6m.
The proceeds received on sale of the Romanian business, which generated an exceptional profit of £29.9 m, have seen the group’s net corporate debt falling by £24.3m to £43.9m this year (2021: £68.2m).
The group declared final ordinary dividend of 18.0 pence per share, an increase of 8.4 per cent compared to the dividend declared in May 2021 of 16.6 pence.
“This has been another positive year for the PayPoint Group as we continue to build on transforming the business to deliver a significantly enhanced platform to drive strong shareholder returns,” Nick Wiles, chief executive of PayPoint, said.
“We opened up further growth opportunities across the business and delivered a broader range of innovative services and technology connecting millions of consumers with an expanded base of over 60,000 retailer partners and SME locations across multiple sectors.”
Wiles said the company registered the strong financial performance against the backdrop of “growing macroeconomic uncertainty, disruption in energy markets and an acceleration of cost pressures.”
“We are confident the steps we have taken during the financial year have enhanced the business and better positioned us to deliver growth. As a result, despite some continued headwinds, we are confident of delivering further progress in the year ahead and meeting expectations as we take advantage of the accelerated growth opportunities across our key markets,” he added.
The group’s shopping division has seen net revenue increased by 46.2 per cent to £58.7 million, driven by the increased net revenue contribution from the Handepay/Merchant Rentals card payments businesses of £16.1m, the roll out of PayPoint One to additional retailer sites and further enhancements to its retailer proposition, including Counter Cash and Snappy Shopper home delivery.
The group’s UK retail network increased to 28,254 sites (31 March 2021: 28,067), with 69 per cent in independent retailer partners and 31 per cent in multiple retail groups
E-commerce divisional net revenue increased by 36.2 per cent to £4.9m million and transactions grew by 25.2 per cent to 33.3 million through its e-commerce technology platform, Collect+. In the payments and banking division, net revenue decreased by 3.6 per cent to £51.5m, which the group attributed to fewer cash bill payments and top up transactions, and margin erosion from client contract renewals.