PayPoint delivered “a good financial and operating performance” during the first quarter of 2019, according to the company’s CEO Patrick Headon.
Commenting on PayPoint’s trading update for the three months ended 30 June 2019, Headon also said its MultiPay platform and eMoney services were key to driving future growth and profits.
These grew 38.5% and 16.3% respectively over Q1, helping to push PayPoint’s UK bill payments net revenue up 7.5%.
Overall, group net revenue increased by £1.0m (3.6%) to £28.7m.
Service fees saw an increase of £700,000 (30.7%) driven by the roll out of PayPoint One to 13,633 sites at 30 June 2019 and a 2.8% improvement in the average weekly service fee. The company remains on track to reach its year-end target of 15,800 PayPoint One installations.
It has also put plans in place to soften the blow from the end of its British Gas contract, which is expected to put a £1.4m dent in this year’s net revenue. The failure to renegotiate the deal is also projected to cost PayPoint around £3.5m in lost transactions over the 2020/21 financial year.
UK parcel volumes were up, growing by 11.9% to 5.6 million. PayPoint put this down to new partner relationships converting to volumes, with three of its four new parcel partners now transacting.
Looking ahead to the end of the financial year, a bullish Headon concluded: “The Board remains confident that there will be a progression in profit before tax and exceptional items for the year ending 31 March 2020.”