In This Article:
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Net Revenue: GBP84.6 million, up 6% from GBP79.8 million in the prior half.
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Underlying EBITDA: GBP37.5 million, up 20.6% from the prior half.
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Underlying Profit Before Tax (PBT): GBP26.9 million, up 23.4% from GBP21.8 million.
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Reported Profit Before Tax: GBP23.1 million, a 34.3% increase from GBP17.2 million in the prior half.
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Diluted Underlying EPS: 27.4p, up 24% from 22.1p.
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Diluted EPS: 23.5p, up 35.1% from 17.4p.
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Net Debt: GBP86.8 million, reflecting investments made during the first half.
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Interim Dividend: 19.4p per share, up 2.1% from the previous interim.
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PayPoint Segment Revenue: GBP65.8 million, up 5.6%.
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Love2Shop Revenue: Increased by 7.4%.
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E-commerce Revenue: Increased by 56.9% to GBP8 million.
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Cash Generation from Operating Activities: GBP30.7 million, nearly double the prior half.
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Capital Expenditure (CapEx): GBP9.4 million.
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Investments: GBP16.2 million, including GBP15 million in Yodel.
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Share Buybacks: GBP4.4 million spent, with around 700,000 shares bought back.
Release Date: November 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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PayPoint PLC (FRA:PAN) reported a strong financial performance with underlying EBITDA up over 20% and underlying PBT up over 23%.
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The company has made strategic investments in Yodel and OBConnect, enhancing growth opportunities in parcels and Open Banking.
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Net revenue increased by 6% to GBP84.6 million, driven by growth in both the PayPoint segment and Love2Shop.
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The interim dividend increased by more than 2% to 19.4p per share, reflecting confidence in future performance.
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The company is expanding its Collect+ network, targeting 15,000 locations by year-end, which includes partnerships with universities and Royal Mail.
Negative Points
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Net debt increased to GBP86.8 million, reflecting the investments made during the first half.
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Payments and Banking revenue experienced a slight decline due to a drop in legacy cash bill payments.
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The ATM business continues to underperform, with optimization efforts yet to yield significant results.
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Consumer confidence and spending are not as strong as expected, potentially impacting future performance.
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The company anticipates an increase in net debt in the second half due to further investments and share buybacks.
Q & A Highlights
Q: Could you talk us through the strategic rationale for the Yodel acquisition? A: Nicholas Wiles, CEO: Yodel has been a long-term partner of Collect+, and we have developed a strong store-to-store proposition. The acquisition was strategic to support Yodel's management in reducing costs, increasing efficiency, and driving volume. While we are not committed to being a long-term investor, it was the right move to ensure Yodel's success as a partner in our network.