Preliminary Results Year Ended 27 March 2011
PayPoint plc
 Preliminary results
Year ended 27 March 2011
 Year ended Year ended Increase / (decrease) %
27 March 28 March
 2011  2010
--------------------------------------------------------------------------------
Revenue £193.2m £196.6m (1.7)
Net revenue(1) £82.7m £77.4m 6.9
Gross margin 36.6% 32.3% 4.3ppts
Operating profit £36.1m £34.1m 5.8
Profit before tax £34.5m £32.6m 5.5
Diluted earnings per share 35.1p 32.7p 7.5
Dividend per share 23.4p 21.8p 7.3
--------------------------------------------------------------------------------
* Record group transaction volume (590 million), with growth in all channels
* UK retail services continued strong growth, net revenue up 25%
* 12 million Romanian bill payment transactions, up 118%
* 59 million internet transactions processed, up 34%
* PayByPhone transaction volumes of 14 million
* Collect+ transaction volumes increased to over 1 million, up over 4 times on
last year
* Developed new virtual terminal which is currently being rolled out to
selected multiple retailers' till systems
* Debt repaid and year end net cash was £26.5 million
Enquiries
PayPoint plc                              Finsbury
Dominic Taylor, Chief Executive 01707 600300 Â Â Â Rollo Head 0207 2513801
George Earle, Finance Director               Don Hunter
A presentation for analysts is being held at 11.45 am today at Finsbury, Tenter
House, Moorfields, London, EC2.
This announcement is available on the PayPoint plc
website:http//www.paypoint.com
1. Net revenue is revenue less the cost of mobile top-ups and SIM cards where
PayPoint is principal and costs incurred by PayPoint which are recharged to
clients and merchants. These costs include retail agent commission, merchant
service charges levied by card scheme sponsors and costs for the provision
of call centres for PayByPhone clients.
1. Net revenue is revenue less the cost of mobile top-ups and SIM cards where
PayPoint is principal and costs incurred by PayPoint which are recharged to
clients and merchants. These costs include retail agent commission, merchant
service charges levied by card scheme sponsors and costs for the provision
of call centres for PayByPhone clients.
CHAIRMAN'S STATEMENT
I am pleased to report the return to growth in earnings as a result of good
performance by our UK retail network, excellent internet payment growth and
substantial progress in our Romanian network and Collect+. We have increased
resources and improved infrastructure at PayByPhone. Â We have made strong
progress in technology, completing the development and starting the roll out of
our virtual terminal, developing a broadband communications solution for faster
transactions and introduced new services for our terminal network, including
cash out and money transfer.
In the UK retail network, retail services delivered healthy growth, although
mobile top-ups continued to decline. I am particularly delighted with the
recent announcement that we have won the tender to provide the retail network
for the Department for Work and Pensions' replacement of giro cheques for
benefit payments, the contract for which is under negotiation. Currently, over
20 million giro cheques are issued annually to pay benefits. We have already
demonstrated that our retailers can make payments to consumers (in addition to
our traditional strength in collecting money from them). This will
substantially increase the flow of money out, reducing banking charges to
retailers and delivering more commission and footfall to them.
Internet net revenues have increased 20% and the business had notable success in
winning gaming merchants, including Stan James, 32 Red and Sportingbet. We are
continuing to win gaming business because of our robust and resilient platform,
innovation, advanced fraud and risk management capabilities, and real-time
enterprise level reporting.
We have continued to invest in our Romanian retail network by increasing our
full service terminal estate by more than 1,100, whilst removing all the old
mobile top-up only sites. Â We accept bill payment for 27 clients and transaction
volumes have more than doubled to over 12.1 million transactions. Â Under a new
contract with Western Union, we will roll out money transfer this year.
We have extended our parcels service through Collect+, our joint venture with
Yodel, selectively across our UK retail network. Momentum is strong, with
considerable interest among major internet retailers and internet marketplaces.
We have over 3,700 sites handling Collect+ parcels and 30 home shopping
retailers live, including some of the most respected customer service leaders,
including ASOS, New Look, Boden and Very. During the year, we handled over 1
million parcels.
In PayByPhone, we have increased the resources in sales, marketing and delivery
more than we planned. We have upgraded the infrastructure to provide disaster
recovery and introduced a new consumer friendly mobile web parking registration
and payment system for the UK and North America. We will continue to invest to
stay at the leading edge of this fast moving market.
The combination of sound, profitable growth in both the UK retail network and
our internet business, substantive progress towards profitability in our Romania
retail network, gathering momentum in Collect+ and proper resourcing of
PayByPhone, mark an important year in re-establishing the group for substantial
growth. We are proposing a final dividend of 15.6 pence per share, making a
total for the year of 23.4 pence, an increase of 7.3 per cent.
For the current financial year, trading is in line with the company's
expectations. Our established business streams (UK and Irish retail networks and
internet payments) are strong, with further opportunities to enhance retail
yield through the introduction of new technology and services. In addition,
improvements in our service offering to online merchants will provide
opportunities for growth. We will benefit from rolling out services in our
developing business streams (Collect+, PayByPhone and Romanian retail network),
growing our market share and improving profitability. Together, our businesses
provide a solid foundation to deliver value for our shareholders.
David Newlands
26 May 2011
CHIEF EXECUTIVE'S REVIEW
PayPoint has had another good year, in which we have delivered profits in line
with market expectations and our strategic plans. Â Our UK retail network and
internet payments have continued to be highly profitable and cash generative.
Collect+, PayByPhone and our Romanian retail network, which are important to the
creation of value, have all made good progress during the year.
Our strategy:
Since the flotation of the original UK retail network business in 2004, PayPoint
has evolved into a specialist payments company. Our strategy has four key
elements:
* Breadth of payments capability
The acceptance of a broad range of payments (cash, cards, e-money, etc.)
through multiple channels (retail, internet and mobile phone)
* Strength in vertical markets
Targeting sectors with high volume, recurring consumer payments
* Value added content / services
Providing additional content or services to the payment channels and chosen
vertical markets to create differentiation
* Geographic reach
Identifying regions with attractive payment dynamics to create value through
exporting our know-how.
PayPoint has succeeded in delivering this broad payment hub capability to
clients in a number of key vertical markets (energy/utilities, telecoms and
media, financial, transport/parking, public sector/social housing, retail and
gaming/leisure), with the ability to process payments across the consumer's
choice of payment and channel. The delivery of payments from consumers to our
clients encompasses transaction authorisation, processing, clearing and
settlement and interfacing to banks, card schemes/networks and other financial
intermediaries. PayPoint also provides value added content and services within
each channel, to differentiate the PayPoint proposition from those of its
competitors.
In our retail channels, differentiation is achieved through providing retailers
with a broad range of retail services, including ATMs, parcels, SIM cards and
international money transfer through Western Union®.
In the internet channel, differentiation to merchants is driven through a
widening base of acquiring bank relationships and payment types, together with
the quality of our fraud screening and reporting.
Our mobile channel, delivered through PayByPhone, will similarly drive
differentiation through its ability to leverage our cash retail payment
capability and internet payment services, combined with improving the consumer
experience with appropriate smart phone applications.
The extension of our geographic reach is progressing.
Growth and prospects:
Technology
We use technology to drive value through the introduction of new payment types
and related services. Â These, in turn, add new revenue opportunities to our
proven recurring payment methods.
In our UK retail network, we are rolling out a new virtual terminal to multiple
retailers - a software variant of our terminal which is integrated into the
retailers' till systems, in conjunction with a bespoke PayPoint plug-in reader
to provide the full functionality of the physical terminal more efficiently and
at lower cost. In store, this allows our service to be available at every check-
out lane and eliminates the need for reconciliation with the main till system.
As we free UK network terminals, we will deploy them in Romania.
An increasing number of our terminals are being connected through broadband
connectivity rather than dial-up, dramatically improving the speed of online
transactions.
In Romania and the UK, a development to enable money transfer on our terminal
will eliminate the expense and complication of a separate personal computer,
significantly reducing the entry cost for retailers and expanding the
eligibility criteria for the service. Development work for cash out services
will make our retailer settlement systems more streamlined and allow the cash
balances we generate through bill payment to be recycled back to consumers,
saving retailers bank charges and increasing in-store spend.
In the internet channel, we are developing substantial improvements to our
services to online merchants. These include new transaction optimisation, an
advanced management and reporting solution, a PCI compliance offering and
additional payment methods, which should provide significant competitive
advantage.
PayByPhone is introducing a new, consumer friendly mobile web parking
registration and payment system and has utilised one of the group's data centres
as a back-up for business continuity.
UK retail network
We are focussed on selling retail services to our retail networks. Â Net revenues
from these services have increased 25% in the year. Â These services include
parcels, ATMs, SIM cards, debit and credit card acceptance, receipt advertising
and money transfer. Â Our retail network in the UK has provided energy clients
with a service to rebate cash to consumers, which reverses the traditional flow
of money in our retailers. Â We are currently negotiating the contract following
our success in winning the DWP's tender for a service to replace giro cheque
benefits which provides us with a scale opportunity to extend cash out.
Romanian retail network
Increasing bill payment volumes have continued to provide growth in Romania and
we will launch money transfer services this year. Â In addition, we are adding
new sites to cover more neighbourhoods and optimising existing sites to improve
their profitability. Â This business should break even in the current year.
Internet
Alongside the introduction of new systems referred to above, we expect to sign
up further new merchants and to benefit from the introduction of new card scheme
sponsors, including HSBC International for 38 countries and BNP for France,
driving growth in profits. These activities will increasingly position
PayPoint.net as an international provider and will add profitable growth.
PayByPhone
PayByPhone, one of the worldwide leaders in mobile phone parking, has the
potential to replace traditional parking meters in many major cities around the
world. We have added significant sales and development resources and we are
currently tendering to several large parking authorities as well as a large
number of smaller opportunities in the UK, France and North America. Sales lead
times are extended in this market, but our momentum is encouraging. Â We have
spent more heavily than anticipated and a further loss will result in the
current year. We expect it to turn to profit in the year ending March 2013.
Collect+
Our parcels joint venture (50:50) with Yodel has progressed strongly, with
substantial endorsement from the online retailing community and resulting growth
in transaction volumes. Â We expect them to grow further this year as we sign
more home shopping clients for returns and deliveries. Â A recently introduced
consumer to consumer service is being extended to smaller packets and is
expected to grow significantly this year, as we target online traders. This
joint venture processes around two million transactions per annum (based on
transaction volumes in March 2011) and is making good progress towards its
breakeven volume of 6-8 million parcels, which we expect to reach in the year
ending March 2013.
Our plans for the current year
We will continue to make further progress in the four elements of our strategy
to increase shareholder value: more payment/channel options, specialism in
vertical markets, value added services and geographic reach. We plan to make
good progress in both the established and developing business streams, notably
through continuing growth in retail services and internet payments, by turning
the Romanian retail network profitable through an increase in bill payment
market share, and by adding new customers in Collect+ and PayByPhone.
We are increasingly benefiting from the synergy between our various business
streams, with more clients taking multi-channel services. We aim to push this
dynamic more strongly over time, as newer business areas bed in and system
platforms can be developed across the group. We are strengthening the management
in our UK retail network to ensure senior management attention is directed
proportionately to the developing business streams.
PayPoint is one of the best placed companies to make further gains in the fast
moving payment industry and has a market leading position in retail services, on
which we intend to build.
Dominic Taylor
26 May 2011
KEY PERFORMANCE INDICATORS
In order to realise its strategic aims, PayPoint has identified areas of
strategic focus and has put in place a number of KPIs to measure progress
against them. Whilst these KPIs are helpful in measuring the group's
performance, they are not exhaustive and the group uses many other measures to
monitor progress.
Measuring our performance
+-----------------+-----------------+-----------------+------------+-----------+
|Strategic |KPI |Description | 2011| 2010|
|focus | | | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Shareholder |Earnings per |Profit after tax| 35.2p| 32.9p|
|return |share (basic) |attributable to| | |
| | |equity holders of| | |
| | |the parent| | |
| | |divided by the| | |
| | |weighted average| | |
| | |number of| | |
| | |ordinary shares| | |
| | |in issue during| | |
| | |the year. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â | Â | Â |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Dividends per |Proposed final| 23.4p| 21.8p|
| |share |dividend and| | |
| | |interim dividend| | |
| | |divided by the| | |
| | |number of fully| | |
| | |paid shares at| | |
| | |the end of the| | |
| | |year. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â | Â | Â |
+-----------------+-----------------+-----------------+------------+-----------+
| |Economic profit |Operating profit| £17.4| £18.5|
| | |after tax and a| Â million| million|
| | |charge for| | |
| | |capital employed| | |
| | |based upon the| | |
| | |group's cost of| | |
| | |capital. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â | Â | Â |
+-----------------+-----------------+-----------------+------------+-----------+
|Growth |Retail networks |Number of| 517 million|507 million|
| |transactions |PayPoint | | |
| | |transactions | | |
| | |processed in the| | |
| | |year on our| | |
| | |terminals, ATMs| | |
| | |and on our| | |
| | |retailers' EPoS| | |
| | |systems. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â | Â | Â |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Internet |Number of| 59 million| 44 million|
| |transactions |transactions | | |
| | |processed in the| | |
| | |year by| | |
| | |PayPoint.net. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â | Â | Â |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |PayByPhone |Number of| 14 million| 1 million|
| | |PayByPhone | | |
| | |transactions | | |
| | |processed in the| | |
| | |year (2010: since| | |
| | |acquisition). | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â | Â | Â |
+-----------------+-----------------+-----------------+------------+-----------+
| |Transaction value|The value of| £10.6| £9.7|
| | |transactions | billion| billion|
| | |processed via our| | |
| | |terminals, | | |
| | |retailers' EPoS| | |
| | |systems, internet| | |
| | |merchants, ATMs,| | |
| | |PayByPhone and| | |
| | |the sale of other| | |
| | |retail services. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â | Â | Â |
+-----------------+-----------------+-----------------+------------+-----------+
| |Net revenue |Revenue less the| £83 million|£77 million|
| | |cost of mobile| | |
| | |top-ups and SIM| | |
| | |cards where| | |
| | |PayPoint is| | |
| | |principal and| | |
| | |costs incurred by| | |
| | |PayPoint which| | |
| | |are recharged to| | |
| | |clients and| | |
| | |merchants. These| | |
| | |costs include| | |
| | |retail agent| | |
| | |commission, | | |
| | |merchant service| | |
| | |charges levied by| | |
| | |card scheme| | |
| | |sponsors and| | |
| | |costs for the| | |
| | |provision of call| | |
| | |centres for| | |
| | |PayByPhone | | |
| | |clients. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â | Â | Â |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Operating margin |Operating profit| 42%| 42%|
| | |including our| | |
| | |share of joint| | |
| | |venture losses as| | |
| | |a percentage of| | |
| | |net revenue. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â |Â |Â |
+-----------------+-----------------+-----------------+------------+-----------+
|Asset |Return on capital|Total operating| 53%| 88%|
|optimisation |employed |profit for the| | |
| | |year divided by| | |
| | |monthly average| | |
| | |capital employed| | |
| | |excluding cash. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |Â |Â |Â |
+-----------------+-----------------+-----------------+------------+-----------+
|People |Labour turnover |Number of| Â | Â |
| | |permanent | | |
| | |employees who| | |
| | |left during the| | |
| | |year divided by| | |
| | |average total| | |
| | |permanent | | |
| | |employees. | | |
+-----------------+-----------------+-----------------+------------+-----------+
|Â |Â |UK & Ireland | 25%| 20%|
| | | | | |
| | |Rest of the world| 18%| 49%|
+-----------------+-----------------+-----------------+------------+-----------+
BUSINESS REVIEW
The business review has been prepared solely to provide additional information
to shareholders as a body to assess PayPoint's strategies and their potential to
succeed. It should not be relied upon for any other purpose. It contains forward
looking statements that have been made by the directors in good faith, based on
the information available at the time of approval of the annual report and such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such forward
looking information.
Our key performance indicators are shown on page 5.
PayPoint is a payment service provider for consumer and business payment
transactions and, as such, has only one operating segment. However, reflection
on various facets helps explanation of the execution of our strategy in
developing the group and, accordingly, in addition to the analysis of the number
and value of transactions, revenue and net revenue, we have shown an analysis
which separates our developing business streams (bill payment and top-ups in
Romania, Collect+ and PayByPhone), from our established business streams (the UK
and Irish retail networks and internet channel).
In addition, we have analysed our results by channel as follows:
Retail networks:
Bill and general (prepaid energy, bills and tickets)
Top-ups (mobile, pre-paid cards and phone cards)
Retail services (ATM, debit/credit, parcels, money transfer, SIMs and receipt
advertising)
Internet (transactions between consumers and merchants,
pre-authorisations and Fraudguard, where separately charged)
PayByPhone (parking and bicycle rental transactions)
Other for revenue and net revenue only (software development, configuration and
customisation and settlement of claims)
Growth opportunities include retail services in the UK retail network; new
merchants for internet payments; the expansion of the retail network and new
retail services in Romania; new parking contracts and driving consumer adoption
for PayByPhone and building and developing Collect+.
OPERATING REVIEW
Transactions have increased to 590 million (2010: 552 million), up 4% in the
established business streams and 155% in the developing business streams.
Transaction value increased to £10.6 billion (2010: £9.7 billion), up 8% in the
established business streams and up 123% in the developing business streams,
including the impact of PayByPhone for a whole year and the reduction in mobile
top-ups in Romania.
Revenue in developing business streams was up 7% as a result of a full year
trading of PayByPhone, offset by a 19% decrease in mobile revenue in Romania.
Established business stream revenue was down 2% as a result of the reduction in
mobile top-ups and the change of card scheme sponsor, where merchant service
charges are no longer included in revenue as they are now charged direct to
merchants.
Net revenue in the developing business streams was up 119%, with strong growth
in Romanian bill payment and Collect+ and as a consequence of the inclusion of
PayByPhone. Established business stream net revenue was up 3%, held back by the
decline in mobile volumes.
Operating profit in the established business streams was £38.4 million (2010:
£36.2 million) and the operating loss, including our share of Collect+, in the
developing business streams was £3.9 million (2010: £3.8 million), an increase
of £0.1 million. The small increase in the loss in developing businesses is as a
result of a better performance in Romania offsetting the impact of the inclusion
of the PayByPhone business, which was loss making in the year, as expected.
Established Developing
business business Adjust
 streams(1) streams(2) Total Collect+(3) As reported
--------------------------------------------------------------------------------
Transactions
million
2011 559 31 590 - 590
2010 540 12 552 - 552
--------------------------------------------------------------------------------
Transaction value
£million
2011 10,316 285 10,601 - 10,601
2010 9,560 128 9,688 - 9,688
--------------------------------------------------------------------------------
Revenue
£000
2011 167,700 26,535 194,235 (1,002) 193,233
2010 171,933 24,875 196,808 (205) 196,603
--------------------------------------------------------------------------------
Net revenue(4)
£000
2011 76,811 6,539 83,350 (627) 82,723
2010 74,589 2,981 77,570 (164) 77,406
--------------------------------------------------------------------------------
(1) Established business streams include the UK and Irish retail networks and
the internet payment channel
     (2) Developing business streams includes Romania, PayByPhone and for
Collect+, revenue and net revenue only.
     (3) Collect+ revenue and net revenue is included in developing
business stream's revenue and net revenue, but as Collect+ is reported in the
Consolidated Income
       Statement on a profit before tax only basis, revenue and net
revenue needs to be eliminated to reconcile to reported revenue and net revenue.
    (4) Net revenue is revenue less the cost of mobile top-ups and SIM cards
where PayPoint is principal and costs incurred by PayPoint which are recharged
to clients and    merchants. These costs include retail agent commission,
merchant service charges levied by card scheme sponsors and costs for the
provision of call centres for PayByPhone clients.
Analysis of transactions
There has been growth in transaction volumes across most services, with the
exception of mobile top-ups where, in all territories, there has been a
decrease.. Mobile operators are offering more value for the same or lower cost
per top-up to consumers, resulting in fewer transactions and, in the UK in
particular, mobile operators promote monthly contracts over prepay thereby
migrating prepaid consumers to contracts.
Year Year
ended ended Increase /
 27 March 28 March (decrease)
2011 2010 %
million million
-------------------------------------------------------
Retail networks
 Bill and general 350,970 339,801 3.3
 Top-ups 117,670 128,887 (8.7)
 Retail services 48,425 38,901 24.5
Internet payments 58,544 43,536 34.5
PayByPhone 14,059 762 n/a
-------------------------------------------------------
Total 589,668 551,887 6.8
-------------------------------------------------------
Prepaid energy volumes (included in bill and general) in the UK have increased
by 4% on last year. The cold weather before Christmas and increases in domestic
energy tariffs have helped volumes in the second half of the year.
Bill payments in Romania have continued to grow as more terminal sites are
rolled out and consumers become aware of the service. In the year, we have
processed over 12 million bill payment transactions, an increase of 118% on the
previous year and our run rate, based on transactions in March 2011, is c.16
million transactions per annum.
Mobile top-ups in UK, Ireland and Romania were down 10% overall, against an 11%
decline this time last year. E-money volumes, which are included in top-ups,
were up 21% to 4 million.
Retail service transaction volumes have increased across all products, ATMs,
debit/credit, parcels, money transfer and SIMs. Debit/credit card transactions
are up more than 30% on last year. We have sold almost 700,000 SIMs in the year
(2010: 300,000). Parcel volumes continue to grow and have increased over four
times on last year to just over 1 million transactions.
Internet transactions of 59 million were up 34% on last year as we continued to
add new merchants and existing merchants grew organically. New merchants in the
last 12 months include Stan James, 32Red, Sportingbet, Funky Pigeon and Links of
London.
PayByPhone transactions are for a full year compared to 19 days last year.
 Towards the end of the year, PayByPhone saw the number of tenders issued by
councils and parking authorities increase as they looked for a more cost
effective method for collecting parking charges.
During the year, we produced 70 million receipts (2010: 10 million) containing
an advertising message. These are not counted as additional transactions.
Transaction value
There has been substantial growth in the value paid by consumers (transaction
value), primarily in bill and general payments, internet payments and
PayByPhone.
Year Year
ended ended Increase/
 27 March 28 March (decrease)
2011 2010 %
£000 £000
----------------------------------------------------------
Retail networks
 Bill and general 6,198,171 5,925,249 4.6
 Top-ups 1,114,809 1,166,507 (4.4)
 Retail services 394,727 377,271 4.6
Internet payments 2,838,147 2,216,319 28.1
PayByPhone 55,020 3,077 n/a
----------------------------------------------------------
Total 10,600,874 9,688,423 9.4
----------------------------------------------------------
Growth in bill and general transaction value reflected the increase in
transactions and in their average value. There continues to be strong growth in
higher value transactions for local authority and housing authority payments and
a small rise in the average value for energy prepayments.
The reduction in top-ups transaction value reflected the overall decline in the
pre-pay mobile market. An increase in e-money transaction value off-set the
overall reduction and average transaction values were up 5%.
Retail services transaction value is relatively small as SIM sales have low
value and debit/credit transactions (where the merchant acquirer settles direct
with our retailer), parcel transactions and terminal advertising have no
associated transaction value.
Internet transaction value has increased by 28% but transactions have a lower
average value of £48.47 (2010: £50.91). Part of the decline in average value was
due to over 1 million energy pre-payment gas and electricity transactions, where
consumers topped-up via the internet at home, at lower values. The signing of
three large gaming merchants during the year also reduced the average
transaction value as gaming tends to be at lower transaction value than other
sectors.
PayByPhone value reflects a full year of the value of consumers' parking
transactions and bicycle rentals against a period of 19 days from the
acquisition of the business in the prior period.
Revenue analysis
Year Year
ended ended
 27 March 28 March Increase/
2011 2010 (decrease)
£000 £000 %
-------------------------------------------------------
Retail networks
 Bill and general 57,889 58,564 (1.2)
 Top-ups 98,843 108,508 (8.9)
 Retail services 19,602 16,168 21.2
Internet payments 8,939 9,968 (10.3)
PayByPhone 4,501 283 n/a
Other 3,459 3,112 11.1
-------------------------------------------------------
Total 193,233 196,603 (1.7)
-------------------------------------------------------
Bill and general payments revenue was slightly lower than last year, as some
clients elected to work on a more exclusive basis to secure lower commission
rates for more volume.
In Romania and Ireland, PayPoint acts as principal for mobile phone top-ups and,
as a result, the sales value of the top-up is recorded as revenue, with the
purchase cost of the top-up recorded in cost of sales. In the UK, PayPoint acts
as an agent and only the commission income is recorded as revenue. The decline
in mobile volumes, therefore, affects revenue arising in Romania and Ireland
more than in the UK.
Retail services revenue increased strongly across several products as a result
of growth in the number of sites processing credit and debit transactions to
5,948 at the year end (2010: 4,998); growth in revenues from parcels; a full
year of SIM card sales; advertising on till receipts; and money transfer.
Retail services also include ATMs, where revenue is derived from cash
withdrawals, balance enquiries and rental income. Whilst ATM revenue has grown,
the average revenue per ATM decreased as a consequence of lower cash withdrawal
revenues on more recently installed ATMs and lower rental income, as five year
term rental agreements expire and fully depreciated machines are rolled over on
lower rentals.
Internet payment revenues were lower because merchant service charges, which
were formerly included in revenue and cost of sales, were £nil this period
(2010: £2.5 million), as a consequence of a change in card scheme sponsor.
PayByPhone revenues of £4.5 million were for the full year compared to only 19
days last year and included costs that are recharged to clients for the
provision of call centres.
Other revenue includes rechargeable software development work, configuration and
customisation, early settlement and claims.
Net revenue analysis
Net revenue is revenue less retail agent commission, merchant service charges
levied by card scheme sponsors, costs of SIM card stock, recharges for the
provision of call centres for PayByPhone clients and the purchase value of
Romanian and Irish mobile top-ups for which we act as principal.
Net revenue is a measure which the directors believe assists with a better
understanding of the underlying performance of the group and is shown in the
table below.
Year Year
ended ended
 27 March 28 March Increase /
2011 2010 (decrease)
£000 £000 %
-------------------------------------------------------
Retail networks
 Bill and general 33,806 33,586 0.6
 Top-ups 22,683 24,272 (6.5)
 Retail services 10,827 8,684 24.7
Internet payments 8,939 7,469 19.7
PayByPhone 3,009 283 n/a
Other 3,459 3,112 11.1
-------------------------------------------------------
Total 82,723 77,406 6.9
-------------------------------------------------------
Bill and general net revenue increased mainly as a result of the growth in
Romanian bill payment net revenue, which was up 94% on last year.
The decrease in top-ups net revenue was lower than the decrease in revenue as a
result of the growth in e-money transactions, which have higher than average net
revenue.
Retail services net revenue has a greater percentage increase than revenue as
there is no commission payable on some services, including debit and credit card
transactions.
Internet net revenue was up 20%, primarily as a result of the increase in
transaction volumes and value and the better margins from our new card scheme
sponsor. Net revenue is the same as revenue as a result of merchant service
charges now being charged directly to our bureau merchants by the card scheme
sponsor.
Collect+
During the year, we processed over 1 million transactions for 30 clients (2010:
0.2 million transactions for 13 clients). Transaction volumes continue to grow
and our annual run rate, based on March 2011, is now over 2 million
transactions. In the year, we added a store to home delivery service, where
customers can take a parcel to a Collect+ store and have it delivered to the
recipient's home address. More recently, we launched a packet delivery service
for parcels less than 2kg in weight.
Network growth
Terminal sites overall have increased by 7% to 29,508.
In the UK and Ireland, sites have increased by 870, an increase of 4%. During
the second half of the year, we introduced our new EPoS integrated solution to
multiple retailers, which combines a virtual terminal through software in the
retailer's till system with plug in reader to provide full functionality at
lower costs. As well as enhancing our service to multiple retailers, this frees
terminals for use in Romania. Â We expect to roll this out further.
In Romania, we installed over 1,100 net new full service terminals in the year
and have removed all the remaining old mobile top-up only terminals.
In our internet channel, we added over 1,400 new merchants during the year but
churn of low value merchants, in particular from the change of credit card
scheme sponsor at the start of the year, led to a net reduction of 405
merchants. Since the half year, the merchant estate has grown by a net 201
merchants. Despite the decrease in merchant numbers, transaction volume, value
and net revenue all increased.
We continued to add more Collect+ sites as transaction volumes increased and as
retailers recognised the benefits of offering this service.
  Increase/
Analysis of  sites 27 March 28 March (decrease) %
 2011  2010
------------------------------------------------------------------
UK & Ireland terminal sites 23,513 22,643 3.8
Romania terminal sites 5,995 4,816 24.5
------------------------------------------------------------------
Total terminal sites 29,508 27,459 7.5
Internet merchants 5,213 5,618 (7.2)
Collect+ sites 3,668 3,418 7.3
------------------------------------------------------------------
FINANCIAL REVIEW
Income statement
Revenue for the year was 1.7% lower at £193 million (2010: £197 million). The
reduction results from a decrease in mobile top-ups and from the impact of
merchant service charges on card transactions being charged direct to merchants
rather than through PayPoint.net. This revenue reduction is also reflected in
cost of sales which, at £122 million (2010: £133 million), was down 8.2%.
Agents' commission decreased to £71 million (2010: £73 million) due to fewer
mobile top-up transactions, which pay a higher than average commission, and
reductions in the amount paid for commission by the mobile operators. The cost
of mobile top-ups in Ireland and Romania(1) has fallen to £39 million (2010: £44
million).
Net revenue(2) of £83 million (2010: £77 million) was up 6.9%.
Operating costs (administrative expenses) were 17.7% higher at £35 million
(2010: £29 million) as a result of the inclusion of a whole year's worth of
trading of PayByPhone. Excluding PayByPhone, operating costs were up 5.4%.
The increase in operating costs resulted in part from the one-off costs
including the legal costs, of successfully defending against Camelot's bid to
provide services in bill and general payments, mobile top-ups and debit/credit
processing.
Operating margin(3) was flat at 42% as a consequence of the increase in
operating costs.
(1) In Ireland and Romania, PayPoint is principal in the sale of mobile top-ups
and, accordingly, the face value of the top-up is included in sales and the
corresponding costs in cost of sales.
(2) Net revenue is revenue less the cost of mobile top-ups and SIM cards where
PayPoint is principal and costs incurred by PayPoint which are recharged to
clients and merchants. These costs include retail agent commission, merchant
service charges levied by card scheme sponsors and costs for the provision of
call centres for PayByPhone clients.
(3) Operating margin is calculated as operating profit, including our share of
Collect+ losses, as a percentage of net revenue.
Our share of the loss in developing Collect+ was £1.5 million as expected (2010:
loss of £1.6 million).
Profit before tax was £34.5 million (2010: £32.6 million) an increase of 5.5%.
The tax charge of £10.6 million (2010: £10.5 million) represents an effective
rate of 30.8% (2010: 32.2%). The tax charge was higher than the UK nominal rate
of 28% because of unrelieved losses in Romania and Canada and the write off of
the deferred tax asset relating to tax relief for share based payments.
Balance sheet
The short-term borrowing of £6 million was repaid in full in March.
Cash flow
Cash generated by operations was £42.2 million (2010: £38.7 million), reflecting
strong conversion of profit to cash. Corporation tax of £11.0 million (2010:
£13.7 million) was paid. Capital expenditure of £3.2 million (2010: £2.7
million) reflected spend on new terminals, ATMs and IT equipment. Net interest
paid was £0.1 million (2010: £0.2 million receipt) as a result of the loan that
was drawn down at the end of last year. Equity dividends paid were £15.0 million
(2010: £12.9 million). During the year the company repaid the £6 million loan.
Cash and cash equivalents were £26.5 million (including client cash of £6.1
million) up from £20.8 million (including client cash of £6.8 million but
excluding the bank loan of £6 million).
Economic profit
PayPoint's economic profit (operating profit less tax and capital charge) was
£17.4 million (2010: £18.5 million), lower than last year because of the
acquisition of PayByPhone, which is loss making as expected.
Dividend
We propose to pay a final dividend of 15.6p per share on 22 July 2011 (2010:
14.4p) to shareholders on the register on 24 June 2011, subject to the approval
of the shareholders at the annual general meeting. An interim dividend of 7.8p
(2010: 7.4p) per share was paid on 21 December 2010, making a total dividend for
the year of 23.4p (2010: 21.8p) up 7.3%, broadly in line with earnings.
Liquidity and going concern
The group has cash of £26.5 million (including client cash of £6.1 million) and
had, at the year end, an unsecured loan facility of £35 million, which was due
to expire in August 2011. A new replacement £35 million, five year facility has
been agreed with our bankers since the year end. Cash and borrowing capacity is
adequate to meet the foreseeable needs of the group, taking account of any risks
(page 15). The financial statements have therefore been prepared on a going
concern basis.
Financing and treasury policy
The financing and treasury policy requires a prudent approach to the investment
of surplus funds, external financing, settlement, foreign exchange risk and
internal control structures. The policy prohibits the use of financial
derivatives and sets limits for gearing.
Charitable donations
During the year, the group made charitable donations of £19,400 (2010: £15,000)
to charities serving the communities in which the group operates. We encourage
employees to raise funds for charity and the company matches funds raised by the
employees, subject to certain limits.
During the year, we collected money for the Disasters Emergency Committee (DEC)
for the Pakistan flood appeal and for the BBC's Children in Need telethon.
Employees
Our success depends upon the continuing support and commitment of all our staff.
 We would like to take this opportunity to thank PayPoint's employees for their
commitment, energy and enthusiasm in the delivery of these results.
Strategy and risks
Details of the company's strategy is included in the Chief Executive's review on
page 3. The company's analysis of risks facing the company is set out in
separate statements on pages 15 and 16.
Economic climate
The company's bill and general payments sector, which accounts for 41% (2010:
43%) of our net revenue, has continued to be resilient, as consumers' discretion
in expenditure is limited for essential services and our service continues to be
popular. Utility providers continue to install new prepay gas and electricity
meters, which will have a beneficial impact on our transaction volumes. The
internet payment market continues to grow substantially. There has been an
adverse impact on our mobile top-ups as mobile operators continue to offer more
airtime at lower cost and to promote prepay less than contract. PayByPhone is
able to offer parking authorities a more cost effective collection system for
parking compared to pay and display machines. This has led to an increase in the
number of tenders being issued as parking authorities try to reduce their costs.
PayPoint's exposure to retail agent debt is limited as credit granted to retail
agents is restricted by daily direct debiting for all UK and Irish transactions,
other than EPoS mobile top-ups (which are collected weekly). Â There is some
concentration of risk in multiple retail agents. Â Most of PayPoint's clients in
the UK, other than mobile operators, bear the cost of retail agent bad debt. Â In
PayPoint Romania, the risk of bad debt lies with the company. Â In PayPoint.net,
exposure is limited to receivables from merchants for fees, except in the case
of bureau internet merchants, where PayPoint.net retains credit risk on merchant
default for credit card charge backs, mitigated by cash retention. In
PayByPhone, exposure is limited to receivables from parking authorities.
National Lottery Commission
On the 2 March 2011, following a lengthy process, the National Lottery
Commission refused consent for Camelot's application to provide ancillary
services, including bill payment and mobile top-ups, on competition law grounds.
Outlook
For the current financial year, trading is in line with the company's
expectations. Our established business streams (UK and Irish retail networks and
internet payments) are strong, with further opportunities to enhance retail
yield, through the introduction of new technology and services. In addition,
improvements in our service offering to online merchants will provide
opportunities for growth. We will benefit from rolling out services in our
developing business streams (Collect+, PayByPhone and Romanian retail network),
growing our market share and improving profitability. Together, our businesses
provide a solid foundation to deliver value for our shareholders.
RISKS
PayPoint's business, financial condition or operations could be materially and
adversely affected by the risks summarised below. Although management takes
steps to mitigate risks where possible or where the cost of doing so is
reasonable in relation to the probability and seriousness of the risk, it may
not be possible to avoid the crystallisation of some or all of such risks.
+-------------------------+-------------------------+--------------------------+
|Risk area |Potential impact |Mitigation strategies |
+-------------------------+-------------------------+--------------------------+
|Â |Â |Â |
|Loss or inappropriate |The group's business|The group has established|
|usage of data |requires the appropriate|rigorous information|
|Â |and secure use of|security policies,|
| |consumer and other|standards, procedures, and|
| |sensitive information.|recruitment and training|
| |Mobile telephone and|schemes, which are|
| |internet-based electronic|embedded throughout its|
| |commerce requires the|business operations. The|
| |secure transmission of|group also screens new|
| |confidential information|employees carefully.|
| |over public networks, and|Continued investments are|
| |several of our products|made in IT security|
| |are accessed through the|infrastructure, including|
| |internet. Security|the significant use of|
| |breaches in connection|data and communications|
| |with maintaining data and|encryption technology. |
| |the delivery of our|Â |
| |products and services| |
| |could harm our| |
| |reputation, business and| |
| |operating results. | |
+-------------------------+-------------------------+--------------------------+
|Â |Â |Â |
+-------------------------+-------------------------+--------------------------+
|Dependence upon third |The group's business|The group selects and|
|parties to provide data |model is dependent upon|negotiates agreements with|
|and certain operational |third parties to provide|strategic suppliers based|
|services |operational services, the|on criteria such as|
| |loss of which could|delivery assurance and|
| |significantly impact the|reliability. Â Single|
| |quality of our services.|points of failure are|
| |Similarly, if one of our|avoided, where practicable|
| |outsource providers,|and economically feasible.|
| |including third parties|Â |
| |with whom we have| |
| |strategic relationships,| |
| |were to experience| |
| |financial or operational| |
| |difficulties, their| |
| |services to us would| |
| |suffer or they may no| |
| |longer be able to provide| |
| |services to us at all,| |
| |significantly impacting| |
| |delivery of our products| |
| |or services. | |
+-------------------------+-------------------------+--------------------------+
|Â |Â |Â |
+-------------------------+-------------------------+--------------------------+
|Exposure to legislation |The group is largely|The group's legal|
|or regulatory reforms and|unregulated by financial|department works closely|
|risk of non-compliance |services regulators. The|with senior management to|
| |group's agents which|adopt strategies to|
| |offer money transfer are|educate lawmakers,|
| |licensed as Money Service|regulators, consumer and|
| |Businesses by HMRC. Our|privacy advocates, and|
| |internet and mobile phone|other stakeholders to|
| |distribution channels are|support the public policy|
| |subject to Payment Card|debate, where appropriate|
| |Industry Data Security|to ensure regulation does|
| |Standards regulated by|not have unintended|
| |the card schemes.|consequences over the|
| |Regulatory reform could|group's services. The|
| |increase the cost of the|group has in place a|
| |group's operations or|business ethics policy|
| |deny access to certain|which requires compliance|
| |territories in the|with local legislation in|
| |provision of certain|all the territories in|
| |services. Â Non-compliance|which the group operates.|
| |with law, regulation,|Â A central compliance|
| |privacy or information|department co-ordinates|
| |security laws could have|all compliance monitoring|
| |serious implications in|and reporting. Managing|
| |cost and reputational|and finance directors are|
| |damage to the group. |required to sign annual|
| | |compliance statements. |
+-------------------------+-------------------------+--------------------------+
|Â |Â |Â |
+-------------------------+-------------------------+--------------------------+
|Interruptions in business|The group's ability to|Comprehensive business|
|processes or systems |provide reliable services|continuity plans and|
| |largely depends on the|incident management|
| |efficient and|programmes are maintained|
| |uninterrupted operation|to minimise business and|
| |of our computer network|operational disruptions,|
| |systems, data and call|including pandemic|
| |centres, as well as|incidents. The group|
| |maintaining sufficient|maintains full duplication|
| |staffing levels. System|of all information|
| |or network interruptions,|contained in databases and|
| |or the unavailability of|runs back-up data centres.|
| |key staff or management|Support arrangements have|
| |resulting from a pandemic|been established with|
| |outbreak, could delay and|third party vendors and|
| |disrupt our ability to|there are strict|
| |develop, deliver or|standards, procedures and|
| |maintain our products and|training schemes for|
| |services, causing harm to|business continuity. |
| |our business and| |
| |reputation and resulting| |
| |in loss of customers or| |
| |revenue. | |
+-------------------------+-------------------------+--------------------------+
|Â |Â |Â |
+-------------------------+-------------------------+--------------------------+
|Dependence on recruitment|The ability of the group|Effective recruitment|
|and retention of highly |to meet the demands of|programmes are ongoing|
|skilled personnel |the market and compete|across all business areas,|
| |effectively is, to a|as well as personal and|
| |large extent, dependent|career development|
| |on the skills, experience|initiatives. The executive|
| |and performance of its|management reviews talent|
| |personnel. Demand is high|potential at quarterly|
| |for individuals with|meetings. Compensation and|
| |appropriate knowledge and|benefits programmes are|
| |experience in payments,|competitive and also|
| |IT and support services.|reviewed regularly. |
| |The inability to attract,|Â |
| |motivate or retain key|Â |
| |talent could have a|Â |
| |serious consequence on|Â |
| |the group's ability to| |
| |service client| |
| |commitments and grow our| |
| |business. | |
+-------------------------+-------------------------+--------------------------+
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
|Â |Â |Â |
|Â |Â |Â |
|Â |Â |Â |
|Risk area |Â |Â |
| |Potential impact |Mitigation strategies |
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
|Exposure to materially |The group contracts with|The group seeks to limit|
|adverse litigation |a number of large service|exposure in its|
| |organisations for which|contracts. Â Mitigating|
| |it provides services|actions are taken where|
| |essential to their|contractual exposures are|
| |customers. Â Failure to|above the norm, including|
| |perform in accordance|insurance coverage, where|
| |with contractual terms|appropriate and|
| |could give rise to|economically sustainable.|
| |litigation. | |
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
+--------------------------+-------------------------+-------------------------+
|Exposure to country and|The group's geographic|The group's portfolio is|
|regional risk (political,|footprint subjects its|diversified by geography,|
|financial, economic,|businesses to economic,|by product, by sector and|
|social) in North America,|political and other risks|by client in order to|
|United Kingdom, Romania,|associated with|protect itself against|
|France and Ireland |international sales and|many of these|
| |operations. A variety of|fluctuations, especially|
| |factors, including|those that are restricted|
| |changes in a specific|to individual territories|
| |country's or region's|and market sectors,|
| |political, economic or|although the bulk of its|
| |regulatory requirements,|operations and revenues|
| |as well as the potential|are UK based. |
| |for geopolitical turmoil,| |
| |including terrorism and| |
| |war, could result in loss| |
| |of services, prevent our| |
| |ability to respond to| |
| |agreed service levels or| |
| |fulfil other obligations.| |
| |These risks are generally| |
| |outside the control of| |
| |the group. | |
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
+--------------------------+-------------------------+-------------------------+
|Exposure to consolidation|Consolidation of|No single client accounts|
|among clients and markets |retailers and clients|for more than 9% of the|
| |could result in|group's net revenue, and|
| |reductions in the group's|no single retailer|
| |revenue and profits|accounts for more than|
| |through price compression|8% of the group's net|
| |from combined service|revenue, which reduces|
| |agreements or through a|the probability of this|
| |reduced number of|potential risk having a|
| |clients. |significant impact on the|
| | |group's business. In|
| | |addition, the group|
| | |continues to expand in|
| | |its developing|
| | |businesses, and in cash|
| | |out (reversing the flow|
| | |of money through its|
| | |retail networks). |
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
+--------------------------+-------------------------+-------------------------+
|Acquisitions may not meet |The group's acquisitions,|The group assesses all|
|expectations |strategic alliances and|acquisitions rigorously,|
| |joint ventures may result|using both in-house|
| |in financial outcomes|experts and professional|
| |that are different than|advisers. In addition,|
| |expected. |the group conducts|
| | |extensive post-|
| | |acquisition reviews to|
| | |ensure, as far as it|
| | |possible, that|
| | |performance remains|
| | |consistent with the|
| | |acquisition business|
| | |plan. |
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
+--------------------------+-------------------------+-------------------------+
|Exposure to the |As the group operates on|The group's financial|
|unpredictability of |an international basis,|risk management focuses|
|financial markets (foreign|it is exposed to the risk|on the unpredictability|
|exchange, interest rate |of currency fluctuations|of financial markets and|
|and other financial risks)|and the unpredictability|seeks to minimise|
| |of financial markets in|potentially adverse|
| |which it operates. |effects on the group's|
| | |financial performance. |
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
+--------------------------+-------------------------+-------------------------+
|Exposure to increasing |The group operates in a|The group is committed to|
|competition |number of geographic,|continued research and|
| |product and service|investment in new data|
| |markets that are highly|sources, people,|
| |competitive and subject|technology and products|
| |to technological|to support its strategic|
| |developments. Competitors|plan. |
| |may develop products and| |
| |services that are| |
| |superior to ours or that| |
| |achieve greater market| |
| |acceptance than our| |
| |products and services,| |
| |which could result in the| |
| |loss of clients or| |
| |reduction in revenue. | |
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
+--------------------------+-------------------------+-------------------------+
|Loss or infringement of |The group's success|The group, where|
|intellectual property |depends, in part, upon|appropriate and feasible,|
|rights |proprietary technology|relies upon a combination|
| |and related intellectual|of patent, copyright,|
| |property rights. Some|trademark and trade|
| |protection can be|secret laws, as well as|
| |achieved but in many|various contractual|
| |cases, little protection|restrictions, to protect|
| |can be secured. Third|our proprietary|
| |parties may claim that|technology and continues|
| |the group is infringing|to monitor this|
| |their intellectual|situation. The group also|
| |property rights or our|vigorously defends all|
| |intellectual property|third party infringement|
| |rights could be infringed|claims. |
| |by third parties. If we| |
| |do not enforce the| |
| |group's intellectual| |
| |property rights| |
| |successfully, our| |
| |competitive position may| |
| |suffer, which could harm| |
| |our operating results. | |
+--------------------------+-------------------------+-------------------------+
|Â |Â |Â |
+--------------------------+-------------------------+-------------------------+
|Data centre security |The group is highly|The group's data centres|
|breaches |dependent on information|are protected against|
| |technology networks and|physical break-ins. The|
| |systems to process,|group has strict|
| |transmit and store|standards and procedures|
| |electronic information.|for security. |
| |Security breaches of our| |
| |data centres could create| |
| |system disruptions,| |
| |shutdowns or unauthorised| |
| |disclosure of| |
| |confidential information.| |
+--------------------------+-------------------------+-------------------------+
CONSOLIDATED INCOME STATEMENT
 Year Year
 ended ended
 Note 27 March 28 March
 2011 2010
 £000 £000
----------------------------------------------------------------
Continuing operations
Revenue 2 193,233 196,603
Cost of sales  (122,567) (133,110)
----------------------------------------------------------------
Gross profit  70,666 63,493
Administrative expenses  (34,614) (29,421)
----------------------------------------------------------------
Operating profit  36,052 34,072
Share of loss of joint venture  (1,541) (1,601)
Investment income  88 224
Finance costs  (143) (50)
----------------------------------------------------------------
Profit before tax  34,456 32,645
----------------------------------------------------------------
Tax 3 (10,614) (10,513)
----------------------------------------------------------------
Profit for the year 12 23,842 22,132
----------------------------------------------------------------
Attributable to:
Equity holders of the parent  23,883 22,132
Non-controlling interests  (41) -
----------------------------------------------------------------
  23,842 22,132
----------------------------------------------------------------
Earnings per share
Basic 5 35.2p 32.9p
Diluted 5 35.1p 32.7p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 Year Year
 ended ended
 Note 27 March 28 March
 2011 2010
 £000 £000
--------------------------------------------------------------------------------
Exchange differences on translation of foreign operations 12 (72) 35
--------------------------------------------------------------------------------
Net income recognised directly in equity  (72) 35
Profit for the year  23,842 22,132
--------------------------------------------------------------------------------
Total recognised income and expenses for the year  23,770 22,167
--------------------------------------------------------------------------------
Attributable to:
Equity holders of the parent  23,811 22,167
Non-controlling interests  (41) -
--------------------------------------------------------------------------------
  23,770 22,167
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
27 March 28 March
 Note 2011 2010
£000 £000
--------------------------------------------------------------------------------
Non current assets
Goodwill 6 57,133 56,872
Other intangible assets  1,329 1,400
Property, plant and equipment  14,520 14,767
Investment in joint venture 7 135 326
Deferred tax asset 8 1,116 1,167
Investments  435 405
--------------------------------------------------------------------------------
  74,668 74,937
--------------------------------------------------------------------------------
Current assets
Inventories  915 1,567
Trade and other receivables  17,103 23,482
Cash and cash equivalents 9 26,464 20,769
--------------------------------------------------------------------------------
  44,482 45,818
--------------------------------------------------------------------------------
Total assets  119,150 120,755
--------------------------------------------------------------------------------
Current liabilities
Trade and other payables  32,996 37,926
Current tax liabilities  5,287 5,684
Short-term borrowings 10 - 6,000
Obligations under finance leases  32 22
--------------------------------------------------------------------------------
  38,315 49,632
--------------------------------------------------------------------------------
Non-current liabilities
Other liabilities  240 379
--------------------------------------------------------------------------------
  240 379
--------------------------------------------------------------------------------
Total liabilities  38,555 50,011
--------------------------------------------------------------------------------
Net assets  80,595 70,744
--------------------------------------------------------------------------------
Equity
Share capital 12 226 226
Investment in own shares 12 (216) (370)
Share premium 12 25 25
Share based payment reserve 12 3,005 2,684
Translation reserve 12 471 543
Retained earnings 12 77,125 67,636
--------------------------------------------------------------------------------
Total equity attributable to equity holders of the parent  80,636 70,744
company
Non-controlling interest  (41) -
--------------------------------------------------------------------------------
Total equity  80,595 70,744
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year Year
ended ended
 Note 27 March 28 March
2011 2010
£000 £000
--------------------------------------------------------------------------------
Opening equity  70,744 60,967
Profit for the year  23,842 22,132
Dividends paid  (15,041) (12,856)
Movement in investment in own shares 12 154 556
Exchange differences on translation of foreign operations 12 (72) 35
Movement in share based payment reserve 12 321 195
Adjustment in share scheme vesting 12 647 (285)
--------------------------------------------------------------------------------
Closing equity  80,595 70,744
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
Year Year
ended ended
 Note 27 March 28 March
2011 2010
£000 £000
------------------------------------------------------------------------------
Net cash flow from operating activities 14 31,137 24,986
------------------------------------------------------------------------------
Investing activities
Investment income  70 224
Purchases of property, plant and equipment  (3,160) (2,700)
Proceeds from disposal of property, plant and equipment  61 93
Acquisition of subsidiaries 11 - (28,942)
Investment  (30) (30)
Purchase of own shares 12 - (490)
Loan to joint venture 7 (1,350) (1,750)
------------------------------------------------------------------------------
Net cash used in investing activities  (4,409) (33,595)
------------------------------------------------------------------------------
Financing activities
Repayments of obligations under finance leases  (22) (8)
Dividends paid 4 (15,041) (12,856)
(Repayment) / receipt of short-term borrowings 10 (6,000) 6,000
------------------------------------------------------------------------------
Net cash used in financing activities  (21,063) (6,864)
------------------------------------------------------------------------------
Net increase / (decrease) in cash and cash equivalents  5,665 (15,473)
------------------------------------------------------------------------------
Cash and cash equivalents at beginning of year  20,769 36,345
Effect of foreign exchange rate changes  30 (103)
------------------------------------------------------------------------------
Cash and cash equivalents at end of year  26,464 20,769
------------------------------------------------------------------------------
NOTES TO THE FINANCIAL INFORMATION
1. Accounting policies
This financial information has been prepared on an historical cost basis and on
the basis of the policies set out below.
Basis of preparation
While the financial information included in this preliminary announcement has
been computed in accordance with International Financial Reporting Standards
(IFRS), this announcement does not itself contain sufficient information to
comply with IFRS. The company expects to publish full financial statements that
comply with IFRS in due course.
The financial information set out above does not constitute the company's
statutory accounts for the years ended 27 March 2011 or 28 March 2010, but is
derived from those accounts. Statutory accounts for 2010 have been delivered to
the Registrar of Companies and those for 2011 will be delivered following the
company's annual general meeting.
The auditors have reported on those accounts; their reports were unqualified,
did not draw attention to any matters by way of emphasis without qualifying
their report and did not contain statements under s498(2) or (3) Companies Act
2006 or equivalent preceding legislation.
The financial information complies with the recognition and measurement criteria
of IFRS, and with the accounting policies of the group which were set out on
pages 33 to 35 of the 2010 annual report and accounts. No subsequent material
changes have been made to the group's accounting policies.
The directors are satisfied that the group has adequate resources to continue in
operational existence for the foreseeable future, a period of not less than 12
months from the date of this report.
2. Segmental reporting, revenue, net revenue and cost of sales
(i) Segmental information
PayPoint is a service provider for consumer payment transactions (payments and
receipts) through various distribution channels, involving the processing of
high volume transactions, the management of retailers and clients, the
settlement of funds (collection and transmission) and transmission of data in a
secure environment, by the application of technology.
The application of technology is directed on a group basis by the group's
executive (consisting of the Chief Executive Officer, Finance Director, Business
Development Director and Chief Information Officer) to develop products across
the business, prioritised on an economic value basis (generally by product),
rather than on a subsidiary by subsidiary basis. As the business has high fixed
operating costs, the company regards the analysis of net revenue as the most
reliable indication of contribution on a product by product basis and net
revenue analysis is shown in the operating and financial review.
Whilst the group has a number of different products, these do not meet the
definition of different segments under IFRS 8 and, therefore, the group has only
one reportable class of business, being a payment service provider for consumer
payment transactions.
(ii) Revenue, net revenue and cost of sales
Revenue comprises the value of sales (excluding sales taxes) of services in the
normal course of business.
Revenue performance of the business is measured by net revenue, which is
calculated as the total revenue from clients less commissions paid to retail
agents, the cost of mobile top-ups and SIM cards where PayPoint is principal and
costs incurred by PayPoint which are recharged to clients and merchants. These
costs include retail agent commission, merchant service charges levied by card
scheme sponsors and costs for the provision of call centres for PayByPhone
clients.
Year Year
Net revenue ended ended
 27 March 28 March
2011 2010
£000 £000
-----------------------------------------------------------------------------
Revenue - transaction processing 191,742 195,008
       - rental income from ATMs 1,491 1,595
-----------------------------------------------------------------------------
 193,233 196,603
less:
Commission payable to retail agents (71,322) (73,178)
Cost of mobile top-ups and SIM cards as principal (37,696) (43,520)
Card scheme sponsor's charges and call centre charges (1,492) (2,499)
-----------------------------------------------------------------------------
Net revenue 82,723 77,406
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Cost of sales
Commission payable to retail agents 71,322 73,178
Cost of mobile top-ups and SIM cards as principal 37,696 43,520
Card scheme sponsor's charges and call centre charges 1,492 2,499
Depreciation and amortisation 3,612 4,820
Other 8,445 9,093
-----------------------------------------------------------------------------
Total cost of sales 122,567 133,110
-----------------------------------------------------------------------------
Geographical information
-----------------------------------------------------------------------------
Revenue
UK 148,737 147,658
Ireland 22,475 24,476
Romania 21,036 24,386
North America 985 83
-----------------------------------------------------------------------------
Total 193,233 196,603
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Non-current assets
UK 71,850 73,290
Ireland - 14
Romania 2,329 1,422
North America 489 211
-----------------------------------------------------------------------------
Total 74,668 74,937
-----------------------------------------------------------------------------
3. Tax
Year Year
ended ended
 27 March 28 March
2011 2010
£000 £000
--------------------------------------------------------------------------------
Current tax
Charge for current year 10,869 10,178
Adjustment in respect of prior years (304) 394
--------------------------------------------------------------------------------
Current tax charge 10,565 10,572
--------------------------------------------------------------------------------
Deferred tax
Credit for current year (51) (110)
Adjustment in respect of prior years 100 51
--------------------------------------------------------------------------------
Deferred tax charge / (credit) 49 (59)
--------------------------------------------------------------------------------
Total income tax
--------------------------------------------------------------------------------
Income tax charge 10,614 10,513
--------------------------------------------------------------------------------
The income tax charge is based on the United Kingdom statutory
rate of corporation tax for the year of 28% (2010: 28%)
--------------------------------------------------------------------------------
The charge for the year can be reconciled to the profit before
tax as set out in the consolidated income statement
Profit before tax 34,456 32,645
--------------------------------------------------------------------------------
Tax at the UK corporation tax rate of 28% (2010: 28%) 9,648 9,141
Tax effects of:
Losses in countries where the tax rate is different to the UK 109 304
Disallowable expenses / (non-taxable income) 61 (6)
Utilisation of tax losses not previously recognised (85) -
Losses in companies where a deferred tax asset is not
recognised 652 408
Adjustments in respect of prior years (204) 445
Deferred tax impact of share based payments 393 221
Revaluation of deferred tax asset from 28% to 27% 40 -
--------------------------------------------------------------------------------
Actual amount of tax charge 10,614 10,513
--------------------------------------------------------------------------------
4. Dividends on equity shares
Year Year
ended ended
 27 March 28 March
2011 2010
£000 £000
--------------------------------------------------------------------------------
Equity dividends on ordinary shares:
Interim dividend paid of 7.8p per share (2010: 7.4p) 5,276 5,008
Proposed final dividend of 15.6p per share (2010: paid 14.4p
per share) 10,576 9,756
--------------------------------------------------------------------------------
Total dividends paid and recommended 23.4p per share (2010:
21.8p per share) 15,852 14,764
--------------------------------------------------------------------------------
Amounts distributed to equity holders in the year:
Final dividend for the prior year 9,765 7,848
Interim dividend for the current year 5,276 5,008
--------------------------------------------------------------------------------
 15,041 12,856
--------------------------------------------------------------------------------
The proposed final dividend is subject to approval by shareholders at the annual
general meeting and has not been included as a liability in these financial
statements.
5. Earnings per share
Basic earnings per share
Basic and diluted earnings per share are calculated on the following profits and
number of shares.
Year Year
ended ended
 27 March 28 March
2011 2010
£000 £000
--------------------------------------------------------------------------------
Profit for basic and diluted earnings per
share is the net profit attributable to equity
holders of the parent 23,842 22,132
--------------------------------------------------------------------------------
27 March 28 March
 2011 2010
Number of shares Number of shares
--------------------------------------------------------------------------------
Weighted average number of ordinary shares in
issue (for basic earnings per share) 67,721,190 67,170,830
Potential dilutive ordinary shares:
Long-term incentive plan - 427,415
Deferred share bonus 157,914 133,313
--------------------------------------------------------------------------------
Diluted basis 67,879,104 67,731,558
--------------------------------------------------------------------------------
6. Goodwill
The group tests goodwill annually for impairment or more frequently if there are
indications that goodwill might be impaired. The recoverable amounts of the cash
generating units are determined from value in use calculations. The key
assumptions for the value in use calculations are those regarding the discount
rates, growth rates and expected changes to selling prices and direct costs
during the period. Management estimates discount rates using pre-tax rates that
reflect current market assessments of the time value of money and the risks
specific to the cash generating units. The growth rates are based on industry
growth forecasts. Changes in selling prices and direct costs are based on past
experience and expectation of future changes in the market.
The group prepares cash flow forecasts derived from the most recent financial
budgets approved by management for the next four years and extends cash flows to
perpetuity. Terminal values are based on growth rates that do not exceed three
per cent. The post tax rate used to discount the forecast cash flows is based on
the group's estimated weighted average cost of capital of 8.5%, adjusted for
country or business specific risk premiums of up to 1.5%. Equivalent pre-tax
rates would be 12% for the UK and 11% for Romania.
 Total
 £000
-----------------------------------------
Cost
At 28 March 2010 56,872
Adjustment (see note 11) 446
Exchange rate adjustment (185)
-----------------------------------------
At 27 March 2011 57,133
-----------------------------------------
Accumulated impairment losses
At 28 March 2010 -
-----------------------------------------
Impairment losses for the year
At 27 March 2011 -
-----------------------------------------
Carrying amount
At 27 March 2011 57,133
-----------------------------------------
At 28 March 2010 56,872
-----------------------------------------
 Total
£000
--------------------------------------------------
Cost
At 29 March 2009 27,628
Recognised on acquisition of subsidiary 29,168
Exchange rate adjustment 76
--------------------------------------------------
At 28 March 2010 56,872
--------------------------------------------------
Accumulated impairment losses
At 28 March 2010 -
--------------------------------------------------
Impairment losses for the year -
At 28 March 2010 -
--------------------------------------------------
Carrying amount
--------------------------------------------------
At 28 March 2010 56,872
--------------------------------------------------
At 29 March 2009 27,628
--------------------------------------------------
6. Goodwill continued
Goodwill arising on acquisition:
27 March 28 March
 2011 2010
£000 £000
----------------------------------------
PayPoint.net 18,207 18,207
PayPoint Romania 9,312 9,497
PayByPhone 29,614 29,168
----------------------------------------
Total 57,133 56,872
----------------------------------------
For PayPoint Romania, the difference between the recoverable amount and the
carrying amount at year end was £6.2 million. Headroom would reduce to £nil if
either the forecast average growth in revenue for the next four years of 19.5%
reduced to 16% per annum or if the discount rate applied to the forecast cash
flows were to increase from 10% to 13.4%.
Management does not consider that a reasonably possible change in one or more
key assumptions during the next year could cause the recoverable amount of the
other cash generating units to fall below their carrying amount.
7. Investment in joint venture
On 5 February 2009, PayPoint agreed a 50:50 joint venture with Yodel (formerly
Home Delivery Network). The joint venture company, Drop and Collect Limited,
trades as Collect+. PayPoint subscribed to £500,000 of ordinary shares in the
company. The joint venture company has the same accounting reference date as
PayPoint plc.
PayPoint's share of aggregated amounts relating to joint 27 March 28 March
ventures 2011 2010
£000 £000
--------------------------------------------------------------------------------
Total assets 644 545
Total liabilities (3,609) (1,969)
--------------------------------------------------------------------------------
Share of net assets (2,965) (1,424)
Loan to joint venture (note 13) 3,100 1,750
--------------------------------------------------------------------------------
Investment in joint venture 135 326
--------------------------------------------------------------------------------
Year Year
ended ended
 27 March 28 March
2011 2010
£000 £000
--------------------------------------------------------------------------------
Revenues 1,002 205
Loss for year (1,541) (1,601)
--------------------------------------------------------------------------------
8. Deferred tax asset
 Credit / (charge) to
 28 March income statement Debit to equity 27 March
2010 £000 £000 2011
£000 £000
--------------------------------------------------------------------------------
Tax depreciation 1,320 (16) - 1,304
Share based payments 239 (132) - 107
Tax losses - - - -
Intangibles (392) 99 - (293)
Short term temporary
differences - (2) - (2)
--------------------------------------------------------------------------------
Total 1,167 (51) - 1,116
--------------------------------------------------------------------------------
 Credit / (charge) to
 29 March income statement Debit to equity 28 March
2009 £000 £000 2010
£000 £000
--------------------------------------------------------------------------------
Tax depreciation 1,137 183 - 1,320
Share based payments 421 (162) (20) 239
Tax losses 36 (36) - -
Intangibles (517) 125 - (392)
Short term temporary
differences 51 (51) - -
--------------------------------------------------------------------------------
Total 1,128 59 (20) 1,167
--------------------------------------------------------------------------------
At the balance sheet date a deferred tax asset of £1.1 million (2010: £1.2
million) is recognised on the basis that there will be sufficient future taxable
profits against which the deferred tax asset can be recovered, based on
management forecasts.
At the balance sheet date, the group has unused tax losses of £7.6 million
(2010: £5.1 million) available for offset against future profits for which no
deferred tax asset is recognised. Included in unrecognised tax losses are losses
of £2.0 million which will expire in less than three years, £3.2 million that
will expire within four to seven years. Other losses may be carried forward
indefinitely.
No deferred tax liability has been recognised in respect of temporary
differences associated with investments in subsidiaries because the group is in
a position to control the timing of the reversal of the temporary differences
and it is probable that such differences will not reverse in the foreseeable
future. The aggregate amount of these differences is not material at the balance
sheet date.
The government has announced a further reduction in the main rate of corporation
tax from 28% to 26% effective from 1 April 2011, which was substantially enacted
after 27 March 2011. The government has also indicated that it intends to enact
future reductions in the main tax rate of 1% each year down to 23% by 1 April
2014. The future 1% main tax rate reductions are expected to have a similar
impact as for 2011; however, the actual impact will be dependent on the deferred
tax position at that time.
9. Cash and cash equivalents
Included within group cash and cash equivalents is £6,132,000 (2010: £6,818,000)
relating to monies collected on behalf of clients where the group has title to
the funds (client cash). An equivalent balance is included within trade
payables.
The group operates cash pooling amongst its various bank accounts in the UK and
therefore individual accounts can be overdrawn without penalties being incurred
so long as the overall position is in credit. At 27 March 2011, the group's cash
was £26,464,000 (2010: £20,769,000).
10. Short-term borrowings
 Group
27 March 28 March
 2011 2010
£000 £000
---------------------------------
Bank loan - 6,000
---------------------------------
During the year, the £6 million loan was repaid and the balance outstanding at
the end of the year was £nil.
11. Acquisition of subsidiary
On 9 March 2010, the group acquired 100 per cent of the issued share capital of
Verrus Mobile Technologies Inc. and Verrus UK Limited (together known as
PayByPhone) for cash consideration of £29 million. In addition, there was
potential for a further £4 million dependent on financial results until March
2013, which has subsequently been waived by the beneficiaries.
On acquisition of Verrus Mobile Technologies Inc. and Verrus UK Limited the
group recognised £29.2 million of goodwill. During the year it became apparent
that the group would be unlikely to receive £0.4 million from a debtor and its
fair value was reduced and the goodwill increased, accordingly.
12. Equity
 2011 2010
£000 £000
--------------------------------------------------------------------------------
Authorised share capital
4,365,352,200 ordinary shares of 1/3p each (2010
4,365,352,200: ordinary shares of 1/3p each) 14,551 14,551
--------------------------------------------------------------------------------
 14,551 14,551
--------------------------------------------------------------------------------
Called up, allotted and fully paid share capital
67,795,702 ordinary
shares of 1/3p each (2010: 67,754,202 ordinary shares of 1/3p
each) 226 226
--------------------------------------------------------------------------------
 226 226
--------------------------------------------------------------------------------
Called up share capital
At start of year 226 226
--------------------------------------------------------------------------------
At end of year 226 226
--------------------------------------------------------------------------------
Investment in own shares
At start of year (370) (926)
Acquired in year - (490)
Used on share scheme vesting 154 1,046
--------------------------------------------------------------------------------
At end of year (216) (370)
--------------------------------------------------------------------------------
Share premium
At start of year 25 25
Arising on issue of shares - -
--------------------------------------------------------------------------------
At end of year 25 25
--------------------------------------------------------------------------------
Share based payment reserve
At start of year 2,684 2,489
Additions in year 1,088 942
Released in year (801) (761)
Current tax on awards - 34
Other adjustments 34 (20)
--------------------------------------------------------------------------------
At end of year 3,005 2,684
--------------------------------------------------------------------------------
Translation reserve
At start of year 543 508
Movement during year (72) 35
--------------------------------------------------------------------------------
At end of year 471 543
--------------------------------------------------------------------------------
Retained earnings
At start of year 67,636 58,645
Profit for year 23,842 22,132
Non-controlling interest loss for year included in above 41 -
Dividends paid (15,041) (12,856)
Adjustment on share scheme vesting  647 (285)
--------------------------------------------------------------------------------
At end of year 77,125 67,636
--------------------------------------------------------------------------------
The long term incentive plan tranche did not vest on 11 June 2010 because the
group did not meet the performance measure. Under IFRS 2, the fair value charges
of £647,000 relating to this tranche, which had been previously charged to the
income statement, are reversed through equity. The deferred share bonus vested
in June 2010 and accordingly the group used £154,000 of its investment in own
shares to satisfy the award.
13. Related party transactions
PayPoint has entered into a loan agreement with its 50:50 joint venture Drop and
Collect Limited (trading as Collect+) and during the year it has lent Drop and
Collect Limited an additional £1.4 million bringing the total loan to £3.1
million.
The terms of the loan are:
* Interest payable annually at a rate of 3 months LIBOR.
* Repayable upon termination of the joint venture or upon demand by the
lender.
The company and its subsidiaries, in the ordinary course of business, enter into
various sales, purchase and service transactions with joint ventures and others
in which the group has a material interest. These transactions are under terms
that are no less favourable than those arranged with third parties. These
transactions are not considered to be significant.
PayPoint has a small investment in OB10, a company that specialises in
electronic invoicing. During the year, PayPoint subscribed for a further £30,125
of shares under a rights issue, resulting in a shareholding at 27 March 2011 of
1.02% (28 March 2010: 1.04%).
In the view of the directors, the aggregate cost of £435,000 represents the fair
value of the investment in the shares.
David Newlands, Dominic Taylor, George Earle, Eric Anstee and Nick Wiles all
hold shareholdings in OB10 as follows:
Year Year
ended ended
Directors' shareholding in OB10 27 March 28 March
2011 2010
£000 £000
 % %
-------------------------------------------------------
David Newlands 2.87 4.73
Dominic Taylor 1.44 1.42
George Earle 0.40 0.42
Nick Wiles 1.02 1.04
Eric Anstee 0.08 0.08
-------------------------------------------------------
14. Notes to the cash flow statement
 Group
Year Year
ended ended
 27 March 28 March
2011 2010
£000 £000
--------------------------------------------------------------------------------
Profit  before tax 34,456 32,645
Adjustments for:
Depreciation of property, plant and equipment 3,295 4,286
Amortisation of intangible assets 317 534
Share of losses in joint venture 1,541 1,601
Net interest expense / (income) 55 (174)
Share based payment charge 1,088 942
--------------------------------------------------------------------------------
Operating cash flows before movements in working capital 40,752 39,834
Decrease / (increase) in inventories 209 (373)
Decrease in receivables 6,337 2,385
Decrease in payables
- client cash (686) (729)
- other payables (4,476) (2,386)
--------------------------------------------------------------------------------
Cash generated by operations 42,136 38,731
Corporation tax paid (10,950) (13,702)
Interest and bank charges paid (49) (43)
--------------------------------------------------------------------------------
Net cash from operating activities 31,137 24,986
--------------------------------------------------------------------------------
ABOUT PAYPOINT
PayPoint is a leading international provider of convenient payments and value
added services to major consumer service organisations in the utility, telecoms,
media, financial services, transport, retail, gaming and public sectors.
We handle over £10 billion from 590 million transactions annually for more than
6,000 clients and merchants. Â We deliver payments and services through a
uniquely strong combination of local shops, internet and mobile distribution
channels.
Retail networks
PayPoint operates branded retail networks in the UK, Ireland and Romania. Â The
network in the UK numbers 23,000 terminals in local shops (including Co-op,
Spar, McColls, Costcutter, Sainsburys Local, One Stop, Londis and thousands of
independents) in all parts of the UK. Our terminals process energy meter
prepayments, cash bill payments, mobile phone top-ups, transport tickets, BBC TV
licences and a wide variety of other payment types for most leading utilities
and many telecoms and consumer service companies.
In Romania, the branded retail network numbers 6,000 terminals located in local
shops across the country and is expanding. Â Our terminals process cash bill
payments for utilities and mobile phone top-ups. In the Republic of Ireland, we
have over 500 terminals in shops and Credit Unions processing mobile top-ups and
bill payments.
We also supply added value services to our retail agents to improve the yield
from our network. Â In the UK, we have a consumer parcel drop off and collection
service using PayPoint's retail network through Collect+, a joint venture with
Yodel (formerly Home Delivery Network). This service is already available in
3,700 of our convenience retail agents. Clients include ASOS, Littlewoods,
Woolworths, New Look, Very, Boden, Mobile Phone Xchange and Great Universal. Â In
addition, in the UK, we have over 2,500 LINK branded ATMs, mainly in the same
sites as our terminals.
Internet payments
PayPoint.net is an internet payment service provider, linking into all major UK
acquiring banks to deliver secure online credit and debit card payments for over
5,500 web merchants, including Stan James, 32Red, Sportingbet, PKR, Betsson,
Moonpig, Moneysupermarket.com, Severn Trent Water, Ann Summers, Links of London,
Funky Pigeon, Mr & Mrs Smith and British Gas Home Vend. Â We offer a
comprehensive set of products ranging from a transaction gateway through to a
bureau service, in which we take the merchant credit risk and manage settlement
for the merchants. Â We offer real-time reporting for merchant transactions and
Fraudguard, an advanced service to mitigate the risk of fraud for card not
present transactions.
Mobile payments
PayByPhone is a leading international provider of services to parking
authorities allowing consumers to use their mobile phones to pay for their
parking by credit or debit card. Â It has contracts in the UK, Canada, USA and
France.
PayPoint is widely recognised for its leadership in payment systems, smart
technology and consumer service. Our high quality services are backed by a 24/7
operations centre with dual site processing for business continuity.
PayPoint sustains its competitive differentiation by aiming to meet clients'
payment needs, not just through a wide spectrum of payments, but also with
products that span payment channels. For example, PayCash enables cash payment
for internet transactions at PayPoint retail agents and our new home vending
solutions allow consumers to pay across the internet as well as through our
retail network.
PayPoint as
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Paypoint plc via Thomson Reuters ONE
[HUG#1518935]
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