PayPoint's annual profits increase on record transaction volume

PayPoint reported a 10.9 per cent rise in annual pre-tax profit to 41.3m pounds as the online payments company achieved record transaction volume.

Revenue for the year ended March 31st rose 4.2% to £208.5m, boosted by a 12% rise in group transaction volume to 739m.

The company's UK and Ireland retail network was a key driver with transactions up 9.0% and services up 22%.

Growth in prepaid energy transactions in the UK was supported by increases in the number of prepaid meters and tariffs. Retail services delivered growth, but mobile top-ups continued to decline.

In Romania, the company expanded its retail terminal estate by 609 sites and transaction volume increased by 28%. More than 25m bill payment transactions were paid in the country during the period, up 35% from the prior year.

Television advertising helped to improve brand awareness and drive increases in market share in the European nation.

PayPoint proposed a final dividend of 20.2p per share, an increase of 14.7% on a year earlier.

A special dividend of 15p per share was also recommended, bringing the total to 45.4p.

"The special dividend reflects the stronger than expected cash position at March 2013 and our confidence in the company's ability to generate cash," said Chairman, David Newlands.

The group ended the period with cash of £46.6m with no debt, compared to last year's cash position of £35.5m.

Newlands said PayPoint plans to invest further in the retail network in order to increase market share in bill payment and retail services, including ATMs, in the UK, Ireland and Romania.

Shares fell 0.17% to 891.50p at 09:39 Thursday.

RD