The PayPoint Group has reported a positive quarter, with growth across all of its divisions.
For the three months ended 31 December 2022, the business’ net revenue from continuing operations increased by 9.8% in the quarter to £32.5m, with UK retail services net revenue increasing by 9.2%% to £7.7 million (Q3 FY22: £7.0 million).
It reported that shopping divisional net revenue increased by 4.8% to £15.4 million (Q3 FY22: £14.7 million), driven by the continued growth of the PayPoint One estate, the annual RPI increase and further enhancements to the retailer and SME propositions.
PayPoint’s Payments & Banking divisional net revenue increased by 10.6% to £14.7m (Q3 FY22: £13.3 million), driven by a continued strong performance in digital transactions and a resilient energy sector performance, comprising cash bill payments and top ups and £113m of Energy Bills Support Scheme vouchers redeemed. Parcel transactions saw growth of +84.4% year on year, including eleven out of thirteen weeks reaching well over one million parcels processed
Wiles provided an update on PayPoint’s strategic priorities including Counter Cash, which is now enabled in 5,109 sites and with 2,326 sites “transacting regularly in the quarter”. Withdrawals reached £1m per week in November 2022 and over £35.6m has now been withdrawn since launch in November 2021. He also praised a strong quarter of successful campaigns delivered for Coca-Cola and Spar’s World Cup promotion, with a building campaign pipeline and a contribution of £0.4m of net revenue delivered.
The business also reported that FCA approval for the recommended acquisition of Appreciate Group plc was granted on 17 January 2023. The proposed acquisition is subject to Appreciate Group plc shareholder approval via scheme of arrangement. Completion is expected by the end of this financial year.
Commenting on the results, Nick Wiles, chief executive of PayPoint Plc, said: “In Shopping, we continue to enhance our retailer partner proposition, with the further rollout of a number of key initiatives including Counter Cash, a growing contribution from FMCG campaigns, and a strong performance in Business Finance via YouLend, supporting our retailer and SME partners during the current economic challenges. Our sales momentum across the Group has also continued to build in the quarter across both Handepay and PayPoint, supported by our most competitive and attractive proposition ever and allied with a more detailed focus on customer service and retention, leveraging our AI and data analytics capabilities.
“Whilst the market background remains uncertain, our compelling characteristics of strong cash flow, resilient earnings and growth mean we remain confident of the progress we are making in the transformation of our business and delivering expectations for the year.”
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