PayPoint has reported an increase in group revenue and improved retailer relationships in its annual results.
In its results for the year ended 31 March 2023, group net revenue increased by 19.7% in the quarter to £35.8m (Q1 FY23: £29.9m).
Much of this growth was driven by its Payments & Banking divisional net revenue, which increased by 9.1% to £56.2m (FY22: £51.5m). According to PayPoint, this was driven by continued growth in digital transactions and a resilient performance in the energy sector, partially offset by a reduction in cash through to digital volumes as consumer behaviour has continued to reset post Covid-19.
Over £246m of Energy Bills Support Scheme vouchers were redeemed across PayPoint’s extensive network of over 28,000 retailer partners, providing a £400 payment over the winter months to households across the UK.
PayPoint highlighted “positive progress and partnerships established” with Coca-Cola, Amazon, AG Barr and JTI. “Our consumer engagement solution, PayPoint Engage, leverages our PayPoint One platform, advertising screens and imovo vouchering capability to help our retailer partners drive sales and help brands engage thousands of consumers across our network.”
The business also provided an update on its efforts to improve relationships with its retailer partners. “We have continued our extensive efforts to strengthen our retailer partner relationships and drive adoption of these new opportunities to earn, including regular face to face store visits and ‘cash and carry’ days, new retailer forums, more direct communications and our strengthened relationships with the key trade associations, including the Association of Convenience Stores (ACS), the Scottish Grocers’ Federation (SGF) and the Federation of Independent Retailers (the Fed).”
It added that retailer commissions have grown 15% year-on-year. “New services and transaction volumes have driven this positive impact to retailer partner revenues, including our Counter Cash solution, which is now enabled in 5,680 sites, with 1,930 sites transacting regularly and over £42.9 million withdrawn in the financial year, and good growth in our FMCG consumer engagement proposition, PayPoint Engage, delivering brand campaigns leveraging our PayPoint One platform, advertising screens and i-movo vouchering capability.”
Nick Wiles, chief executive of PayPoint Plc, said: “We finished FY23 with good momentum, and trading has been positive in the first quarter of FY24 as we continue to leverage our enhanced platform and capabilities which includes: a full-strength sales team delivering high conversion rates and growing our respective estates in PayPoint and Handepay; healthy pipelines for our FMCG and integrated payments propositions; and a dynamic platform of innovative technology and solutions enabling integrated payments and commerce for our extensive base of clients, retailer partners and SMEs. We will continue to invest in growth areas across the Group in the coming year to further enhance our capabilities, unlock opportunities and accelerate our growth.
“All of this underlines our confidence in delivering further progress and a quickening momentum in the new financial year, with the acquisition of Appreciate Group expected to be earnings enhancing in our first full year of ownership, and the Group trading in line with expectations.”
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