Paypoint Regulatory News (PAY)

10 Mar 2005 07:00

PayPoint PLC10 March 2005 10th March, 2005 PayPoint plc Trading Statement for the year ending 31st March, 2005 Ahead of PayPoint entering its close period, the board of directors is providingthe following trading update. Transaction volumes and the margin mix in the second half are ahead ofexpectations. Net revenue from bill payments is approximately £0.4 million ahead ofexpectations, driven primarily by market share gains combined with higher energytransaction volumes. The rate of growth in mobile phone e top-up volumes in the second half hasslowed as expected. Net revenue is ahead of expectations by nearly £1million, asa result of the delay in the forecast migration of transactions from PayPoint'sown terminals to retailer owned electronic point of sale (epos) till systems,which produce lower revenues for PayPoint. As a result, the reduction in secondhalf margins, anticipated at the time of our interim announcement has not yetoccurred. However, the migration should occur in the first half of next year. ATM roll out continues at about 50 new ATMs per month. Transaction levels,whilst satisfactory, are marginally lower than expected, divided equally betweenbalance enquiries and cash withdrawals. The roll out of our new terminal continues on track and we have over 4,000 newterminals operating at retail agents. The roll out of our new point of sale marketing materials to the independentretail estate has commenced. The successful retail acceptance of this programmehas encouraged some multiple retailers to seek similar upgraded point of salematerials and this will drive some increased refurbishment spend into next year. Overall, the expected outturn for the year is therefore ahead of marketexpectations, and positions PayPoint for continued growth in 2006. Enquiries:FinsburyRollo Head 020 7251 3801Don Hunter This announcement is available on the PayPoint plc website: www.paypoint.com About PayPoint PayPoint is a leading branded payment collection network used, primarily, forthe cash payment of bills and services and prepayments for mobile telephones andenergy meters. There are over 12,000 retail outlets using PayPoint's paymentterminals. PayPoint began trading in 1996 and initially collected payments through itsnetwork of retail agents for its founder client investors, who included BritishGas, BT, BBC TV Licensing, London Electricity (now part of EDF Energy) and fourwater companies. It now has more than 400 clients including many of the UK and Ireland's majorenergy, cable, mobile and fixed line telephony companies. Its blue chip clientlist also extends to numerous water companies, local authorities and housingassociations and a growing transport and travel base. This information is provided by RNS The company news service from the London Stock Exchange