PayPoint Sees Double-Digit Fall in H1 Profits

The company is in the process of selling its Romanian operations.

Photo: iStock

PayPoint, a United Kingdom-listed retail payments platform, has published its half-yearly financial results, ending on Sep 30, showing a downturn across all major metrics, including revenue and profits.

The company’s revenue from its continuing operations for the period came in at £60.7 million, a year-on-year decrease of 12.1%. The net revenue stood at £46.4 million, down from the previous year’s £50.3 million.

Earlier this year, PayPoint agreed to sell its Romanian operations to Innova Capital for around £47 million. The approval for the deal is now pending with the regulators. 

The company filed its financial disclosures separately for its continuing business and discontinuing business, which is its Romanian operations.

In Romania, on the other hand, the revenue turned positive with £7.6 million, a yearly increase of 4.5%.

The total pre-tax profits of the payments company also tumbled to £20.6 million, out of which £16.8 million came from continued operations in the UK and Ireland, and the rest from its discontinued operations. For the same period last year, the company reported total pre-tax profits of £24 million.

PayPoint justified the decreasing revenue and profits, citing the end of its contract with British Gas, which could have added a couple of million to the business.

Commenting on the results, PayPoint Chief, Nick Wiles said, “Our first half has been a particularly busy and challenging period for the business, against which we have delivered a solid performance.”

Meanwhile, the payments company is now aiming to focus on its operations in the UK with its exit from Romania.

“We have made a number of important steps to underpin our growth strategy in the UK, with the acquisitions of Handepay Ltd/Merchant Rentals Limited (card payments) and i-movo Limited (digital vouchering), significantly expanding our capability to seize the significant opportunities in our core market,” Wiles added. “The sale of our Romanian business to Innova Capital enables us to realise value and focus on the UK business.”

Reprinted from financemagnates, the copyright all reserved by the original author.