Results for the half year ended
Financial HIGHLIGHTS
- Profit before tax from continuing operations of £16.8 million (2019: £20.7 million) decreased by £3.9 million, reflecting the decrease in net revenue from continuing operations and the expected impact of the
British Gas contract ended inDecember 2019 . Underlying profit before tax1 from continuing operations of £17.8 million (2019: £18.6 million) has been resilient with a 4% decrease. - Profit before tax from the discontinued operation of £3.8 million (2019: £3.3 million) increased by £0.5 million (12.8%), mainly due to improved margins.
- Net revenue from continuing operations of £46.4 million (2019: £50.3 million) decreased by £3.9 million (7.8%); the prior period included £2.1 million net revenue from the
British Gas contract now ended. Net of the expectedBritish Gas impact, net revenue decreased by £1.8m. - Total costs2 from continuing operations of £29.6 million (2019: £29.7 million) decreased by £0.1 million (0.3%). Total costs include £1.0 million of non-recurring costs, associated with one-offs for acquisitions and disposals. Other savings were mainly due to cost efficiencies from bringing terminal maintenance and repairs in-house and lower costs from decreased transaction volumes.
- Net corporate debt of £6.1 million (2019: £12.3 million) reflects cash balances of £14.9 million less borrowings of £21.0 million from the revolving credit facility.
- Ordinary interim dividend of
15.6 pence per share declared. The dividend will be paid in equal instalments of7.8 pence per share on29 December 2020 and8 March 2021 . The additional dividend programme ended in the prior year.
Restated3 | |||
| Six months to 30 September 2020 | Six months to 30 September 2019 | Change |
Revenue from continuing operations4 | £60.7m | £69.1m | (12.1)% |
Net revenue from continuing operations5 | £46.4m | £50.3m | (7.8)% |
Operating margin from continuing operations6 | 37.7% | 41.4% | (3.7)ppts |
Profit before tax | £20.6m | £24.0m | (14.2)% |
Profit before tax from continuing operations | £16.8m | £20.7m | (18.6)% |
Profit before tax from discontinued operation | £3.8m | £3.3m | 12.8% |
Diluted earnings per share | 23.8p | 28.5p | (16.5)% |
Diluted earnings per share from continuing operations | 19.1p | 24.4p | (21.7)% |
Ordinary dividend per share | 15.6p | 23.6p | (33.9)% |
Additional dividend per share | - | 18.4p | - |
Cash generation7 | £29.5m | £27.1m | 8.9% |
Cash generation from continuing operations | £25.1m | £22.4m | 12.1% |
Net corporate debt8 | £(6.1)m | £(12.3)m | (50.3)% |
Cash and cash equivalents | £42.0m | £40.5m | 3.7% |
On
“Our first half has been a particularly busy and challenging period for the business, against which we have delivered a solid performance, with a proactive network and product recovery post-lockdown supported by our resilient, sustainable business model.
In addition, we have made a number of important steps to underpin our growth strategy in the
These steps, together with our internal investment plans, reinforce the focus on our
Our declaration of a dividend of 15.6p per share, consistent with our dividend policy, also reflects our long-term confidence in the business, the strength of our underlying cash flow and the enhanced growth prospects from the steps we have taken in the current period.”
OPERATIONAL HIGHLIGHTS
Step change in execution of growth strategy in
- Disposal of Romanian business at significant profit, underpinning
UK -focused strategy - Acquisition (subject to regulatory approval) of
Handepay Ltd/Merchant Rentals Limited (card payments) and i-movo Limited (digital vouchering) to deliver enhanced growth and opportunities inUK , driving a broadening of payment capabilities and greater leverage of retailer network - Within both client and retail services, incremental growth opportunities identified, leading to focused investment and resource allocation to accelerate delivery
- Re-organisation delivering a more streamlined and accountable structure across the business
Solid performance with resilient recovery post-lockdown and good progress against strategic priorities
1. Embed
- PayPoint One was live in 16,900 sites at
30 September 2020 , an increase of 802 since31 March 2020 , including 299 sites now live again following the first Covid-19 lockdown. This now represents 99.3% of PayPoint’s independent retailer estate - PayPoint One average weekly service fee per site increased to £15.7 from £15.5 last year and total service fee net revenue increased by 12.7% to £7.1 million
- Card payments transactions grew significantly by 68.7% to 112.3 million and net revenue increased by 63.4% to £6.9 million
- ATM net revenue was down 17.8% year-on-year by end of H1; good site recovery with suspensions reducing from 330 to 26 by
30 September 2020 . Estate optimisation and tight cost management driving the right results. The Link Counter Service is now in trial - A number of new initiatives underway to enhance retailer engagement, drive footfall and open new revenue streams from PayPoint One, including digital advertising screens and digital vouchers
2.
- 10,486 live parcel sites at
30 September 2020 , an increase of 1,840 since31 March 2020 . Parcel volumes declined by 2.5%, impacted by Covid-19 with consumers staying at home and able to accept deliveries - Secured full ownership of
Collect+ inApril 2020 , maintaining Yodel as key carrier partner - New
Collect+ website launched, enabling a platform for future send services and further integrations with carrier partners - New carrier partnerships signed, with DPD adding 2,500 sites to its DPD PickUp service and a send proposition trial launched with Parcel2Go
- Rollout of new Zebra thermal label printers, enhancing send proposition
- Existing carriers scaling store presence pre-peak 2020 across network
3. Sustain leadership in ‘pay-as-you-go’ and grow digital bill payments
Major relationships renewed and expanding to digital services:
- Proactive management of client relationships yielding positive results on digital opportunities beyond energy ‘pay-as-you-go’
- Major client contract renewal programme largely complete - 17 client renewals9, including EDF, delivering a broader range of services from our MultiPay digital payments portfolio. BBC TV Licensing App is now live, enabling customers to pay for their license digitally
- 26 new clients signed, with over 75% coming from non-energy sectors
- 7 multiple retailer contract renewals, including
EG Group ,Motor Fuel Group and several regional Co-ops
Digital payments growth:
- Strong focus on growing digital payments capability, with a number of MultiPay product enhancements (Direct Debit, Pay By Link and Event Streamer)
- MultiPay net revenue increased by 17.7% YOY
- 13 new Cash Out clients signed, driven by local authorities digitising operations due to Covid-19
- Strong eMoney growth with transactions increasing by 15.4% and net revenue increasing by 19.9%
4. Building a delivery focused organisation and culture
- Strengthened Executive team with key appointments, completing organisation structure announced earlier in year
- Ben
Ford joinedPayPoint on1 July 2020 to lead our new Retail Services function. His focus is on aligning all our retailer-facing resource and capability, the end-to-end delivery of products and services to our retailers and the management of retailer relationships, leveraging our new CRM system - Next phase of CRM now fully rolled out to Contact Centre, enabling ‘single customer view’ of retailer and enhanced retailer experience
- First phase CRM benefits yielding better data to improve key business decisions
- In-house warehouse operations extended to products and consumables, giving complete control of experience and key moments of retailer lifecycle
Covid-19 impacts
Overall trading continued to be resilient in the first half following the impact of the Covid-19 outbreak, with a proactive network and product recovery post-lockdown, supported by our resilient, sustainable operating model, as evidenced by the tables at the end of this section.
At the beginning of the national lockdown earlier this year,
Transaction volumes and sites have recovered well from the initial impacts seen in April through the first national lockdown. An expected reduction in bill payment transactions year on year was further compounded by Covid-19, with consumers increasing their average top-up amounts and energy companies providing pre-payment consumers with credit advances. However, by the end of the first half, volumes had started to recover and in
The resilient performance of the business through this period was further underpinned by a series of proactive initiatives to support clients, retailers and consumers. This included launching a partnership with Deliveroo to give our retailer partners the capability to deliver goods to their local communities, the PayPoint Retailer Heroes awards recognising retailers who had gone above and beyond to support consumers through the pandemic and a £25,000 contribution to the
Service | April 20/21 vs 19/20 % increase/ (decrease) | May 20/21 vs 19/20 % increase/ (decrease) | June 20/21 vs 19/20 % increase/ (decrease) | July 20/21 vs 19/20 % increase/ (decrease) | August 20/21 vs 19/20 % increase/ (decrease) | September 20/21 vs 19/20 % increase/ (decrease) |
(28%) | (26%) | (20%) | (18%) | (19%) | (19%) | |
(22%) | (20%) | (18%) | (19)% | (20)% | (17%) | |
(5%) | 11% | 32% | 27% | 14% | 15% | |
Card payment transactions | 72% | 89% | 79% | 61% | 58% | 54% |
ATM transactions | (37%) | (30%) | (24%) | (20%) | (19%) | (18%) |
Parcels transactions | (36%) | (9%) | 4% | 9% | 4% | 10% |
Sites temporarily suspended due to Covid-19 | As at | As at | As at | As at | As at | As at | As at |
328 | 368 | 185 | 79 | 41 | 39 | 29 | |
283 | 330 | 303 | 212 | 57 | 43 | 26 | |
293 | 230 | 124 | 47 | 18 | 16 | 15 | |
208 | 274 | 182 | 87 | 49 | 47 | 18 |
Enquiries | Finsbury |
(Telephone: 0207 251 3801) | |
(Email: Paypoint@finsbury.com) |
A presentation for analysts is being held at
CHIEF EXECUTIVE’S REVIEW
The business has delivered a solid performance in the first half, against the backdrop of Covid-19, with a proactive network and product recovery post-lockdown, supported by our resilient, sustainable operating model. In addition, we have taken important steps to strengthen our operating model and organisational structure and to identify and support growth opportunities in our core
Our priority through this crisis remains to keep our people safe and well, while providing the necessary support to our clients and retailer partner network, as we continue to serve some of the most vulnerable in our communities. The business quickly moved to a hybrid operating model which combines remote working, continued activity in the support of our retailer partner network, including our Contact Centre which has remained fully operational throughout, and some essential office-based activity. We have sought to minimise the disruption to service and support we can provide to clients and our retailer partner network, as evidenced by the swift recovery of transaction volumes and retailer sites in the half year period.
As we indicated in our first quarter results, we have continued to see recovery in our business from the April lows and overall trading has remained resilient. Bill payment volumes have not recovered as we would have hoped, reflecting a combination of continued higher than average top up amounts, the consumer benefit of the reduced energy price cap and mild weather conditions. ATM volumes remain subdued after some recovery over the summer months, while volumes in Cards, Top-ups, digital payments (MultiPay), eMoney and in a number of the new payment initiatives have all continued to perform strongly. In addition, we have seen some recovery in parcel volumes, although this has been more subdued in recent weeks as a result of the recent additional government restrictions.
The Board continues to support our core strategic priorities for the business: embedding
We have now accelerated the execution of our strategy for growth in the
On
With new national restrictions in force across the
Finally, I am deeply grateful to our incredible people who have been working so hard over the past six months, the senior team who have shown great leadership in response to the challenges we are facing, and, most importantly, our retailer partners and clients who continue to work with us to deliver vital services and support consumers across the
Chief Executive
MARKET OVERVIEW
Changing market dynamics are creating significant opportunities for
Key trends and changes since the end of the 19/20 financial year in the
- Convenience retail
- The
UK convenience sector has been one of the main beneficiaries of the increase in shopping local through Covid-19, with consumers choosing to stay closer to home, avoid busier stores and support businesses in their local community - Total
UK convenience sector is expected to grow by £3.8bn in 2020, an expected 9.2% growth on 201911 - Total
UK convenience store numbers remained resilient, with marginal growth to 47,000 and numbers of independently-owned stores gaining 3% in the year12
- The
- Card payments
- Growth in this sector has again been driven by the shift from cash to card payments accelerated by Covid-19
- Forecast growth in
UK debit card market by 2027 to 19.7bn payments, with 36% contactless13 - In H1,
PayPoint has seen card payment volume increase by 68.7% YOY UK convenience store card payments transactions overall increased by 27.2%14 and average basket sizes increasing 16.9% in 202012- Outside of this sector, card payments overall have recovered well since the lows experienced earlier in the year, with latest data from
August 2020 showing 1.6 billion debit card transactions, an increase of 2.5% YOY, and total spend of £58.4 billion, an increase of 12.5% YOY15
- Cash Out
- There have been clear challenges in this sector due to Covid-19, with a shift away from cash usage by consumers
- LINK’s ATM transactions declined by 44.8%16 to c700 million transactions and the number of ATMs in the
UK reduced by 3.9% (2,241 sites) to 55,56517 in the 5 months toAugust 2020 - Some sites with multiple ATMs have closed one or more ATMs to aid social distancing
- Access to cash remains a key priority in the
UK . TheFCA (Financial Conduct Authority ) and PSR (Payment Services Regulator) are taking a joint approach to maintaining services for the many people who continue to rely on cash as a vital way of making payments, despite the changes brought by Covid-19
- Parcels
- Overall online sales increased during the lockdown earlier in the year, particularly in electronics, leisure equipment and grocery, as consumers were restricted at home
- However, the fashion sector saw a decrease by 4.4% year on year18, for the period from January to
August 2020 , due to lack of socialising. This was also evidenced through a subsequent drop in demand in parcel volumes seen in our network due to the fashion focus of our carrier partners - As consumers were generally at home, we also saw a reduction in the requirement for out of home pick up points
- Since April, pick-up and drop-off (PUDO) volumes have recovered well through our
Collect+ network, ahead of the overall PUDO market performance - The PUDO market comprises Click and Collect, returns and send propositions. The Click and Collect market is 11% of all volumes, c.150 million parcels per year and is expected to double by 202519. Returns and send volumes are estimated at c.185 million and c.380 million parcels per year respectively20
- Bill payments and top-ups
- The price cap for pre-pay customers reduced to £1,164 for the six months to
September 2020 . This is 6%21 lower than the cap set inSeptember 2019 . This will further reduce by 8.1% in the six months toMarch 2021 - Non-Big Six energy providers combined market share remained static at c28%22.
- The rollout of smart meters has slowed further with the impact of Covid-19 impacting installations with only 1.1m meters installed in 202023. The deadline for completion of the rollout has now been extended to
30 June 2025 - The number of PAYG mobile subscribers declined by 3% in 2019 to 24.9 million subscribers24
- The price cap for pre-pay customers reduced to £1,164 for the six months to
PROGRESS AGAINST OUR STRATEGIC PRIORITIES
Our core strategic priorities for the business remain unchanged:
1. Embed PayPoint at the heart of convenience retail
2.
3. Sustain leadership in ‘pay-as-you-go’ and grow digital bill payments
4. Building a delivery focused organisation and culture
During the period, we have made a number of important steps to underpin this strategy through the acquisition of i-movo Limited and
As the UK’s leading secure digital vouchering system, i-movo will enhance our EPOS and terminal services proposition and create new opportunities with Newspaper, Government, FMCG, Utilities and banking clients. Our acquisition of Handepay/Merchant Rentals enhances significantly our existing cards business, creating access to new SME sectors including food services, garages and hospitality and the opportunity to accelerate the growth of the combined business in a growing cards market through clear operational initiatives, cross selling opportunities and synergies. We believe the sale of our Romanian business is well timed, delivering a strong profit on its disposal and ahead of the next stage of development and investment in this business. These steps, together with our internal investment plans, underpin the focus on our
Progress against the core strategic priorities is set out below:
PRIORITY 1: EMBED PAYPOINT AT THE HEART OF CONVENIENCE RETAIL
Our network is enabled with cutting-edge technology designed to create a platform for growth and provide retailer partners with everything a modern convenience store needs. Core to this priority is PayPoint One, which includes EPoS and bill payment functionality, and other products such as card payments and ATMs.
H1 Progress
PayPoint One:
- PayPoint One was live in 16,900 sites at
30 September 2020 , an increase of 802 since31 March 2020 - The number of sites suspended due to Covid-19 has reduced by 91% since
31 March 2020 to 29 at30 September 2020 - Average weekly service fee revenue per site increased to £15.7 (2019: £15.5). To support our retailers during the Covid-19 period, the annual inflation increase was waived this year
- EPoS Pro was live in 1,336 sites, growth of 498 (59%) since
31 March 2020 - We launched a new promotion in
July 2020 to enable PayPoint One retailers to try our EPoS solution at no extra cost for 3 months. After the trial period, we are anticipating two thirds of retailer partners will remain on the platform and benefit from the full capability of our EPoS solution - EPoS technical re-platforming is now complete and we have fully launched a new retailer self-service portal, improving the quality of our retailer experience and reducing their need to call our Contact Centre
- Established trials of digital advertising screens and digital vouchering to drive conversion and footfall for retailer partners, new engagement channels for FMCG brands to their consumers and, subsequently, open up new revenue streams for PayPoint One
Card payment:
- Card payment services were live in 9,885 sites at
30 September 2020 , an increase of 450 sites since31 March 2020 mainly due to installs and Covid-19 suspended sites returning - Transactions grew significantly by 68.7% to 112.3 million and net revenue increased by 63.4% to £6.9 million, benefiting from the increase in convenience store sales and the preference of stores to take payment by card
- The average transaction value for the period increased to £12.5 from £11.8 in the prior period. This was impacted in the first half by the increase in contactless limit to £45 along with the increasing average basket size in the convenience sector
- Use of our card payments net settlement functionality has been growing and is now active in 881 sites, an increase of 179% from
31 March 2020 - First phase of retailer lifecycle improvements complete, focused on onboarding and early-life experience
ATM:
- ATMs were live in 3,782 sites at
30 September 2020 , an increase of 162 since31 March 2020 , largely due to non-operational sites coming back online from Covid-19 PayPoint continued to focus on estate optimisation and tight cost management, relocating machines from low performing sites to better locations- ATM transactions declined by 24.8% to 15.6 million, less than the general market decline of 44.8%25 during Covid-19
- Net revenue decreased 17.8% to £5.0 million, primarily due to lower transactions processed as a result of less demand for cash across the economy
PayPoint have been actively converting surcharge ATMs to free ATMs, under LINK’s Financial Inclusion scheme. This activity has contributed to building an estate of over 181 free PayPoint ATMs, that facilitate free access to cash to the most vulnerable in society- The Link Counter Service trial is now in progress, offering access to cash via over-the-counter cash withdrawals using PayPoint’s in store terminals
H2 Priorities
Refocus of sales team and continued building of sales pipeline, including key initiatives:
Field Sales team refresh, driving sales and retailer partnering- EPoS Try Before You Buy – phase 2
- Card attachment rate recovery and onboarding improvements with a focus to buy-out of contracts partnered with our acquirer
- Store to Door – create an open platform for Delivery partners to fulfil customer orders with home delivery
PRIORITY 2: PAYPOINT BECOMES THE DEFINITIVE PARCEL POINT SOLUTION
PayPoint’s extensive parcel pick-up and drop-off network, which comprises over 10,000 sites, provides a solution for carriers and a footfall driver for retailer partners, including Amazon, eBay, DHL, Fedex and Yodel. Delivering high levels of consumer satisfaction, our offering enables our carrier partners to improve service levels for their consumers in the crucial ‘last mile’ of deliveries, balancing the continued growth in online retail shopping with the realities of operating in a competitive low-margin market.
H1 Progress
- 10,486 live total parcel sites at
30 September 2020 , an increase of 1,840 sites since31 March 2020 due to increasing sites for newer parcel partners and Covid-19 suspended sites returning - Secured full ownership of
Collect+ in April, maintaining Yodel as key carrier partner and enabling further partner and store expansion - New
Collect+ website launched – gives control and ownership of store locator, consumer interactions and online parcel tracking, as well as a platform for future send service and further integrations with our carrier partners - New carriers signed, DPD and Parcel2Go send proposition trial underway
- Rollout of new Zebra thermal label printers, enhancing our send proposition
- Existing carriers scaling store presence pre-peak 2020 across our network
H2 Priorities
- Ensure smooth operational delivery during peak 2020 trading
- Successful launch of DPD and trial of Parcel2Go send service
- Accelerate rollout of Zebra printers to improve customer experience and send proposition
- Enhance our send proposition via
Collect+ website
PRIORITY 3: SUSTAIN LEADERSHIP IN ‘PAY-AS-YOU-GO’ AND GROW DIGITAL BILL PAYMENTS
Over-the-counter payments remain an important part of the
H1 Progress
Major relationships renewed and expanding to digital services
- Proactive management of client and multiple retailer relationships yielding positive results on digital opportunities beyond ‘pay-as-you-go’
- Major client contract renewal programme largely complete - 17 client renewals27, including EDF, delivering a broader range of services from our MultiPay digital payments portfolio
- 26 new clients signed, with over 75% coming from non-energy sectors
- BBC TV Licence App now live, enabling customers to pay for their license digitally
- 7 multiple retailer contract renewals, including
EG Group ,Motor Fuel Group and several regional Co-ops
Digital payments growth
- MultiPay increased by 17.7% in net revenue YOY – Direct Debit and PayByLink products launched
- 13 new Cash Out clients signed, driven by local authorities digitising operations due to Covid-19
- Strong eMoney growth with transactions increasing by 15.4% and net revenue increasing by 19.9% in the period
H2 Priorities
- Complete remaining key energy and multiple retailer contract renewals
- Deliver new business sector wins – Housing & eMoney
- Continue to diversify and secure broader opportunities beyond ‘pay as you go’ with existing clients – Pay By Link, cards and Direct Debit
PRIORITY 4: BUILDING A DELIVERY FOCUSED ORGANISATION AND CULTURE
Underpinning PayPoint’s future success is the continued development and investment in our people, systems and organisation with the aim to create an efficient and high performance based culture with a focus on empowerment, engagement and customer service.
H1 Progress
- Strengthened Executive team with key appointments, completing organisation structure announced earlier in year
- Ben
Ford , joinedPayPoint on1 July 2020 to lead our new Retail Services function – his focus is on aligning all our retailer-facing resource and capability, the end-to-end delivery of products and services to our retailers and the management of retailer relationships, leveraging our new CRM system - Next phase of CRM now fully rolled out to Contact Centre, enabling ‘single customer view’ of retailer and enhanced retailer experience
- First phase CRM benefits yielding better data to drive key business decisions
- In-house warehouse operations extended to products and consumables, giving complete control of experience and key moments of retailer lifecycle
H2 Priorities
- Deliver the successful integration of Handepay, Merchant Rentals and i-movo businesses
- Start to deliver synergies from acquisitions
Outlook AND DIVIDEND
Our first half has been a particularly busy and challenging period for the business. Operationally, we have remained focused on managing our business by supporting our people, our clients and retailer partner network and the most vulnerable in the community. In addition, we have taken important steps to strengthen our operating model and organisational structure and to identify and support growth opportunities in our core
Our core strategic priorities for the business remain unchanged: embedding
We expect the continuing government restrictions to create some uncertainty in the outlook to a number of our businesses in the second half, although we have taken the necessary steps and learnings from the first lockdown to ensure their continued resilience through this developing situation. The influence of parcel volumes during the important peak seasonal period and resilience in bill payment volumes will also be important factors, along with the continuation of the positive trends we have seen in card volumes, e-Money and MultiPay. Underpinning our outlook for the second half are the actions we have taken during the year to manage our costs, apply a tight operational focus and maximise new business opportunities. We have declared a dividend of 15.6p per share, consistent with our dividend policy, which reflects our long-term confidence in the business, the strength of our underlying cash flow and the enhanced growth prospects from the steps we have taken in the current year. Overall expectations for the full year remain unchanged.
Financial review
OVERVIEW
Restated28 | Restated1 | |||
£m | Six months to 30 September 2020 | Six months to 30 September 2019 | Change % | Year ended 31 March 2020 |
Net revenue | ||||
Continuing operations | ||||
21.7 | 19.9 | 8.6% | 41.0 | |
24.7 | 30.4 | (18.6%) | 65.8 | |
46.4 | 50.3 | (7.8%) | 106.8 | |
Discontinued operation | ||||
7.6 | 7.3 | 4.5% | 14.6 | |
Total net revenue | 54.0 | 57.6 | (6.2%) | 121.4 |
Costs from continuing operations | 29.6 | 29.7 | (0.3%) | 56.8 |
Profit before tax from continuing operations | 16.8 | 20.7 | (18.6%) | 50.0 |
Cash generation | 29.5 | 27.1 | 8.9% | 66.4 |
Cash generation from continuing operations | 25.1 | 22.4 | 12.1% | 57.9 |
Net corporate debt | (6.1) | (12.3) | (50.3%) | (12.0) |
Profit before tax from continuing operations of £16.8 million (2019: £20.7 million) decreased by £3.9 million due to the decrease in net revenue from continuing operations and the expected impact of the
Revenue from continuing operations decreased by £8.4 million to £60.7 million (2019: £69.1 million). Net revenue from continuing operations decreased by £3.9 million (7.8%) to £46.4 million (2019: £50.3 million); the prior period included £2.1 million net revenue from the
MultiPay net revenue increased by £0.3 million (17.7%) driven by growth from new revenue streams and an increase in transactions from other clients excluding Utilita. As expected MultiPay transactions decreased due to Utilita moving customers to their own in-house app.
Romania’s net revenue increased by 4.5% to £7.6 million (2019: £7.3 million) through margin improvement in bill payments and top-ups. Transactions increased by 1.2% to 57.4 million (2019: 56.7 million).
Total costs from continuing and discontinued operations of £33.4 million (2019: £33.6 million) decreased by £0.2 million. Total costs include £1.0 million associated with the one-off acquisition and disposal costs. Costs from continuing operations decreased by £0.1 million mainly due to cost efficiencies from bringing terminal maintenance and repairs in-house and lower costs from decreased transaction volumes. Costs from discontinued operations decreased by £0.1 million due to cost reduction measures for Covid-19 including travel savings and lower bonuses.
Cash generation remained strong with £29.5 million (2019: £27.1 million) delivered from profit before tax from continuing and discontinued operations of £20.6 million. There was a working capital inflow of £3.4 million, of which £3.3 million will reverse next year once the HMRC VAT deferral is paid. There was also the add back for depreciation and amortisation of £4.9 million.
Net corporate debt decreased by £6.2 million to £6.1 million (2019: £12.3 million). Dividend payments were lower compared to the same period last year due to the end of the additional dividend programme. At
SECTOR ANALYSIS
Six months to 30 September 2020 | Six months to 30 September 2019 | Change % | Year ended 31 March 2020 | |
Number of retailers | 17,279 | 17,472 | (1.1%) | 16,663 |
PayPoint One29 | 16,900 | 15,088 | 12.0% | 16,098 |
Legacy terminal | 2,360 | 4,732 | (50.1%) | 2,496 |
PPoS30 | 8,293 | 8,546 | (3.0%) | 8,235 |
Total sites | 27,553 | 28,366 | (2.9%) | 26,829 |
Services in sites (No.) | ||||
PayPoint One Base | 8,153 | 7,579 | 7.6% | 8,304 |
EPoS Core | 7,411 | 6,685 | 10.9% | 6,956 |
EPoS Pro | 1,336 | 824 | 62.1% | 838 |
Card payments | 9,885 | 9,879 | 0.1% | 9,435 |
ATMs | 3,782 | 3,972 | (4.8%) | 3,620 |
Parcels | 10,486 | 7,113 | 47.4% | 8,646 |
Transactions (Millions) | ||||
Card payments | 112.3 | 66.6 | 68.7% | 136.8 |
ATMs | 15.6 | 20.7 | (24.8%) | 40.4 |
Parcels | 11.2 | 11.5 | (2.5%) | 24.5 |
PayPoint One average weekly service fee per site (£) | 15.7 | 15.5 | 1.2% | 15.4 |
Net revenue (£m) | ||||
Service fees | 7.1 | 6.3 | 12.7% | 13.1 |
Card payments | 6.9 | 4.2 | 63.4% | 8.7 |
ATM | 5.0 | 6.0 | (17.8%) | 11.9 |
Parcels and other | 2.7 | 3.4 | (20.3%) | 7.3 |
Total net revenue (£m) | 21.7 | 19.9 | 8.6% | 41.0 |
As at
Service fees: This is a core growth area and consists of service fees from PayPoint One and our legacy terminal. Service fee net revenue increased by £0.8 million (12.7%) to £7.1 million (2019: £6.3 million) driven by the additional 1,812 PayPoint One sites compared to
Card payments: Card payment transaction volumes increased significantly by 68.7% to 112.3 million (2019: 66.6 million). Across our network, 9,885 retailer partners were using the card payment solution, an increase of 450 sites since
ATMs: As expected ATM net revenue decreased by £1.0 million (17.8%) to £5.0 million (2019: £6.0 million) due to a 24.8% reduction in transactions, attributable to a combination of suspended sites from Covid-19 and reduced demand for cash across the economy over this period. ATM sites increased by 162 since
Parcels & other: Total parcel volumes decreased by 2.5% to 11.2 million (2019: 11.5 million), impacted by Covid-19 with consumers staying at home. Parcel sites increased by 1,840 from
Bill payments is our most established category and consists of prepaid energy, bill payments (including MultiPay) and Cash Out services.
Restated31 | Restated1 | |||
Six months to 30 September 2020 | Six months to 30 September 2019 | Change % | Year ended 31 March 2020 | |
Total transactions (millions) | 90.6 | 141.7 | (36.0%) | 296.9 |
Of which: MultiPay transactions (millions) | 12.2 | 13.9 | (11.8%) | 32.9 |
Transaction value (£m) | 2,207.7 | 2,896.6 | (23.8%) | 6,106.3 |
Net revenue (£m) | 16.6 | 22.3 | (25.6%) | 49.6 |
Net revenue per transaction (pence) | 18.3 | 15.7 | 16.4% | 16.7 |
MultiPay net revenue continued to grow and increased by 17.7% to £2.1 million (2019: £1.8 million) driven by growth from new revenue streams and an increase in transactions from other clients excluding Utilita. As expected, MultiPay transactions decreased by 1.7 million (11.8%) to 12.2 million (2019: 13.9 million) due to the planned Utilita switch to their in-house app.
Top-ups include transactions where consumers can top up their mobiles, prepaid debit cards and lottery tickets. This sector also includes eMoney transactions where
Six months to 30 September 2020 | Six months to 30 September 2019 | Change % | Year ended 31 March 2020 | |
Transactions (millions) | 17.6 | 20.4 | (13.8%) | 39.5 |
Of which: eMoney transactions (millions) | 5.0 | 4.4 | 15.4% | 9.1 |
Transaction value (£m) | 358.2 | 308.1 | 16.3% | 684.1 |
Net revenue (£m) | 8.1 | 8.1 | 0.7% | 16.2 |
Net revenue per transaction (pence) | 46.3 | 39.6 | 17.0% | 41.0 |
As expected,
eMoney transactions increased by 0.6 million (15.4%) to 5.0 million (2019: 4.4 million) and net revenue increased by 19.9%. eMoney transactions derive a substantially higher fee per transaction than traditional top-up transactions.
The Romanian business mainly comprises bill payments and top-ups operating on a similar basis to our
Six months to 30 September 2020 | Six months to 30 September 2019 | Change % | Year ended 31 March 2020 | |
19,048 | 19,088 | (0.2%) | 19,257 | |
Transaction value (£m) | 1,228 | 1,146 | 7.2% | 2,296 |
Transactions (millions) | ||||
Bill payments | 49.5 | 49.6 | (0.3%) | 100.0 |
Top-ups | 6.1 | 6.1 | 0.2% | 12.4 |
Other | 1.8 | 1.0 | 85.1% | 2.2 |
Total transactions | 57.4 | 56.7 | 1.2% | 114.6 |
Net revenue (£m) | 7.6 | 7.3 | 4.5% | 14.6 |
Net revenue per transaction (pence) | 13.2 | 12.8 | 3.1% | 12.8 |
The number of sites decreased by 209 from
TOTAL COSTS
Restated32 | Restated1 | |||
£m | Six months to 30 September 2020 | Six months to 30 September 2019 | Change % | Year ended 31 March 2020 |
Continuing operations | ||||
Other costs of revenue | 3.2 | 3.8 | (16.0%) | 7.3 |
Depreciation and amortisation | 4.6 | 4.0 | 14.6% | 8.7 |
Administrative costs | 21.1 | 21.7 | (2.6%) | 40.3 |
Finance costs | 0.7 | 0.2 | 262.8% | 0.5 |
29.6 | 29.7 | (0.3%) | 56.8 | |
Discontinued operation | ||||
3.8 | 3.9 | (2.6%) | 7.9 | |
Total costs | 33.4 | 33.6 | (0.6%) | 64.7 |
Total costs decreased by £0.2 million (0.6%) to £33.4 million (2019: £33.6 million). Total costs include £1.0 million associated with the one-off acquisition and disposal costs. Costs from continuing operations decreased by £0.1 million (0.3%) to £29.6 million. Costs have been tightly managed in the period with further cost efficiencies driven by bringing terminal maintenance and repairs in-house and lower costs associated with transaction volumes. As anticipated, there were increases in depreciation and amortisation relating to the investment in our back-office systems, together with the amortisation in relation to the intangible asset recognised on acquisition of the remaining
OPERATING MARGIN33
Operating margin from continuing operations of 37.7% (2019: 41.4%) declined by 3.7ppts due to a 7.8% decrease in net revenue from continuing operations.
PROFIT BEFORE TAX AND TAXATION
The tax charge for continuing operations of £3.7 million (2019: £4.0 million) on profit before tax from continuing operations of £16.8 million (2019: £20.7 million) represents an effective tax rate34 for continuing operations of 21.8% (2019: 19.2%). The effective tax rate was 2.6ppts higher than the prior period due to an increase in disallowable expenses associated with the one-off acquisition and disposal costs.
STATEMENT OF FINANCIAL POSITION
Net assets of £45.0 million (2019: £41.4 million) increased by £3.6 million. Current assets decreased by £12.5 million to £163.3 million (2019: £175.8 million) mainly due to a decrease in trade and other receivables, there is a corresponding decrease in trade and other payables. Non-current assets decreased by £11.5 million to £45.0 million (2019: 56.5 million), due to goodwill in relation to the discontinued operation being classified as held for sale.
CASH FLOW AND LIQUIDITY
The following table summarises the cash flow movements during the period.
£m | Six months to 30 September 2020 | Six months to 30 September 2019 | Change % | Year ended 31 March 2020 |
Profit before tax from continuing and discontinued operations | 20.6 | 24.0 | (14.2%) | 56.8 |
Depreciation and amortisation | 4.9 | 4.3 | 14.0% | 9.5 |
VAT and other non-cash items | - | - | 100.0% | 0.4 |
Share based payments and other items | 0.6 | - | 100.0% | (0.4) |
Working capital changes (corporate) | 3.4 | (1.2) | (383.3%) | 0.1 |
Cash generation | 29.5 | 27.1 | 8.9% | 66.4 |
Taxation payments | (4.2) | (10.2) | (58.8%) | (15.8) |
Capital expenditure and business acquisitions | (9.8) | (4.1) | 139.0% | (8.4) |
Loans and borrowings | (49.0) | 18.0 | (372.2%) | 70.0 |
Acquisition of subsidiary - cash acquired | 0.9 | - | 100.0% | - |
Lease payments | (0.1) | - | 100.0% | (0.3) |
Dividends paid | (10.7) | (28.7) | (62.7%) | (57.4) |
Net (decrease)/increase in corporate cash and cash equivalents | (43.4) | 2.1 | (2,166.7%) | 54.5 |
Net change in clients’ funds and retailer partners’ deposits | 7.7 | 0.8 | 862.5% | 1.4 |
Net (decrease)/ increase in cash and cash equivalents | (35.7) | 2.9 | (1,331.0%) | 55.9 |
Cash and cash equivalents at the beginning of year | 93.8 | 37.5 | 150.1% | 37.5 |
Effect of foreign exchange rate changes | 0.4 | 0.1 | 300.0% | 0.4 |
Cash and cash equivalents at period end | 58.5 | 40.5 | 44.4% | 93.8 |
Comprising: | ||||
Corporate cash | 14.9 | 5.7 | 161.4% | 58.0 |
Clients’ funds and retailer partners’ deposits | 27.2 | 34.8 | (21.8%) | 35.7 |
Assets held for sale - Clients' funds and retailer partners' deposits | 16.4 | - | 100.0% | - |
Cash generation remained strong with £29.5 million delivered from profit before tax from continuing and discontinued operations of £20.6 million. There was a working capital inflow of £3.4 million benefiting from the VAT deferral offered by HMRC; this will lead to a cash outflow of £3.3 million next year.
Taxation payments on account of £4.2 million (2019: £10.2 million) are lower compared to the same period last year due to HMRC bringing the payments on account forward by six months in 2019.
Capital expenditure and business acquisitions of £9.8 million (2019: £4.1 million) was £5.7 million higher than the prior year. Capital expenditure and business acquisitions primarily consists of IT hardware, PayPoint One terminals, EPoS, CRM development and T4 terminals, together with the acquisition of the remaining 50% asset that Yodel owned for £6 million. Excluding the acquisition of the remaining 50% asset that Yodel owned, capital expenditure was £0.3 million lower compared to the same period last year. This is as a result of reduced CRM development as the core platform is now live, although this was partially offset by the purchase of T4 terminals in
At
DIVIDENDS
Six months to 30 September 2020 | Six months to 30 September 2019 | Change % | |
Ordinary dividends per share (pence) | |||
Interim (Proposed) | 15.6 | 23.6 | (33.9%) |
Final (paid) | 15.6 | 23.6 | (33.9%) |
Additional dividend per share (pence) | |||
Interim (Proposed) | - | 18.4 | (100.0%) |
Final (paid) | - | 18.4 | (100.0%) |
Total dividend per share (pence) | 31.2 | 84.0 | (62.9%) |
Total dividends paid in period (£m) | 10.7 | 28.7 | (62.7%) |
In the six months to
We have declared an interim dividend of
Finance Director
Condensed Consolidated Statement of Profit or loss
Restated35 | Restated1 | ||||
| Note | 6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |
Continuing operations | |||||
Revenue | 2,3 | 60,711 | 69,050 | 144,289 | |
Cost of revenue | 4 | (21,875) | (26,313) | (53,142) | |
Gross profit | 38,836 | 42,737 | 91,147 | ||
Administrative expenses | (21,327) | (21,871) | (40,687) | ||
Operating profit | 17,509 | 20,866 | 50,460 | ||
Finance income | 14 | 59 | 149 | ||
Finance costs | (696) | (247) | (626) | ||
Profit before tax | 16,827 | 20,678 | 49,983 | ||
Tax | 5 | (3,667) | (3,963) | (9,961) | |
Profit from continuing operations | 13,160 | 16,715 | 40,022 | ||
Discontinued operation | |||||
Profit from discontinued operation, net of tax | 9 | 3,232 | 2,812 | 5,646 | |
Profit for the period attributable to equity holders of the parent | 16,392 | 19,527 | 45,668 | ||
Earnings per share | |||||
Basic | 6 | 24.0p | 28.6p | 66.9p | |
Diluted | 6 | 23.8p | 28.5p | 66.3p | |
Earnings per share - continuing operations | |||||
Basic | 6 | 19.3p | 24.5p | 58.6p | |
Diluted | 6 | 19.1p | 24.4p | 58.1p | |
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME | |||||
6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |||
Items that may subsequently be reclassified to the consolidated statement of profit or loss: | |||||
Exchange differences on translation of foreign operation | 267 | 415 | 256 | ||
Other comprehensive income for the period | 267 | 415 | 256 | ||
Profit for the period | 16,392 | 19,527 | 45,668 | ||
Total comprehensive income for the period attributable to equity holders of the parent | 16,659 | 19,942 | 45,924 |
Notes 1 to 18 form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Note | 30 September 2020 £000 | 30 September 2019 £000 | 31 March 2020 £000 |
Non-current assets | ||||
- | 12,037 | 11,853 | ||
Other intangible assets | 22,322 | 16,997 | 17,274 | |
Property, plant and equipment | 22,119 | 26,505 | 24,840 | |
Deferred tax asset | 605 | 945 | 565 | |
Total non-current assets | 45,046 | 56,484 | 54,532 | |
Current assets | ||||
Inventories | 44 | 180 | 214 | |
Trade and other receivables | 10 | 69,643 | 133,840 | 108,368 |
Current tax asset | 1,084 | 1,262 | 1,099 | |
Cash and cash equivalents | 11 | 42,028 | 40,521 | 93,774 |
112,799 | 175,803 | 203,455 | ||
Assets held for sale | 9 | 50,529 | - | - |
Total current assets | 163,328 | 175,803 | 203,455 | |
Total assets | 208,374 | 232,287 | 257,987 | |
Current liabilities | ||||
Trade and other payables | 12 | 100,875 | 171,686 | 148,621 |
Lease liabilities | 18 | 211 | 197 | |
Loans and borrowings | 21,000 | 18,000 | 70,000 | |
121,893 | 189,897 | 218,818 | ||
Liabilities directly associated with assets classified as held for sale | 9 | 41,514 | - | - |
Total current liabilities | 163,407 | 189,897 | 218,818 | |
Non-current liabilities | ||||
Trade and other payables | 12 | - | 169 | 95 |
Lease liabilities | 12 | 828 | 744 | |
Total non-current liabilities | 12 | 997 | 839 | |
Total liabilities | 163,419 | 190,894 | 219,657 | |
Net assets | 44,955 | 41,393 | 38,330 | |
Equity | ||||
Share capital | 13 | 228 | 227 | 228 |
Share premium | 4,974 | 4,485 | 4,485 | |
Share-based payment reserve | 1,556 | 2,349 | 1,875 | |
Translation reserve | (466) | (574) | (733) | |
Retained earnings | 38,663 | 34,906 | 32,475 | |
Total equity attributable to equity holders of the parent | 44,955 | 41,393 | 38,330 |
Notes 1 to 18 form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Note | Share capital £000 | Share premium £000 | Share- based payment reserve £000 | Translation reserve £000 | Retained earnings £000 | Total equity £000 | |
Opening equity for | 227 | 3,352 | 2,684 | (989) | 44,876 | 50,150 | |
Profit for the period | - | - | - | - | 19,527 | 19,527 | |
Exchange differences on translation of foreign operation | - | - | - | 415 | - | 415 | |
Comprehensive income for the period | - | - | - | 415 | 19,527 | 19,942 | |
Adoption of IFRS 16 | - | - | - | - | (73) | (73) | |
Equity-settled share-based payment expense | - | - | 1,026 | - | - | 1,026 | |
Vesting of share scheme | - | 1,133 | (1,374) | - | (788) | (1,029) | |
Tax on share-based payments | - | - | 13 | - | 72 | 85 | |
Dividends | - | - | - | - | (28,708) | (28,708) | |
Closing equity | 227 | 4,485 | 2,349 | (574) | 34,906 | 41,393 | |
Profit for the period | - | - | - | - | 26,141 | 26,141 | |
Exchange differences on translation of foreign operation | - | - | - | (159) | - | (159) | |
Comprehensive income for the period | - | - | - | (159) | 26,141 | 25,982 | |
Issue of shares | 1 | - | - | - | - | 1 | |
Equity-settled share-based payment expense | - | - | (395) | - | - | (395) | |
Vesting of share scheme | - | - | (42) | - | 42 | - | |
Deferred tax on share-based payments | - | - | (37) | - | 97 | 60 | |
Dividends | - | - | - | - | (28,711) | (28,711) | |
Closing equity | 228 | 4,485 | 1,875 | (733) | 32,475 | 38,330 | |
Profit for the period | - | - | - | - | 16,392 | 16,392 | |
Exchange differences on translation of foreign operation | - | - | - | 267 | - | 267 | |
Comprehensive income for the period | - | - | - | 267 | 16,392 | 16,659 | |
Equity-settled share-based payment expense | - | - | 610 | - | - | 610 | |
Vesting of share scheme | 14 | - | 489 | (925) | - | 452 | 16 |
Tax on share-based payments | - | - | (4) | - | 20 | 16 | |
Dividends | 7 | - | - | - | - | (10,676) | (10,676) |
Closing equity | 228 | 4,974 | 1,556 | (466) | 38,663 | 44,955 |
Notes 1 to 18 form part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Note | 6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |
Net cash flow from operating activities | 16 | 32,793 | 17,531 | 51,481 |
Investing activities | ||||
Investment income | 197 | 228 | 531 | |
Purchases of property, plant and equipment | (2,002) | (1,562) | (2,963) | |
Purchases of intangible assets | (7,813) | (2,521) | (5,445) | |
Acquisition of subsidiary - cash acquired | 923 | - | - | |
Net proceeds from disposal of property, plant and equipment | 74 | 1 | - | |
Net cash used in investing activities | (8,621) | (3,854) | (7,877) | |
Financing activities | ||||
Dividends paid | (10,676) | (28,708) | (57,419) | |
Proceeds from issue of share capital | - | - | 1 | |
Proceeds from loans and borrowings | - | 18,000 | 70,000 | |
Repayment of borrowings | (49,000) | - | - | |
Payment of lease liabilities | (111) | - | (271) | |
Net cash (used in)/from financing activities | (59,787) | (10,708) | 12,311 | |
Net (decrease)/increase in cash and cash equivalents | (35,615) | 2,969 | 55,915 | |
Cash and cash equivalents at beginning of year | 93,774 | 37,485 | 37,485 | |
Effect of foreign exchange rate changes | 383 | 67 | 374 | |
Cash and cash equivalents at period end | 58,542 | 40,521 | 93,774 | |
Reconciliation of cash and cash equivalents | ||||
Corporate cash | 14,868 | 5,673 | 58,035 | |
Clients’ funds and retailer partners’ deposits | 27,160 | 34,848 | 35,739 | |
Assets held for sale - clients’ funds and retailer partners’ deposits | 16,514 | - | - | |
Cash and cash equivalents at period end | 58,542 | 40,521 | 93,774 |
Notes 1 to 18 form part of these financial statements.
NOTES TO condensed FINANCIAL STATEMENTS
1. Accounting policies
Reporting entity
Basis of preparation
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Group’s last annual financial statements as at and for the year ended
The information shown for the year ended
By order of the Board, these interim statements were authorised for issue on
The condensed consolidated interim financial statements have been prepared on a going concern basis. At
As referred to on page 2, the business continuity plans actioned by the Group to date have resulted in operations
continuing unaffected on a remote working basis and an analysis of post period end transaction volumes is included on page 2.
The Directors have prepared cash flow forecast scenarios over a three-year period, taking into account the Group’s current financial and trading position, the principal risks and uncertainties and the strategic plans that are reviewed at least annually by the Board. The cashflow forecasts included an analysis and stress test to ensure working capital movements do not trigger a covenant breach. Based on this assessment, the Directors confirm that they have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the period of not less than 12 months from the date of this announcement and therefore have prepared the financial statements on a going concern basis.
The accounting policies are consistent with those included in the annual report 2020, apart from non-current assets held for sale and discontinued operations which is detailed below.
Non-current assets held for sale and discontinued operations
A non-current asset or a group of assets containing a non-current asset (a disposal group) is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use, it is available for immediate sale and sale is highly probable within one year.
On initial classification as held for sale, non-current assets and disposal groups are measured at the lower of previous carrying amount and fair value less costs to sell with any adjustments taken to profit or loss. The same applies to gains and losses on subsequent remeasurement although gains are not recognised in excess of any cumulative impairment loss. Any impairment loss on a disposal group first is allocated to goodwill, and then to remaining assets and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets and investment property, which continue to be measured in accordance with the Company’s accounting policies. Intangible assets and property, plant and equipment once classified as held for sale or distribution are not amortised or depreciated.
A discontinued operation is a component of the Group’s business that represents a separate major line of business or geographical area of operations that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative income statement is restated as if the operation has been discontinued from the start of the comparative period.
Use of judgements and estimates
In the application of the Group’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgement: recognition of cash and cash equivalents
The nature of bill payments services means that
A critical judgement in this area is whether clients’ funds and retailer partners’ deposits are recognised in the statement of financial position. This includes evaluating:
(a) existence of a binding agreement clearly identifying the beneficiary of the funds
(b) the identification, ability to allocate and separability of funds
(c) identification of the holder of those funds at any point in time
(d) whether
The judgement is where there is a binding agreement specifying that
Critical estimate: useful economic lives of intangible assets
A critical estimate for the amount of amortisation that is recognised in the profit or loss account and the carrying value of the asset in the statement of financial position. The useful life used to amortise intangible assets relates to the expected future performance of the assets and management’s judgement of the period over which economic benefit will be derived from the asset. For development costs, the Group has determined the useful life based on historical experience with similar products and platforms controlled by the Group as well as anticipation of future events which may impact their life such as changes in technology.
The Group has recognised a brand intangible asset at fair value in accordance with IAS38 Intangible Assets, which is being amortised over its estimated useful economic life of twelve years.
Critical estimate: capitalised development expenditure
A critical estimate at the statement of financial position date that has a risk of causing an adjustment to the carrying amount of assets and liabilities through estimation uncertainty is the evaluation of capitalised development expenditure shown in intangible assets. An estimate is required of how additions to intangible assets will generate probable future economic benefits whilst judgement is required in determining the technical feasibility of completing the intangible asset.
Alternative performance measures
Non-IFRS measures or alternative performance measures are used by the Directors and management for performance analysis, planning, reporting and incentive setting purposes which have remained consistent with prior periods. These measures are included in these interim financial statements to provide additional useful information on performance and trends to shareholders.
These measures are not defined terms under IFRS and therefore they may not be comparable with similarly titled measures reported by other companies. They are not intended to be a substitute for, or superior to, IFRS measures. The measures are described below.
Net revenue (non-IFRS measure)
Net revenue is revenue less commissions paid to retailer partners and the cost of mobile top-ups and SIM cards where
The reconciliation of revenue to net revenue is as follows:
Restated36 | Restated1 | ||
6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |
Continuing operations | |||
Service revenue | 58,876 | 67,585 | 141,280 |
Sale of goods | 744 | 891 | 1,793 |
Royalties | 1,091 | 574 | 1,216 |
Revenue | 60,711 | 69,050 | 144,289 |
less: | |||
Retail partners’ commissions | (14,122) | (18,533) | (37,243) |
Cost of mobile top-ups and SIM cards as principal | (173) | (160) | (286) |
46,416 | 50,357 | 106,760 | |
Discontinued operation | |||
Net revenue from | 7,592 | 7,262 | 14,633 |
Total net revenue | 54,008 | 57,619 | 121,393 |
Effective tax rate (non-IFRS measure)
Effective tax rate is the ongoing tax cost as a percentage of the net profit before tax.
Cash generation (non-IFRS measure)
Cash generation reflects earnings before tax, depreciation, amortisation and exceptional items adjusted for working capital (excluding movement in clients’ funds and retailers’ deposits) as detailed in note 16. This measures the cash generated which can be used for tax payments, new investments and financing activities.
Total costs (non-IFRS measure)
Total costs comprise other cost of revenue (note 4), administrative expenses, financing income and financing costs.
Operating margin (non-IFRS measure)
Operating margin is calculated by dividing operating profit by net revenue. This measure reflects the efficiency of converting revenue into profits.
Net corporate (debt)/cash (non-IFRS measure)
Net corporate (debt)/cash represents cash and cash equivalents excluding cash recognised as clients’ funds and retailers’ deposits, less amounts borrowed under financing facilities (excluding IFRS 16 liabilities).
The reconciliation of cash and cash equivalents to net corporate debt is as follows:
30 September 2020 £000 | 30 September 2019 £000 | 31 March 2020 £000 | |
Cash and cash equivalents | 42,028 | 40,521 | 93,774 |
less: | |||
Clients’ funds and retailer partners’ deposits | (27,160) | (34,848) | (35,739) |
Loans and borrowings | (21,000) | (18,000) | (70,000) |
Net corporate debt | (6,132) | (12,327) | (11,965) |
2. Segmental reporting
The Group provides a number of different services and products, however these do not meet the definition of different segments under IFRS 8, as the chief operating decision maker does not review those separately for resource allocations purposes, therefore the Group has only one operating segment. A sector analysis has been provided in the finance review on pages 12 to 14.
Restated37 | Restated1 | ||
6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |
Revenue by country | |||
Continuing operations | |||
60,711 | 69,050 | 144,289 | |
Discontinued operation | |||
34,472 | 35,042 | 69,712 | |
Total | 95,183 | 104,092 | 214,001 |
30 September 2020 £000 | 30 September 2019 £000 | 31 March 2020 £000 | |
Non-current assets | |||
Continuing operations | |||
45,046 | 42,211 | 40,493 | |
Discontinued operation | |||
14,614 | 14,273 | 14,039 | |
Total | 59,660 | 56,484 | 54,532 |
| |
3. Revenue
Restated1 | Restated1 | ||
Disaggregation of revenue | 6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 |
Continuing operations | |||
Bill payments | 21,668 | 29,969 | 65,003 |
Top-ups and eMoney | 11,715 | 12,187 | 24,203 |
Retail services | 27,328 | 26,894 | 55,083 |
60,711 | 69,050 | 144,289 | |
Discontinued operation | |||
34,472 | 35,042 | 69,712 | |
Total | 95,183 | 104,092 | 214,001 |
Seasonality of operations
Contract balances | 30 September 2020 £000 | 30 September 2019 £000 | 31 March 2020 £000 | |
Trade receivables | 7,831 | 13,701 | 12,346 | |
Accrued income | 3,935 | 4,147 | 2,518 | |
Contract assets - deferred setup and development fees | 2,324 | 3,397 | 2,862 | |
Contract liabilities | (1,644) | (2,378) | (1,965) | |
Deferred income | (348) | (612) | (328) | |
Total contract balances | 12,098 | 18,255 | 15,433 |
4. Cost of revenue
Restated38 | Restated1 | ||
6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |
Continuing operations | |||
Retailer partners’ commissions | 14,122 | 18,533 | 37,243 |
Cost of mobile top-ups and SIM cards | 172 | 160 | 286 |
Cost of revenue deducted for net revenue | 14,294 | 18,693 | 37,529 |
Depreciation and amortisation | 4,385 | 3,814 | 8,295 |
Other | 3,196 | 3,806 | 7,318 |
Other costs of revenue | 7,581 | 7,620 | 15,613 |
Total cost of revenue from continuing operations | 21,875 | 26,313 | 53,142 |
Discontinued operation | |||
Total cost of revenue from | 27,333 | 28,384 | 56,479 |
Total cost of revenue | 49,208 | 54,697 | 109,621 |
5. Tax
Restated1 | Restated1 | ||
| 6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 |
Continuing operations | |||
Current tax | 3,727 | 4,137 | 9,778 |
Deferred tax | (60) | (174) | 183 |
3,667 | 3,963 | 9,961 | |
Discontinued operation | |||
Current tax | 551 | 522 | 1,163 |
Deferred tax | 5 | 24 | 8 |
556 | 546 | 1,171 | |
Total | 4,223 | 4,509 | 11,132 |
| 6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 |
Effective tax rate | 20.5% | 18.8% | 19.6% |
Effective tax rate for continuing operations | 21.8% | 19.2% | 19.9% |
The tax charge for continuing and discontinued operations was £4.2 million (
6. Earnings per share
The basic and diluted earnings per share are calculated on the following profit and number of shares.
| 6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 |
Total profit for basic and diluted earnings per share is the net profit attributable to equity holders of the parent | 16,392 | 19,527 | 45,668 |
Continuing operations | |||
Profit for basic and diluted earnings per share is the net profit attributable to equity holders of the parent | 13,160 | 16,715 | 40,022 |
30 September 2020 | 30 September 2019 | 31 March 2020 | |
Number of Shares Thousands | Number of Shares Thousands | Number of Shares Thousands | |
Weighted average number of ordinary shares in issue (for basic earnings per share) | 68,338 | 68,251 | 68,264 |
Potential dilutive ordinary shares: | |||
Long-term incentive plan | 177 | 266 | 417 |
Deferred annual bonus scheme | 62 | 43 | 73 |
SIP and other | 262 | 51 | 80 |
Weighted average number of ordinary shares in issue (for diluted earnings per share) | 68,839 | 68,611 | 68,834 |
Earnings per share (pence) | ||||
Basic | 24.0 | 28.6 | 66.9 | |
Diluted | 23.8 | 28.5 | 66.3 |
Earnings per share - continuing operations (pence) | ||||
Basic | 19.3 | 24.5 | 58.6 | |
Diluted | 19.1 | 24.4 | 58.1 |
7. Dividends
On
8. Acquisition of Collect+ Group
On
The agreement reaffirmed the long-term partnership with Yodel, committing to a multi-year contract to continue as a parcel carrier for
Total consideration payable was £6.0 million cash paid on completion. An intangible brand asset of £6.0 million has been recognised initially at cost and will be amortised over the useful life of 12 years.
In the period since acquisition, the Collect+ Group earned gross revenues of £1.1 million and reported profit after tax of £0.9 million.
The following table summarises the recognised amounts of assets acquired and liabilities of the Collect+ Group assumed at the date of acquisition.
Fair value of assets and liabilities acquired on | £000 |
Trade and other receivables | 8 |
Cash and cash equivalents | 923 |
Trade and other payables | (906) |
Total identifiable net assets acquired | 25 |
9.
On
The sale was consistent with PayPoint’s focus on its key strategic priorities and the delivery of enhanced growth and value in its core
The major classes of assets and liabilities comprising the operation classified as held for sale are as follows:
Assets held for sale | £000 |
12,042 | |
Other intangible assets | 314 |
Property, plant and equipment | 2,247 |
Deferred tax asset | 11 |
Inventories | 203 |
Trade and other receivables | 19,198 |
Clients' funds and retailers' deposits | 16,514 |
50,529 | |
Liabilities directly associated with assets classified as held for sale: | |
Trade and other payables | 41,227 |
Current tax liabilities | 287 |
41,514 | |
Net assets held for sale | 9,015 |
The assets held for sale are those of the Romanian business, including the related goodwill.
The net assets have been assessed to ensure their fair value less costs to sell is greater than the carrying value. The proceeds of the disposal are expected to substantially exceed the carrying amount of the related net assets and accordingly no impairment losses have been recognised on the classification of the operation as held for sale.
The Romanian business was not previously classified as held-for-sale or as a discontinued operation. The comparative Consolidated Statement of Profit or Loss has been restated to show the discontinued operation separately from continuing operations.
To achieve this presentation, the discontinued operation results include the intercompany cost for transactional services within the expenses line below.
The results of the discontinued operation, which have been included in the profit for the period, were as follows:
6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |
Revenue | 34,472 | 35,042 | 69,712 |
Cost of revenue | (27,333) | (28,384) | (56,479) |
Gross profit | 7,139 | 6,658 | 13,233 |
Expenses | (3,465) | (3,416) | (6,704) |
Operating profit | 3,674 | 3,242 | 6,529 |
Finance income | 184 | 169 | 382 |
Finance costs | (70) | (53) | (94) |
Profit before tax | 3,788 | 3,358 | 6,817 |
Tax | (556) | (546) | (1,171) |
Profit from discontinued operation attributable to equity holders of the parent | 3,232 | 2,812 | 5,646 |
Cash flows (used in)/from discontinued operation
6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |
Net cash from operations | 4,161 | 3,690 | 6,942 |
Net cash (used in)/from investing activities | (439) | 149 | 678 |
Net cash used in financing activities | (6,570) | - | (920) |
Effect of foreign exchange rate changes | 361 | 58 | 366 |
Net cash flow for the period | (2,487) | 3,897 | 7,066 |
10. Trade and other receivables
| 30 September 2020 £000 | 30 September 2019 £000 | 31 March 2020 £000 |
Trade receivables | 7,831 | 13,701 | 12,346 |
Items in the course of collection1 | 53,926 | 112,623 | 88,692 |
Revenue allowance | (1,312) | (2,926) | (1,379) |
60,445 | 123,398 | 99,659 | |
Other receivables | 111 | 217 | 594 |
Contract assets | 2,324 | 3,397 | 2,862 |
Accrued income | 3,935 | 4,147 | 2,518 |
Prepayments | 2,828 | 2,681 | 2,735 |
69,643 | 133,840 | 108,368 |
1 Items in the course of collection represent amounts collected for clients by retailers. An equivalent balance is included within trade and other payables.
11. Cash and cash equivalents
The Group operates cash pooling amongst its various bank accounts in the
Included within cash and cash equivalents of £42.0 million (2019: £40.5 million) are balances of £27.2 million (2019: £34.8 million) relating to funds collected on behalf of clients where
12. Trade and other payables
30 September 2020 £000 | 30 September 2019 £000 | 31 March 2020 £000 | |
Amounts owed in respect of client funds’ and retailer partners’ deposits39 | 27,160 | 34,848 | 35,739 |
Settlement payables40 | 53,926 | 112,623 | 88,692 |
Client payables | 81,086 | 147,471 | 124,431 |
Trade payables | 4,294 | 6,938 | 8,318 |
Other taxes and social security | 6,014 | 3,083 | 4,006 |
Other payables | 474 | 3,489 | 3,886 |
Accruals | 7,015 | 7,884 | 5,782 |
Deferred income | 348 | 612 | 328 |
Contract liabilities | 1,644 | 2,378 | 1,965 |
100,875 | 171,855 | 148,716 |
Disclosed as:
Current | 100,875 | 171,686 | 148,621 | |
Non-current | - | 169 | 95 | |
Total | 100,875 | 171,855 | 148,716 |
13. Share capital
Share capital as at
14. Share-based payments
The total charge of £0.9 million (
On
A further 2,532 share awards were issued under the DABS scheme with vesting over three years to
15. Fair value of financial assets and liabilities
The Directors consider there to be no material difference between the book value and the fair value of the Group’s financial instruments at
16. Notes to the condensed consolidated statement of cash flows
6 months ended 30 September 2020 £000 | 6 months ended 30 September 2019 £000 | Year ended 31 March 2020 £000 | |
Profit before tax from continuing and discontinued operations | 20,615 | 24,035 | 56,799 |
Adjustments for: | |||
Depreciation on property, plant and equipment | 2,478 | 2,867 | 5,631 |
Amortisation of intangible assets | 2,403 | 1,474 | 3,886 |
Loss on disposal of fixed assets | - | 8 | 387 |
Net finance costs | 568 | 72 | 189 |
Share-based payment charge | 610 | 1,026 | 631 |
Cash element of share-based remuneration | - | (1,028) | (1,028) |
Operating cashflows before movements in corporate working capital | 26,674 | 28,454 | 66,495 |
Movement in inventories | (30) | (53) | (89) |
Movement in receivables | (549) | 993 | 1,172 |
Movement in contract assets | 641 | (192) | 775 |
Movement in contract liabilities | (322) | (197) | (731) |
Movement in payables | 3,638 | (1,882) | (1,160) |
Movement in lease liabilities | 19 | (10) | 96 |
Cash generated by operations | 30,071 | 27,113 | 66,558 |
Corporation tax paid | (4,191) | (10,116) | (15,770) |
Finance charges paid | (765) | (300) | (720) |
Cash generated from operating activities (corporate) | 25,115 | 16,697 | 50,068 |
Movement in clients’ cash and retailer partners’ deposits41 | 7,678 | 834 | 1,413 |
Net cash from operating activities | 32,793 | 17,531 | 51,481 |
17. Ofgem Statement of Objection
On
18. Post balance sheet events
On
On
PRINCIPAL RISKS AND Uncertainties
Since the publication of the Annual Report, a further review of the key risks that could prevent
Risk area | Potential impact | Mitigation strategies | Change |
Credit and operational risk | procedures and controls in place. Retailers and counterparties are subject to ongoing credit assessments, and effective debt management processes are implemented. Settlement processes and controls are continually assessed and enhanced, and new systems and technology implemented. Effective governance is in place with segregation of duties and approval processes enforced to protect against fraud and error. | > | |
People and culture | Failure to attract and develop key talent and continue evolving our culture may impact service levels and delivery of strategic initiatives. If we do not develop our employees and maintain an appropriate culture, our business performance and reputation may be damaged resulting in reduced revenue and growth. | The Executive Board define and advocate PayPoint’s values, and employee development and culture are key strategic priorities. Talent management and people development are well established, and employment guidelines and ethical principles are implemented to assist maintaining a strong culture. Values and ethical principles are aligned with employee objectives and employee and retailer engagement surveys are regularly conducted to assess how we deliver on our values. | > |
Losing key clients and retailers | clients and retailers and continually seeks to improve its service levels; including conducting retailer engagement surveys to monitor and enhance our performance. Key clients and retailers are on long-term contracts, and new clients and retailers are routinely onboarded maintaining and diversifying portfolios. New products and channels are also developed to diversify revenue streams and mitigate the impact of losing key clients or retailers in particular markets. | > | |
Competition and markets | The markets in which Covid-19 has impacted PayPoint’s markets and may continue to do so. The decline in cash usage, and changes in consumer trends and government policy may impact our core markets, and failure to implement effective strategies in response to changes will negatively impact revenue. Industry consolidation in the remain strong to maximise business performance. | technological trends and engages with clients and retailers to continually improve service levels. The Executive Board regularly reviews markets, trading opportunities, pricing and competitor activity, and the Board oversee and challenge strategic direction. technology and adapts to consumer trends such as growing its parcel and online payments businesses to capitalise on market changes. | ^ |
Innovation and implementation | Failure to innovate and implement new products, services and technology would impede business performance and our ability to achieve strategic goals. Our business relies on continued product enhancements and failing to improve products due to poor design, build or roll-out would ultimately reduce revenue. Continued system infrastructure improvements are essential in maintaining resilient and effective services, and ineffective infrastructure upgrades may impact future performance. | in new technology and products to support its continued growth. Products and services are continually reviewed and developed to enhance our proposition and service levels, consistent with customer needs and expectations. Various improvement programmes are under way and effective change management processes are deployed by dedicated project teams. The Executive Board oversees all major projects to ensure governance and implementation are effective. | > |
Key partners and suppliers | partners, however some suppliers and partners are more strategically important and not so easily substituted. If supply of goods or services is disrupted or relationships cease before alternative arrangements can be implemented, experience difficulty maintaining service levels potentially resulting in revenue loss, reputational damage or penalties. Continued uncertainties around Covid-19 remain a risk to PayPoint’s continued relationship with key partners and suppliers. | selection processes and long-term contacts are implemented for strategic partner and suppliers. We aim to develop strong relationships with key partners and suppliers, and single points of failure are avoided where practicable, with alternative suppliers and partners contracted and continuity plans implemented. Impact assessments are conducted for critical dependencies and mitigation measures implemented. | > |
Business interruption | Service delivery interruption caused by system failure, loss of premises, or other disruption may impede performance and harm our reputation. Clients, retailers and consumers rely on resilient systems and continued service delivery, and failure to promptly recover services may result in revenue loss, contractual breaches, penalties and increased costs. PayPoint’s important transition from cash to digital creates an upward trend in interruption risk and a recent interruption incident was encountered. Additionally, continued uncertainties remain around Covid-19 which may impact PayPoint’s service delivery, therefore interruption risk is considered increasing. | Comprehensive continuity plans have been implemented to mitigate risk of disruption from Covid-19. Systems are continually upgraded and resilience is built into systems and processes. Effective change management processes are deployed minimising risk of disruption, and systems are regularly tested and continually monitored for outages. | ^ |
Legal and regulatory | PayPoint’s legal team work closely with management to advise on regulatory matters and adopt strategies to ensure regulatory adherence. Legal teams are engaged on key contracts and legal matters, and compliance teams oversee compliance programmes, monitoring and reporting. regulations are incorporated into strategic planning, and we engage with regulators to ensure we have appropriate frameworks to support new products and markets. External counsel is engaged where required. | ^ | |
Cyber security and data protection | Cyber attacks on PayPoint’s systems and networks may significantly impact service delivery and data protection causing harm to | deploys industry standard security systems with cyber intelligence capabilities. Systems are constantly monitored for attacks with teams in place to respond to incidents, and cyber security response plans are regularly tested. Home working tools, security alert processes and employee cyber awareness have been enhanced in response to specific Covid-19 threats. We engage with law enforcement and partners on cyber crime, and proactively manage compliance with data privacy requirements. Additionally, PayPoint’s Audit Committee has a cyber security and IT sub-committee which oversees cyber security capability. | ^ |
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
- the set of interim financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting;
- the half yearly financial report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first half and description of principal risks and uncertainties for the remaining half of the year); and
- the half yearly financial report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties’ transactions and changes therein).
Chief Executive | Finance Director |
INDEPENDENT REVIEW REPORT TO PAYPOINT PLC
Conclusion
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (
Directors’ responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the
The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The Directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the DTR of the
for and on behalf of KPMG LLP
Chartered Accountants
E14 5GL
ABOUT
In thousands of retail locations, at home and on the move, we make life more convenient for everyone.
For retailers, we offer innovative and time-saving technology that empowers convenience retailers in the
We help millions of people to control their household finances, make essential payments and access in-store services like cash withdrawals, eMoney, parcel collections and drop-offs. Our
For clients of all sizes we provide market-leading payments technologies without the need for capital investment. Our seamlessly integrated omnichannel solution – MultiPay is a one-stop shop for digital and other customer payments.
DIRECTORS & KEY CONTACTS
Directors | *Non-Executive Directors |
Registered office | Welwyn Garden City AL7 1EL Registered in |
Registrars | Aspect House Lancing BN99 6DA |
Press and investor relations enquiries | Finsbury The Adelphi WC2N 6HT |
Auditors | E14 5GL |
1 Underlying profit before tax excludes the current year £1.0 million of non-recurring costs, associated with one-offs for acquisitions and disposals and the prior year net revenue impact from
2 Total costs is an alternative performance measure as explained in note 1 to the interim report, a reconciliation to costs is included in the Finance Review on page 15.
3 Comparative information has been restated due to a discontinued operation. Refer to note 9.
4 Revenue from continuing operations excluding the prior period impact from
5 Net revenue from continuing operations excluding the prior period impact from
6 Operating margin % is an alternative performance measure and is calculated by dividing operating profit by net revenue.
7 Cash generation is an alternative performance measure. Refer to the financial review – cash flow and liquidity for a reconciliation from profit before tax.
8 Net corporate (debt)/cash (excluding IFRS 16 liabilities) is an alternative performance measure. Refer to note 1 to the financial information for a reconciliation to cash and cash equivalents.
9 13 client renewals completed by
10 Excludes the impact of
11 https://www.lumina-intelligence.com/blog/convenience/lockdown-boosts-the-uk-convenience-retail-market-by-3-8bn
12 ACS local shop report 2020
13 https://www.ukfinance.org.uk/system/files/Summary-UK-Payment-Markets-2018.pdf
14 For the 12 months to
15 https://www.ukfinance.org.uk/data-and-research/data/cards/card-spending
16 https://www.link.co.uk/about/statistics-and-trends/
17 https://www.link.co.uk/media/1643/monthly-report-august-2020-final.pdf
18https://www.imrg.org/uploads/media/report_download/0001/10/c5ab6be4f7645ffbc54513df2612931af5142e5e.pdf?st
19 https://www.imrg.org/uploads/media/default/0001/08/2477f50ad2fee946cdf5ed23ebb8df21f2489d09.pdf?st.
20 OC&C analysis.
21 https://www.ofgem.gov.uk/gas/retail-market/market-review-and-reform/implementation-cma-remedies/prepayment-meter-cap-level#:~:text=The%20Prepayment%20Meter%20Price%20Cap%20came%20into%20force,Price%20Cap%20expires%20at%20the%20end%20of%202020.
22 https://www.ofgem.gov.uk/data-portal/retail-market-indicators
23 https://www.gov.uk/government/statistics/smart-meters-in-great-britain-quarterly-update-june-2020
24 https://www.statista.com/statistics/273608/number-of-prepaid-mobile-subscriber-in-the-united-kingdom-uk/
25 https://www.link.co.uk/about/statistics-and-trends/
26 https://www.accesstocash.org.uk/media/1087/final-report-final-web.pdf
27 13 client renewals completed by
28 Comparative information has been restated due to a discontinued operation. Refer to note 9.
29 PayPoint One has replaced the legacy terminal in independent retailer partners.
30 PPoS is a plug-in device and virtual
31 Comparative information has been restated due to a discontinued operation. Refer to note 9.
32 Comparative information has been restated due to a discontinued operation. Refer to note 9.
33 Operating margin % is an alternative performance measure and is calculated by dividing operating profit by net revenue.
34 Effective tax rate is the tax cost as a percentage of profit before tax.
35 Comparative information has been restated due to a discontinued operation. Refer to note 9.
36 Comparative information has been restated due to a discontinued operation. Refer to note 9.
37 Comparative information has been restated due to a discontinued operation. Refer to note 9.
38 Comparative information has been restated due to a discontinued operation. Refer to note 9.
39 Relates to monies collected on behalf of clients where the Group has title to the funds (clients’ funds and retailer partners’ deposits). An equivalent balance is included within cash and cash equivalents.
40 Payable in respect of amounts collected for clients by retailer partners. An equivalent balance is included within trade and other receivables.
41 Items in the course of collection and settlement payables are included in this reconciliation on a net basis through the clients’ funds and retailer partners’ deposits line. The Directors have included these items on a net basis to best reflect the operating cash flows of the business.
Attachments
- Interims FY21 RNS Final 1707
© OMX, source