£9. This has been steady progress without too much retracing. Don't know whether it is the yield hunters/contrarians who are seeking it out. It looks like 7.2% yield if the level of dividend is to be maintained. Its on a modest 14x PE for the market, which I believe averages 22x. Expectations were previously knocked by the sale of a business unit (I believe) and a concern about whether due to regulatory changes for Energy their system would be as heavily used as previously in the UK.
Be interesting to see whether this retraces below £9 or keeps going.
There's positive comment from Alex Wright who manages Fidelity Special Situations and Fidelity UK Smaller Companies, in the latest Investors Chronicle. Fidelity did a survey of 500 independent newsagents, and Wright said that a huge amount of footfall would be lost if the newsagents shifted to Paypoint's competitor. Only a third of the newsagents had no plans to use the new product and weren't using it already. Presumably the "new product" is the PayPoint One terminal. The yield was said to be about 11%, which must be including special dividends, as it's currently 5.098% on ii and 5.19% on Hargreaves Lansdown. There's a bit more in IC but I don't want to give away all their IP.
There's a less rosy picture in "Retailers terminate PayPoint contracts over £10 charge"
15 May 2017. The £10 a month charge was due on 1 June 2017. One retailer claimed bank charges were already more than the commission earned from PayPoint, and he wasn't concerned about losing footfall because PayPoint users didn't usually buy anything else. Another retailer said the new terminal was unnecessary and too expensive (at £10 a week), and someone objected to the two year notice period. But there was also positive comment about the new terminal, about the turnover on PayPoint, and the footfall generated.
I suppose Fidelity's survey should beat the more anecdotal evidence on conveniencestore.co.uk. The survey could be quite recent, while the conveniencestore piece is a year old.
Limiting my search to 1 March or later, I didn't find anything that wasn't based on PayPoint's communications, for example "PayPoint's retail network growth comes mainly from Romania which is offsetting a declining UK payments market", on betterretailing.com (9 March). The most recent trading update I've seen was for the three months ended 31 Dec 2017, where some complications make it hard for me to tell how well the business was performing. It includes:
"Group retail networks1 net revenue3 declined 4.3% from £33.3 million to £31.8 million, as last year there was a one-off VAT recovery of £2.4 million. Excluding the VAT recovery, like-for-like2 net revenue would have increased 3.6%. The decline was partially offset by strong growth in PayPoint One service fees and Romania. Group retail networks1 transaction volume reduced, as expected, by 1.7% to 172.7 million transactions due to lower UK bill and general volumes partially offset by strong volume growth in Romania.
UK retail services net revenue3 decreased by 18.1% reflecting the revised commercial terms with Yodel and the card payment VAT recovery. Excluding these items, net revenue3 increased by 4.6% driven by PayPoint One service fees.".
Just from googling "Yodel", they're a parcel delivery service.
Tech trends are against PayPoint, with other ways of paying, and alternatives being developed by FinTech. I suppose high street newsagents are threatened by fewer trips to the high street. It's my impression that management are doing a good job of getting what they can out of the market while it lasts, but I don't feel I can predict the decline of PayPoint's market any better than the stock market, so I haven't bought. I might buy if new info makes me more confident about the business, and I'll be reading the results (due soon, as Muzzletoff said).
i am holding these shares in an ISA and begin to worry that technology does not favour PP? I am no expert and thought this would be a safe income share but time & technology march on. I do not receive the company reports as this is in an ISA but of course all is available on their website. Is this a Hold or a Sell/
Mixed bag of figures, ranging from 83% drop in PBT because of £48m of impairments to dividend up 10% and talk of 5 years of returned capital at £25m each.
Progress has been slow, the continued failure to dispose of the mobile payments sector leading to the writedown and the Yodel deal stuttering into a small loss. Much talk of better things to come with rollout of new machinery, which remains to be seen.
For now a hold supported by the dividend and lack of debt.
If I take an adventurous plunge on shares in difficulty, I prefer those with certain criteria;
a) new leadership with a plan
b) low or nil debt
c) profitable for prior years
d) has previously or still does pay dividends
e) share price reflecting (temporary?) adverse conditions.
PAY meets all these criteria, so have plunged in a paw, comforted by a solid dividend whilst attempts are made to sell the last loss-making division, ramp up new EPOS throughout the empire and sort out potentially worthwhile deal with parcel deliverers. DYOR.
P.S. For those who believe in him, Mr Woodford followed me in and now has 12%, which may partially explain the recent 35p rise in shareprice.
Isn't there a worry amongst investors here, that topping up mobile phones in an over the counter manner like this will ultimately be a thing of the past? Surely there is a way of automating this without leaving the home?
Look at the printer cartridge industry that automatically monitors your ink level and reorders for you. I just don't see this being a long term part of the business.
Surely a 13.7% decline in mobile top ups can't be due to the warmer weather can it?
Energy yes perhaps, but that also must be a future dead business with smart meters handling future billing and the number of pre-paid meters shrinking (assuming they are)?
Games -- not unhappy to have sold this one.
""""Paypoints third quarter revenues have dipped due to a decline in top ups and the unseasonably warm weather.
The FTSE 250 company issued its third quarter results to 31 December on Thursday.
While revenue excluding the cost of mobile top ups, SIM cards and other costs which are recharged to clients rose 1.8% to £35m, total revenues dropped 3% to £58.1m
Paypoint said it saw 22.7% growth in retail services and 9.6% growth in Mobile and Online, however they were offset by a 13.7% decline in top ups and a 2.4% drop in bill and general revenues, with the latter mainly due to lower energy consumption.
The company also said the adverse VAT ruling from HMRC previously reported as well as the unseasonably warm weather has slowed the improvement in its results.
However chief executive Dominic Taylor said the company has made progress.
Retail services have grown strongly, our new terminal is in pilot in the UK and we have made good progress in developing our core epos software, he said.
However, our progress has been partially offset by the unseasonably warm weather and its impact on energy consumption, an extension of the additional costs in Collect+ to facilitate the shareholder discussion and a delay in the sale of our Mobile Payments business.
Shares in PayPoint dropped 27p (3.25%) to 803p at 0939 GMT.
- See more at: http://www.digitallook.com/news/news-and-announcements/decline-in-top-ups-hit-paypoints-revenues--1013091.html#sthash.KV0a1v5u.dpuf
Decided to sell Paypoint on Friday.
Having bought in early June I've made a small capital gain and collected a nice dividend, however, I'm becoming increasingly concerned with how fast the world of payments is developing and the sheer number of systems now on offer.
I'm also an investor in PayPal which has world presence.
I might be wrong on this decision, but with the eventual move to a cashless society and so many mobile and online payment options in the making I don't see a strong future for PayPoint.
The collection and drop off parcel system is interesting, however, this can be handled by the Post Office or via many other store options like Argos etc, so it's heavily competitive. ATM's could come under more pressure as people surely will not want to pay a fee to get access to their cash.
The other area that would be a concern is the payment of utilities. For those that don't have a bank account yes there is still a market, but I imagine this part of the market will diminish in time and with remote metering installed at most homes, payments will be largely fully automated.
Please comment if you think the above is not the case, or there are other strong arguments for PayPoint.
"Investment in online and mobile payment services has taken off over the last few years and LSE:PAY:PayPoint has struggled to keep up. Now, bosses have decided to bow out of the market, to the relief of many in the City. Excited investors chased ..."
Agree results looking much better. With impressive new Director just appointed prospects changing and sentiment improving with sp recovery to past highs possible. Back in after watching for a while as sp looks good value now imho.
Hi Mutandis -- Just joining the board here for the first time. Taking first look at Paypoint. Can you explain what happened to the company between results at end March 2015 which reported Revenue of £215M and Pre-Tax of £49.56M and the projections to March 2016 at Rev £130.63M and Pre-Tax increasing to £52.37?
The revenue appears to have dropped off a cliff, yet the profit is projecting upwards.
* Bookmark the links if you wish to 'pass the LINK/s on'.... or read later?
* The Campaign is specialized among the investing fraternity only. The population as a whole would hardly vote for a ban on shorting...most people have never heard of it, have they?
Whereas, the other Govt epetitions command votes from the *general population..and if you check, NONE are doing better than a handful of votes !
Deramping SHORTERS !
Shorting a rising stock....is much worse when it is done by your resident posters that seemingly are your buddies and convince 'long' holders to give up!
What many pi's fail to grasp is the extent that shorting is taking place. Often we tend to think that the 'shorter' is gone, 'he' is out of the way? You'd be wrong in most cases, for ( he ), the shorter, is often joined by others that keep the stock down !
Some stocks fall after GOOD NEWS!
The main reason for many pi's selling, is they are afraid they'll be left in losses AND because they FEAR shorters !
Consolidating shares often sees the sp fall as the *multi-bagger potential is greatly reduced. Shorters know this and will take full advantage to get 'longs' to give up and sell !
BUT, where does that leave the genuine investor that has put stocks into their pension funds?...holding losses again!
* Once pi's know the stock is being shorted...they'll SELL UP IN THEIR DROVES !
We can't both WIN !
The 'shorts' therefore 'win' their bets, whereas the 'longs' lose the best part of their investment, possibly for some time to come......and just when you thought this couldn't go any lower, THEY'LL SHORT THE STOCK AGAIN !
* Thanks for all your support. We are now heading towards 5,000 votes!
* Investors are saying something? They are voting in their hundreds !
# The big problem with shorting is that THEY (the shorters) WOULD most likely lose most of their money IF they just 'bet' on the price going down without trying to 'help' it down?
'Catch 22' .... No one would know of an RNS to be released that will contain BAD NEWS, if they did and then 'shorted' the stock, then they are guilty of 'insider trading'.
The only sure way to short a stock and WIN is to spread dis-information to defame the company with help from other posters that are in concert with them. To ENSURE that they don't lose the biggest part of their 'short', ironically, then, they must deramp with (seemingly) believable posts.
* When the pro's do it, they simply get the media or well known 'crooked' tipsters, analysts or brokers to do it for them. (say no more).
# The campaign against shorting is for the benefit of the 'cheated' investors that cannot control their investments due to the dirty tricks played out by co-ordinated shorting !
The results will be reviewed by Govt legislators for further action! The FCA will be asked by Davide Serra to conduct an investigation into short selling practices, with the view to either ban short selling, or to be better regulated !
A strong set of results. Excellent cash flow and a high level of ROE, well above its WACC, enabling management to continue increasing its pay-out to shareholders. Collect+ looks to be an astute investment in a fast growing area.
".......in Collect+ saw volumes increase by 72% to over 2.8 million transactions in the period. They have introduced a new standard two day delivery service in addition to the economy 3-5 day service and increased the number of sites offering Collect+ since the year end by 202 to 5,457."
This confirms my view that Collect+. Will take much of the courier traffic from others for eBayers etc.
It removes need to be home for collections and at discount to Post Office is obvious choice or thousands.
Am hoping this is a case of MM tree shaking on the run up to results. My gut feeling is it is mainly because of the sharp rise up to 900 2 weeks ago. Will just have to wait and see, as usual we are the last to know!!
John Lewis has selected CollectPlus, to give its customers the choice to return online purchases of clothes, shoes and fashion accessories for free via a network of over 5,000 local convenience stores, newsagents and petrol stations.
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