**PayPoint Plc Trading Update for Q1 FY26 (Ended 30 June 2025)**
PayPoint Plc reported an encouraging start to FY26, with progress toward its £100 million EBITDA target for the year and long-term growth goals by FY28. CEO Nick Wiles highlighted confidence in operational plans and growth initiatives across key divisions, despite consumer caution due to a weak economy.
**Key Highlights**
1. **Group Performance**
Net revenue increased by 7.5% to £42.2 million, driven by growth in E-commerce, Payments & Banking, and Love2shop divisions.
Shopping division revenue grew 0.6% to £16.5 million, with PayPoint One/Mini site expansion and RPI-driven service fee increases.
Card payments revenue declined 1.3% to £8.2 million, reflecting lower consumer spending, but focus remains on high-value merchants.
2. **Divisional Growth**
**E-commerce** Revenue up 20.8% to £5.1 million, with 19.4% growth in parcel transactions (38.2 million) via Collect+ and partnerships with InPost/Yodel and Royal Mail.
**Payments & Banking** Revenue up 4.9% to £12.8 million, driven by MultiPay platform growth (+21.6%) and Open Banking wins (e.g., Thirteen Group, DWP).
**Love2shop** Revenue up 21.7% to £7.8 million, with strong gift card performance, including expansion into Sainsbury’s and new redemption partners (Moonpig, Body Shop, Moss).
3. **Strategic Initiatives**
Launched Store Growth Specialist team to support retailer revenue growth.
Prepared for consumer deposit launches with two High St banks in H1 FY26.
Enhanced merchant propositions with 7-day settlement and real-time transaction data.
4. **Financials**
Net corporate debt increased to £109.6 million (from £97.4 million in March 2025).
Final dividend for FY25 increased to 19.6 pence per share.
Enhanced share buyback programme commenced, targeting £30 million per annum until March 2028, aiming to reduce equity by 20%.
5. **Outlook**
Focus on executing growth plans across Parcels, Open Banking, Local Banking, and Community Services.
Commitment to tight cost discipline and mitigating economic uncertainties.
Confidence in delivering strong earnings growth, cash flow, and enhanced shareholder returns.
PayPoint remains focused on creating long-term value through innovation and strategic partnerships across its Shopping, E-commerce, Payments & Banking, and Love2shop divisions.