**PayPoint Plc Q3 FY26 Trading Update Summary**
PayPoint Plc reported significant progress in its third quarter (Q3 FY26, ended 31 December 2025), with the company on track to deliver record profits for the full year. Despite subdued consumer spending and a challenging market environment, the group demonstrated resilience across its core businesses, particularly in peak seasonal trading areas.
**Key Highlights**
1. **Financial Performance**
Group net revenue was £52.7 millionslightly down by 0.5% year-on-year.
Divisional performance varied
**Shopping** Service fee net revenue grew by 7.3% to £5.9 million, driven by PayPoint One/Mini site expansion. Card processed value declined by 6.8% due to lower consumer spending.
**E-commerce** Parcels net revenue increased by 2.4% to £4.2 million, with a record 6.7% growth in transactions to 38.2 million, supported by strong Collect+ performance and Royal Mail partnership expansion.
**Payments & Banking** Digital net revenue rose by 18.2% to £5.3 million, driven by MultiPay and Local Banking services.
**Love2shop** Billings grew across Love2shop Business (+5.2%) and InComm Payments (+238.9%), though overall division revenue dipped by 3.2% to £18.1 million.
2. **Operational Achievements**
Record peak performance in parcels business, with Yodel/InPost volumes recovering and Royal Mail Shop Branding rollout progressing.
Strong growth in Business Finance via YouLend, with a 54% increase in net revenue.
Continued expansion of the PayPoint retailer network, with initiatives to better support retailer partners.
3. **Strategic Progress**
Successful launch of new e-commerce products in partnership with Global Payments.
Accelerated rollout of BankLocal services for Lloyds Banking Group and FMCG brand campaigns.
Park Christmas Savings delivered robust performance, with focus on 2026 campaign rollout.
4. **Financial Position**
Net corporate debt increased to £131.3 million (from £97.4 million in March 2025), reflecting loans and borrowings.
Interim dividend of 19.8p per share declared, up 2.1% from the previous year.
Share buyback programme commenced, targeting £30 million per annum until March 2028, with 2,768,330 shares purchased at £17.2 million as of January 2026.
5. **Future Outlook**
Focus on delivering record profits in FY26 and building foundations for FY27 growth.
Plans for a Capital Markets Day to update on strategy, synergies, and investment case.
Commitment to enhancing shareholder returns through dividends and buybacks, with a target cover ratio of over 2.0 times earnings by FY28.
**CEO Nick Wiles** emphasized PayPoint’s agility and resilience, highlighting progress in operational delivery and confidence in meeting FY26 expectations. The company remains optimistic about future prospects, with a focus on simplifying its investment case and leveraging synergies across its businesses.