Paypoint on track to meet FY expectations after increase in transaction volumes and revenue edge higher
Consumer payment system providers Paypoint said it expects to meet market expectations for the year in the wake of an increase in transaction volumes and revenue.
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The FTSE 250 group said overall transactions processed in its third quarter rose 5% to £216.9m, while revenue rose 2% as drops in revenue generated by top-ups and in the online and mobile divisions offset a steady growth in retail revenue.
"We expect to deliver results for the full year to March 2015 within the range of market expectations, despite lower than expected energy volumes in the third quarter," said Dominic Taylor, the group chief executive.
However, the firm warned that it could be impacted by HMRC’s new legislation, which means that from 1 March some services will only be partially exempt from VAT.
Paypoint said that the ruling will cost between £1m and £2m in annual irrecoverable VAT but added the impact in the next financial year will hinge on the number of services deemed exempt.
Paypoint shares were down 3.88% to 845.38p at 13:01 on Thursday.