Paypoint to pay special dividend as it sells mobile payments business
Paypoint said on Friday that it will pay a special dividend as it announced the sale of its mobile payments business to Volkswagen Financial Services AG for £26.5m in cash.
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The payments company said it will pay a dividend of the gross sale proceeds of 38.9p per share on 11 January 2017.
The sale marks the conclusion of the restructuring set out in the announcement made back in May 2015 and follows the sale of Online Payments in January this year. The mobile payments business comprised PayByPhone Technologies Inc., PayByPhone Limited, Mobile Payment Services SAS and Adaptis Solutions Limited.
The aggregate pre-tax loss of the mobile business was £2.6m for the year ended 31 March 2016.
Paypoint said the mobile payments business is performing better than expected, with record transaction volumes and mobile app downloads driving growth in revenue. However, the sale is in line with its strategy of narrowing its focus on multi-channel payments in territories in which it has retail networks.
Chief executive Dominic Taylor said: "I am delighted to have found such a well suited company to acquire our PayByPhone business and take it forward. We wish the buyer and the employees of PayByPhone the best for the future. With the major restructuring completed in line with our strategy, we can now direct our entire focus on the development of our retail business, including the continued rollout of our new PayPoint One terminal and EPoS."
At 1055 GMT, the shares were up 2% to 964.95p.