By Chris Dorrell
Paypoint announced plans to buyback £20m worth of shares over the next year, with more to follow, after delivering a strong set of results in 2024.
The payments provider reported that revenue rose nearly 83 per cent in the year to March, jumping to £306.4m from £167.7m the previous year. The strong revenue figures partly reflected the acquisition of Love2shop, which was only completed in February 2023.
This helped pretax profit rise 13 per cent on the previous year, as they increased to to £48.2m.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased to £81.3m, up a third on last year’s figure of £61.3m. The company is aiming to reach £100m by the end of the 2026 financial year.
On the back of these results, Paypoint announced plans to start a three year buyback programme reflecting the “strong cash generative nature of the Group” as well as confidence in the firm’s continued growth prospects in the years to come.
The buyback programme may increase on its current level of £20m depending on “business performance, market conditions, cash generation and the overall capital needs of the business”.
Paypoint confirmed that it had completed its organisational review, simplifying the business structure and generating gross savings of around £4m for the 2025 financial year. It noted that it needed to be proactive in dealing with inflationary cost pressures.
Looking into the year ahead Paypoint said that consumer behaviour remains “subdued”, reflecting tighter family budgets and a “flat economy”. It expects the consumer outlook to improve as the year progresses.
Nick Wiles, chief executive, said: “This has been another year of progress for PayPoint where we have delivered a robust financial performance and made further progress towards delivering £100m EBITDA by the end of FY26.
“These results reflect both the resilience of our businesses and the transformation delivered over the past three years as we unlock further opportunities and growth across our four business divisions,” he added.
