PayPoint (PAY) H1 2026 earnings summary

Executive summary

• Delivered resilient half-year results with net revenue stable at £84.7m, progress on key growth projects including BankLocal with Lloyds, Royal Mail Shop, and expanded Love2Shop partnerships.

• Underlying EBITDA for FY26 expected to be ahead of last year and broadly in line with market expectations.

• Board remains confident in achieving medium-term financial goals despite economic headwinds and weak consumer confidence.

• Operational challenges in parcels (InPost/Yodel disruption) and slower-than-expected growth in obconnect are being addressed, with recovery and stronger second-half performance expected.

• Strategic milestones achieved: Royal Mail investment in Collect+, BankLocal launch, and Love2Shop partnership expansion.

Financial highlights

• Total revenue rose 6.7% to £144.1m; net revenue up 0.1% year-over-year to £84.7m.

• Underlying EBITDA at £37.3m (down 0.5%); underlying profit before tax at £25.7m (down 4.5%).

• Interim dividend increased 2.1% to 19.8p per share; special dividend of 50p per share paid after Collect+ part-disposal.

• Net corporate debt reduced by 3.2% to £84.0m; cash generation from operations £24.2m, down due to working capital outflow.

• Diluted underlying EPS down 2.6% to 26.7p; diluted EPS down 12.3% to 20.6p.

Outlook and guidance

• Underlying EBITDA for FY26 expected to surpass last year, but £100m target will take longer to achieve.

• Consistent net revenue growth of 5–8% per annum targeted through FY28.

• Over £90m to be returned to shareholders in FY26 via dividends and buybacks.

• Royal Mail Shop ramp-up expected to drive more meaningful volume and earnings impact in the next financial year.

• Automation project targeting at least £2m operational profit upside, with benefits expected from FY2027.