PayPoint (PAY) H2 2024 earnings summary

Executive summary

• Reported robust performance for the year ending 31 March 2024, exceeding expectations and progressing toward a near-term EBITDA goal of £100 million by FY26.

• Standout results in parcels, digital payments, card processing, and Open Banking, with significant progress in other growth areas.

• Streamlined organizational structure and cost base in Q4 to support the next growth phase and medium-term growth.

• Launched a three-year share buyback program, starting with at least £20 million in the first year.

Financial highlights

• Net revenues reached £181 million, up 40.4% year-over-year, with total revenue at £306.4 million.

• Underlying EBITDA rose 32.6% to £81.3 million, mainly driven by Love2shop.

• Underlying PBT increased 21.5% to £61.7 million; diluted EPS (excluding adjusting items) up 3.8% to 62.6p.

• Net debt reduced by 6.8% to £67.5 million; strong cash generation of £57.9 million.

• Final dividend increased to 19.2p, up 3.2% from last year.

Outlook and guidance

• Confident in delivering further progress in the current year and achieving £100 million EBITDA by FY26.

• Consumer behavior remains subdued but is expected to improve as the year progresses.

• Share buyback of at least £20 million over the next 12 months, with potential increases in subsequent years.

• Dividend cover expected to move above 2x by FY27.

• Committed to progressive dividends and share buybacks to enhance shareholder returns.