Jun 13, 2025 Financial Tips

Results for the year ended 31 March 2025

PayPoint Plc
Results for the year ended 31 March 2025

Further progress towards £100m EBITDA by end of FY26

New targets established for the Group for the next three years, including share buyback programme increased and extended to at least £30 million per annum till the end of FY28

GROUP FINANCIAL HIGHLIGHTS

Underlying EBITDA¹ of £90.0 million (FY24: £81.3 million) increased by £8.7 million (10.7%)
Underlying profit before tax² of £68.0 million (FY24: £61.7 million) increased by £6.3 million (10.2%)
Net corporate debt⁷ of £97.4 million increased by £29.9 million from opening position of £67.5 million, reflecting previously announced investments and the ongoing share buyback programme
Final dividend of 19.6 pence per share declared vs the final dividend for the year ended 31 March 2024 of 19.2 pence per share


Year ended 31 March 2025	FY25	FY24	Change
Revenue⁷	£310.7m	£306.4m	1.4%
Net revenue³	£187.7m	£181.0m	3.7%
Underlying EBITDA¹	£90.0m	£81.3m	10.7%

Underlying profit before tax²	£68.0m	£61.7m	10.2%
Adjusting items⁴	£(41.7)m	£(13.5)m	208.9%
Profit before tax	£26.3m	£48.2m	(45.4)%

Diluted underlying earnings per share⁵	69.1p	62.6p	10.4%
Diluted earnings per share	26.3p	48.8p	(46.1)%
Net corporate debt⁶	£(97.4)m	£(67.5)m	44.2%

Nick Wiles, Chief Executive of PayPoint Plc, said:

“This has been another year of progress for PayPoint where we have delivered a resilient financial performance and made further significant steps towards delivering £100m EBITDA by the end of FY26. These results reflect both the resilience of our businesses in the current challenging economic environment and the impact of our growing capabilities as we unlock further opportunities and growth across our four business divisions.

Looking ahead, in addition to our existing target of £100m EBITDA for the current year, we have now established new targets for the Group for the next three years to the end of FY28, underlining our confidence in the future growth prospects of the business: achieving net revenue growth in the range of 5% to 8% per annum across the Group; establishing an organisational framework which will deliver greater automation of processes and greater agility to support the delivery of our plan; and delivering a reduction of at least 20% of our issued share capital through an enhanced share buyback programme, consistent with a prudent capital structure and leverage in the range of 1.2x to 1.5x.

We have had an encouraging start to the current financial year in each of our business divisions and have already secured a number of important new contract wins, particularly within the Housing sector. In addition to our focus on the organic building blocks for growth, significant energy is being directed into: building strong new business pipelines, particularly in Love2shop Business, Housing and Charities; successful delivery of our Local Banking service, with at least two banks due to go live in H1; continued parcels growth, driving volume opportunities with each carrier and growing Out of Home consumer adoption; optimising our retailer network performance, through better adoption of services, our new Store Growth Specialist team and further site growth; and the further upselling of our enhanced payment capabilities into our existing client base, including utilities.

Our continued confidence in the growth opportunities in the business and the execution of our plan to deliver strong earnings growth and cash flow generation, combined with a sustainable dividend policy, provide a robust platform for the Board to further enhance shareholder returns through an increased and extended share buyback programme of at least £30 million per annum till the end of March 2028, all underpinned by our confidence and clear operational plans to deliver further progress in the current year and our £100m EBITDA target.”

SHARE BUYBACK PROGRAMME INCREASED AND EXTENDED

Today the Group announces its intention to increase and extend its 3-year share buyback programme (the “Buyback Programme”). This enhanced Buyback Programme reflects the strong cash generative nature of the Group, along with the Board’s confidence in delivering on our growth targets for FY26-FY28 and in-line with our commitment to enhance shareholder returns.

The Buyback Programme will be increased with a plan to return at least £30 million per annum to shareholders and will be extended until the end of March 2028, with the target of reducing our equity base by at least 20% over that period. We will continue to review the Buyback Programme based on business performance, market conditions, cash generation and the overall capital needs of the business.

Throughout this period, we will continue to increase dividends at a nominal rate and, as a result of our continued financial performance, grow our cover ratio from the current 1.5 to 2.0 times earnings range to over 2.0 times earnings by FY28. Combined with the increased and extended Buyback Programme, this dividend policy will enhance shareholder returns and ensure the business continues to maintain an efficient capital structure, balancing an appropriate leverage ratio of around 1.2 to 1.5 times net debt/EBITDA with the overall capital needs of the business.

DIVISIONAL HIGHLIGHTS

Shopping divisional net revenue increased by 1.2% to £65.2 million (FY24: £64.4 million)

Service fee net revenue increased by 10.7% to £21.8 million (FY24: £19.7 million) driven by a combination of further PayPoint One/Mini site growth to 20,275 (31 March 2024: 19,297) and the annual RPI service fee increase
New Store Growth Specialist team rollout now live, supporting retailer partners to deliver further revenue growth through store visits driven by targeted data and support
Card payments net revenue decreased by 0.9% to £32.4 million (FY24: £32.7 million) with further site growth in the PayPoint Lloyds Cardnet estate to 10,552 (31 March 2024: 10,064) and a small reduction in the Handepay EVO/Lloyds Cardnet estate to 19,478 (31 March 2024: 19,682), with contract mix now 85% on 12 and 18-month contracts
Card processed value decreased by 4.2% overall to £6.9 billion (FY24: £7.2 billion), with the Handepay EVO estate -0.9% and the Lloyds Cardnet estate -10.2% versus the prior year, reflecting lower than anticipated consumer spending patterns, particularly in H2
Card proposition and merchant experience enhanced in the year: new AI-driven statement reader launched to enhance the merchant sales experience; time to transact drastically reduced from 14.7 days to 2.2 days; over 3,500 merchants enrolled on Handepay Rewards programme supporting a churn reduction of 7%; new mobile app launched in December 2024 with 3,000+ merchants signed up; and record year for Business Finance via YouLend with over £23.8 million of funding provided to businesses.
UK retail network increased to 30,712 sites (31 March 2024: 29,149), with 70.0% in independent retailer partners and 30.0% in multiple retail groups
18 brand campaigns delivered in the year for major consumer brands via PayPoint Engage, including an award-winning campaign for SPAR during Euro 2024

E-commerce divisional net revenue increased strongly by 39.0% to £16.4 million (FY24: £11.8 million)

Record year of parcels transactions, with strong growth of 33.3% to 133.4 million parcel transactions (FY24: 100.1 million)
Collect+ network increased to 14,213 sites (31 March 2024: 11,786), with a number of new Out of Home channels established
InPost expansion announced, growing to over 6,000 Pick Up Drop Off (PUDO) locations within Collect+ network, harmonising locations, parcel volumes and opening up the opportunity for further expansion and parcel volume growth across our extensive network for both InPost and Yodel
Royal Mail now live in over 7,500 sites, with store to store and click and collect services now live
Partnerships with Chinese marketplaces now live, with initial rollout of 26 stores with SFExpress, providing a UK PUDO to China PUDO service to Chinese communities across the UK.
Print in Store service now available in over 93% of network enabled by the further rollout of Zebra label printers

Payments & Banking divisional net revenue increased by 1.7% to £54.4 million (FY24: £53.5 million)

Continued growth through our MultiPay platform, with underlying net revenue increasing by 4.5% to £6.7 million (FY24: £6.4 million)
Further new business wins (over 53 new client services) delivered in FY25 for MultiPay platform, with a strengthened client base in target sectors, including SNG, Thirteen, Guinness and Rooftop in the Housing sector and Alzheimer’s Society and several regional Citizen’s Advice Bureaus in the Charity sector
Strong growth through Open Banking with net revenue within the PayPoint business growing to £0.8 million (FY24: £0.3 million) and with an initial contribution from obconnect of £1.8 million (FY24: £nil)
28 further clients now live for Open Banking services in the year, including BBC and Crown Commercial Service for Confirmation of Payee. Majority ownership of obconnect completed in October 2024, with major contract for New Zealand Banking Association to provide Confirmation of Payee ecosystem live in December 2024
Total digital net revenue increased by 12.3% to £15.5 million (FY24: £13.8 million)
Cash through to digital net revenue was flat at £6.8 million in the year (FY24: £6.8 million), with continued growth in neobank deposits with over £475 million of consumer deposits processed in the year through our extensive network, up over 26% in the last two years
Local Banking - first two High St banks on track for launch of consumer deposits in H1 FY26 leveraging our leading retailer partner network. SME deposit solution in development for launch in H2 FY26
Cash payments net revenue decreased by 2.7% to £32.1 million (FY24: £32.9 million). Legacy energy sector net revenue decreased by 6.5% for the year in line with expectations

Love2shop divisional net revenue increased by 0.8% to £51.7 million (FY24: £51.3 million)

Love2shop Business experienced a positive year with £172.2 million of billings delivered, up 5.8% on the prior year (FY24: £162.8 million), benefiting from the excellent planning and preparation by the Love2shop team well in advance of the peak trading period, and the growing benefits from corporate API integrations launched into major clients last year, delivering increased billings and improved customer experience
Highstreetvouchers.com performance was strong with billings +12.8% ahead of plan. This positive outcome has been driven by a more efficient use of paid media spend driving a higher Average Order Value (AOV) of £320 vs £92 previously, improved customer journeys optimised for business customers transacting online or wishing to speak to our sales team, and an improved digital product and participation enabling larger bulk orders which has also increased AOV from £400 to £1500. Traffic to our ‘Where to spend’ pages has increased to 49% of overall traffic, reflecting our expanded multichannel strategy for Love2shop gift card sales across digital and physical channels
Park Christmas Savings delivered a resilient outcome to the Christmas 2024 campaign with final billings of £162.2m, consistent with the previous year, with average saver value increased by 2.5% versus the prior year and strong saver retention rates ahead of the key Christmas 2025 savings season
New partnership with InComm Payments, launched in October 2024, establishing a strong new sales channel and enabling distribution of Love2shop gift cards into major grocers and High St brands, delivered over £2.9 million of billings. This strengthens Love2shop’s distribution networks overall, combined with the existing physical gift cards channel into PayPoint’s multiple and independent retailer network
MBL, the UK leading gift card technology platform, processed £123.2 million in gift card value in in the year (FY24: £59.7 million), reflecting continued momentum as a gift card service provider for Greggs, B&M, New Look, Tapi, and Schuh, and as a key distributor for over 150 UK retailers' gift cards.

BUILDING BLOCKS FOR GROWTH

In the current financial year, the Group remains focused on executing against the seven building blocks for growth to the end of FY28:

Parcels and Network Expansion – grow parcel transaction volumes through extensive network, particularly through Royal Mail and launch of Chinese marketplaces; continue to develop Collect+ network in a targeted manner across a number of new and existing channels, in partnership with our carriers and consistent with developing consumer behaviours and needs in the Out of Home market.
Card processing and Lloyds Bank partnership – leverage strengthened proposition, a more consistent performance from Field Sales aligned to the strong and consistent progress already achieved in the Telesales channel, and a materially enhanced merchant onboarding experience to deliver site growth; increase adoption of Merchant Mobile App and Rewards programme to support retention and churn reduction initiatives; deliver further growth in Business Finance, expanding marketing and sales channels and piloting new Asset Finance product in H1 FY26.
Open Banking and Digital payments – major focus on increasing opportunities to cross-sell payments services within our existing client base and winning new clients in target sectors of Housing and Charities, leveraging our wider multichannel payments platform and Open Banking capabilities; continued momentum in Open Banking, with further opportunities delivering payments channels for new and existing clients in PayPoint and delivering data sharing ecosystems for major banks and jurisdictions in obconnect, including Verification of Payee in Europe.
Love2shop and Park Christmas Savings – deliver continued billings growth in Love2shop Business, supported by restructured team and improved new business pipelines; grow Park Christmas Savings billings, through improved new customer acquisition, conversion to paid and better retention initiatives through the year; launch new Love2shop e-commerce platform in H1 FY26; continue to grow MBL business, providing gift card management services for more clients; build on strong start to InComm Payments partnership, expanding presence within major retailer gift card malls
Access to Cash and Local Banking – deliver successful launch of Local Banking service, with at least two High St banks due to go live in H1 FY26; continue to grow neobank cash deposit volumes, building on the £475 million of consumer deposits processed in FY25; improve ATM performance across the PayPoint estate through successful delivery of recovery plan
Community services for retailer partners – grow service fee revenue through expanding PayPoint network and RPI increase; rollout new Store Growth Specialist team, supporting retailer partners to deliver further revenue growth through store visits driven by targeted data and support; deliver further growth in FMCG proposition via PayPoint Engage, building pipeline of major brand campaigns and increasing adoption of Retailer Rewards programme.
Connecting our capabilities to drive further growth – we are now focused on how we connect our enhanced capabilities across the Group to open up further opportunities, providing enterprise solutions to our extensive client base combining multichannel payments solutions, rewards and gifting, loyalty programmes and FMCG relationships, as well as leveraging our leading retailer and SME networks. Early examples of this include leveraging our Love2shop rewards platform capabilities to power our Handepay merchant rewards programme and our PayPoint OpenPay service, which delivers a secure payout solution to clients combining obconnect’s Pay by Bank service, PayPoint’s cash out product and Love2shop Essentials vouchers.

RECONCILIATION OF REPORTED NUMBERS

£m	FY25	FY24
Reported profit before tax	26.3	48.2
Exceptional items⁷	23.4	5.2
Profit before tax excluding exceptional items	49.7	53.4

Net movement on investments – obconnect / Yodel	9.6	0.2
Amortisation of intangible assets arising on acquisition – PayPoint (previous acquisitions, inc. obconnect)	2.9	2.1
Amortisation of intangible assets arising on acquisition – Love2shop	5.8	6.0
Underlying profit before tax (profit before tax excluding adjusting items)	68.0	61.7
Underlying EBITDA	90.0	81.3

BUSINESS DIVISION NET REVENUE AND MIX

Net revenue by business division (£m)	FY25	FY24	FY23
Shopping E-commerce Payments & Banking	65.2 16.4 54.4	64.4 11.8 53.5	62.0 7.3 56.2
PayPoint Segment Total	136.0	129.7	125.5
Love2shop Segment Total	51.7	51.3	3.4
PayPoint Group Total	187.7	181.0	128.9

Business division mix	FY25	FY24	FY23
Shopping	34.7%	35.6%	48.1%
E-commerce	8.7%	6.5%	5.6%
Payments & Banking	29.0%	29.6%	43.6%
Love2shop	27.5%	28.3%	2.7%

Enquiries
*PayPoint plc*	*FGS Global*
Nick Wiles, Chief Executive (Mobile: 07442 968960)	Rollo Head
Rob Harding, Chief Financial Officer (Mobile: 07525 707970)	James Thompson
	(Telephone: 0207 251 3801)

A presentation for analysts is being held at 9.30am today (12 June 2025) via webcast. This announcement, along with details for the webcast, is available on the PayPoint Plc website: paypointbusiness.com/corporate

CHIEF EXECUTIVE’S REVIEW

GROUP UPDATE

Resilient financial performance with further progress towards delivering £100m EBITDA by the end of FY26

This has been another year of progress for PayPoint where we have delivered a resilient financial performance and made further significant steps towards delivering £100m EBITDA by the end of FY26. These results reflect both the resilience of our businesses in the current challenging economic environment and the impact of our growing capabilities as we unlock further opportunities and growth across our four business divisions.

Targets for the Group to the end of FY28

While we remain focused on the delivery of our current target of £100m EBITDA by the end of FY26, looking further ahead, we have now established new targets for the Group for the next three years to the end of FY28, reflecting our confidence in the growth prospects of the business and our continued commitment to delivering enhanced returns for our shareholders:

1. Achieving net revenue growth in the range of 5% to 8% per annum across the Group

Our strategy over the past five years to transform the business and its capabilities from our legacy cash bill payments history has created a more robust and higher organic growth platform. We believe a combination of our business mix today and the opportunities in each of our key building blocks for growth supports a consistent, underlying net revenue growth rate in the range of 5-8% per annum.

2. Establishing an organisational framework which will deliver greater automation of processes and greater agility to support the delivery of our plan

An important next step to support the delivery of this growth is to ensure as a business we have the necessary organisational framework to deliver better operational performance at a reduced cost and a higher level of customer service and experience. To achieve this, we have sought the support of Nile, an independent consultancy, in a project to review our operational structure and business processes today and develop a plan to deliver greater automation and business agility in the future to support the delivery of our plan.

3. Delivering a reduction of at least 20% of our issued share capital, with scope for leverage in the range of 1.2x to 1.5x

The actions we are taking to deliver sustained organic growth across the business in a more efficient and agile business structure will further enhance the core cash generative characteristics of the business, enabling an accelerated share buyback programme over the next three years within a prudent capital structure of leverage in the range of 1.2x to 1.5x

REVIEW BY DIVISION

SHOPPING DIVISION

In Retail Services, our core focus is to continue the growth of our retailer estate and to drive a consistently higher level of adoption of our service proposition. We remain committed to supporting our retailer partners drive more revenue and to maximising the opportunities from our unparalleled portfolio of community services. The next stage of that commitment is the recent rollout of a Store Growth Specialist team, dedicated to supporting retailers to unlocking more commission opportunities and enabled by targeted data and analytics to ensure we are focusing our efforts in the right locations. Early indications from this rollout have been very positive in terms of demonstrable performance optimisation and services adoption. In addition, we continue to drive further engagement with our Retailer Rewards scheme, launched in September 2024, giving retailers additional commission for scanning goods in store. Our next generation device, PayPoint Mini, continues to rollout across our estate with 2,898 now live, along with our integrated third-party EPoS solution, PayPoint Connect. We also now have structured plans in place to support our multiple retailer partners in maximising the value of our wide portfolio of services in their stores, including the rollout of additional Collect+ sites, FMCG campaigns, Love2shop gift cards and our new Local Banking service. Our FMCG consumer engagement proposition, PayPoint Engage, continues to gain good traction delivering campaigns for major consumer brands, leveraging our PayPoint One platform, advertising screens and vouchering capability. Over 18 campaigns have been delivered in the year, including an award-winning campaign for Spar during Euro 2024, with a building pipeline of further brand campaigns for delivery over the next 12 months.

In Cards, we have focused in the year on delivering a successful transition to Lloyds Bank Cardnet as an acquiring partner across the wider Group, with the partnership launching in December 2024 into our Handepay business. The partnership has enhanced our merchant proposition, including earlier in the day settlement, and delivered an enhanced and faster onboarding for our merchants. Additionally, we have launched our Merchant Mobile App, enabling merchants to access transaction data and insights about their business, with over 3,000 merchants already signed up and plans in place for further growth over the current year. Over the course of the next 12 months, we will be adding further features and functionality to the app, including real-time transaction data and the integration of our Rewards scheme. In the period, we have also improved participation in our Handepay Rewards Scheme, with over 3,500 merchants registered, and continued to drive further enhancements to our core proposition, with the launch of a new AI-driven statement reader to further speed up and enhance the merchant sales experience, strengthened pricing governance and time to transact drastically reduced from 14.7 days to 2.2 days, driven by our welcome call programme and an improved customer onboarding process with the new Lloyds Bank Cardnet partnership. All of these actions are focused on driving an improved retention performance in the current year, with a target reduction of churn to 25%. Our Business Finance product, via YouLend, continues to grow with over £23.8m of funding delivered to merchants across the Group in FY25, an increase of 23% versus the prior year, and with plans in place to pilot an Asset Finance product with merchants in H1 FY26.

In our Community Cash Access and Banking network, while progress continues to be frustrating, a detailed ATM recovery plan is now underway to improve performance in the current year, including the enablement of Mastercard and Visa throughout the network in H1 FY26, an improved support and maintenance model with Notemachine to drive ATM uptime and service, individual site performance optimisation visits and further network expansion opportunities in progress with new partners. Our Counter Cash service, offering withdrawals and balance enquiries over the counter, is now live in 2,993 locations, and we have processed over £475 million of consumer deposits for our neobank clients in the year. We are also well advanced with the launch of the first two major High St Banks delivering consumer deposits across our extensive network in H1 FY26, which will be followed by an SME deposit solution for High St Banks in development for pilot in H2 FY26.

E-COMMERCE DIVISION

In E-commerce, we have delivered a record year, with net revenue +39.0% at £16.4 million and parcel transactions growing to 133.4 million. This performance reflects the strong positioning of our growing Collect+ network for Out of Home (OOH) fulfilment with both consumers and carriers and a continuing market shift towards OOH delivery. Our partnership with Royal Mail launched earlier in the financial year, with over 7,500 sites rolled out across the UK and store to store and click and collect services now live. Our longstanding Yodel/Vinted partnership has continued to deliver strong volumes through our Store-to-Store service, with growing adoption by consumers and our carrier partners. We have also expanded our Zebra printer technology to over 93% of our network, underlining our continuing commitment to invest in improving the consumer experience in store and driving further adoption of Out of Home (OOH) with our carrier partners.

As referred to in our interim results in November 2024, we made a strategic investment in Yodel alongside other investors, including InPost in June 2024. As we indicated at the time, our investment was in support of the Yodel management team as they planned to further automate and modernise the Yodel business. Since this initial investment, InPost has provided Yodel with significant additional funding and announced their acquisition of Yodel on 17 April 2025, resulting in a significant dilution of our original investment to a 4.5% minority stake in the business and a write down of the investment to £2.2 million. An expansion of InPost PUDO locations has also recently been announced, growing to over 6,000 sites, which harmonises locations, parcel volumes and opening up the opportunity for further expansion and parcel volume growth across our extensive network for both InPost and Yodel.

We have now established new partnerships with Chinese and South Asian marketplaces, with the initial rollout of 26 stores with SFExpress, the leading integrated logistics service provider with an extensive PUDO network in China, focused on enabling our services in Chinese communities across the UK. We continue to explore further opportunities to build increased momentum and drive further volume into our network, with the primary focus to establish Collect+ as the first-choice partner for Pick Up Drop Off (PUDO) with these marketplaces.

We have successfully grown the Collect+ network to 14,213 sites in new locations and demographics, including increasing our presence with major multiple retailers like One Stop, Spar NI owned by Henderson Group and a pilot with Asda, rolling out further sites for the Royal Mail, InPost and UPS, and growing our student presence working with 19 of the top universities and student unions across the UK (Strathclyde, Aberdeen, Sunderland and Open University added in the year). We will continue to identify opportunities to grow the Collect+ network across a number of new and existing channels, in partnership with our carriers and consistent with developing consumer behaviours and needs in the Out of Home market.

PAYMENTS & BANKING DIVISION

In Payments & Banking, our integrated digital payments platform, MultiPay, continues to establish itself as a comprehensive payment solution for clients across card processing, Open Banking, direct debit and cash, with net revenue growth of 4.5% year on year. We have secured further strong wins in the Housing sector, with Guinness Housing, Sovereign and Thirteen, and in the Charity sector with several Citizen’s Advice regional offices, Alzheimer’s Society, Shelter and Wiltshire and Bath Air Ambulance. A major focus for the current year is on increasing opportunities to cross-sell payments services within our existing client base, leveraging our wider multichannel payments platform and Open Banking capabilities. We have also completed our first full year of delivering the DVLA International Driving Permit service, which went live on 1 April 2024, marking another key central government service fulfilled via our extensive retailer network.

In our cash through to digital category, we have made the key decision to build on our success and market positioning in the cash through to digital sector, by combining our leading portfolio of consumer brands, including Amazon, Netflix, Deliveroo and Uber, with physical Love2shop gift cards in store. This creates a strong consumer proposition, offering the choice of specific cash through to digital brands and our Love2shop multi-retailer redemption card, which is expected to generate meaningful additional card load and revenue opportunities for retailer partners. The strength of this proposition is evidenced by the sales momentum built with Love2shop gift cards in over 2,600 multiple retailers in the PayPoint network, establishing an annual run rate of circa £1m of value processed, and the early success of our partnership with InComm Payments offering Love2shop gift cards into a range of major retailers.

Following the completion of our majority investment in obconnect in October 2024, we are now making strong progress executing on our strategy in Open Banking. In PayPoint, we are focused on winning business with both new and existing clients delivering Open Banking services and payments channels, all enabled by obconnect and Aperidata, with 28 further clients live in the year for our services, including the Crown Commercial Service. In the year, the BBC also went live for Confirmation of Payee. In obconnect, the focus is on providing the necessary support and expertise to deliver data sharing ecosystems for major banks and jurisdictions, as demonstrated by the major contract win to deliver the Confirmation of Payee ecosystem for the New Zealand Banking Association which went live successfully in December 2024, including major banks like ANZ, Kiwibank and Westpac. In addition, a major focus for the current year is developing the next generation of Open Banking technology and capability, which will support future pipeline opportunities in this rapidly evolving market. As we indicated at the time of the announcement of the investment in obconnect on 1 August 2024, we have recognised a modest net revenue contribution in H2 FY25 of £1.8 million, in the expectation of a more meaningful contribution in FY26 and thereafter, driven by further pipeline opportunities in Confirmation of Payee, Verification of Payee in Europe and ecosystems in additional jurisdictions.

In Cash, legacy energy bill payments net revenue decreased by 6.5% for the year consistent with our expectations, with this part of the business continuing to be resilient, both in transaction volumes, rates and the renewal of a number of key contracts including Scottish Power. We expect this pattern and moderation in the rate of decline to continue into the current year. Over the year, the energy price cap, updated by Ofgem on a quarterly basis, was set for pre-pay customers at £1,643 for April to June 2024, £1,522 for July to September 2024, £1,669 for October to December 2024 and £1,690 for January to March 2025. However, the price cap has increased in the current financial year to £1,803 for pre-pay customers for April to June 2025.

LOVE2SHOP DIVISION

Overall, the Love2shop division had an excellent year, delivering growth in Love2shop Business, a resilient performance in Park Christmas Savings and strong progress in a number of key initiatives to develop new sales channels and partnerships. In Love2shop Business, we delivered a positive year with £172.2 million of billings delivered (FY24: £162.8 million), benefiting from the excellent planning and preparation by the Love2shop team well in advance of the peak trading period, and the growing benefits from corporate API integrations launched into major clients last year, delivering increased billings and improved customer experience. For our top 10 clients, we saw sales volumes grow by 17% YOY as we continue to develop our relationships, with our
managed client portfolio billings retention at 91% and major clients retention at 107%. During our peak trading month of December, we saw a YOY increase in AOV by 11% to £11.5k.

Highstreetvouchers.com performance was strong with billings +12.8% ahead of plan, reflecting the benefits of the actions taken at the beginning of the financial year to our online strategy. This positive outcome has been driven by a more efficient use of paid media spend driving a higher Average Order Value (AOV) of £320 vs £92 previously, improved customer journeys optimised for business customers transacting online or wishing to speak to our sales team, and an improved digital product and participation enabling larger bulk orders which has also increased AOV from £400 to £1500.

Our expanded distribution partnership with InComm Payments launched successfully on 20 October 2024 and has delivered a strong first six months with over £2.9 million of billings. The partnership has seen a significant expansion of physical Love2shop gift cards into major grocers and High St retailers, with plans already underway to build on this positive start and gain further momentum in FY26. Our sales momentum has also continued to build with Love2shop gift cards in over 2,600 multiple retailers in the PayPoint network, establishing an annual run rate of circa £1m of value processed. New redemption partners onboarded in the year for Love2shop included Dobbies Garden Centres, Foyles Bookstores, Blackwells, Frankie & Bennys, Las Iguanas and Wilko. Together these initiatives launched over the year have further enhanced consumer recognition of the Love2shop brand through our online and physical in store channels.

Park Christmas Savings delivered a solid outcome to the Christmas 2024 campaign with final billings of £162.2m, consistent with the previous year, with average saver value increased by 2.5% versus the prior year and customer retention strong at 91% of value retained from the prior season, all against the backdrop of tighter consumer spending and fluctuating consumer confidence over the year. A key focus in the year has been improving payment to conversion for new customers, which increased by 5% vs prior year delivering an improvement in the number of ‘nil paid’ and ‘off track’ customers. All of this has been achieved by focused saver activity and engagement campaigns leveraging Group capabilities via PayPoint’s PayByLink payment solution. The 2025 savings season has started positively, with gross accounts +18,000 versus the prior year, and the paid order book and cash collected +2% in the season to date. In addition, a new Agent App was launched to support savers and new digital gift cards added to the extensive product portfolio, with ongoing campaigns focused on driving payment to conversion. This again reinforces the enduring appeal and vital role this service plays in helping consumers budget for big occasions and avoid debt, with a Trustpilot rating of 4.6/5 and over £2 million of value delivered to savers each year. We continue to explore new expansion opportunities with a number of potential partners, in which to support further growth of our prepaid savings platform and leverage the strength of this capability.

MBL, the leading gift card technology platform that was acquired by Love2shop in 2022, processed £123.2 million in gift card value in in the year (FY24: £59.7 million), reflecting continued momentum as a gift card service provider for Greggs, B&M, New Look, Tapi, and Schuh, and as a key distributor for over 150 UK retailers' gift cards. We continue to expand the range of MBL solutions that we offer to our corporate clients and grow gift card management services with more retailers.

UPDATE ON CLAIMS AGAINST PAYPOINT

In FY24, a number of companies in the PayPoint Group, including PayPoint Plc, received two claims relating to issues addressed by commitments accepted by Ofgem in November 2021 as a resolution of Ofgem’s concerns raised in its Statement of Objections received by the PayPoint Group in September 2020. The Ofgem resolution did not include any infringement findings. The first claim was served by Utilita Energy Limited and Utilita Services Limited (subsequently renamed Luxion Sales Limited) (“Utilita”) on 16 June 2023. The second claim was served by Global-365 plc and Global Prepaid Solution Limited (“Global 365”) on 18 July 2023.

On 14 May 2025, PayPoint and Utilita came to a settlement such that Utilita has withdrawn its claim against PayPoint. As part of this settlement, the two parties have agreed to a new 5-year contract for over-the-counter prepayment services. PayPoint is looking forward to the opportunity to build a more collaborative and mutually supportive relationship with Utilita going forward.

PayPoint remains confident that it will successfully defend the claim by Global 365 at trial. The claim fundamentally misunderstands the energy market and the relationships between the relevant Group companies and the major energy providers, whilst also over-estimating the opportunity available, if any, for the products offered by Global 365. The trial at the Competition Appeal Tribunal, started on 10 June 2025.

OUTLOOK AND DIVIDEND

The continued progress and momentum established across the Group, particularly with the seven key building blocks, underpins our confidence in delivering our newly established targets for the next three year period to the end of FY28: achieving net revenue growth in the range of 5% to 8% per annum across the Group; establishing an organisational framework which will deliver greater automation of processes and greater agility to support the delivery of our plan; and delivering a reduction of at least 20% of our issued share capital through an enhanced share buyback programme, consistent with a prudent capital structure and leverage in the range of 1.2x to 1.5x.

Our commitment to an increased and extended share buyback programme will enhance shareholder returns and is reflective of our long-term confidence in the business and our underlying cash flow. The Board has declared a final dividend of 19.6p per share, an increase of 2.1% vs the prior year final dividend of 19.2p per share, consistent with our dividend policy and target cover range of 1.5 to 2.0 times earnings excluding exceptional items.

We remain confident in delivering further progress in the current year, meeting expectations and achieving our financial goals to FY28.

Nick Wiles
Chief Executive
11 June 2025

KEY PERFORMANCE INDICATORS

PayPoint Group has identified the following KPIs to measure progress of business performance:

	KPI	Description, purpose and reference	FY25	FY24	FY23
Overall performance	Net revenue (£ million)	Revenue from continuing operations less commissions paid to retailers and Park Christmas Savings agents and costs where the Group is principal for SIM cards and single retailer vouchers. This reflects the benefit attributable to the Group’s performance eliminating pass-through costs and is an important measure of the overall success of our strategy. (See Financial review – ‘Overview’ on page 10)	187.7	181.0	128.9
	Underlying EBITDA (£ million)	This measures our earnings before interest, tax, depreciation and amortisation, net movements in convertible loan notes and exceptional items. Underlying EBITDA is an important measure as it is widely used by investors, analysts and other interested parties to evaluate profitability of companies. (See Financial review – ‘Overview’ on page 11)	90.0	81.3	61.3
	Underlying profit before tax (profit before tax excluding adjusting items) (£ million)	Underlying profit before tax (profit before tax excluding adjusting items), provides a measure of the operational performance of the Group. This reflects the rebalancing of the business towards growth opportunities, the shift away from our legacy cash payments business and is an important measure of the overall success of our strategy. (See Financial review – ‘Overview’ on page 10)	68.0	61.7	50.8
	Net corporate debt (£ million)	Net corporate debt represents cash and cash equivalents excluding cash recognised as clients’ funds, retailer partners’ deposits, and card and voucher deposits, less amounts borrowed under financing facilities (excluding IFRS 16 liabilities). This shows how the Group is utilising its finance facilities to invest in growth and is an important measure of how the Group intends to maintain a target leverage ratio of around 1.2 to 1.5 times net debt/EBITDA. (See Financial review – ‘Group statement of financial position’ on page 15)	97.4	67.5	72.4
Shareholder returns	Diluted underlying earnings per share (Pence)	Diluted underlying earnings per share (earnings from continuing operations excluding adjusting items) divided by the weighted average number of ordinary shares in issue during the year (including potentially dilutive ordinary shares). Earnings per share is a measure of the profit attributable to each share.	69.1	62.6	60.3
Non-financial	ESG (Tonnes CO2e)	Measures the greenhouse gas (GHG) emission for scope 1, 2 and 3 per employee. This is recorded in accordance with the Companies Act 2006 (Strategic Report and Directors Report Regulations 2013)	10.1	9.4	10.0

FINANCIAL REVIEW

OVERVIEW

£m	Year ended 31 March 2025	Year ended 31 March 2024	Change %

PayPoint segment	163.6	169.7	(3.6)%
Love2shop segment	147.1	136.7	7.6%
Total revenue	310.7	306.4	1.4%

PayPoint segment	136.0	129.7	4.9%
Love2shop segment	51.7	51.3	0.8%
Total net revenue⁸	187.7	181.0	3.7%

PayPoint segment	(82.6)	(79.2)	4.3%
Love2shop segment	(37.1)	(40.1)	(7.5)%
Total costs (excluding adjusting items)	(119.7)	(119.3)	0.3%

PayPoint segment	53.4	50.5	5.7%
Love2shop segment	14.6	11.2	30.4%
Underlying profit before tax⁹	68.0	61.7	10.2%

Adjusting items:
Amortisation of intangible assets arising on acquisition	(8.7)	(8.1)	7.4%
Net movement in investments	(9.6)	(0.2)	n/m
Exceptional items	(23.4)	(5.2)	n/m
Profit before tax	26.3	48.2	(45.4)%

Underlying EBITDA¹⁰	90.0	81.3	10.7%
Net corporate debt¹¹	(97.4)	(67.5)	44.3%

Current year total statutory revenue of £310.7 million is reported after an exceptional deduction of £14.2 million related to a claim settlement. Underlying revenue, excluding this deduction, increased by £18.5 million (6.0%) to £324.9 million. Net revenue increased by £6.7 million (3.7%) to £187.7 million (2024: £181.0 million). Net revenue from the PayPoint segment increased by £6.3 million to £136.0 million (2024: £129.7 million) predominately driven by the growth in e-commerce, with parcel transactions exceeding 130 million in the year, and the 5 months of net revenue contribution from obconnect partially offset by the cash payments decline in Payments & Banking.

Total costs increased by £0.4 million to £119.7 million (2024: £119.3 million). The increase in costs includes £1.5 million additional costs from 5 months of contribution of obconnect, together with increases in transactional costs of revenue and depreciation of terminals and devices used to drive revenue in the business, these increases have been partially offset by savings in overheads following the organisational restructure earlier in the year.

Exceptional costs of £23.4 million, which are one-off, non-recurring and do not reflect current operational performance, comprises settlement and legal fees incurred as a result of the Group’s defence of claims served against it, costs associated with early exit of a property lease in Love2shop and accelerated amortisation on certain modules of Love2shop ERP systems following the commencement to re-platform key systems. The prior year costs comprise the same legal fees as noted in the current year, restructuring costs and costs associated with refinancing for the Group.

During the year the Group remeasured its investments and convertible loan notes resulting in a net charge of £9.6 million in the Consolidated statement of profit or loss for the current year, reported within adjusting items (see note 14).

The underlying profit before tax for the Group increased by £6.3 million (10.2%) to £68.0 million (2024: £61.7 million).

Profit before tax of £26.3 million (2024: £48.2 million) decreased by £21.9 million (45.4%).

EBITDA / Underlying EBITDA (£m)	Year ended 31 March 2025	Year ended 31 March 2024	Change %
Profit before tax	26.3	48.2	(45.4)%
Add back:
Net interest expense	7.1	7.0	1.4%
Depreciation & Amortisation - including amortisation of intangible assets arising on acquisition¹²	23.6	20.7	14.0%
EBITDA (£m)	57.0	75.9	(24.9)%
Exceptional items and net movement in investments	33.0	5.4	n/m
Underlying EBITDA (£m)	90.0	81.3	10.7%

Underlying EBITDA increased by £8.7 million to £90.0 million (2024: £81.3 million), which comprises £21.0 million for the L2s segment and £69.0 million for the PayPoint segment.

Cash generation increased by £11.1 million to £69.0 million (2024: £57.9 million), delivered from profit before tax of £26.3 million (2024: £48.2 million). There was a net working capital outflow of £10.3 million (2024: £11.8 million) with trade receivables and inventory levels increasing as the Group grows its revenue and supports new revenue generating initiatives which requires increases in working capital.

Net corporate debt increased by £29.9 million to £97.4 million (2024: £67.5 million), with cash generation of £69.0 million offset by tax payments, capital expenditure, share buyback, investments and dividends. At 31 March 2025 loans and borrowings were £102.3 million (2024: £93.9 million)

PAYPOINT SEGMENT

£m	Year ended 31 March 2025	Year ended 31 March 2024	Change %

Revenue	163.6	169.7	(3.6)%

Shopping	65.2	64.4	1.2%
E-commerce	16.4	11.8	39.0%
Payments & Banking	54.4	53.5	1.7%
Net revenue	136.0	129.7	4.9%

Total costs (excluding adjusting items)	(82.6)	(79.2)	4.3%

Underlying profit before tax (excluding adjusting items)	53.4	50.5	5.7%

Revenue of £163.6 million includes a £14.2 million exceptional deduction, excluding this underlying revenue increased by £8.1 million to £177.8 million (4.8%).

Shopping net revenue increased by £0.8 million (1.2%) to £65.2 million (2024: £64.4 million). Service fees net revenue increased by £2.1 million (10.7%) driven by the implementation of the annual RPI increase and additional PayPoint sites. Cards net revenue decreased by £0.3 million (0.9%), with site growth delivered in the PayPoint retailer estate and a reduction in the Handepay SME partners as we strengthen the field sales team and align to the strong and consistent progress already achieved in the Telesales teams. Lower than anticipated consumer spending has impacted the total value processed through the network which is down 4.2%. ATM and Counter Cash net revenue decreased by £1.0 million (11.4%) due to a reduction in transactions driven by the continuing trend of reduced demand for cash across the economy.

E-commerce net revenue increased by £4.6 million (39.0%) to £16.4 million (2024: £11.8 million), driven by strong growth in parcel transactions which increased by 33.3%. This was due to the growing strength in partnerships with InPost and Royal Mail, the investment in the in-store experience with Zebra label printers over the past 18 months and the continued expansion from new services and carrier partners.

Payments & Banking net revenue increased by £0.9 million (1.7%) to £54.4 million (2024: £53.5 million). Cash bill payments and top ups revenue decreased by £1.9 million (6.8%) to £25.9 million (2024: £27.8 million) driven by a 18.9% reduction in transactions following the reduced usage of cash and the continued switch to digital payments. Digital net revenue increased by £1.7 million (12.3%) to £15.5 million (2024: £13.8 million) with the current year including 5 months contribution from obconnect partially offset by a reduction in cashout transactions. In addition there was an increase in other Payments & Banking income received from a number of items which are non-recurring in nature.

The cost of commission to PayPoint retailers increased by £1.8 million (4.5%) to £41.7 million (2024: £39.9 million). This increase in payment to our retailer partners reflects an increase in the number of E-commerce transactions processed as well as more with higher commission rates per transaction.

Total costs (excluding adjusting items) increased by £3.4 million (4.3%) to £82.6 million (2024: £79.2 million), primarily as a result of the depreciation and amortisation impact of investment software and devices and the further investment in our people and field sales team to support growth in sales.

SECTOR ANALYSIS

SHOPPING

Shopping consists of services provided to retailer and SME partners, which contain two sub divisions, Card Services and Retail Services. Services include providing the PayPoint terminal to retailer partners, ATMs and Counter Cash and FMCG vouchering.

Net revenue (£m)	Year ended 31 March 2025	Year ended 31 March 2024	Change %
Retailer service fees from PayPoint terminals	21.8	19.7	10.7%
Card Services	32.4	32.7	(0.9)%
ATMs and Counter Cash	7.8	8.8	(11.4)%
Other shopping (includes FMCG)	3.2	3.2	0.0%
Total net revenue (£m)	65.2	64.4	1.2%

Net revenue increased by £0.8 million (1.2%) to £65.2 million (2024: £64.4 million) due to the growth in service fees driven by growth in sites and an annual RPI increase . The net revenue of each of our key products is separately addressed below.

Service fees from PayPoint terminals	Year ended 31 March 2025	Year ended 31 March 2024	Change %
Net Revenue (£m)	21.8	19.7	10.7%
PayPoint terminal sites (No.)
PayPoint One Terminals	17,397	18,428	(5.6)%
PayPoint Mini	2,878	869	231.2%
Total PayPoint One / Mini	20,275	19,297	5.1%

Legacy (T2)	-	17	n/m
PPoS	9,763	9,164	6.5%
PayPoint One – non-revenue generating	674	671	0.4%

Total terminal sites in PayPoint network	30,712	29,149	5.4%

Average weekly service fee per independent site (£)	19.9	19.1	4.2%

As at 31 March 2025, PayPoint had a live terminal in 30,712 UK sites, an increase of 5.4% primarily as a result of new PayPoint Mini sales.

Service fees: This is a core growth area and consists of service fees from PayPoint terminals. Service fee net revenue increased by £2.1 million (10.7%) to £21.8 million driven by the additional revenue generating sites compared to the prior year.

Card services	Year ended 31 March 2025	Year ended 31 March 2024	Change %
Net Revenue (£m)
Acquiring	21.0	23.3	(9.9)%
Rentals	10.6	8.8	20.5%
Business finance and other	0.8	0.6	33.3%
Total Net Revenue	32.4	32.7	(0.9)%
Services in Live sites (No.)
Acquiring – Handepay SME partners	21,435	22,254	(3.7)%
Acquiring – PayPoint retailer partners	10,552	10,064	4.8%
Rentals – Handepay SME terminals	50,012	49,844	0.3%
Transaction value (£m)
Handepay SME partners	4,569	4,612	(0.9)%
PayPoint retailers partners	2,299	2,561	(10.2)%
Transaction value total	6,868	7,173	(4.2)%

Card services: Card acquiring services generated £21.0 million net revenue in the year, a reduction of £2.3 million from the previous year (2024: £23.3 million). Transaction values overall have decreased by 4.2% to £6,868 million (2024 £7,173 million) following lower than anticipated consumer spending. During the year