Paypoint PLC (GB:PAY)
LSE:PAY
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Paypoint
(LSE:PAY)
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Rating:64Neutral
Price Target:
613.00 p
▲(33.26% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by solid operating and cash-flow improvement in 2026, tempered by a weaker balance-sheet trend (rising leverage and lower equity). Valuation is supported by a very high dividend yield, while technicals point to neutral-to-soft momentum. Earnings-call commentary is moderately positive on long-term targets and shareholder returns, but near-term profit pressure and segment/contract headwinds cap the score.
Positive Factors
Diversified Retail & Digital Network
PayPoint's broad retailer footprint plus digital channels creates recurring fee income from bill payments, card acquiring and parcel services. The multi-channel distribution and long-term contracts with billers and carriers provide durable transaction volumes and customer touchpoints.
Negative Factors
Rising Leverage
Material increase in leverage reduces balance-sheet flexibility and raises refinancing and interest-rate risk. Higher debt magnifies earnings sensitivity and limits scope for opportunistic investment or cushioning against contract setbacks, increasing long-term financial vulnerability.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Retail & Digital Network
PayPoint's broad retailer footprint plus digital channels creates recurring fee income from bill payments, card acquiring and parcel services. The multi-channel distribution and long-term contracts with billers and carriers provide durable transaction volumes and customer touchpoints.
Read all positive factors
Paypoint (PAY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£351.27M
Dividend Yield20.3%
Average Volume (3M)192.24K
Price to Earnings (P/E)9.0
Beta (1Y)0.88
Revenue Growth8.46%
EPS Growth120.34%
CountryUK
Employees968
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.64
Shares Outstanding60,203,990
10 Day Avg. Volume231,674
30 Day Avg. Volume192,238
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)4.98
Price to Sales (P/S)1.09
P/FCF Ratio9.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.83
Revenue Forecast (FY)£199.13M
Paypoint Business Overview & Revenue Model
Company Description
PayPoint plc, established in 1996 and based in Welwyn Garden City, UK, specializes in furnishing a diverse array of payment, banking, shopping, and e-commerce solutions across the United Kingdom. Its comprehensive offerings include critical financ...
How the Company Makes Money
PayPoint makes money primarily by earning fees for facilitating transactions and providing payment-related services across its platforms. A major revenue stream comes from charging client organizations (e.g., utilities, telecoms, government, housi...
Paypoint Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in digital payments and key project launches, despite facing challenges with certain contracts and a decline in Love2shop revenues. The company remains on track with its financial milestones and shareholder returns.Positive Updates
Growth in Digital Payments
Accelerated growth in the digital payments platform, with a focus on strengthening card processing capabilities.
Negative Updates
InPost Yodel Contract Challenges
Financial terms of the new commercial contract with InPost Yodel had a greater impact than anticipated, affecting parcel volumes and service.
Read all updates
Q2-2026 Updates
Positive
Negative
Growth in Digital Payments
Accelerated growth in the digital payments platform, with a focus on strengthening card processing capabilities.
Read all positive updates
Company Guidance
In the recent call, the company provided several key metrics and updates on their performance and future outlook. They reported net revenue of GBP 84.7 million, marking a slight increase compared to the previous year. The PayPoint segment saw a revenue boost of 2.9%, while Love2shop experienced a 9.6% decrease, attributed to timing changes in revenue recognition. Underlying profit before tax was GBP 25.7 million, down 4.5%, due to flat revenue and a 2.3% rise in costs. The company maintained a net debt of GBP 84 million, reflecting a 3.2% reduction. Notably, the launch of the BankLocal service with Lloyds Banking Group and Royal Mail Shops through Collect+ were highlighted as significant achievements. Despite challenges, the company remains focused on achieving its long-term growth target of GBP 100 million underlying EBITDA, projecting consistent net revenue growth between 5% to 8%. Additionally, they plan to return over GBP 90 million to shareholders this year through dividends and share buybacks.Paypoint Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 337.01M | 310.71M | 306.37M | 167.72M | 145.14M |
| Gross Profit | 149.07M | 136.43M | 147.40M | 100.17M | 93.48M |
| EBITDA | 92.00M | 60.03M | 77.25M | 55.71M | 61.13M |
| Net Income | 39.33M | 19.19M | 35.69M | 34.71M | 39.68M |
Balance Sheet | |||||
| Total Assets | 503.81M | 508.35M | 519.11M | 479.99M | 232.13M |
| Cash, Cash Equivalents and Short-Term Investments | 150.17M | 33.19M | 86.77M | 160.45M | 24.30M |
| Total Debt | 142.21M | 105.49M | 98.77M | 100.42M | 51.79M |
| Total Liabilities | 427.98M | 411.03M | 397.95M | 368.27M | 148.88M |
| Stockholders Equity | 74.09M | 93.21M | 121.16M | 111.71M | 83.26M |
Cash Flow | |||||
| Free Cash Flow | 37.45M | 5.62M | 37.78M | 81.00M | 11.76M |
| Operating Cash Flow | 45.53M | 24.39M | 53.99M | 93.70M | 22.57M |
| Investing Cash Flow | -27.92M | -43.90M | -16.33M | -57.05M | -4.68M |
| Financing Cash Flow | -19.96M | -34.08M | -28.81M | 17.06M | -58.39M |
Paypoint Technical Analysis
Positive
460.00
Price Trends
592.78
Negative
571.77
Positive
580.30
Negative
Market Momentum
-7.46
Negative
50.09
Neutral
69.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PAY, the sentiment is Positive. The current price of 460 is below the 20-day moving average (MA) of 565.37, below the 50-day MA of 592.78, and below the 200-day MA of 580.30, indicating a neutral trend. The MACD of -7.46 indicates Negative momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 69.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PAY.
Paypoint Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | £840.97M | 16.56 | 64.69% | 5.54% | 1.58% | -6.06% | |
77 Outperform | £150.62M | 13.45 | 104.64% | 7.02% | 1.57% | 1.80% | |
68 Neutral | £429.64M | 45.76 | 6.99% | ― | 25.86% | 225.77% | |
64 Neutral | £351.27M | 9.02 | 17.25% | 20.30% | 8.46% | 120.34% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | £731.37M | 78.76 | 4.01% | ― | 4.39% | -33.33% | |
48 Neutral | £48.16M | -8.28 | -32.65% | ― | -5.08% | -97.88% |
* Technology Sector Average
GB:PAY
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Paypoint Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
PayPoint posts record profits and restructures for next growth phase
Positive
Jun 11, 2026
PayPoint reported record profits for the year to 31 March 2026, with underlying profit before tax edging up to £69 million and revenue rising 8.5% to £337 million, supported by resilient trading and growth in digital payments and open ba...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cancels Newly Repurchased Shares, Updates Issued Share Capital
Positive
Jun 10, 2026
PayPoint has repurchased a total of 71,360 of its ordinary shares on the London Stock Exchange between 2 June and 8 June 2026 through Investec Bank, at volume-weighted average prices in the range of roughly 547p to 559p. The company plans to cance...
Stock BuybackRegulatory Filings and Compliance
PayPoint Reduces Share Capital with Latest Share Buyback Programme
Positive
Jun 3, 2026
PayPoint plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 26 May and 1 June 2026, executing the transactions through Investec Bank. The company intends to cancel these repurchased shares, effectively red...
Regulatory Filings and Compliance
PayPoint Updates Total Voting Rights After Share Capital Confirmation
Neutral
Jun 1, 2026
PayPoint Plc has reported that as of 29 May 2026 its issued share capital comprises 60,263,607 ordinary shares, each carrying one vote at general meetings, with no shares held in treasury. This updated share count sets the official denominator for...
Regulatory Filings and Compliance
PayPoint Executives Acquire Shares Under Ongoing Incentive Plan
Neutral
May 27, 2026
PayPoint has reported routine share transactions by senior management under its Share Incentive Plan, covering the monthly purchase of partnership shares and the award of matching shares on 22 May 2026. Chief executive Nicholas Wiles, chief financ...
Stock BuybackFinancial Disclosures
PayPoint Cancels Shares After Targeted Buyback on London Market
Positive
May 27, 2026
PayPoint plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 19 and 22 May 2026, using Investec Bank as its broker. The company intends to cancel these shares, a move that will reduce the number of shares i...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cancels Newly Repurchased Shares, Updates Share Capital
Positive
May 20, 2026
PayPoint has repurchased a series of its own ordinary shares on the London Stock Exchange between 12 and 18 May 2026 via Investec Bank, at volume‑weighted average prices around the high‑500p to low‑600p range. The company plans t...
Stock BuybackRegulatory Filings and Compliance
PayPoint Advances Share Buyback, Updates Share Capital
Positive
May 13, 2026
PayPoint has repurchased a series of its own ordinary shares on the London Stock Exchange between 5 and 11 May 2026 as part of an ongoing buyback programme executed through Investec Bank. The company intends to cancel the acquired shares, which wi...
Business Operations and StrategyLegal Proceedings
PayPoint Largely Fends Off £172m Competition Claim with Minimal Damages Award
Positive
May 7, 2026
PayPoint plc faces limited financial and legal impact after the UK Competition Appeal Tribunal found it liable for a historic competition law infringement tied to energy over-the-counter prepayment service contracts that ended in 2018. The tribuna...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cancels Shares After Targeted Buyback on London Market
Positive
May 6, 2026
PayPoint has repurchased a total of 44,777 of its ordinary shares on the London Stock Exchange between 28 April and 1 May 2026 via Investec Bank, at volume-weighted average prices ranging from about 628p to 634p per share. The company plans to can...
Regulatory Filings and Compliance
PayPoint Updates Market on Total Voting Rights and Share Capital
Neutral
May 1, 2026
PayPoint Plc has confirmed that, as of 30 April 2026, its issued share capital comprises 60,512,481 ordinary shares, each carrying one voting right, with no shares held in treasury. This updated share count provides the new reference denominator t...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
PayPoint Cancels Newly Repurchased Shares, Updates Share Capital
Positive
Apr 29, 2026
PayPoint has repurchased a total of 66,300 of its ordinary shares between 21 and 27 April 2026 on the London Stock Exchange via Investec Bank, at volume-weighted average prices ranging from about 628p to 647p. The company plans to cancel the acqui...
Executive/Board ChangesRegulatory Filings and Compliance
PayPoint Directors Receive Shares Under Ongoing Incentive Plan
Neutral
Apr 24, 2026
PayPoint has disclosed the latest monthly transactions under its Share Incentive Plan, showing the purchase of partnership shares and the allocation of matching shares to a group of senior managers and executive directors on 22 April 2026. The tra...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cancels Newly Repurchased Shares, Updates Share Capital
Positive
Apr 22, 2026
PayPoint has repurchased a tranche of its ordinary shares on the London Stock Exchange between 14 and 20 April 2026, executing the buyback via Investec Bank at volume-weighted average prices ranging from about 603p to 646p per share. The company p...
Stock BuybackRegulatory Filings and Compliance
PayPoint cancels newly repurchased shares, updates share capital
Positive
Apr 15, 2026
PayPoint plc is a UK-based payments and services provider that enables bill payments, top-ups and other consumer transactions mainly through a nationwide network of convenience stores and retail partners. The company supplies payment technology an...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cancels Newly Repurchased Shares, Sets Updated Share Count for Disclosure
Positive
Apr 8, 2026
PayPoint has repurchased a total of 67,671 of its ordinary shares on the London Stock Exchange between 31 March and 2 April 2026, at volume-weighted average prices ranging from about 559p to 581p per share. The shares, bought back via Investec Ban...
Regulatory Filings and Compliance
PayPoint Confirms Total Voting Rights and Share Capital Structure
Neutral
Apr 1, 2026
PayPoint Plc has confirmed that, as of 31 March 2026, its issued share capital comprises 60,781,502 ordinary shares of £0.003611 each, with every share carrying one voting right at general meetings. The company holds no shares in treasury, me...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
PayPoint Cancels Newly Repurchased Shares, Updates Share Capital
Positive
Apr 1, 2026
PayPoint has repurchased a total of 129,788 ordinary shares between 24 and 30 March 2026 via Investec Bank, paying volume-weighted average prices in the range of roughly 561p to 579p per share on the London Stock Exchange. The company intends to c...
DividendsRegulatory Filings and Compliance
PayPoint executives reinvest interim dividend into shares under incentive plan
Neutral
Mar 31, 2026
PayPoint has disclosed routine share transactions under its Share Incentive Plan, in which an interim cash dividend paid on 30 March 2026 was automatically reinvested into ordinary shares on behalf of a group of directors and other persons dischar...
Other
PayPoint Director Rosie Shapland Increases Stake with Share Purchase
Positive
Mar 31, 2026
PayPoint plc disclosed that non-executive director Rosie Shapland has purchased 4,713 ordinary shares in the company. The transaction, completed on 31 March 2026 in London at a price of about 567.69 pence per share, represents an investment of rou...
Regulatory Filings and Compliance
PayPoint Discloses Share Sale by Senior Manager
Neutral
Mar 31, 2026
PayPoint plc reported a share transaction by person discharging managerial responsibilities Anthony Sappor, who sold 1,851 ordinary shares in the company. The sale was executed on 30 March 2026 in London at a price of about 558.4 pence per share, ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
PayPoint Targets Record FY26, Deep Restructuring to Boost Growth and Returns
Positive
Mar 30, 2026
PayPoint expects to report record financial results for FY26, in line with expectations, while aggressively returning capital to shareholders through an extended buyback programme that has already cut its share count by about 15% this year and tar...
Business Operations and StrategyExecutive/Board Changes
PayPoint Adds Digital Product Veteran Manasi Bhalerao to Board
Positive
Mar 26, 2026
PayPoint has strengthened its board by appointing Manasi Bhalerao as an independent non-executive director, effective 25 March 2026. She will sit on the Nomination, Remuneration, Audit and Cyber Security Information Technology Committees, reinfor...
Executive/Board ChangesRegulatory Filings and Compliance
PayPoint Executives Receive Shares Under Incentive Plan
Positive
Mar 25, 2026
PayPoint has disclosed routine share dealings by senior managers under its Share Incentive Plan, with executive directors, including chief executive Nicholas Wiles and chief financial officer David Robert Harding, acquiring partnership shares at &...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cancels Newly Repurchased Shares, Confirms Updated Share Capital
Positive
Mar 25, 2026
PayPoint has repurchased a total of its ordinary shares on the London Stock Exchange between 17 and 23 March 2026, at volume-weighted average prices of around 545 pence per share, through Investec Bank as part of its ongoing share buyback activity...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cancels Shares After Buyback on London Market
Positive
Mar 18, 2026
PayPoint has repurchased a series of its ordinary shares on the London Stock Exchange between 10 and 16 March 2026 through Investec Bank, paying volume‑weighted average prices in the mid‑500 pence range for tranches of roughly 19,000 t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.