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Paypoint
(LSE:PAY)
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Rating:69Neutral
Price Target:
641.00 p
▲(4.65% Upside)
Action:Reiterated
Date:07/11/26
The score is driven primarily by improving 2026 operating results and cash flow recovery, balanced against increased balance-sheet risk from materially higher leverage and reduced equity. Valuation is supportive with a low P/E and very high dividend yield, while technicals add a modest positive tailwind as the price trends above major moving averages with positive MACD.
Positive Factors
Revenue Growth
Sustained top-line expansion from £127.7m to £337.0m over five years indicates durable demand for PayPoint’s payment and parcel services. Scale growth improves unit economics, strengthens bargaining with partners, and underpins longer-term revenue resilience tied to transaction volumes.
Negative Factors
Rising leverage
The marked rise in leverage and reduced equity materially weakens balance-sheet flexibility. Higher debt levels increase interest and refinancing risk, constrain capital allocation for growth or innovation, and make the company more vulnerable to revenue or margin shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line expansion from £127.7m to £337.0m over five years indicates durable demand for PayPoint’s payment and parcel services. Scale growth improves unit economics, strengthens bargaining with partners, and underpins longer-term revenue resilience tied to transaction volumes.
Read all positive factors
Paypoint (PAY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£368.00M
Dividend Yield15.33%
Average Volume (3M)192.24K
Price to Earnings (P/E)9.6
Beta (1Y)0.93
Revenue Growth8.46%
EPS Growth111.81%
CountryUK
Employees945
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.64
Shares Outstanding59,645,600
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
Neutral
612.50
Price Trends
581.72
Positive
582.05
Positive
554.98
Positive
Market Momentum
7.52
Positive
49.57
Neutral
55.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PAY, the sentiment is Neutral. The current price of 612.5 is above the 20-day moving average (MA) of 611.50, above the 50-day MA of 581.72, and above the 200-day MA of 554.98, indicating a neutral trend. The MACD of 7.52 indicates Positive momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 55.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | £932.07M | 18.75 | 64.69% | 2.45% | 1.58% | -6.06% | |
77 Outperform | £175.39M | 15.66 | 104.64% | 5.34% | 1.57% | 1.80% | |
69 Neutral | £368.00M | 9.64 | 45.78% | 15.44% | 8.46% | 111.81% | |
63 Neutral | £281.01M | 30.66 | 8.63% | ― | 25.86% | 225.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | £51.24M | -8.86 | -32.65% | ― | -5.08% | -98.14% | |
49 Neutral | £765.33M | 317.73 | 0.15% | ― | 4.39% | -33.33% |
* Technology Sector Average
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Paypoint Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
PayPoint shareholders back all resolutions at 2026 AGM, affirming governance and capital flexibility
Positive
Jul 29, 2026
PayPoint plc reported that all resolutions at its 2026 Annual General Meeting on 29 July were approved by shareholders via poll, including the receipt of the annual report and accounts, a final dividend of 20 pence per share, directors’ remu...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
PayPoint posts solid Q1 as reorganisation beds in and capital returns ramp up
Positive
Jul 29, 2026
PayPoint reported a solid start to FY27, with Q1 net revenue of £39.5m against a tough prior-year comparison and a challenging macroeconomic backdrop of subdued consumer activity and weak confidence. While group net revenue declined 6.4%, man...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
PayPoint Cuts Share Count with Latest Buyback and Cancellation
Positive
Jul 28, 2026
PayPoint plc has repurchased a series of its ordinary shares on the London Stock Exchange between 21 and 27 July 2026 through Investec Bank, as part of its ongoing share buyback programme, and intends to cancel all shares acquired. Following these...
Regulatory Filings and Compliance
PayPoint Executives Acquire Shares Under Incentive Plan
Neutral
Jul 23, 2026
PayPoint plc has disclosed the latest monthly transactions by persons discharging managerial responsibilities under its Share Incentive Plan. On 22 July 2026, participating PDMRs, including chief executive Nicholas Wiles and chief financial office...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
PayPoint Moves to Cancel Newly Repurchased Shares, Tightening Equity Base
Positive
Jul 21, 2026
PayPoint plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 14 July and 20 July 2026 via Investec Bank, at volume-weighted average prices ranging from about 592p to 627p per share. The transactions covered...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
PayPoint Cancels Repurchased Shares After Latest Buyback Tranche
Positive
Jul 14, 2026
PayPoint plc has repurchased a series of its ordinary shares on the London Stock Exchange between 7 and 13 July 2026, executing the buyback through Investec Bank at volume-weighted average prices ranging from about 580p to 595p per share. The comp...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cancels Shares After Latest Buyback Programme
Positive
Jul 8, 2026
PayPoint plc has undertaken a share buyback programme, purchasing a series of its ordinary shares on the London Stock Exchange between 30 June and 6 July 2026 via Investec Bank. The company intends to cancel these repurchased shares, which will re...
Regulatory Filings and Compliance
PayPoint updates market on total voting rights and share capital
Neutral
Jul 1, 2026
PayPoint Plc has confirmed that, as of 30 June 2026, its issued share capital comprises 59,862,665 ordinary shares with a nominal value of £0.003611 each, with every share carrying one vote at general meetings. The company holds no treasury s...
Stock BuybackRegulatory Filings and Compliance
PayPoint Cuts Share Count with Latest Buyback on London Market
Positive
Jul 1, 2026
PayPoint plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 23 June and 29 June 2026 via Investec Bank, at volume-weighted average prices ranging from about 565p to 586p per share. The company plans to can...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
PayPoint launches third £25m share buyback tranche to deepen capital return
Positive
Jul 1, 2026
PayPoint plc has launched the third tranche of its share buyback programme, committing up to £25 million to repurchase and cancel ordinary shares as part of its broader plan to return at least £30 million per year to shareholders through...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
PayPoint Publishes 2026 Annual Report and Sets Date for AGM
Neutral
Jun 25, 2026
PayPoint plc has published and distributed its 2026 Annual Report and Accounts, together with the formal Notice of its 2026 Annual General Meeting, to shareholders. The AGM is scheduled for 29 July 2026 at the company’s offices in Welwyn Gar...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
PayPoint Directors Add Shares Through Incentive Plan
Positive
Jun 24, 2026
PayPoint has disclosed the latest monthly transactions by persons discharging managerial responsibilities under its Share Incentive Plan, covering the acquisition of partnership shares and the award of matching shares on 22 June 2026. Executive di...
Business Operations and StrategyM&A Transactions
PayPoint acquires AperiData to boost Open Banking and credit data capabilities
Positive
Jun 24, 2026
PayPoint has completed the acquisition of real‑time credit reference agency and Open Banking platform AperiData, following an earlier £1 million strategic investment and partnership. The deal expands PayPoint’s Open Banking capabi...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
PayPoint Reduces Share Count Through Latest Share Buyback and Cancellation
Positive
Jun 24, 2026
PayPoint has repurchased a series of its own ordinary shares on the London Stock Exchange between 16 and 22 June 2026 via Investec Bank, paying volume-weighted average prices around 571p to 577p per share. The company plans to cancel these shares,...
Regulatory Filings and Compliance
PayPoint CEO Nick Wiles Buys £172,500 of Company Shares
Positive
Jun 17, 2026
PayPoint has disclosed that its chief executive, Nick Wiles, purchased 30,000 ordinary shares in the company at a price of 575 pence per share, for a total consideration of £172,500. The transaction, executed on 17 June 2026 on the London Sto...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
PayPoint Buys Back and Cancels Shares, Updates Capital Structure
Positive
Jun 17, 2026
PayPoint plc has repurchased and intends to cancel a series of its own ordinary shares between 9 June and 15 June 2026, executing the buybacks via Investec Bank on the London Stock Exchange at volume‑weighted average prices ranging from roug...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
PayPoint Grants 2026 Deferred Bonus and Restricted Share Awards to Executives
Positive
Jun 16, 2026
PayPoint has granted 2026 deferred bonus awards and restricted share awards to its chief executive, chief financial officer and a group of senior managers under its Executive Share Plan. The nil‑cost options, priced at £5.725 per share,...
Executive/Board ChangesRegulatory Filings and Compliance
PayPoint CEO Wiles Receives Second Tranche of Restricted Share Award
Positive
Jun 16, 2026
PayPoint has disclosed that chief executive Nick Wiles received the second tranche of his Restricted Share Plan award, with 19,186 shares vesting on 11 June 2026 after performance conditions were met. Following the sale of some shares to cover tax...
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...
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.