Business
Strategic Investment in Collect+ by Internati...
PayPoint Plc announced a strategic investment in Collect+ by International Distribution Services (IDS) for a 49% ownership stake, valuing Collect+ at £90 million, with PayPoint receiving £43.9 million. As a result, PayPoint will propose a special dividend of 50.0p per share and a share consolidation of 12 for 13, subject to shareholder approval at a General Meeting on 17 October 2025. PayPoint intends to return approximately £34.5 million to shareholders via the special dividend. The Board anticipates the transaction to be EPS enhancing in the first full year to March 2027. Disclaimer*
About this update from Paypoint Plc
[{"type":"text","content":"\n\n \n \n\n Strategic Investment in Collect+ by International Distribution Services \n\n30 September 2025 PayPoint PlcStrategic Investment in Collect+ by International Distribution Services Proposed Special Dividend and associated Share ConsolidationPublication of Circular and Notice of General Meeting PayPoint Plc and International Distribution Services (IDS), owner of Royal Mail, are pleased to announce the next stage in their partnership through a strategic investment in Collect+ to take a 49% ownership, with an investment of £43.9 million, valuing the Collect+ business at £90 million. Currently, Collect+ has a network of over 14,000 Out of Home locations in the UK, of which almost 8,000 offer Royal Mail collect, send and return parcel services today. As part of the next stage in this partnership, an initial 500 of these sites have been upgraded to deliver Royal Mail over the counter services, enabling customers to buy postage in store from today, as part of almost 8,000 sites which will have Royal Mail Shop branding rolled out from October. Over the next 12 months, the intention is to expand the rollout of Royal Mail over the counter services through the network, including the launch of self-service kiosks during Q1 2026. The establishing of this partnership is important to the next stage of growth for Collect+ and its positioning as the leading OOH store network in the UK. As an open network, Collect+ will continue to work closely with the carrier partners with whom it has well-established relationships to support the increasing consumer adoption of OOH services across the UK. As a result of this transaction, PayPoint is today announcing a special dividend of 50.0p per share combined with a share consolidation of 12 for 13 to be proposed for shareholder approval at a Special General Meeting on 17 October 2025. The Board anticipates the transaction as a whole to be EPS enhancing in the first full year to March 2027, through a combination of the special dividend, share consolidation and expected growth in volumes from the Royal Mail services through the Collect + network. The detailed financial impact of the transaction will be included in PayPoint’s interim results due to be announced on 20 November 2025. In the meantime, current trading remans in line with expectations ahead of the business moving into the important peak t...