Paypoint Plc · LSE:PAY
Paypoint — H1 FY2022 Earnings Presentation
24 slides from Paypoint's earnings presentation, Nov 25, 2021
Slide 1: Results presentation, 25 November 2021
Nick Wiles, Chief Executive Alan Dale, Finance Director 25 November 2021
Slide 2: Agenda: Overview, key themes, strategy, financials, operations, Q&A
2 1 Overview 2 Key themes 3 Strategy update 4 Financial review 5 Operational review 6 Q&A Results for the half year ended 30 September 2021
Slide 3: Strategic, Financial and Operational highlights
3 Strategic Financial Operational • Enlarged PayPoint Group now • Net revenue from continuing • Shopping Division – further delivering a broader range of operations of £56.1m, up retailer proposition enhancements innovative services and 20.9%, driven by a positive launched in the half year: Snappy t
Slide 4: Ofgem Notice of Decision to Accept Binding Commitments
4 • On 23 November 2021, Ofgem published a ‘Notice of Decision to Accept Binding Commitments’, regarding voluntary commitments proposed by PayPoint to Ofgem to address the concerns raised in Ofgem’s Statement of Objections received on 29 September 2020 • Ofgem, the energy regulator, has now accepted
Slide 5: Innovation as economy emerges from Covid-19
5 Innovation as Changes in Energy market People & working economy emerges consumer behaviour dislocation practices from Covid-19 Evolving SME business Adjustment to new delivery challenges working patterns Spike in wholesale Continued shift from Higher levels of Covid- Convenience sector energy pric
Slide 6: Strategy update
Strategy update
Slide 7: PayPoint Group Overview
7 PayPoint Group We deliver innovative services and technology connecting millions of Overview consumers with over 60,000 retailer partner and SME locations Divisions Shopping E-commerce Payments and Banking Macro Trends Shop local E-commerce growth Cash through to digital Further enhancements Digit
Slide 8: Strong portfolio of brands within the PayPoint Group
8 Strong portfolio of brands within the PayPoint Group, supporting our clients and retailer partners with innovative solutions and product offerings, across different sizes of network Results for the half year ended 30 September 2021
Slide 9: Financial review
Financial review
Slide 10: Group financial results, half year ended September
10 2021 2020 Half year ended 30 September £m £m Change Revenue from continuing operations 70.2 60.7 15.6% Net revenue from continuing operations1 56.1 46.4 20.9% See slide 11 Operating margin before exceptional items2 from continuing 40.8% 37.7% 3.1ppts operations Profit before tax from continuing o
Slide 11: Net revenue by division
11 Half year ended 30 September 2021 2020 Change Change £m £m £m % Shopping 29.3 19.4 9.9 51.0% - Service fees 8.2 7.1 1.1 15.3% - Card payments & terminal lease – Handepay/Merchant Rentals 9.8 - 9.8 - - Card payments – PayPoint 5.7 6.9 (1.2) (17.6%) - ATMs 4.9 5.0 (0.1) (0.4%) - Other 0.7 0.4 0.3 5
Slide 12: Profit before tax bridge
12 +£4.1m (+22.9%) £29m £27m • Handepay & Merchant Rentals = £9.8m • RSM 2000 = £1.0m (£7.1m) £25m • i-movo = £0.5m £11.3m £2.9m £23m £21m £24.8m £19m £0.6m £21.9m £21.9m £21.9m £0.1m £1.0m (£2.3m) £17m £1.5m £17.8m £17.8m £16.8m £16.2m £16.2m £15m PBT One off Underlying Net Revenue Net Revenue Net
Slide 13: Costs bridge
13 £28.6m costs £34.2m costs HY FY21 Third party HY FY22 Third party costs costs £13.5m2 D&A £10.3m1 £4.6m D&A £5.6m People People £13.7m £15.1m 35 £m £7.1m 30 -£1.5m (-5.2%) £34.2m (£1.0m) (£1.0m) £29.6m £28.6m (£0.7m) £0.2m £27.1m £27.1m £26.9m £26.9m 25 Continuing One off acqusition Underlying co
Slide 14: Cash flow
14 2021 2020 (continuing (continuing 2021 2020 Half year ended 30 September operations) operations) Total Total £m £m £m £m Profit before tax 24.8 16.8 54.8 20.6 Profit from discontinued operation - - (30.0) - Exceptional items (2.9) - (2.9) Depreciation and amortisation 5.6 4.6 5.6 4.9 Share based
Slide 15: Balance sheet
15 Sept Mar Change Sept 2021 2021 2020 £m £m £m £m Goodwill 57.1 51.6 5.5 - Other intangible assets 41.1 41.7 (0.6) 22.3 Net investment in finance lease receivables 6.4 6.5 (0.1) - Property, plant & equipment 20.9 21.4 (0.5) 22.1 Investment in associate - Snappy 6.7 - 6.7 - Cash held as clients’ fun
Slide 16: Financing, future outflows and interim dividend
16 Financing & future outflows Interim dividend declared • Net debt decreased to £36.5m following the reduction in • Ordinary – 17.0p, an increase of 2.4% vs the final the revolving credit facility with the sale of Romania dividend declared on 27 May 2021 of 16.6p per proceeds since the year end sha
Slide 17: Operational review
Operational review
Slide 18: Embed PayPoint Group at the heart of SME and convenience retail
1. Embed PayPoint Group at the heart of SME and convenience retail businesses 18 Our offering 30 Sept 21 30 Sept 20 • Provision of digital solutions, technology and payment services for retailers to deliver vital community services Sites 18,516 16,900 H1 Progress EPoS Base 8,241 8,153 £10.25/week Pa
Slide 19: Embed PayPoint Group: cards performance and innovation
1. Embed PayPoint Group at the heart of SME and convenience retail businesses 19 H1 Progress Cards performance • PayPoint card payment transactions increased by 0.2% to 112.6 million and net revenue decreased by £1.2 million to £5.7 million, maintaining strong transaction volumes seen in H1 FY21 but
Slide 20: Definitive e-commerce delivery platform
2. Become the definitive technology-based e-commerce delivery platform for first and last mile customer journeys 20 Our offering Collect+ is our technology-based platform to deliver best-in-class customer journeys for e-commerce brands and their customers over the ‘first and last mile’, supported
Slide 21: Sustain leadership in pay as you go and grow digital payments
3. Sustain leadership in ‘pay as you go’ and grow digital payments 21 Our offering New client sector mix H1 FY22 Growing digital payment capability through our MultiPay platform Over-the-counter payments proposition maintaining vital access to Energy cash in over 28,100 sites across the UK 17%
Slide 22: Building a delivery focused organisation and culture
4. Building a delivery focused organisation and culture 22 H1 Progress ‒ Integration work now complete for acquisitions of Handepay/Merchant Rentals, RSM 2000 and i-movo ‒ Return to office/hybrid working plans launched successfully in September 2021 ‒ Actively evolving our ongoing approach to labour
Slide 23: Summary and outlook
23 • Our first half has been a particularly busy period for the business, with early delivery success in our growth opportunities against the backdrop of continued uncertainty in a number of our markets • Our core strategic priorities for the business remain unchanged and we have built on the transf
Slide 24: Results for the half year ended 30 September 2021
24 Results for the half year ended 30 September 2021