Paypoint Plc · LSE:PAY
Paypoint — FY2022 Earnings Presentation
29 slides from Paypoint's earnings presentation, May 26, 2022
Slide 1: Results for the year ended 31 March 2022
Nick Wiles, Chief Executive Alan Dale, Finance Director 26 May 2022 Results for the year ended 31 March 2022
Slide 2: Agenda – 26 May 2022
Agenda – 26 May 2022 2 1 Overview 2 Strategy update 3 Financial review 4 Divisional review 5 Q&A Results for the year ended 31 March 2022
Slide 3: Positive year for the PayPoint Group
Positive year for the PayPoint Group 3 Operational Strategic Financial Shopping Division • Building on the strategic • Net revenue from continuing • Counter Cash live in 2,624 sites, offering vital access to cash over the step change, delivering operations of £115.1m, up counter and complementing ex
Slide 4: Strategy update
Strategy update
Slide 5: Significantly expanded universe delivering strong returns
Significantly expanded universe delivering strong returns 5 Strengthened portfolio of brands and partnerships within the PayPoint Group, supporting our clients and retailer partners with innovative solutions and product offerings, across different sizes of network Results for the year ended 31 March
Slide 6: Transformation of PayPoint Group over last two years
Transformation of PayPoint Group over last two years 6 FY20 FY22 FY20 FY22 £106.8m 26,829 63,657 £115.1m +7.8% retailer +137.3% SME & net net locations retailer revenue* revenue locations SHOPPING E-COMMERCE PAYMENTS AND BANKING FY20 FY22 FY20 FY22 FY20 FY22 £35.3m £58.7m £4.1m £4.9m £67.4m £51.5m n
Slide 7: Financial review
Financial review
Slide 8: Financial highlights
Financial highlights 8 FY22 FY21 Year ended 31 March (Restated)1 £m £m Change Revenue from continuing operations 145.1 127.7 13.6% Net revenue from continuing operations2 115.1 97.1 18.5% See slide 10 Operating margin before exceptional items3 from continuing 41.4% 39.0% 2.4ppts operations Profit be
Slide 9: New acquisitions driving growth in underlying PBT
New acquisitions driving growth in underlying PBT 9 £62m +£9.1m (+25.0%) £57m • Handepay & Merchant Rentals = £52m £16.0m (£12.2m) • RSM 2000 = £2.1m £47m • i-movo = £1.7m £19.8m £2.9m £42m £1.3m £37m £1.6m (£4.7m) £1.0m £3.3m £32m £48.5m +£1.5m (+4.1%) £45.6m £45.6m £45.6m £27m £16.1m £36.5m £38.1m
Slide 10: Net revenue growth from continuing operations driven by new acquisitions
10 Net revenue growth from continuing operations driven by new acquisitions Year ended 31 March FY22 FY21 Change Change £m £m £m % Shopping 58.7 40.2 18.5 46.2% - Service fees 16.6 14.6 - Card payments & terminal lease – Handepay/Merchant Rentals 18.5 2.5 - Card payments – RSM 0.9 - - Card payments
Slide 11: Cost increases from new acquisitions – underlying cost tightly managed
Cost increases from new acquisitions – underlying cost tightly managed 11 £60.5m costs £57.3m FY21 Third party costs FY22 Third party costs costs £21.4m2 £22.8m1 D&A D&A £8.1m £8.7m People People £29.0m £27.8m 80 £m 75 70 (£16.1m) -£3.2m (-5.3%) 65 £12.2m 60 £77.6m (£1.0m) 55 (£3.0m) (£0.8m) £0.6m £
Slide 12: Cash generation and use
Cash generation and use 12 2022 2021 (from continuing (from continuing operations operations excluding excluding 2022 2021 Year ended 31 March exceptional items) exceptional items) Total Total £m £m £m £m Profit before tax 48.5 20.4 78.5 28.0 Profit from discontinued operation (30.0) - Ofgem provisi
Slide 13: Strengthened balance sheet
Strengthened balance sheet 13 Mar Mar Change 2022 2021 £m £m £m Goodwill 57.7 51.6 6.1 Other intangible assets 36.0 35.7 0.3 Net investment in finance lease receivables 4.4 6.5 (1.5) Property, plant & equipment 21.8 21.4 0.4 Investment in associate - Snappy 6.7 - 6.7 Convertible loan note 0.8 - 0.8
Slide 14: Financing & Dividend
Financing & Dividend 14 Financing & future outflows Final dividend declared • Net debt decreased to £43.9m following the reduction in • Ordinary – 18.0p, an increase of 8.4% vs the final the revolving credit facility with the sale of Romania dividend declared on 27 May 2021 of 16.6p per proceeds sin
Slide 15: Divisional review
Divisional review
Slide 16: Shopping Division
Shopping Division Shopping Division 16 Key drivers FY20 FY22 Growth in PayPoint One Provision of digital rollout and service fee solutions, technology £35.4m £58.7m and payment net revenue net revenue Growth in card payments and services for SMEs +66.3% acquisition of and retailers to Handepay/Merch
Slide 17: Shopping Division: Enhancing our retailer proposition
Shopping Division Enhancing our retailer proposition 17 FY22 Progress • Counter Cash live in 2,624 sites, offering vital access to cash over the counter • SME proposition enhanced, including Handepay one-month contract launched successfully to over 2,300 SMEs, Business Finance via YouLend with over
Slide 18: E-Commerce Division
E-Commerce Division E-Commerce Division 18 FY20 FY22 Key drivers Development of e-commerce Collect+ is our £4.1m £4.9m delivery platform yielding technology-based net revenue net revenue strong year on year transaction +19.5% growth platform to deliver best-in-class 3.8% 4.3% Continued investment in
Slide 19: E-Commerce Division: Continued parcels growth and experience innovation
E-Commerce Division Continued parcels growth and experience innovation 19 FY22 Progress • Parcel transaction growth of +25.2% year on year vs FY21, driven by best ever Peak Xmas performance, strong Q4 with transactions +38.8% year on year driven by a resurgence in the clothing and footwear categorie
Slide 20: Payments & Banking Division
Payments & Banking Division Payments & Banking Division 20 Key drivers FY20 FY22 We deliver a channel Built payment channel agnostic £67.4m £51.5m platform, supporting agnostic payment net revenue net revenue diversification to digital platform that gives -23.6% clients and Investment in capabilitie
Slide 21: Payments & Banking: Continued shift to digital payments
Payments & Banking Division Continued shift to digital payments and major DWP service live 21 FY22 Progress • Continued diversification from cash to digital with 28 new client services now live, 19 coming from non-energy sectors and 18 taking digital payments solutions, supported by development of a
Slide 22: Enhanced payment channel agnostic platform
Payments & Banking Division Enhanced payment channel agnostic platform 22 Digital • MultiPay - channel agnostic platform giving clients and consumers choice • Success driven by our targeted sector approach to building strong client relationships, developing a deep understanding of their challenges a
Slide 23: Building a delivery focused organisation and culture
PayPoint Group Building a delivery focused organisation and culture 23 FY22 Progress • Anna Holness joined the Executive Board as Sales Director in January 2022, leading the retail and card services sales teams across PayPoint and Handepay • Four internal promotions made to the Executive Board in Ja
Slide 24: Outlook
Outlook 24 • Transformation of the business is gathering pace, reflecting a rebalancing towards growth opportunities and delivering improving returns • We continue to demonstrate agility and drive to respond quickly to changing consumer demands and new opportunities in our markets • We remain well-p
Slide 25: Q&A
Q&A 25 Q&A Results for the year ended 31 March 2022
Slide 26: Appendix
Appendix Results for the year ended 31 March 2022
Slide 27: Business division mapping
Business division mapping 27 Division Sub-division Lower level PayPoint One/EPoS Retail Services Counter Cash/ATMs Shopping PayPoint card payments Handepay/Merchant Rentals Card payments card payments and leasing RSM 2000 card payments Collect+ parcels (send, pick up E-Commerce E-Commerce and drop o
Slide 28: Two year view across divisions and sub-divisions
Two year view across divisions and sub-divisions 28 Net revenue Division Sub-division FY22 FY21 FY20 Retail Services £28.3m £25.5m £26.6m Shopping Card payments £30.4m £14.6m £8.7m E-Commerce E-Commerce £4.9m £3.6m £4.1m Digital £7.8m £6.0m £5.5m Cash through to Payments & Banking £8.2m £8.7m £6.9m
Slide 29: Investment case
Investment case 29 We create innovative services and technology connecting millions of PayPoint Group consumers with brands, retailers and SMEs Our enlarged Group now delivers technology and services to an unparalleled network of Enlarged network 1 over 60,000 retailer partner and SME locations acro