Paypoint cuts interm dividend by a third, still mulling Ofgem ruling


Paypoint PLC (LON:PAY) declared a smaller dividend that will be paid in two instalments after half-year profits fell 19%.

Revenue from continuing operations of £60.7mln in the six months to end-September 2020 was down 12% on a year ago.

Profit before tax from continuing operations of £16.8mln were down from £20.7mln a year earlier, reflecting a decrease in revenue and the impact of the ending of its British Gas contract last December. Excluding this, underlying profit was down 4%.

A 15.6p per share dividend will be paid in equal instalments in late December and early March.

After Ofgem issued a statement of objections in September relating to certain contractual terms with certain energy suppliers and retailers for the provision of over-the-counter payment services, the company said it is still mulling the provisional views before it responds and it is “therefore too early at this stage to predict an outcome and any potential outflow of funds”.

Broker Liberum said the results were in line with expectations and it is increasing its full year earning per share forecasts.

The shares were little moved in early trading on Thursday.


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