PayPoint shares rocket as it guns for £100m EBITDA

A three-year share buyback programme is starting with at least £20m over the next 12 months.

PayPoint revealed underlying EBITDA up 32.6 per cent to £81.3m (FY23: £61.3m) and profit before tax 21 per cent higher at £61.7m. It has reduced net corporate debt by £4.9m to £67.5m. Recommended final dividend is up to 19.2 per cent from 18.6p at the end of the previous year.

Chief executive Nick Wiles said the improvements had been achieved despite a subdued backdrop.

He told shareholders: “This has been another year of progress for PayPoint where we have delivered a robust financial performance and made further progress towards delivering £100m EBITDA by the end of FY26.

“These results reflect both the resilience of our businesses and the transformation delivered over the past three years as we unlock further opportunities and growth across our four business divisions.

“In the current year, consumer behaviour across a number of our businesses remains subdued, reflecting continued tighter family budgets and a generally flat economy. Our expectation is that the consumer outlook will improve during the course of the year.

“Against this background, our streamlined organisational structure and cost base will support the delivery of our medium-term growth plans. Strong earnings growth and cash flow generation, combined with a sustainable dividend policy provide a robust platform for the board to propose further steps to enhance shareholder returns through a share buyback programme of at least £20m over the next 12 months – all underpinned by the delivery of further progress in the current year.”