PayPoint (PAY) H2 2026 earnings summary

Executive summary

• Achieved record underlying pre-tax profits of £69 million for the year ended 31 March 2026, up 1.5% year-over-year, with over £90 million returned to shareholders via buybacks and dividends.

• Launched new services and partnerships, including PayPoint BankLocal with Lloyds and Nationwide, Royal Mail Shop, and secured a strategic investment by Royal Mail in Collect+.

• Completed a major reorganization into four business units: Network Services, Digital Payments & Open Banking, Love2shop, and Merchant Services, to drive transparency, accountability, and support a 5%-8% net revenue growth target per annum.

Financial highlights

• Net revenue rose 1.7% year-over-year to £190.8 million; underlying EBITDA increased to £92 million.

• Underlying profit before tax up 1.5% to £69 million; statutory profit after adjusting items at £55.5 million.

• Final dividend increased by 2% to £0.20 per share; diluted underlying EPS up 6.5% to £0.736.

• Net corporate debt rose to £132.5 million, reflecting increased shareholder returns and investments; net assets at £75.8 million.

Outlook and guidance

• Confident in exceeding FY 2026 underlying profits in the current year, with results expected in line with market expectations.

• Reorganization is expected to underpin consistent 5%-8% net revenue growth per annum.

• FY27 expected to show further progress, with profit weighting likely more towards the second half due to new business and seasonal impacts.