Paypoint PLC (LON:PAY) has proposed a final dividend as it announced solid annual results but revealed the sharp decline in transactions since the coronavirus outbreak.
Net revenue for the year to 31 March rose 3.5% to £120.7mln and profit before tax increased 4% to £56.8mln.
After generating £66.4mln of cash, proposed a final ordinary dividend of 15.6p per share to be paid to shareholders in equal instalments in July and September.
“Whilst it is still too early to have visibility on the longer-term consequences that will ensue following Covid-19, the impact of consumers avoiding cash and remaining at home has significantly reduced ATM transactions and parcel volumes,” the company said.
Bill payment transactions have reduced as energy companies have provided pre-pay consumers with credit, services including transport have significantly reduced, clients have encouraged digital payments and consumers increased their average top-up amounts, though card payments have been strongly higher as consumers have tended to use their local convenience stores more.
Chief executive Nick Wiles said: “The core characteristics of the business remain unchanged, with a strong balance sheet, clear business model, a broad and resilient earnings’ base with the opportunity to use technology to adapt our business model and strong cash generation which supports the payment of a dividend. We are also focused on ensuring that the business is flexible and able to rapidly respond to the dynamic marketplace and trends which will inevitably be accelerated by the Covid-19 crisis.”
Broker Liberum said the results were ahead due to a waiver of the management bonuses, saying that while current trading is impacted by the coronavirus “there are clear signs of improvement”.
The shares were up 4% on Thursday morning to 754.95p.