PayPoint Plc trading update for the three months ended 30 June 2026
29 July 2026

Solid first-quarter performance with the group on track to meet market expectations for FY27

Key group metrics

Nick Wiles, chief executive of PayPoint Plc, said:

“We have had a busy start to the year and, in the first quarter, achieved our primary objective of implementing the changes arising from our business reorganisation. While it is still early in its implementation, the initial indications are encouraging. We are already seeing clear signs of enhanced ownership and accountability, together with greater focus on product development, go-to-market strategy and business development across each business unit.

“Our underlying business performance for the quarter was consistent with our expectations and, against a strong prior year comparator, has established a solid platform for the year ahead. This performance was delivered against the backdrop of a trading environment that remained challenging, with subdued consumer activity and confidence alongside a weak overall economy. Consistent with our year-end guidance, we continue to expect a greater weighting of performance towards the second half of the financial year, reflecting both an accelerating contribution from new business and the positive impact of several of our seasonal businesses.

“Overall, we have made good progress across all business units. In Network Services, we have seen an early positive impact from the unified operating model and changes to Retail Performance Manager responsibilities and retailer engagement across our network. In Digital Payments and Open Banking, our pipeline of new business continues to grow. In Merchant Services, our new go-to-market strategy is underway, supported by continued partnership growth in Merchant Rentals and Business Finance. In Love2shop, our single domain website is now live, overall billings are strongly ahead of last year and in-store sales for July’s ‘Thank You Teacher’ campaign up strongly year on year.

“With the business reorganisation largely complete, a solid first quarter performance delivered and a good trading rhythm established across the group, we remain confident in making further progress in FY27 and meeting market expectations.

“Our Capital Markets Day will take place on 29 September 2026, where we will set out our simplified investment case and the growth opportunities across the group that underpin our financial objectives for the next three years.”

Divisional performance

Network Services

The reorganisation has been successfully embedded, with early signs of improved retailer engagement.

Early analysis of Retail Performance Manager impact shows improving visit activity, a positive revenue impact in Retailer Rewards, Cards and BankLocal, a 63% reduction in call waiting times for the Retail Service Hub, and a sharper focus on growing retailer value, service adoption and revenue per retailer.

Net revenue was £21.6 million, compared with £23.1 million in Q1 FY26, as the parcel business continued to rebase. Growing volumes from Royal Mail and other carriers continued to build, but had not yet offset the impact of the new InPost commercial agreement and lower store-to-store volumes.

Retail Technology and Services grew 6.2%, supported by the annual RPI increase, while Digital Content & Engagement rose 17.3%, with campaigns including Spar’s “Win With Every Goal.”

Digital Payments & Open Banking

The business reported positive new business momentum and said a new business unit had been established, combining the capabilities of PayPoint, obconnect and Aperidata.

Net revenue increased to £3.2 million from £3.1 million in Q1 FY26. Payments and Data Services rose 5.7% and transactions increased 9.0%.

PayPoint completed the acquisition of Aperidata in June 2026, strengthening its Open Banking proposition by adding real-time financial assessment capabilities.

The group said key senior commercial and product appointments had been made, while new business wins included new Confirmation of Payee clients such as Scottish Power, new housing clients for Direct Debit including Orwell Housing and RHP Group, and a healthy pipeline across PayByBank and commercial Variable Recurring Payments (cVRP). The combination of payments, data and Open Banking capabilities remains central to how the division is building out its proposition for regulated and enterprise clients.

Merchant Services

PayPoint said its new go-to-market strategy had been delivered, with early signs of a positive effect on net revenue and value processed per merchant, alongside continued partnership growth in Merchant Rentals and Business Finance.

Net revenue was £7.7 million, down from £8.2 million in Q1 FY26, reflecting the planned transition to a leaner sales organisation focused on higher-value merchants and a more profitable estate.

Merchant Rentals grew to £2.8 million from £2.6 million, supported by continued terminal deployments and partner activity. Business Finance funding was £7.6 million, compared with £7.4 million a year earlier.

The company said it continued to strengthen the Merchant Services proposition through enhancements to its payments offering and the ongoing development of its mid-market pipeline.

Love2shop

Love2shop reported a strong first quarter and positive overall business performance.

Net revenue was £7.0 million, compared with £7.8 million in Q1 FY26, which the company said was expected due to the timing of revenue recognition. Billings were strongly ahead of the prior year at £44.9 million, up from £38.4 million.

Love2shop Business is tracking 12% ahead of the prior year, with both new business and existing client growth positive. The new Employee Benefits proposition has launched and has a positive lead pipeline, while the new single-domain Love2shop website is driving lead generation.

In-store billings increased 108% year on year, with additional distribution secured for a key peak trading period through Boots and Asda Express. Park Christmas Savings cash collections remained broadly in line with the prior year.

July’s “Thank You Teacher” campaign, Love2shop’s second most important trading period after Christmas, delivered strong year-on-year growth, with cards sold up 103% and sales value up 97%, supported by enhanced retail execution, increased visibility and continued product development. Seasonal trading remains an important part of the division’s mix, and the early performance gives the group another data point on how its refreshed website and distribution reach are feeding into peak periods.

Dividend

At its full-year results announced on 11 June 2026, PayPoint declared a final dividend of 20.0 pence per share, up 2% from 19.6 pence in 2025.

The final dividend is payable in equal instalments of 10.0 pence on 3 August 2026 and 25 September 2026 to shareholders on the register on 3 July 2026 and 28 August 2026, respectively. The dividend remains subject to shareholder approval at the Annual General Meeting on 29 July 2026.

Share buyback programme

As at 30 June 2026, the company had returned £50 million through the first and second tranches of its buyback programme, with 7,860,645 ordinary shares purchased for cancellation. Together with the company’s share consolidation, shares in issue had been reduced by 17.7%.

Of the £50 million returned, £5 million was returned during Q1 FY27 and, together with the third tranche, is expected to bring total FY27 shareholder returns through share buybacks to £30 million. The third tranche commenced on 1 July 2026, as previously announced.

Capital Markets Day

PayPoint will hold a Capital Markets Day on 29 September 2026 to provide an update on strategy, the business reorganisation, a simplified investment case, the synergy between its businesses, and how it delivers services and capabilities to clients through its network.

About PayPoint Group

PayPoint Group is a UK-listed technology, payments and services business that operates critical national infrastructure supporting millions of consumer and business transactions each day. Organised around four business units, the group provides community services, digital payments, rewards, gifting and merchant payment solutions.

The company works with corporates, financial institutions, government bodies, fintechs, retailers and consumer brands, delivering secure, resilient and regulated services at scale. Its digital capabilities include multichannel payments, Open Banking, Confirmation of Payee and API-led platforms, supported by a national retail network of more than 30,000 convenience stores and more than 65,000 retailer partner and SMB locations.

PayPoint operates through four core business units:

Network Services

Delivers essential community services through an integrated retailer network, including banking services for consumers and SMEs, parcel services, government services and bill payments, along with digital and consumer engagement solutions.

Digital Payments & Open Banking

A technology-led platform combining digital payments, Open Banking and real-time data services, enabling secure payment, funds disbursement and data-sharing solutions for organisations across housing, government, utilities and financial services.

Love2shop

The UK’s leading rewards, gifting and prepaid savings platform, providing employee reward and recognition, customer engagement, consumer gifting and savings solutions through digital and physical channels.

Merchant Services

Provides merchant payment solutions, terminal rentals and business finance to thousands of businesses across the UK, with a strategic focus on supporting sustainable, profitable growth for SMB and mid-market merchants.