PayPoint PLC on Friday reported a lower profit in financial year 2023 but said trading in the first quarter of financial 2024 was significantly higher.

The payment services company said for the financial year to March 31, revenue from continuing operations rose 16% year-on-year to £167.7 million from £145.1 million, though pretax fell 46% to £42.6 million from £78.5 million. Cost of sales increased 32% to £64.3 million from £48.7 million. Administrative expenses excluding adjusting items were 8.0% higher at £50.1 million from £46.4 million.

‘Our financial performance has been positive, with net revenue growth across all our business divisions, excellent progress in parcels and digital payments, and good momentum in our key growth areas,’ says Chief Executive Officer Nick Wiles.

The company proposed a dividend of 18.6 pence per share, up 3.3% from 18.0p a year before.

Meanwhile in the first quarter of financial 2024, net revenue jumped 20% to £35.8 million from £29.9 million. E-commerce net revenue surged 66% to £2.4 million from £1.4 million. For Payments & Banking, net revenue rose 15% to £3.4 million from £2.9 million.

CEO Wiles said: ‘Our compelling characteristics of strong cash flow and resilient earnings remain constant, and our materially enhanced platform is positioned to deliver sustainable and profitable growth for our shareholders, and further progress in the delivery of these objectives in the current year.’

PayPoint shares were 4.5% higher at 489.60 pence each in London on Friday morning.

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