PayPoint update regarding COVID-19 - Seite 2

The Board will continue to keep the market updated as the situation develops and its impact on the business and our plans for the next financial year become clearer. The analysis is based on information and data currently available and may change dependent on how the COVID-19 situation develops over the coming weeks.

Balance sheet and liquidity

PayPoint remains in a strong financial position, the Group had net debt of £13.3 million (excluding cash held in respect of short term client settlement obligations) as at 31 December 2019. To ensure PayPoint remains in the best possible position to withstand a sustained period of disruption to trading, the £70 million revolving credit facility (forming part of our overall £75 million financing facility) has been fully drawn down.

Dividend

Additional dividend payments have been suspended until further notice and an immediate review of short term cost reduction measures will be undertaken across the business. The Board will continue to review the appropriate level of ordinary dividend to be paid, recognising its importance to our shareholders and will make a final decision ahead of our full year results announcement 28 May 2020.

The actions taken will leave the business in the strongest position possible to manage through this current crisis.

Leadership and continuity

The Board has decided in the current environment that maintaining clarity and continuity in the leadership of the business is the most appropriate course of action. Nick Wiles will remain in the role of executive chairman during this period, in support of the executive team. Consequently, the CEO search process has been temporarily suspended and will be resumed once the situation becomes clearer. 

Enquiries

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