PayPoint update regarding COVID-19

This announcement contains inside information for the purposes of EU Regulation 596/204

PayPoint plc

19 March 2020

PayPoint update regarding COVID-19

PayPoint continues to provide vital services to the community during this un-precedented period of uncertainty. Our priority is to continue to support our clients, retailer network and people so that communities are able to access the services they need and our business continues to function effectively.

Trading

Our recent trading across the business has continued to be robust and most recently we have seen areas of increased activity across our network, with consumers currently making higher levels of energy top-ups and increasingly using cards as their preferred payment method. As a result the Board remains confident that progress will be made in profit before tax and exceptional items for the financial year ending 31 March 2020.

PayPoint has quickly moved to an operating model which combines remote working, continued activity in the field in support of our retailer network and some essential office based activity. We are seeking to minimise the disruption of service and support we can provide clients and our retailer network at this time, whilst taking the appropriate steps to safeguard our people. Our contact centre remains fully operational and we are considering a range of measures to support our retailers and clients during this period.

However, the Board recognises that as one of the UK’s leading Bill Payment services providers, measures taken by the government through this period to provide financial support to UK households, such as a waiver on utility bill payments, may have as yet unclear and potentially adverse consequences for our bill payments volumes. 

Further, as we look ahead to the next financial year, our initiatives to grow parcels, develop our EPoS proposition and other new services across our retailer network will inevitably be slower than had been anticipated. As a result, the business will find it challenging to mitigate the impact from the loss of the British Gas contract and pricing pressure from other utility clients. The Board is currently reviewing the impact of these challenges on our outlook for the financial year ending 31 March 2021 but at this stage cannot give precise guidance as to the impact.