(“PayPoint” or the “Company”)
PayPoint, the leading provider of retail technology to the convenience sector, can confirm today that after extensive negotiations with British Gas, it has been unable to agree appropriate renewal terms for its multi-year contract and will cease working with British Gas and its customers after 31 December 2019.
The impact on net revenue and contribution in the financial year to 31 March 2020 is expected to be around £1.4 million and in the financial year to 31 March 2021 is forecast to be approximately £3.5 million. Plans are underway to mitigate this, in part, through the positive revenue trends elsewhere in the Bill Payment business, including the robust performance of MultiPay, our omni-channel payments platform. The Board remains confident that there will still be a progression in profit before tax before exceptional items for the year ending 31 March 2020.
Patrick Headon, CEO of PayPoint, commented:
“After a long and mutually beneficial partnership, it is disappointing for PayPoint and British Gas customers that we have been unable to agree a renewal of our contract. Bill payments, top-up and e-money transactions remain important services for PayPoint as 99% of the UK population live within one mile of our network of 28,000 convenience retailers. Building on the accessibility of this network over the past few years, we have been focused on growing our retail services to better support our retailers and their customers, centred on PayPoint One, our EPoS solution now in over 13,000 sites, parcels, and card payments and ATMs. We continue to believe these initiatives are key to embedding PayPoint at the heart of convenience retail and driving future growth and profits.
Customers can continue using PayPoint outlets to top up their prepayment meters by switching to a broad range of alternative suppliers which can be found on our website, paypoint.com/energy”
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
In thousands of retail locations, at home and on the move, we make life more convenient for everyone.
For retailers, we offer innovative and time-saving technology that empowers convenience retailers in the UK and Romania to achieve higher footfall and increased spend so they can grow their businesses profitably. Our innovative retail services platform, PayPoint One, is now live in over 13,000 stores in the UK and offers everything a modern convenience store needs, from parcels and contactless card payments to EPoS and bill payment services. Our technology helps retailers to serve customers quickly, improve business efficiency and stay connected to their stores from anywhere.
We help millions of people to control their household finances, make essential payments and access in-store services, like parcel collections and drop-offs. Our UK network of 28,000 stores is bigger than all banks, supermarkets and Post Offices together, putting us at the heart of communities nationwide.
For clients of all sizes we provide cutting-edge payments technologies without the need for capital investment. Our seamlessly integrated multichannel payments solution, MultiPay, is a one-stop shop for customer payments. PayPoint helps over 500 consumer service providers to save time and money while making it easier for their customers to pay – via any channel and on any device.