Paypoint cuts interm dividend by a third, still mulling Ofgem ruling

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Paypoint PLC (LON:PAY) has declared a smaller interim dividend which will be paid in two instalments after its half-year profits fell by 19%.

The group’s profit before tax from continuing operations of £16.8mln were down from £20.7mln a year earlier, reflecting a decrease in revenue and the impact of the ending of its British Gas contract last December. Excluding this, underlying profit was down 4%.

Revenue from continuing operations were £60.7mln in the six months to end-September 2020, down 12% on a year earlier.

A 15.6p per share dividend will be paid in equal instalments in late December and early March.

After Ofgem issued a statement of objections in September relating to certain contractual terms with certain energy suppliers and retailers for the provision of over-the-counter payment services, the company said it is still mulling the provisional views before it responds and it is “therefore too early at this stage to predict an outcome and any potential outflow of funds”.

Broker Liberum Capital said Paypoint‘s results were in line with its expectations and it is increasing its full year earning per share forecasts.

The shares were little moved in early trading on Thursday.

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