PayPoint
Website:
PayPoint
Index:
Main Market
EPIC: PAY
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Financial Administration
Market Cap:
£354.76M
Payout Frequency: Quarterly
PayPoint Dividend Analysis and Summary
Dividend details (ex-dividend 26/02/2026)
- Interim ordinary dividend: 19.8p per share (up 2.1% year-on-year vs 19.4p).
- Paid in two equal instalments of 9.9p:
- First instalment: payment 19/12/2025; record date 28/11/2025 (ex-dividend c.27/11/2025).
- Second instalment: payment 27/03/2026; record date 27/02/2026; ex-dividend date 26/02/2026.
- Special dividend: 50.0p per share, paid 31/10/2025 (record date 17/10/2025), funded from the £43.9m Royal Mail investment in Collect+.
- Dividend policy: progressive ordinary dividends; stated target cover range 1.5–2.0x (earnings excluding exceptionals), with a longer-term aim of cover of >2.0x by FY28.
Structural and policy developments relevant to dividends
- Share consolidation: 12-for-13 on 17/10/2025, reducing issued shares to c.63.7m.
- Royal Mail strategic investment: IDS acquired 49% of Collect+ (E-commerce division now consolidated under Collect+ Brand Ltd), with management expecting the transaction to be EPS accretive by March 2027.
- Share buyback programme: extended to March 2028; planned purchases of £30m p.a. in years 2–4 (H1 FY26 outflow £13.0m).
- Capital framework: targeted leverage 1.2x–1.5x net debt/EBITDA; ordinary dividend plus buybacks and the special dividend expected to return over £90m to shareholders in FY26.
Analysis: sustainability and outlook
- Coverage and cash: H1 diluted underlying EPS 26.7p versus the 19.8p interim implies c.1.35x half-year cover. The company reiterates a target cover range of 1.5–2.0x on a full-year basis. Distributable reserves stand at £101.4m, supporting capacity for ongoing payouts.
- Earnings/cash generation: H1 underlying EBITDA £37.3m (flat YoY), underlying PBT £25.7m (-4.5%), and cash generation £24.2m (lower YoY). Net corporate debt improved to £84.0m from £97.4m at March, broadly consistent with leverage targets.
- Growth trajectory: Ordinary dividend growth remains modest (+2.1%), reflecting a cautious stance amid parcel contract headwinds and slower obconnect monetisation. Management still expects FY26 underlying EBITDA to be ahead of last year but now acknowledges the £100m EBITDA milestone will take longer than first planned.
- Support from capital allocation: The combination of a special dividend (funded by the Collect+ stake sale), ongoing buybacks, and leverage discipline underpins returns. The 49% minority in Collect+ could modestly reduce PayPoint’s share of E-commerce profits, but management anticipates EPS benefits from the overall package (Royal Mail partnership, store branding, kiosks rollout).
Risks and flags to dividend stability
- Operating headwinds: Less favourable terms under the new InPost/Yodel contract and temporary network harmonisation disruption; management expects volumes to recover into peak, but margins are thinner.
- Execution risk in obconnect: Pipeline growth and monetisation are slower than planned; VoP opportunity in SEPA has disappointed, though refocus is underway.
- Legal costs: Ongoing exceptional legal costs (H1 charge £3.2m) related to the Global 365 claim; management is confident in its defence but an adverse outcome would be a risk.
- H2 dependence and seasonality: Love2shop revenue recognition shift means a heavier H2 weighting; any soft peak season could pressure cover.
- Declining cash usage: Continued structural decline in cash bill payments and ATMs could weigh on parts of the legacy base, partly offset by growth in BankLocal, digital and Open Banking.
- Buyback commitments: While leverage remains within target, sustained £30m p.a. buybacks add capital allocation rigidity if trading were to weaken.
Read more
PayPoint Annual Dividend Yield - 6.62%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 27/02/2025 |
28/03/2025 |
2nd Interim |
9.70p |
GBX |
| 03/07/2025 |
11/08/2025 |
3rd Interim |
9.80p |
GBX |
| 28/08/2025 |
26/09/2025 |
Final |
9.80p |
GBX |
| 27/11/2025 |
19/12/2025 |
1st Interim |
9.9000p |
GBX |
Total (Annual Dividends Per Share):
39.20p
Dividend Yield =
Annual Dividends Per Share (39.20p)
÷ Share Price (592p)
= 6.62%
PayPoint Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 26/02/2026 |
27/03/2026 |
2nd Interim |
9.9000p |
GBX |
| 27/11/2025 |
19/12/2025 |
1st Interim |
9.9000p |
GBX |
| 28/08/2025 |
26/09/2025 |
Final |
9.80p |
GBX |
| 03/07/2025 |
11/08/2025 |
3rd Interim |
9.80p |
GBX |
| 27/02/2025 |
28/03/2025 |
2nd Interim |
9.70p |
GBX |
| 28/11/2024 |
20/12/2024 |
1st Interim |
9.70p |
GBX |
| 29/08/2024 |
27/09/2024 |
Final |
9.60p |
GBX |
| 04/07/2024 |
06/08/2024 |
3rd Interim |
9.60p |
GBX |
| 01/02/2024 |
05/03/2024 |
2nd Interim |
9.50p |
GBX |
| 30/11/2023 |
29/12/2023 |
1st Interim |
9.50p |
GBX |
| 10/08/2023 |
22/09/2023 |
Final |
9.30p |
GBX |
| 10/08/2023 |
01/09/2023 |
3rd Interim |
9.30p |
GBX |
| 02/02/2023 |
06/03/2023 |
2nd Interim |
9.20p |
GBX |
| 01/12/2022 |
30/12/2022 |
1st Interim |
9.20p |
GBX |
| 01/09/2022 |
30/09/2022 |
4th Interim |
9.00p |
GBX |
| 01/08/2022 |
30/09/2022 |
4th Interim |
9.00p |
GBX |
| 09/06/2022 |
25/07/2022 |
3rd Interim |
9.00p |
GBX |
| 03/02/2022 |
07/03/2022 |
2nd Interim |
8.50p |
GBX |
| 02/12/2021 |
30/12/2021 |
1st Interim |
8.50p |
GBX |
| 26/08/2021 |
30/09/2021 |
4th Interim |
8.30p |
GBX |
| 24/06/2021 |
29/07/2021 |
3rd Interim |
8.30p |
GBX |
| 04/02/2021 |
08/03/2021 |
2nd Interim |
7.80p |
GBX |
| 03/12/2020 |
29/12/2020 |
1st Interim |
7.80p |
GBX |
| 27/08/2020 |
28/09/2020 |
4th Interim |
7.80p |
GBX |
| 25/06/2020 |
27/07/2020 |
3rd Interim |
7.80p |
GBX |
| 06/02/2020 |
09/03/2020 |
Special |
9.20p |
GBX |
| 06/02/2020 |
09/03/2020 |
2nd Interim |
11.80p |
GBX |
| 05/12/2019 |
30/12/2019 |
Special |
9.20p |
GBX |
| 05/12/2019 |
30/12/2019 |
1st Interim |
11.80p |
GBX |
| 05/09/2019 |
30/09/2019 |
3rd Interim |
11.80p |
GBX |
| 05/09/2019 |
30/09/2019 |
Special |
9.20p |
GBX |
| 27/06/2019 |
29/07/2019 |
Special |
9.20p |
GBX |
| 27/06/2019 |
29/07/2019 |
2nd Interim |
11.80p |
GBX |
| 06/12/2018 |
11/01/2019 |
Interim |
15.60p |
GBX |
| 06/12/2018 |
11/01/2019 |
Special |
12.20p |
GBX |
| 21/06/2018 |
30/07/2018 |
Special |
24.50p |
GBX |
| 21/06/2018 |
30/07/2018 |
Final |
30.60p |
GBX |
| 07/12/2017 |
21/12/2017 |
Special |
12.20p |
GBX |
| 07/12/2017 |
21/12/2017 |
Interim |
15.30p |
GBX |
| 22/06/2017 |
31/07/2017 |
Special |
24.50p |
GBX |
| 22/06/2017 |
31/07/2017 |
Final |
30.0p |
GBX |
| 01/12/2016 |
15/12/2016 |
Special |
12.20p |
GBX |
| 01/12/2016 |
15/12/2016 |
Interim |
15.00p |
GBX |
| 30/06/2016 |
29/07/2016 |
Final |
28.20p |
GBX |
| 03/12/2015 |
17/12/2015 |
Interim |
14.20p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
|
9.600 |
|
GBX |
38.400 |
2.940 |
| 2023 |
|
9.300 |
|
GBX |
37.300 |
-16.550 |
| 2022 |
|
|
|
GBX |
44.700 |
35.860 |
| 2021 |
|
|
|
GBX |
32.900 |
-25.900 |
| 2020 |
|
|
9.200 |
GBX |
44.400 |
-29.520 |
| 2019 |
|
|
27.600 |
GBX |
63.000 |
-24.000 |
| 2018 |
15.600 |
30.600 |
36.700 |
GBX |
82.900 |
1.090 |
| 2017 |
15.300 |
30.000 |
36.700 |
GBX |
82.000 |
48.010 |
| 2016 |
15.000 |
28.200 |
12.200 |
GBX |
55.400 |
290.140 |
| 2015 |
14.200 |
|
|
GBX |
14.200 |
|
PayPoint Dividend Calculator
PayPoint Dividend Growth
| Dividend Growth (1Y) |
117.69%
|
| Dividend CAGR (5Y) |
21.91%
|
| Years of Growth |
4
|
| Payout Ratio |
167.18%
|
| Buyback Yield |
2.67%
|
| Shareholder Yield |
9.34%
|
| P/E Ratio (TTM) | 23.01 |
|---|
| Forward P/E | 7.54 |
|---|
| P/FCF | 16 |
|---|
| Earnings Yield | 4.66% |
|---|
| FCF Yield | 6.25% |
|---|
| ROE | 16.43% |
|---|
| ROCE | 18.45% |
|---|
| Profit Margin | 5.3% |
|---|
| Operating Margin | 14.28% |
|---|
| Gross Margin | 40.58% |
|---|