PayPoint

Website: PayPoint
Index: FTSE 250
EPIC: PAY
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Financial Administration
Market Cap: £287.35M
Payout Frequency: Quarterly

Next PayPoint Dividend

PayPoint next goes ex-dividend on 26/02/2026. This will be the 2nd Interim dividend for 2026.

The dividend per share amount is 9.9000p (GBP) and the payment date is 27/03/2026.

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.

PayPoint Annual Dividend Yield - 8.54%

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 (459p) = 8.54%

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

Number of Shares:

Payment	Paid	Amount
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PayPoint Dividend Growth

Dividend Growth (1Y)	117.69%
Dividend CAGR (5Y)	13.61%
Years of Growth	4
Payout Ratio	167.18%
Buyback Yield	2.67%
Shareholder Yield	12.06%

P/E Ratio (TTM)	18.32
Forward P/E	6
P/FCF	13.02
Earnings Yield	5.73%
FCF Yield	7.68%
ROE	16.43%
ROCE	18.45%
Profit Margin	5.3%
Operating Margin	14.28%
Gross Margin	40.58%