- Payments company PayPoint has reported pre-tax profit excluding exceptional items increased 5.6% to £56.8m in the year ended 31 March 2020 primarily due to the £2.1m 'variable pay benefit' following its decision to cancel management bonuses in light of Covid-19.

The company said that excluding the 'variable pay benefit', pre-tax profit excluding exceptional items increased by £0.9m to £54.7m during the financial year.

It saw revenue growth of 0.8% to £213.3m while net revenue was up 3.5% to £120.7m in the 2019-20 financial year on a reported basis.

Net revenue on an underlying basis increased by 4.1% to £120.7m, which excludes the £0.7m prior year impact from the Yodel renegotiation, and was driven mainly by a 10.5% growth in UK retail services, resilient performance in UK bill payments and top-ups which grew by 0.3% and growth of 5.5% in Romania.

PayPoint reported that total costs for the year were down 2%, mainly due to the £2.1m variable pay benefit arising from the decision to cancel management bonuses due to Covid-19 and the release of share based payment accruals.

In its annual results, PayPoint said that PayPoint One was live in 16,098 sites on 31 March 2020, exceeding its original target of 15,800 sites, which was set out at the beginning of the financial year. Its revised target of 16,500 sites was achieved on 21 February 2020.

The company announced it is recommending a final dividend of 15.6 pence per share.

Chief executive Nick Wiles said: 'The past year has been a resilient one for PayPoint. We delivered growth in net revenues and profit before tax for the year.

'The Covid-19 crisis began to escalate late into our financial year with limited financial impact in the results we are reporting. We took swift action across our business in response to the unfolding crisis.'

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