The underlying profit before tax for the company amounted to £50. m, representing a year-on-year increase of £2.8m (5.8%), up from £48m last year.
The net revenue of the shopping division experienced a 5.6% growth, reaching £62.0m in comparison to £58.7m in 2022. This growth can be attributed to various factors, including the expansion of the PayPoint One estate, the annual increase in RPI, and the continuous enhancements made to our retailer and SME propositions. Notably, the Counter Cash rollout has contributed significantly to this progress.
Our UK retail network has expanded to 28,478 sites (as of March 31, 2022), compared to 28,254 in the previous period. Among these sites, 70.0% belong to independent retailer partners, while the remaining 30.0% are comprised of multiple retail groups.
Giles Kerr, Chairman, expressed satisfaction with the developments in our Shopping segment, stating, “Our retailer partner and SME propositions have undergone further enhancements, which have been well-received by our partners and have driven strong adoption rates.”
Furthermore, Kerr mentioned that our PayPoint network and PayPoint One estate have experienced growth during the year, and our commitment to providing value and earning opportunities to our retailer partners has resulted in a year-on-year increase of over 15% in retailer commission payout.
Notably, the introduction of new services and higher transaction volumes have contributed to the positive impact on retailer partner revenues. For instance, our Counter Cash solution has been enabled in 5,680 sites, with 1,930 sites regularly transacting and a total withdrawal amounting to over £42.9 million in the financial year. Additionally, our FMCG consumer engagement proposition, PayPoint Engage, has witnessed substantial growth, leveraging our PayPoint One platform, advertising screens, and i-movo vouchering capability for brand campaigns.
The company emphasized its effort to strengthen relationships with convenience stores and representative associations.
Kerr explained, “We have undertaken extensive initiatives to enhance our relationships with retailer partners and promote the adoption of new earning opportunities. These efforts include regular face-to-face store visits, ‘cash and carry’ days, new retailer forums, direct communications, and strengthened ties with key trade associations such as the Association of Convenience Stores (ACS), the Scottish Grocers’ Federation (SGF), and the Federation of Independent Retailers (the Fed).”
He further highlighted the significance of the support and feedback received from these organizations in upholding our commitment to aiding retailer partners in providing vital community services and adapting to evolving consumer needs in the UK convenience sector.