REG-Trading update for the three months ended 31 December 2025

PayPointAnnouncement

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PayPoint Plc
Trading update for the three months ended 31 December 2025

28 January 2026

Significant progress in key third quarter and on track to deliver record
profits for the year

KEY GROUP METRICS

 Net revenue                    Q3 FY26  Q3 FY25  Change  
 Group                          £52.7m   £53.0m   (0.5)%  
                                                          
 Shopping division              £16.1m   £16.1m   -       
 E-commerce division            £4.2m    £4.1m    2.4%    
 Payments and Banking division  £14.3m   £14.0m   2.1%    
 Love2shop division             £18.1m   £18.8m   (3.2)%  

Nick Wiles, Chief Executive of PayPoint Plc, said:

“PayPoint continues to be an entrepreneurial, agile business and the
progress delivered in our Q3 FY26 results further demonstrates these
attributes alongside the resilience of our core businesses, with a strong
performance from our peak seasonal trading businesses. These results reflect
our focus on operational delivery in the business, achieved against a
continued background of subdued consumer spending and a challenging market
environment. We remain on track to meet FY26 expectations and deliver progress
in the current year.

We have successfully navigated the operational disruption experienced earlier
in the year to deliver a record peak performance in our parcels business with
positive transaction growth of 6.7%, Yodel/InPost volumes recovering and our
Royal Mail partnership continuing to gather pace as we expand the Royal Mail
Shop Branding and provision of postage services in our Collect+ network. In
our other seasonal businesses, Love2shop Business traded strongly and our
partnership with Incomm Payments delivered exceptional billings growth.
Billings across Love2shop are strongly ahead of the prior year and we remain
confident that the division will deliver a strong finish to the year,
reflecting both good billings growth and the timing of revenue recognition as
cards expire in the final quarter. In Park Christmas Savings, we delivered
another robust performance in line with expectations, with the focus now on
the rollout of a strong 2026 Christmas campaign.

Elsewhere in the business, we have continued to build on the progress
delivered in the first half - activity levels are high with continued success
in new business wins in our payment platform businesses, including MultiPay
and obconnect, the accelerating pace in the rollout of BankLocal services for
Lloyds Banking Group and FMCG brand campaigns into our retailer network. As
the PayPoint retailer network continues to grow, we have renewed our efforts
to better support our retailer partners with a range of initiatives to be
rolled out in the coming months. In Cards, we continue to strengthen our
product and proposition as we increase our focus on higher quality merchants
and better revenue returns per merchant. In line with the broader decline in
essential consumer spending in 2025, our processed value decreased in the
quarter. Additionally, in Business Finance via YouLend, we have delivered a
record quarter for both net revenue and merchant funding.

In the closing quarter, we are focused on finishing strongly and delivering
record profits for the year, ensuring the foundations and plans are in place
to build on this performance in FY27.

We are excited about the future prospects for the Group and intend to hold a
Capital Markets Day later in the year to provide an update on strategy, a
simplified investment case, the synergy between our businesses and how we
deliver our services and capabilities to our clients and through our network.
Further detail will be provided at the full year results in June 2026.”

DIVISIONAL PERFORMANCE

Shopping

                            Q3 FY26  Q3 FY25  Change  
 Service fee net revenue    £5.9m    £5.5m    7.3%    
 Card payments net revenue  £7.6m    £7.8m    (2.6)%  
 Card processed value       £1.6bn   £1.7bn   (6.8)%  



                          31 Dec 2025  31 Mar 2025  Change  
 PayPoint One/Mini sites  20,492       20,275       1.1%    
 Total UK retail network  31,006       30,712       1.0%    

Service fee net revenue increased by 7.3% driven by further PayPoint One/Mini
site growth to 20,492. Positive quarter for PayPoint Engage with 10 new
campaigns delivered for major consumer brands. In Cards, new e-comm product
launched in October 2025, in partnership with Global Payments, including Pay
By Link functionality in the app and integration with major shopping carts.
Strong quarter for Business Finance, up 54% with over £10.5 million lent to
SMEs through our partnership with YouLend. Card processed value decreased by
6.8%, with the Handepay SME Partners estate -5.1% and the PayPoint Retailer
Partners estate -10.2% versus the prior year, reflecting lower than
anticipated consumer spending patterns.

E-commerce

                       Q3 FY26  Q3 FY25  Change  
 Parcels net revenue   £4.2m    £4.1m    2.4%    
 Parcels transactions  38.2m    35.8m    6.7%    



                 31 Dec 2025  31 Mar 2025  Change  
 Collect+ sites  14,204       14,213       -       

Record quarter for parcels business with positive transaction growth of 6.7%
to 38.2 million parcel transactions (Q3 FY25: 35.8 million), supported by a
recovering Yodel/InPost performance over peak, the growing consumer adoption
of Out of Home and the strong market positioning of the Collect+ network.
Successful rollout of the Royal Mail Shop brand from October 2025, enabling
consumers to buy postage in store as well as collect, send and return parcels.
The Royal Mail Shop rollout will continue over H2 FY26 to the rest of the
8,000-site network, including the launch of self-service kiosks during Q4
FY26.

Payments & Banking

                                      Q3 FY26  Q3 FY25  Change  
 Digital net revenue                  £5.3m    £4.4m    18.2%   
 Cash through to digital net revenue  £2.0m    £1.8m    13.0%   
 Cash net revenue                     £6.9m    £7.8m    (9.0)%  

Continued growth through our MultiPay multichannel payments platform with net
revenue increasing by 12.9%. Further wins secured in the government sector,
including the Insolvency Service. Continued progress in Local Banking with
over £24 million of consumer deposits for the Lloyds Banking Group processed
since launch in August 2025 and over £205 million deposits processed in the
quarter through our well-established neobank service. In Open Banking,
obconnect remains on track to deliver growth year on year, driven by the
opportunities it brings from its range of capabilities and technology. Legacy
energy sector net revenue decreased by 6.3% for the quarter in line with
expectations.

Love2shop

                                  Q3 FY26   Q3 FY25   Change  
 Love2shop Business billings      £74.9m    £71.2m    5.2%    
 Park Christmas Savings billings  £163.2m   £162.2m   0.6%    
 InComm Payments billings         £6.1m     £1.8m     238.9%  
 MBL gift card processed value    £49.4m    £45.2m    9.3%    

Strong peak trading for Love2shop Business, with billings +5.2% at £74.9
million (Q3 FY25: £71.2m), driven by a positive performance with Managed and
Major Accounts. Strong growth through InComm Payments partnership, with
Love2shop physical gift card billings +238.9%, supported by expanded
distribution in major grocers and High St brands. Park Christmas Savings 2025
season ended flat at £163.2m billings, supported by multiple campaigns and
actions taken in the year to strengthen our Agent proposition, including the
launch of Agent Perks and a new Agent App with over 13,000 downloads, improved
average order value for returning direct savers, and a more premium fulfilment
experience and packaging for customers receiving orders.

NET CORPORATE DEBT AS AT 31 DECEMBER 2025

The Group had net corporate debt of £131.3 million (31 March 2025: £97.4
million), comprising cash balances of £0.4 million (31 March 2025: £4.9
million), less loans and borrowings of £131.7 million (31 March 2025: £102.3
million).

DIVIDEND

At the time of our interim results in November 2025, the Board declared an
interim dividend of 19.8p per share, an increase of 2.1% vs the prior year
interim dividend of 19.4p per share, consistent with our dividend policy and
target cover range of 1.5 to 2.0 times earnings excluding exceptional items.
The dividend is payable in equal instalments of 9.9 pence per share on 19
December 2025 and 27 March 2026.

SHARE BUYBACK PROGRAMME

As announced on 1 July 2025, the Group has commenced its increased and
extended share buyback programme, returning at least £30 million per annum to
shareholders, extended until the end of March 2028 and with the target of
reducing our equity base by at least 20% over the period. This enhanced
Buyback Programme reflects the strong cash generative nature of the Group,
along with the Board’s confidence in delivering on our growth targets for
FY28 and in-line with our commitment to enhance shareholder returns. As of
market close on 26 January 2026, a total of 2,768,330 shares had been
purchased at a total value of £17.2m.

Throughout this period, we will continue to increase dividends at a nominal
rate and, as a result of our continued financial performance, grow our cover
ratio from the current 1.5 to 2.0 times earnings range to over 2.0 times
earnings by FY28. Combined with the increased and extended Buyback Programme,
this dividend policy will enhance shareholder returns and ensure the business
continues to maintain an efficient capital structure, balancing an appropriate
leverage ratio of around 1.2 to 1.5 times net debt/EBITDA with the overall
capital needs of the business.

 Enquiries                                                                                         
                                                                                                   
 PayPoint plc                                                 FGS Global                           
 Nick Wiles, Chief Executive (Mobile: 07442 968960)           Rollo Head                           
 Rob Harding, Chief Financial Officer (Mobile: 07525 707970)  James Thompson                       
                                                              (Telephone: 0207 251 3801)           
                                                              (Email: PayPoint-LON@fgsglobal.com)  

ABOUT PAYPOINT GROUP

For tens of thousands of businesses and millions of consumers, we deliver
innovative technology and services that make life a little easier.

The PayPoint Group serves a diverse range of organisations, from SME and
convenience retailer partners, to local authorities, government, multinational
service providers and e-commerce brands. Our products are split across four
core business divisions:
* In Shopping, we enhance retailer propositions and customer experiences
through our PayPoint One/Mini devices, card payment technology, Counter Cash,
ATMs and FMCG partnerships in over 67,000 SME and retailer partner locations
across multiple sectors. Our retail network of over 30,000 convenience stores
is larger than all the banks, supermarkets and Post Offices put together
* In E-commerce, we deliver best-in-class customer journeys through Collect+,
a tech-based delivery solution that allows parcels to be picked up, dropped
off and sent at thousands of local stores
 * In Payments and Banking, we give our clients and their customers choice in
how to make and receive payments quickly and conveniently. This includes our
channel-agnostic digital payments platform, MultiPay, offering solutions to
clients across Open Banking, card payments, direct debit and cash. PayPoint
also supports its eMoney clients with purchase and redemption of eMoney across
its retail network.
* In Love2shop, we provide gifting, employee engagement, consumer incentive
and prepaid savings solutions to thousands of consumers and businesses.
Love2shop is the UK’s number one multi-retailer gifting provider, offering
consumers the choice to spend at more than 140 high-street and online retail
partners. Park Christmas Savings is the UK’s biggest Christmas savings club,
helping over 350,000 families manage the cost of Christmas, by offering a huge
range of gift cards and vouchers from some of the biggest high street names.
Together, these solutions enable the PayPoint Group to create long-term value
for all stakeholders, including customers, communities and the world we live
in.

Attachment
*     Trading update Q3 FY26 - Final
(https://ml-eu.globenewswire.com/Resource/Download/130eabc2-af5d-4c6d-82b6-97339f927051)