Sunday 22 September 2019

Payments firm Payzone tops up profits to €6.3m

Payzone processes a variety of electronic transactions services
Payzone processes a variety of electronic transactions services

Gordon Deegan

Pre-tax profits at consumer payments network, Payzone last year increased by 10pc to €6.3m.

This followed gross revenues increasing marginally at Payzone Ireland to €150.49m from €149.23m in the 12 months to the end of September last.

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The firm processes a variety of electronic transactions services, including mobile phone top ups, debit/credit card transactions; M50 motorway toll payments and Leap travel cards.

Payzone services more than 300,000 registered consumers in over 7,000 retail outlets throughout Ireland and processes 125 million transactions a year.

The directors said that they expect the upward trend in transaction volume and gross margin to continue as the company diversifies further into customised payment solutions.

The firm's profits were hit last year by a €517,000 cost for 'redundancy and other one-time costs'.

The business last year paid a dividend of €5.75m having previously made a dividend payout of €7.5m in 2017.

Earlier this year, AIB formed a new joint venture with First Data Corporation (FDC) to buy Payzone for €100m from Carlyle Cardinal Ireland.

The new joint venture is 75pc owned by AIB and 25pc owned by FDC. Together they purchased around 96pc of Payzone with the remaining 4.1pc of the business held by the Payzone management team.

AIB said earlier this year that a mechanism had been agreed to acquire that stake in time.

Carlyle Cardinal Ireland acquired the business from private equity fund Duke Street in 2015 for €39 million.

Numbers employed by the business last year increased by just one to 79 though staff costs went up to €4.8m from €4.5m.

Directors' pay last year increased to €652,000 from €623,000 - comprising remuneration of €537,000 and pension contributions of €115,000.

The firm made the profit after taking account of non-cash depreciation and amortisation costs of €1.54m.

At the end of last September, the business had shareholder funds of €1.39m.

The directors for Payzone Ireland state that they have put in place a strong management team and a broad suite of differentiated products capable of dealing with any deterioration in the pre-paid mobile top-up market.

The firm's software research and development (R&D) costs for last year totalled €1m.

The firm recorded post-tax profits of €5.8m after paying corporation tax of €490,000.

Irish Independent

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