PUNT OF THE WEEK: Parcel collection and payment systems firm PayPoint

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PUNT OF THE WEEK: Parcel collection and payment systems firm PayPoint is tipped to hand out dividends next year

What is it?

Known for its signs in shops, PayPoint provides services from payment systems for retailers to ATMs and parcel collection points. Clients include Utility group Eon.

What’s the latest?

Parcel volumes have jumped 11.9 per cent in the third quarter to 5.6million. 

Its bill payments division was also performing well, and it has rolled out its tech-based Paypoint One system.

Who backs it?

Major investment managers make up Paypoint’s largest shareholders, including Liontrust, Aberdeen Standard, Schroders and Neptune. 

Woodford Investment Management is the second largest shareholder. Paypoint is one of his better performing picks this year.

Why you should invest

Liberum analyst James Allen says there are ‘some exciting growth opportunities’ for the firm. 

He is also predicting Paypoint will hand out dividends of 83.8p per share in 2020.

…and why you shouldn’t

It has been criticised in the past for not improving its technology fast enough, and as online shopping grows, more firms are trying to find ways to take advantage of the parcels sector.

 

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