annual report
for the 53 weeks ended 31 march 2013 our business
contents
highlights page
highlights 1
chairman’s statement 2
business review
chief executive’s review 3
key performance indicators 6
operating and financial review 7
risks 12
corporate social responsibility 14
governance
governance 17
board of directors 20
directors’ report 21
remuneration committee report 23
statement of directors’ responsibilities 36
independent auditor’s report to the 
members of paypoint plc 
37
financial statements
consolidated income statement 38
consolidated statement of 
comprehensive income
38
consolidated statement of 
financial position 
39
consolidated statement of changes 
in equity
40
consolidated cash flow statement 41
company statement of financial position 42
company statement of changes  
in equity
43
company cash flow statement 43
notes to the financial statements 44
annual general 
meeting
notice of annual general meeting 60
form of proxy 65
officers  professional advisers inside
back 
cover
paypoint is a leading international service provider of convenient payments and value 
added services to major consumer service organisations in the utility telecoms media 
financial services transport retail gaming and public sectors  we handle over £14 billion 
from 739 million transactions annually for more than 6000 clients and merchants  we 
deliver payments and services through a unique combination of local shops internet and 
mobile distribution channels
retail networks
paypoint operates branded retail networks in the uk ireland and romania  the 
network in the uk numbers over 25000 terminal sites in local shops including coop 
spar mccolls costcutter sainsbury’s local tesco express one stop asda londis and 
thousands of independent outlets and is growing our terminals process energy meter 
prepayments bill payments mobile phone topups transport tickets bbc tv licences 
cash withdrawals and a wide variety of other payments for most leading utilities and 
many telecoms and consumer service companies 
in romania the branded retail network numbers over 7300 terminals located in local 
shops across the country and is expanding  our terminals process cash bill payments 
for utilities money transfers and mobile phone topups in the republic of ireland we 
have over 500 terminals in shops and credit unions processing mobile topups and bill 
payments
we also supply added value services to our retail agents to improve the yield from our 
network  in the uk we have a consumer parcel drop off and collection service using 
paypoint’s retail network through collect a joint venture with yodel this service is 
available in over 5250 of our convenience retail agents clients include amazon ebay 
asos new look boden john lewis house of fraser asda direct and very  in addition 
in the uk we have over 2800 link branded atms mainly located in the same sites as 
our terminals and over 7000 of our terminals provide debit and credit card acceptance 
for our retailers 
em commerce
paypointnet is an internet payment service provider linking into 16 major acquiring 
banks in the uk europe and north america delivering secure online credit and debit 
card payments for over 5500 web merchants including stan james hungry house 
moonpig whsmith lovestruck london and zurich insurance moneysupermarketcom 
and british gas  we offer a comprehensive set of products ranging from a bureau 
service in which we take the merchant credit risk and manage settlement for the 
merchants to a transaction gateway  we offer realtime reporting for merchant 
transactions and fraudguard an advanced service to mitigate the risk of fraud for card 
not present transactions  we are introducing realtime transaction management and 
optimisation products for sale to our merchants
paybyphone is a leading international provider of services to parking authorities which 
enables consumers to use their mobile phones to pay for their parking by credit or 
debit card  it has contracts in the uk canada usa france and australia
paypoint is widely recognised for its leadership in payment systems smart technology 
and consumer service our high quality services are backed by a 247 operations centre 
with dual site processing for business continuity
paypoint maintains its competitive differentiation by serving a range of clients’ needs 
through a wide spectrum of payments products and services that span different 
channels  for example paycash enables cash payment for internet transactions at 
paypoint retail agents and our home vending solutions allow consumers to pay across 
the internet as well as through our retail network pb paypoint plc annual report 2013 paypoint plc annual report 2013 1
highlights
53 weeks ended 
31 march
2013
52 weeks ended 
25 march
2012 increase
2
revenue £2085m £2000m 42
net revenue
1
£1057m £904m 168
gross margin 430 391 39ppts
operating profit £420m £389m 80
profit before tax £413m £372m 109
diluted earnings 
per share
453p 398p 138
dividend per share  
full period
3
304p 265p 147
•	 record group transaction volume at 739 million up 12 with 
growth in all channels  
•	 period end cash of £466 million 2012 £355 million with no debt 
•	 proposed final dividend of 202p up 13 on prior year plus a 
special dividend of 15p per share 
retail
•	 uk  ireland retail network transactions increased 9 with strong 
growth of 22 in retail services 
•	 over 25 million romanian bill payment transactions in the period  
up 35 and continued profitable growth in the network 
•	 collect has more than doubled transactions to 77 million from  
38 million and is now available nationwide in over 5250 sites 
em commerce paypointnet and paybyphone
•	 internet transactions have grown by 26 
•	 paybyphone increased transactions to over 22 million up 29 
1 net revenue is revenue less the cost of mobile topups where paypoint is principal sim cards and other costs 
incurred by paypoint which are recharged to clients and merchants  these costs include retail agent commission 
merchant service charges for card payments and costs for the provision of call centres for paybyphone clients  
net revenue is a measure which the directors believe assists with a better understanding of the underlying 
performance of the group
2 the reported period of 26 march 2012 to 31 march 2013 contains 53 weeks  comparative data is given for the 
52 week period reported last year ie 28 march 2011 to 25 march 2012  percentage increases on a prorata 
basis are lower than those shown
3 excludes special dividend in 2013
net revenue
1
 £m
2010 2011 2012 2013
774 827 904 1057
389
265
2010 2011 2012 2013
341 361 389 420
2010 2011 2012 2013
218 234 265 304
operating profit £m
dividend per share
3
 p 2 paypoint plc annual report 2013 paypoint plc annual report 2013 3
chairman’s statement
i am pleased to report strong growth in transactions net revenue and earnings per 
share for the period under review  we are proposing a final dividend of 202p per 
share together with a special dividend of 15p per share making a total for the period 
of 454p an increase excluding the special dividend of 147 the special dividend 
reflects the stronger than expected cash position at march 2013 and our confidence 
in the company’s ability to generate cash and does not impinge upon the company’s 
ability to invest in growth
our retail networks in the uk and romania delivered profitable growth based on our 
strong client base and breadth of services we continue to innovate and invest in 
technology and new services to maintain the premium quality of these retail networks 
and their competitive advantages  in the uk growth in prepaid energy transactions 
resulted from increases in the number of prepaid meters and tariffs  retail services 
delivered healthy growth but mobile topups continued to decline  the introduction 
of the simple payment service for the dwp has contributed to growth but the number 
of transactions has been lower than expected as a proportion of the cheque volume it 
was intended to replace has migrated to other payment methods  we have continued 
to expand our romanian retail terminal estate by 609 sites and transaction volume 
has increased by 28 in romania national television advertising helped to improve 
brand awareness and drive increases in market share western union money transfer 
has also contributed to romanian growth
our parcels service
1
 has been increasingly profitable  parcel transactions have more 
than doubled to 77 million 2012 38 million driven by consumers’ appetite for click 
and collect  collect has increased the number of clients it serves to 212 from 126 at 
25 march 2012 transaction numbers have grown in all services including consumer 
deliveries sold through the collect website amazon ebay and resellers  we now 
have contracts with amazon for deliveries and returns and with amazon marketplace  
we have added more retailers such as john lewis to our list of clients  we continue 
to spend money on service improvements which should help to deliver revenue growth 
that outstrips the growth in costs  
in our em commerce channels internet trading as paypointnet and mobile 
trading as paybyphone transaction growth was 27 and net revenue growth 8  
transaction growth in large internet merchants which generate lower net revenues 
dominated and a one off receipt in the prior year caused net revenue growth to be 
lower than transaction growth  through paybyphone we gain valuable insight into 
the development of mobile commerce but this remains an early stage venture  we 
have continued to win new clients  although conversion into revenue of business 
won remains slow the potential market for services delivered through mobile phones 
is large  extension to other mobile commerce areas offers further potential but will 
require expenditure in development and marketing  we have also sought to improve 
efficiency first by concentrating sales efforts on larger opportunities and second by 
addressing telecommunications costs  further cost reduction opportunities exist 
including the migration of payments to our internet channel the technical integration 
of which is now complete  since the period end we have brought these two channels 
under common management to accelerate the synergies in both revenue  
and efficiency
we have continued to invest in technology  we have signed contracts with two 
new data centre operators  we will introduce single daily settlement with our 
retailers reducing retailer banking costs and our exposure to retail agent debt  in 
em commerce we are planning to replace and upgrade our internet platform in 
paybyphone we are developing our technology to open the platform to services other 
than parking and reducing our cost to serve
for the current financial year trading is in line with the company’s expectations 
our retail networks are strong and developing well  we intend to pursue further 
opportunities to grow the retail network thereby increasing market share in bill 
payment and retail services including atms in the uk ireland and romania we 
expect continued progress in the internet and mobile payment channels  together our 
businesses provide a strong foundation to deliver value for our shareholders
david newlands
23 may 2013
consumer satisfaction  
with paypoint
consumer satisfaction is vital to any company 
especially one like paypoint which serves 
millions of people every week consumer 
satisfaction with paypoint uk retail which 
is independently measured each year has 
remained constant at the exceptional level 
of 9798 for six years with 86 very 
satisfied the majority of customers choose to 
use paypoint because it is convenient for their 
lifestyle close to where they live and because 
they can pay almost all of their household bills 
in the one place 
the breadth and variety of payments that can 
be made at paypoint is an important factor 
in maintaining customer satisfaction as new 
schemes and services are added to the paypoint 
portfolio some customers are carrying out 
three or four transactions at the same time – 
and an even higher proportion 91 of these 
heavy users are very satisfied with paypoint  
collect adding value for consumers
research conducted on behalf of collect in 
2013 reinforced the importance of convenient 
delivery with most collect stores open early 
until late seven days a week and 40 of all 
transactions taking place outside traditional 
opening hours the service solves this long
term problem for consumers alternative 
collection points to a retailer’s own stores 
appeals to online shoppers with 66 saying 
they would use the service over half said that 
they would be more likely to shop online with 
a retailer that offered delivery to a convenient 
collection point thereby removing the risk of 
missed delivery
redesigning the customer experience and 
making it as convenient as possible is key and 
collect works with over 210 retail brands to 
enable them to do this via its clickcollect 
and returns service with a focus on growing 
its clickcollect client list collect has acted 
as a third party collection point for more than 
2 million customer orders in the past 
12 months
1 our parcels service comprises the net revenue less direct costs in the uk retail network less our share of the losses 
of collect 2 paypoint plc annual report 2013 paypoint plc annual report 2013 3
chief executive’s review
cashout schemes grow
traditional paypoint payment transactions 
energy prepayment utility payments and 
mobile topups involve consumers paying cash 
in at retailers  paypoint can now offer clients 
the ability to pay cash out to their customers  
this is used for the dwp simple payment 
service for benefit and pension payments 
utilities including british gas and edf energy 
and most recently by local authorities for 
emergency benefit payments for which 
they have taken responsibility from central 
government  retailers earn commission on 
these schemes and with the introduction of 
single daily settlement will benefit from more 
convenient cash management as cashout 
sums will be deducted from direct debits taken 
for other transactions in addition consumers 
are likely to spend some of the money they get 
in store
“paypoint’s cashout scheme has been a 
real success for us in previous years and has 
proven to be the most convenient way for our 
customers to receive their rebates”
jackie kelly value delivery manager at  
british gas
paypoint romania expands  
payment schemes
paypoint in romania is now working with 
the majority of the national utility companies 
in the country and as their customers have 
become accustomed to paying their bills at 
paypoint many of the country’s regional water 
and sanitation service providers have signed 
up with paypoint to enable them to pay their 
water bills at the same time nova apaserv 
company in botoşani county sc vital sa in 
maramures county sc salubris sa which 
provides public sanitation services in iasi and 
the targoviste dambovita water company 
a regional operator of water systems and 
sanitation in dambovita county have all 
introduced the paypoint option to their 
customers during the year
“as well as providing high quality services 
we also wanted to reduce the time people in 
maramures spend paying bills so being able  
to pay them in local neighbourhood stores 
safely and quickly is definitely a great 
advantage for them”
geza gasparik general manager of sc vital sa
paypoint has delivered earnings growth in line with market expectations   our retail 
businesses uk  ireland romania and collect have grown and remain highly 
profitable and cash generative  our em business paypointnet and paybyphone has 
made good progress
the essence of the group’ s capability is the processing of high volume consumer 
transactions whether payments or value added services like parcels through a flexible 
platform adding value to clients in selected vertical markets  payment transactions are 
generally low value and embrace retail internet and mobile technologies and include 
money flowing both to and from the consumer  we add value by providing relevant 
additional services to retailers and online merchants across different geographies  providing 
greater consumer convenience is core to our proposition we are able to grow the 
business through selling to more clients in vertical markets by addressing more verticals by 
engaging more retailers and more merchants driving more consumers to use our services
strategy
our strategy which remains unchanged has four key elements
•	 breadth of payments capability 
the acceptance of a broad range of payments cash cards emoney etc through 
multiple channels retail internet and mobile phone
•	 strength in vertical markets 
t argeting sectors with high volume recurring consumer payments
•	 value added contentservices 
providing additional content or services to the payment channels and chosen vertical 
markets to create differentiation
•	 geographic reach 
identifying regions with attractive payment dynamics to create value through exporting 
our knowhow
paypoint has succeeded in introducing this broad payment hub capability to clients in key 
vertical markets energy telecoms and media financial services parkingtransport public 
sectorsocial housing retail and gamingleisure with the ability to process payments using 
the consumer’ s preferred method of payment and channel the delivery of payments 
between consumers and our clients encompasses transaction authorisation processing 
clearing and settlement and interfacing to banks card schemesnetworks and other 
financial intermediaries paypoint also provides value added content and services within 
each channel to differentiate the paypoint proposition from those of its competitors 
in our retail channels differentiation is achieved through providing retailers with a broad 
range of retail services including atms credit and debit card processing parcel collections 
and returns service sim cards and international money transfer  the high quality of service 
delivery to retailers is also critical to differentiation
in the internet channel differentiation to merchants is driven through a widening base 
of acquiring bank relationships increasingly in different geographies and payment types 
together with the quality of our fraud screening and reporting products 
our mobile channel delivered through paybyphone will similarly drive differentiation 
through its ability to leverage our cash retail payment capability and internet payment 
services combined with improving the consumer experience
technology
t echnology is at the heart of our service delivery and differentiation in all our businesses 
and we plan to continue to increase spending in this area  we see opportunities to 
integrate our payment channel technologies to provide better more efficient and complete 
solutions to our clients across a common platform irrespective of whether their customer 
has paid in a store online or on their phone  improving reporting to merchants and 
upgrading retailer management systems will enhance our ability to provide customers with 
a unique service and will contribute to growth  the reporting system under development 
for online merchants offers opportunity for extension to other clients across all distribution 
channels  as we invest in this more integrated solution we also plan to consolidate our 
data centres in two hosted sites  
growth and prospectslo
paypoint is well positioned in attractive markets to benefit from its strength in multi
channel payments and retail services   the growth in convenience retailing online and 
mobile commerce is expected to continue for the foreseeable future  our position within 
vertical markets including energy telecomsmedia financial services parkingtransport 
gamingleisure and public sectorsocial housing provides us with a platform to benefit from 
the investments being made by our clients and prospects  as businesses seek to serve 
their customers across a wider variety of distribution channels offering many payment 
options we are well placed with the breadth of our payment services and collect to 
serve their needs 4 paypoint plc annual report 2013 paypoint plc annual report 2013 5
chief executive’s review continued
vertical markets
our clients are a who’s who of consumer services companies in the countries we 
serve their needs to innovate and use new delivery channels should continue to 
drive opportunities for us in future in the uk the energy sector continues to grow its 
prepayment base and is now investing in next generation smart meters that should 
further strengthen the demand to serve prepayment customers not just for cash in 
store but also across our web and mobile channels government is mandating that all 
domestic gas and electricity meters should be smart by 2020
in recent years paypoint uk has added public sector capability to its portfolio welfare 
reform such as the universal credit and the related devolution of some benefits to 
the local authority level is likely to have a major impact on the requirements of central 
government local authorities and social housing associations where we are already 
active parking and transport authorities and operators are also keen to adopt smart 
technology mobility and multichannel delivery the very areas in which we deliver
retail
paypoint’s market leadership in retail payments and services remains at the core of 
its success we continue to be strongly differentiated through the unique quality and 
breadth of our client base and retail coverage we contract with the best convenience 
retailers and seek to extend the range of payments and services that we provide 
delivering new retail schemes that drive footfall and commission earnings to our retail 
partners securing their continuing commitment
convenience retailing is evolving from its former guise as a secondary topup shopping 
destination into a principal choice for many busy consumers looking for quality products 
and services as conveniently as possible the sector has benefitted from substantial 
investment in premises and upgraded ranges of local shops as a result of the entry of 
the major grocery multiples and symbol groups paypoint has been at the core of this 
transformation by being the principal innovator of instore payments and services 
helping local stores to become community hubs where consumers visit more often and 
for a greater range of activities we intend to build further on our contribution to the 
breadth and value of the convenience retail offer to local communities
an important recent retail service innovation builds on paypoint’s success in providing 
cash to consumers instore for government disbursements and service rebates in 
addition to the atm cash withdrawals which we have provided for much longer not 
only does cashout provide a further service offering by retailers to their local community 
it also reduces the amount of cash held in store  with the proposed introduction of 
single daily settlement where daily direct debits on retailers are reduced by the amount 
of cashout and atm withdrawals retailers will benefit from reduced cash banking and 
transaction costs further differentiating our services to them  we do not just seek to 
serve consumers through our retailers we also support our retailers with a broad range 
of services that support their own trading including card payments cash machines 
international money transfer promotional offers and sim card distribution 
these retail services boost the bottom line of our retail partners and improve our retail 
yield we have increased our field sales force by half since the latter part of the prior year  
they will help us find further retail sites which by virtue of improved uptake of retail 
services should not dilute our retail yield  there is substantial opportunity to increase the 
retailer base including atms  this will require more capital expenditure than previously 
expected and taken together with other capital plans will result in higher capital spend 
in the current year
international
in romania we have made good progress in growing profitability  cash payment is 
dominant across all demographics and we have nearly all the major consumer service 
companies as our clients our market share in clients we serve c12 is increasing but 
encouragingly for future growth is still at relatively low levels we aim to extend our 
client relationships to become the preferred and more exclusive supplier recently we 
displaced the post office in the county of iasi in the moldova region from the provision 
of bill payment for eon gaz which we will seek to replicate across the region and with 
other clients
the retail services opportunity in romania is at an earlier stage with international money 
transfer progressing well  we expect new retail services to come to market in the 
medium term and to continue to grow our outlet numbers and retail yield 
the potential for further international expansion will be reviewed this year
online support for  
the grand national
the grand national is watched by an estimated 
500 million people worldwide in the uk alone 
as much as twothirds of the adult population 
places a bet with an estimated £150m in 
total being wagered on the result  therefore 
the event is businesscritical for paypointnet’s 
online gaming clients   in the hour before 
the event paypoint saw an uplift in its total 
transactions from the whole gaming industry 
of over 91 compared to the same hour on a 
usual saturday   at peak we were processing 
more than four transactions a second
 
online gaming is one of the most demanding 
sectors for a payment gateway a highly 
global business it requires a very high level of 
security and fraud management a wide range 
of payment methods and the ability to manage 
the outflow of winnings as well as the inflow 
of deposits our clients value enormously the 
reliability of our operation during this critical 
period for them
“the grand national is one of the most 
important events of the year for us so we rely 
on paypointnet to provide us with flawless 
service capable of handling the huge spike in 
volumes while maintaining the high level of 
security and fraud management that we enjoy 
during the rest of the year”
denis kelly ceo stan james
leading the way with  
contactless payments
having been the first cash payments network 
in the uk to introduce contactless credit and 
debit card payments paypoint now operates 
more than 4000 contactless payment 
terminals the largest private sector retail 
network in the uk  
the number of contactless debit and credit 
cards in the uk passed 32 million at the end 
of 2012 retailers carry no financial risk and 
benefit from a transaction fee that is lower 
than for debit cards whilst consumers benefit 
from a faster transaction the convenience of 
not having to enter their pin and from not 
having to carry cash
as the range of locations where customers 
can use them grows – in taxis restaurants 
coffee shops sports centres buses car parks 
and on vending machines – customers are not 
only getting used to using their contactless 
cards but are increasingly expecting to be 
able to use them almost anywhere they spend 
their money because of the low value limit 
for contactless transactions they are ideal for 
purchases in convenience stores 4 paypoint plc annual report 2013 paypoint plc annual report 2013 5
collect
our most exciting new retail service in recent years has been collect a 5050 joint 
venture with yodel this service enables consumers to collect and return their home 
shopping parcels from any of over 5250 stores within the paypoint network the 
service is now in its fourth year and has an annual parcel run rate of over 9 million with 
significant growth potential the service has recently attracted new competition but 
we have a lead over our new competitors none of which come close to the breadth 
of coverage or volume of parcels that collect provides through a convenience retail 
channel  collect continues our successful strategy of providing consumers and clients 
with more convenient and cost effective alternatives to the post office this year should 
see a substantial expansion in our consumer send volumes with the launch of a faster 
service delivery option as an enhancement to the existing 35 day service collect is 
already proving attractive to consumers and small traders and is integrated into the 
amazon and ebay platforms
em commerce
our em commerce businesses paypointnet in the internet channel and paybyphone in 
the mobile channel operate in highly competitive markets which have attracted heavy 
investment from a wide range of market players ranging from global giants all the way 
down the scale to many innovative small startups  in this context paypoint has handled 
tens of millions of payments annually across both web and mobile channels and is still 
growing  however margin erosion in paypointnet and the continuing need to invest in 
paybyphone in advance of revenues have adversely affected profitability in the period 
under review  in order to realise the full potential that these businesses present we have 
now put them under single management to position better our capability in this fast 
changing market place and to benefit from potential cost synergies  both internet and 
mobile continue to be the highest growth areas of retail displacing and complementing 
traditional high street retailers  paypoint is applying focus to key vertical markets as we 
aim to build successful capabilities where we should be well rewarded and maintain a 
loyal client and merchant base
 
paybyphone parking will continue to concentrate on metropolitan opportunities in the 
uk france usa canada and selected other big cities we have had recent success in 
seattle paris suburbs london and in new york with a trial showing that this approach 
is helping us to secure the biggest available opportunities our westminster service is still 
amongst the most successful phone parking services in the world and we are the market 
leader in our core markets of the uk and north america
paypointnet will continue to promote and develop its range of payment services 
including connections to a broad range of acquirers support of international gateways 
sophisticated fraud screening payment card industry data security standard compliance 
and enhanced management reporting and control systems  these support our 
positioning as a wellrespected payment service provider we have a comprehensive 
service portfolio in the market and recognised strength in gaming and general 
ecommerce as paypointnet merchants and prospects look to add mobile payment 
capability the closer integration with paybyphone should enable us to be distinctively 
positioned with proven high volume products
consumers 
paypoint has traditionally served consumers through our business to business b2b 
relationships and we have remained a b2b or b2b2c consumer company in our 
approach however our innovation is taking us deeper into services which have a direct 
relationship with the consumer for example both collect and paybyphone have 
substantial consumer bases 
in addition the footfall from more than 11 million weekly transactions in paypoint retail 
outlets provides opportunity for enhanced consumer relationships paypoint achieved an 
82 brand awareness in our most recent bmrb survey and a 98 consumer satisfaction 
result surveyed by ipsos mori – a level in excess of most consumer service organisations  
our recently launched social networking activities have attracted bigger followings in a 
few months than many big name consumer service organisations have achieved in several 
years these are strong foundations on which to build our consumer brand more directly
as we build our group capability going forward we will be looking to extend our 
consumer base and to develop more value added propositions to increase our consumer 
yield as well as our client and retailer yields in doing this we should benefit from the 
strong consumer brand we have already developed  paypoint is one of the companies 
best placed to make further gains in the fast moving payment industry particularly in 
em commerce and has a market leading position in retail services on which we intend 
to build
dominic taylor
chief executive
23 may 2013
chief executive’s review continued
paybyphone reaches out to  
new york
following the recent introduction of 
paybyphone in seattle and new castle nj 
new york city has launched a paybyphone 
cashless parking pilot in the bronx the pilot 
allows motorists to pay for parking via the 
paybyphone app the internet or by telephone 
along 18 blocks and at the belmont municipal 
parking field there are no additional fees 
or changes to parking rates while motorists 
will also be warned via email or text message 
when their time is about to expire enabling 
them to pay for additional time paybyphone 
is also working with the new york police 
department whose traffic enforcement agents 
use handheld scanners to enter license plate 
numbers which are instantly crosschecked 
against received payments
“you can purchase parking time … you will 
receive a text message or email confirming 
your purchase you also get text or email 
warnings before your meter time expires and 
you can use paybyphone to extend your meter 
time without ever going back to your car so 
it really is everything you can think of to make 
your life better”
mayor michael r bloomberg of new york city
collect adding value for stores
by offering collect retailers in the paypoint 
network gain significant recurring footfall 
and commercial benefit as well as a valuable 
edge over their local competitors the service 
provides additional opportunities to raise 
customer loyalty and generate incremental 
sales over and above the commission earned 
from collect
research in 2013 showed that the average 
collect store earns additional annual revenue 
of £2712 as a direct result of offering the 
service collect contributes £673 per annum 
on average in commission with an additional 
£2039 of income generated from instore 
purchases by collect customers
almost two thirds 64 of customers had 
not used the store before using collect 
with 63 of customers stating that they 
would use the store again for other purchases 
in addition to using collect and nearly 
50 of customers purchasing other items 
from the store there are instant and lasting 
benefits for participating stores over a third 
of customers are using a mixture of collect 
services demonstrating the broad appeal of 
the collect product range  6 paypoint plc annual report 2013
key performance indicators kpis
in order to realise its strategic aims paypoint has identified areas of strategic focus and records a number of kpis to measure progress 
against them whilst these kpis are helpful in measuring the group’s performance they are not exhaustive and the group uses many 
other measures to monitor progress
measuring our performance
strategic focus kpi description 2013 2012
shareholder return earnings per share 
diluted
profit after tax attributable to equity holders of the 
parent divided by the weighted average number 
of ordinary shares in issue during the period 
including the impact of shares which are likely to 
be issued under share schemes
453p 398p
dividends per share proposed final dividend and interim dividend divided 
by the number of fully paid shares at the end of the 
period excludes special dividend in 2013
304p 265p
economic profit operating profit including paypoint’s share of joint 
venture results after tax and a charge for capital 
employed excluding cash based upon the group’s 
cost of capital
£240
million
£204
million
growth retail networks 
transactions
number of transactions processed in the period  
on our terminals atms and on our retailers’  
epos systems
625 
million
569
million
internet transactions number of transactions processed in the period by 
paypointnet
92
million
73
million
paybyphone number of paybyphone transactions processed in 
the period
22
million
17
million
transaction value the value of transactions processed via our 
terminals retailers’ epos systems internet 
merchants atms paybyphone and the sale of 
other retail services
£141 
billion
£121
billion
net revenue revenue less commissions paid to retail agents 
the cost of mobile topups and sim cards where 
paypoint is principal acquiring bank charges and 
call centre costs recharged to clients
£106 
million
£90
million
operating margin operating profit including our share of joint 
venture results as a percentage of net revenue
388 410
asset optimisation return on capital 
employed 
t otal operating profit for the period divided by 
average month end capital employed net assets 
excluding cash
61 58
people labour turnover number of permanent employees who left during 
the period divided by average total permanent 
employees
  
uk  ireland 23 26
rest of world 17 28 paypoint plc annual report 2013 7
operating and financial review
the operating and financial review complies with the guidance 
set out in the accounting standards board’s reporting 
statement operating and financial review and is prepared 
solely to provide additional information to shareholders as 
a body to assess paypoint’s strategies and their potential to 
succeed it should not be relied upon for any other purpose 
it contains forward looking statements that have been made 
by the directors in good faith based on the information 
available at the time of approval of the annual report and such 
statements should be treated with caution due to the inherent 
uncertainties including both economic and business risk factors 
underlying any such forward looking information
key performance indicators are shown on page 6
paypoint processes consumer transactions and as such has only 
one operating segment  however we include an analysis of 
the number and value of consumer transactions revenue and 
net revenue and our networks by product to help to explain the 
execution of our strategy  
growth opportunities include retail services new clients and 
the development of clients in the uk retail network the 
expansion of the retail network and new retail services in 
romania building and developing collect new merchants 
and new services for internet payments new parking contracts 
and driving consumer adoption and the development of other 
services for paybyphone
the results cover a period of 53 weeks 2012 52 weeks and 
as a consequence percentage increases are flattered by an 
additional week of trading  prorata increases would be less 
generally between 1 to 3 percentage points  paypoint will 
report on a calendar year basis from the current year
the channel and product analysis is as follows
retail networks
bill and general prepaid energy bills and cashout services
topups mobile emoney vouchers prepaid debit cards and  
the health lottery
retail services atm debitcredit parcels money transfer sims 
and receipt advertising
em commerce
internet consumer transactions with merchants preauthorisations 
and fraudguard where separately charged paybyphone 
parking tolling ticketing and bicycle rental transactions 
other
fees software development configuration and settlement  
of claims
 
operating review
53 weeks
ended 
31 march 
2013
52 weeks
ended 
25 march
 2012
increase 

transactions         ‘000 738991 659115 121
transaction value £000 14095423 12119894 163
revenue               £000 208526 200029 42
net revenue
1
       £000 105657 90442 168
1  net revenue is revenue less the cost of mobile topups where paypoint is principal sim cards and other costs incurred by paypoint which are recharged to clients and 
merchants  these costs include retail agent commission merchant service charges for card payments and costs for the provision of call centres for paybyphone clients  
net revenue is a measure which the directors believe assists with a better understanding of the underlying performance of the group
transactions have increased to 739 million 2012 659 million 
up 10 in the retail networks and 27 in em commerce
transaction value increased to £141 billion 2012 £121 billion 
up 12 in the retail networks and 25 in em commerce
revenue has increased to £209 million 2012 £200 million 
up 4 in the retail networks and 9 in em commerce  
revenue growth is lower than transaction volume and value in 
retail networks because of the decline in topups and in em 
commerce because of one off receipts in the prior year 
net revenue has increased to £106 million 2012 £90 million 
up 18 in the retail networks and 8 in em commerce  
net revenue growth is higher than revenue in retail networks 
because mobile topup decline particularly where paypoint is 
principal has a lesser impact on net revenue than revenue and 
because of the inclusion of set up fees for the dwp simple 
payment service
operating profit including our share of collect was £410 million 
2012 £370 million an increase of 11 the increase in the 
operating profit is the result of the strong growth in the retail 
networks and the reduced loss in the period in collect
formerly we disclosed separately transaction numbers and 
value revenue and net revenue by established businesses 
uk retail network and internet and developing businesses 
romanian retail network paybyphone and collect given that 
the romanian retail network continues to be profitable and our 
parcels service net revenue from parcels in uk retail less direct 
costs and our share of the loss in collect is also profitable we 
have dispensed with the distinction between established and 
developing businesses 8 paypoint plc annual report 2013
operating and financial review continued
bill and general
53 weeks
ended 
31 march 
2013
52 weeks
ended 
25 march
 2012
increase 

transactions          ‘000 432793 383332 129
transaction value £000 7751965 6757902 147
revenue               £000 79783 64001 247
net revenue
1  
     £000 48104 37390 287
bill and general payment transactions were ahead of the prior 
year as a result of a 15 increase in prepaid energy volumes  
the rise in prepaid volumes was driven by an increase in the 
number of new prepay meters installed higher energy use in 
colder weather the introduction of our service for npower in the 
west midlands and higher energy tariffs  there was also strong 
growth in romania where we processed over 255 million 
transactions 2012 189 million
the simple payment service has now been launched in selected 
locations across the uk although volumes have not been 
material in the reported period
revenue and net revenue growth in excess of transactions 
was caused mainly by simple payment service set up and 
management fees
topups
53 weeks
ended 
31 march 
2013
52 weeks
ended 
25 march
 2012
decrease 

transactions          ‘000 118270 125163 55
transaction value £000 1006234 1071947 61
revenue               £000 80390 94450 149
net revenue
1
       £000 21855 22756 40
topup transactions decreased over last year due to the 
continued decline in mobile topup volumes in the uk and 
ireland of 12 the uk and irish mobile transaction decline was 
partly offset by the introduction of the health lottery emoney 
loads and a small increase in romanian mobile topups where 
the impact of a larger network has offset market decline similar 
to that experienced in the uk 
the reduction in topup transaction value primarily resulted 
from prepay mobile market decline  the health lottery average 
transaction values are relatively low resulting in a slightly larger 
decrease in transaction value than in transactions  in romania 
and ireland paypoint acts as principal for mobile phone topups 
for which the sales value is recorded as revenue and the purchase 
cost is recorded in cost of sales
in the uk paypoint acts as an agent and only the commission 
income is recorded as revenue  therefore the decline in the 
mobile topup market in romania and ireland has a larger 
impact on revenue than net revenue  notwithstanding this 
topup net revenue decreased less than the fall from mobile as a 
result of the introduction of the health lottery
retail services
53 weeks
ended 
31 march 
2013
52 weeks
ended 
25 march
 2012
increase 

transactions          ‘000 73785 60493 220
transaction value £000 522929 426527 226
revenue               £000 27707 23659 171
net revenue       £000 16817 13844 215
retail services volumes increased across all products atm 
transactions increased by 14 credit and debit transactions by 
17 sim card sales by 24 and parcels more than doubled 
over the prior year  money transfer transactions more than 
doubled following the launch of the service in romania during 
the period
transaction value growth was driven by the increases in atm 
cash withdrawals and money transfer transactions which are 
higher value transactions  debitcredit transactions where the 
card sponsor settles direct with our retailer parcel transactions 
and terminal advertising have no associated transaction value 
and sim sales are low value transactions
retail services revenue grew strongly through sales success with 
retailers  net revenue had a larger percentage increase than 
revenue as retail agent commission is not paid for credit and 
debit card transactions and receipt advertising
collect
paypoint has a 50 equity interest in drop and collect 
limited trading as collect a 5050 joint venture with yodel  
paypoint does not consolidate the results of the joint venture 
but does include its share of the loss of the joint venture in its 
consolidated income statement after operating profit
collect at 100
53 weeks
ended 
31 march 
2013
52 weeks
ended 
25 march
 2012
increase
decrease 

transactions          ‘000 7686 3810 1017
revenue               £000 17753 8029 1211
loss     £000 1929 3658 473
transactions more than doubled driving an increase in 
revenue ahead of transactions as a result of a richer mix of 
consumer parcels  the loss has reduced and substantial further 
improvement in the results is expected this year
1  net revenue is revenue less the cost of mobile topups where paypoint is principal sim cards and other costs incurred by paypoint which are recharged to clients and 
merchants  these costs include retail agent commission merchant service charges for card payments and costs for the provision of call centres for paybyphone clients  
net revenue is a measure which the directors believe assists with a better understanding of the underlying performance of the group paypoint plc annual report 2013 9
operating and financial review continued
other
53 weeks
ended 
31 march 
2013
52 weeks
ended 
25 march
 2012
increase 

transactions         ‘000   
transaction value £000   
revenue               £000 4867 3498 391
net revenue       £000 4867 3498 391
other revenue includes the recharge of development costs and 
other fees and has risen predominantly due to an increase in 
fees charged to retailers for administrative services  
network growth 
terminal sites overall have increased by 4 to 32409
in the uk and ireland sites have increased by 683 an increase 
of 3 in 7179 sites we provide debit and credit card 
acceptance increasing retailer capability to accept convenient 
contactless card transactions  during the period we continued 
to roll out our ppos integrated solution to retailers which 
combines a virtual terminal our software on the retailer’s till 
system with a plugin reader to provide full functionality at 
lower cost as well as enhancing our service to retailers this 
releases terminals for use in romania in addition to these 2225 
ppos solutions there were 4196 broadband enabled terminals
in romania we increased the number of terminal sites by 609 in 
the period
in our internet channel we added over 737 new merchants 
during the period and the overall reduction in merchants since 
25 march 2012 is largely the result of the removal of low 
volume merchants
we added collect sites as transaction volumes increased and as 
retailers recognised the benefits of offering this service
analysis of sites
 
31 march 
2013
25 march
 2012
increase 
decrease

uk  ireland terminal sites 25070 24387 28
romania terminal sites 7339 6730 90
total terminal sites 32409 31117 42
internet merchants 5511 5670 28
collect sites 5255 4721 113
internet payments
53 weeks
ended 
31 march 
2013
52 weeks
ended 
25 march
 2012
increase 

transactions         ‘000 91739 72820 260
transaction value £000 4733078 3796569 247
revenue               £000 9933 9670 27
net revenue       £000 9933 9670 27
internet transactions of 92 million were up 26 on prior year 
as paypointnet continues to add large merchants and grow 
existing merchants organically
average internet transaction value has decreased by 1 to 
£5159 2012 £5214
revenue growth was less than transaction and value growth 
predominantly due to higher transaction growth in some larger 
merchants who benefit from lower pricing and a one off receipt 
in the prior year
paybyphone
53 weeks
ended 
31 march 
2013
52 weeks
ended 
25 march
 2012
increase 

transactions         ‘000 22404 17307 295
transaction value £000 81217 66949 213
revenue               £000 5846 4751 230
net revenue       £000 4081 3284 243
transactions increased by 29  paybyphone continues to win 
key contracts with councils and parking authorities across the uk 
north america and france as they provide a more convenient and 
cost effective method for collecting parking charges
paybyphone transaction values have increased by less than 
volume growth with average transaction value down over 
the prior year as new clients’ parking charges were lower than 
existing clients
paybyphone revenues have grown at a slower rate than 
transactions primarily as a result of a one off receipt in the prior 
year and reduced call centre income where for some clients call 
centre costs are recharged to the clients  we have reduced the 
number and length of calls made leading to decreased costs  
further migration towards mobile web and mobile applications 
is expected to continue this trend 10 paypoint plc annual report 2013
operating and financial review continued
financial review
income statement
revenue for the period was 4 higher at £209 million 2012 
£200 million from growth across the majority of services cost 
of sales reduced to £119 million 2012 £122 million  the cost of 
mobile topups in ireland and romania
1
 has fallen to £32 million 
2012 £38 million  retailers’ commission decreased to £69 million 
2012 £70 million as a result of lower mobile topup commission  
these reductions in cost were offset by higher depreciation on 
increased capital expenditure and the uk retail field force where 
we increased headcount by 50 during the previous year  gross 
profit margin improved to 430 2012 391 mainly as a 
consequence of the reduction in the cost of sales
net revenue
2
 of £106 million 2012 £90 million was up 17 
from the growth in energy prepayment bill payment simple 
payment service set up and management fees the health 
lottery retail services internet payments and paybyphone
operating costs administrative expenses increased 21 to  
£48 million 2012 £39 million reflecting
•	 step changes in the uk retail channel of the running costs 
arising from the separation from group and for the dwp’s 
simple payment service
•	 the increasing cost of it operations and development to 
support the necessary capacity to introduce new products 
and improve the efficiency of it delivery and
•	 continuing investment in our em commerce channel to 
support revenue growth in these fast moving markets
we plan to continue the increase in expenditure for it and em 
commerce in the current year
operating margin
3
 fell to 388 2012 410 as a 
consequence of higher operating costs
our share of the loss in developing collect was £10 million 
2012 £18 million  the integration of new merchants 
heightened consumer awareness and improvements in service 
levels for peak trading all helped to drive up revenues which led 
to the decrease in the loss
profit before tax was £413 million 2012 £372 million an 
increase of 109 the tax charge of £103 million 2012 
£103 million represents an effective rate of 250 2012 
276 the reduction in the rate reflects the decrease in the 
uk corporate tax rate the use of losses in romania and relief for 
shares vesting in the period on which no deferred tax had been 
recognised  the reduction in uk corporation tax nominal rate to 
23 became effective after the period end
statement of financial position
net assets of £1059 million 2012 £914 million reflect a 
strong financial position including cash of £466 million 2012 
£355 million and no debt
restatement of 2012 and 2011 consolidated statements of 
financial position
following the conclusion of recent correspondence with the 
financial reporting council’s conduct committee frccc 
the directors concluded that the accounting policy in respect of 
client settlement amounts should be amended together with 
a restatement of the comparative consolidated statements of 
financial position to reflect the obligation to pay clients which 
arises as soon as retailers collect cash from consumers giving 
rise to a financial liability and a corresponding asset as set out in 
ias 32
the representation of these items has had no effect on the 
consolidated income net assets earnings per share or total cash 
flows as previously reported in the 2012 or 2011 annual reports
historically the group has not recognised a receivable in respect 
of amounts collected by retail agents and correspondingly has 
not recognised a liability for the associated amounts payable 
to clients  the rationale for not recognising these balances 
in the consolidated statement of financial position was that 
paypoint acts as a disclosed agent in the transaction transferring 
cash between the retail agents and clients  paypoint does not 
bear credit risk for the majority of this cash flow nor does the 
majority of the cash pass through accounts to which paypoint 
has title
further details are included in note 1 to the financial statements
1  in ireland and romania paypoint is principal in the sale of mobile topups and accordingly the face value of the topup is included in sales and the corresponding 
costs in cost of sales
2  net revenue is revenue less the cost of mobile topups where paypoint is principal sim cards and other costs incurred by paypoint which are recharged to clients and 
merchants  these costs include retail agent commission merchant service charges for card payments and costs for the provision of call centres for paybyphone clients  
net revenue is a measure which the directors believe assists with a better understanding of the underlying performance of the group
3  operating margin is calculated as operating profit including our share of collect losses as a percentage of net revenue paypoint plc annual report 2013 11
operating and financial review continued
cash flow
cash generated by operations was £507 million 2012 
£433 million reflecting strong conversion of profit to cash 
corporation tax of £106 million 2012 £104 million was 
paid capital expenditure of £97 million 2012 £53 million 
comprised expenditure on it infrastructure developments for 
new products terminals atms and prepaid energy card and key 
readers for ppos paypoint point of sale the software version 
of our terminal that can be loaded onto retail till systems 
net interest received was £03 million 2012 £02 million net 
expense equity dividends paid were £190 million 2012 £164 
million cash and cash equivalents were £466 million including 
client cash of £70 million up from £355 million including 
client cash of £51 million  we expect the usual outflow of 
cash in the first half of the current year to be exacerbated by 
increased capital spend increased working capital and the 
special dividend
economic profit
paypoint’s economic profit operating profit less tax and capital 
charge was £240 million 2012 £204 million an increase  
of 17
dividend
we propose to pay a final dividend of 202p per share on  
25 july 2013 2012 178p to shareholders on the register 
on 28 june 2013 together with a special dividend of 15p per 
share subject to the approval of the shareholders at the annual 
general meeting  an interim dividend of 102p 2012 87p 
was paid on 20 december 2012 making a total dividend for the 
period of 454p or excluding the special dividend 304p 2012 
265p up 15 broadly in line with earnings
liquidity and going concern
the group has cash of £466 million including client cash 
of £70 million and had at the period end an undrawn 
unsecured loan facility of £35 million which was agreed at the 
start of the previous financial year and has an unexpired term of 
three years cash and borrowing capacity is adequate to meet 
the foreseeable needs of the group taking account of risks 
pages 12 and 13 the financial statements have therefore 
been prepared on a going concern basis
financing and treasury policy
the financing and treasury policy requires a prudent approach to 
the investment of surplus funds external financing settlement 
foreign exchange risk and internal control structures the policy 
prohibits the use of financial derivatives and sets limits for gearing
charitable donations
during the period the group made charitable donations of 
£23808 2012 £23075 to charities serving the communities 
in which the group operates we encourage employees to raise 
funds for charity and the company matches funds raised by the 
employees subject to certain limits
during the period our uk retail network acted as a collection 
agent for the bbc’s children in need telethon
employees
our success depends upon the continuing support and 
commitment of all our staff  we would like to take this 
opportunity to thank paypoint’s employees for their commitment 
energy and enthusiasm in the delivery of these results
strategy risks and corporate social responsibility
details of the company’s strategy are included in the chief 
executive’s review on page 3  an analysis of risks facing the 
company is set out on pages 12 and 13  the company’s 
approach to corporate social responsibility is set out in a 
separate statement on pages 14 to 16
economic climate
the company’s bill and general payments service which accounts 
for 46 2012 40 of our net revenue has continued to be 
resilient as consumers’ discretion in expenditure is limited for 
essential services and our service continues to be popular utility 
providers continue to install new prepay gas and electricity 
meters which will have a beneficial impact on our transaction 
volumes the internet payment market continues to grow 
substantially there has been an adverse impact on our mobile 
topups as mobile operators continue to offer more airtime at 
lower cost and to promote prepay less than contract paybyphone 
is able to offer parking authorities a more costeffective collection 
system for parking compared to pay and display machines this 
has led to an increase in the number of tenders being issued as 
parking authorities try to reduce their costs 
paypoint’s exposure to retail agent debt in the uk and ireland 
is limited as credit granted to retail agents is restricted by daily 
direct debiting for all uk and irish transactions other than 
epos mobile topups which are collected weekly  there is 
some concentration of risk in multiple retail agents  most of 
paypoint’s clients in the uk other than for topups bear the 
cost of retail agent bad debt  in paypoint romania the risk of 
bad debt lies with the company  in paypointnet exposure is 
limited to receivables from merchants for fees except in the 
case of bureau internet merchants where paypointnet retains 
credit risk on merchant default for credit card charge backs a 
risk mitigated in part by cash retention in paybyphone exposure 
is limited to receivables from parking authorities
outlook
for the current financial year trading is in line with the 
company’s expectations our retail networks are strong and 
developing well  we intend to pursue further opportunities to 
grow the retail network thereby increasing market share in bill 
payment and retail services including atms in the uk ireland 
and romania we expect continued progress in the internet and 
mobile payment channels  together our businesses provide a 
strong foundation to deliver value for our shareholders
23 may 2013 12 paypoint plc annual report 2013
risks
paypoint’s business financial condition or operations could be materially and adversely affected by the risks summarised below 
although management takes steps to mitigate risks where possible or where the cost of doing so is reasonable in relation to the 
probability and seriousness of the risk it may not be possible to avoid the crystallisation of some or all of such risks the group’s risk 
management policies and procedures are also discussed in the governance statement on page 19
risk area potential impact mitigation strategies
loss or inappropriate usage  
of data
the group’s business requires the appropriate 
and secure use of consumer and other sensitive 
information mobile telephone and internetbased 
electronic commerce requires the secure transmission 
of confidential information over public networks 
and several of our products are accessed through the 
internet fraudulent activity or security breaches in 
connection with maintaining data and the delivery of 
our products and services could harm our reputation 
business and operating results
the group has established rigorous information 
security antifraud and whistleblowing standards 
procedures and recruitment and training schemes 
which are embedded throughout its business 
operations the group also screens new employees 
carefully continued investments are made in it 
security infrastructure including the significant use 
of data and communications encryption technology
dependence upon third parties 
to provide data and certain 
operational services
the group’s business model is dependent upon 
third parties to provide operational services the 
loss of which could significantly impact the quality 
of our services similarly if one of our outsource 
providers including third parties with whom we have 
strategic relationships were to experience financial 
or operational difficulties their services to us would 
suffer or they may no longer be able to provide 
services to us at all significantly impacting delivery of 
our products or services
the group selects and negotiates agreements with 
strategic suppliers and agents based on criteria 
such as delivery assurance and reliability  single 
points of failure are avoided where practicable 
and economically feasible controls are continually 
reviewed and improved to minimise risk of retailer 
churn caused by financial loss to retailers through 
fraudulent third party activity
exposure to legislation or 
regulatory reforms and risk of 
noncompliance
the group is largely unregulated by financial services 
regulators although in the uk it is planned to seek 
payment institution status for prefunded cash 
payments to consumers and to allow the internet 
business to act as a master merchant for sme online 
merchants the group’s agents which offer money 
transfer are licensed as money service businesses by 
hmrc our internet and mobile phone distribution 
channels are subject to payment card industry data 
security standards regulated by the card schemes 
regulatory reform could increase the cost of the 
group’s operations or deny access to certain territories 
in the provision of certain services  noncompliance 
with law regulation privacy or information security 
laws could have serious implications in cost and 
reputational damage to the group
the group’s legal department works closely with 
senior management to adopt strategies to educate 
lawmakers regulators consumer and privacy 
advocates and other stakeholders to support the 
public policy debate where appropriate to ensure 
regulation does not have unintended consequences 
over the group’s services the group has in place 
a business ethics policy which requires compliance 
with local legislation in all the territories in 
which the group operates  a central compliance 
department coordinates all compliance monitoring 
and reporting managing and finance directors are 
required to sign annual compliance statements
interruptions in business 
processes or systems
the group’s ability to provide reliable services 
largely depends on the efficient and uninterrupted 
operation of our computer network systems 
financial settlement systems data and call centres as 
well as maintaining sufficient staffing levels system 
or network interruptions recovery from fraud or 
security incidents or the unavailability of key staff or 
management resulting from a pandemic outbreak 
could delay and disrupt our ability to develop deliver 
or maintain our products and services causing harm 
to our business and reputation and resulting in loss 
of customers or revenue
comprehensive business continuity plans and 
incident management programmes are maintained 
to minimise business and operational disruptions 
including fraudulent activity system failure or 
pandemic incidents  support arrangements have 
been established with third party vendors and there 
are strict standards procedures and training schemes 
for business continuity 
dependence on recruitment 
and retention of highly skilled 
personnel
the ability of the group to meet the demands of the 
market and compete effectively is to a large extent 
dependent on the skills experience and performance 
of its personnel demand is high for individuals with 
appropriate knowledge and experience in payments 
it and support services the inability to attract 
motivate or retain key talent could have a serious 
consequence on the group’s ability to service client 
commitments and grow our business 
effective recruitment programmes are ongoing 
across all business areas as well as personal and 
career development initiatives the executive 
management reviews talent potential at quarterly 
meetings compensation and benefits programmes 
are competitive and also reviewed regularly paypoint plc annual report 2013 13
risks continued
risk area potential impact mitigation strategies
exposure to materially adverse 
litigation
the group contracts with a number of large service 
organisations for which it provides services essential 
to their customers  failure to perform in accordance 
with contractual terms could give rise to litigation
the group seeks to limit exposure in its contracts  
mitigating actions are taken where contractual exposures 
are above the norm including insurance coverage 
where appropriate and economically sustainable
exposure to country and 
regional risk political financial 
economic social in north 
america united kingdom 
romania france and ireland
the group’s geographic footprint subjects its 
businesses to economic political and other risks 
associated with international sales and operations 
a variety of factors including changes in a specific 
country’s or region’s political economic or regulatory 
requirements as well as the potential for geopolitical 
turmoil including terrorism and war could result 
in loss of services prevent our ability to respond to 
agreed service levels or fulfil other obligations these 
risks are generally outside the control of the group
the group’s portfolio is diversified by geography by 
product by sector and by client in order to protect 
itself against many of these fluctuations especially 
those that are restricted to individual territories and 
market sectors although the bulk of its operations 
and revenues are uk based
exposure to consolidation 
among clients and markets
consolidation of retailers and clients could result 
in reductions in the group’s revenue and profits 
through price compression from combined service 
agreements or through a reduced number of clients
no single client accounts for more than 9 of the 
group’s net revenue and no single retailer accounts 
for more than 8 of the group’s net revenue 
which reduces the probability of this potential risk 
having a significant impact on the group’s business 
in addition the group continues to expand in its 
developing businesses and in cashout reversing the 
flow of money through its retail networks
acquisitions may not meet 
expectations
the group’s acquisitions strategic alliances and joint 
ventures may result in financial outcomes that are 
different than expected
the group assesses all acquisitions rigorously using 
both inhouse experts and professional advisers 
in addition the group conducts regular reviews to 
monitor performance
exposure to the unpredictability 
of financial markets foreign 
exchange interest rate and 
other financial risks
as the group operates on an international basis it is 
exposed to the risk of currency fluctuations and the 
unpredictability of financial markets in which it operates
the group’s financial risk management focuses on 
the unpredictability of financial markets and seeks to 
minimise potentially adverse effects on the group’s 
financial performance
exposure to increasing 
competition
the group operates in a number of geographic 
product and service markets that are highly 
competitive and subject to technological 
developments for example the introduction 
of smart meters and new payment solutions 
competitors may develop products and services that 
are superior to ours or that achieve greater market 
acceptance than our products and services which 
could result in the loss of clients merchants and 
retailers or a reduction in revenue 
the group is committed to continued research and 
investment in new data sources people technology 
and products to support its strategic plan
loss or infringement of 
intellectual property rights
the group’s success depends in part upon 
proprietary technology and related intellectual 
property rights some protection can be achieved 
but in many cases little protection can be secured 
third parties may claim that the group is infringing 
their intellectual property rights or our intellectual 
property rights could be infringed by third parties if 
we do not enforce or defend the group’s intellectual 
property rights successfully our competitive position 
may suffer which could harm our operating results
the group where appropriate and feasible relies 
upon a combination of patent copyright trademark 
and trade secret laws as well as various contractual 
restrictions to protect our proprietary technology and 
continues to monitor this situation the group also 
vigorously defends all third party infringement claims
data centre security breaches the group is highly dependent on information 
technology networks and systems to process 
transmit and store electronic information  
fraudulent or unauthorised access including security 
breaches of our data centres could create system 
disruptions shutdowns or unauthorised disclosure of 
confidential information
the group’s data centres are protected against 
physical breakins the group has strict standards 
and procedures for security and fraud prevention 14 paypoint plc annual report 2013
corporate social responsibility
paypoint is committed to dealing fairly and with a high level of integrity with all its stakeholders including clients retailers 
merchants consumers local communities and shareholders we comply with statutory obligations in all areas and subject our 
practices to high levels of scrutiny we publish results twice each year and provide two interim management statements complying 
with reporting and disclosure obligations the corporate social responsibility report sets out our approach and the way we measure 
our success in dealing with each group of stakeholders
clients and 
merchants
retailers and 
consumers
local communities shareholders
information 
on 
stakeholders
over 6000 clients and 
online merchants in six 
countries
over 32000 retailers 
in three countries and 
provide a service to 
millions of consumers
where our employees 
live and work
582 shareholders at  
31 march 2013
impact provision of convenient 
services for consumer 
payments
to provide a stable and 
reliable service and 
generate consumer 
footfall for retailers
financial support to 
local charities
maximise shareholder 
return
engagement provision of a high 
standard of service to 
our clients and open 
communication client 
contracts contain service 
level agreements which 
are set to a high standard 
specific performance 
is measured for key 
elements including 
system availability and file 
delivery 
we seek to provide an 
unparalleled service to our 
retailers and consumers
staff are encouraged to 
nominate local charities 
and fund raising events 
paypoint has adopted a 
charitable giving policy 
which supports the local 
communities in which its 
employees live and work 
by matching funds raised 
by employees subject to 
certain limits
paypoint focuses 
on maximising 
economic value
how we 
interact and 
support the 
stakeholders
communication  major 
clients have regular review 
meetings with dedicated 
sector managers
in the uk terminal 
availability is over 99 
and when a terminal 
needs to be replaced it is 
achieved within four hours 
across the uk in 97 
of cases the breadth 
of products offered by 
paypoint is greater than 
any other network 
an annual retailer 
survey is carried out to 
understand how we can 
improve our service we 
also invite retailers to 
attend an annual forum to 
discuss new products and 
obtain retailer feedback
major multiple retailers 
have regular review 
meetings with dedicated 
account managers
during the period 
paypoint donated 
£23808 to local and 
national charities which 
was supplemented by 
employees who also 
donate to some of these 
charities through various 
schemes 
we offer our network to 
collect for certain charities 
free of charge including 
the bbc’s children in 
need telethon
25 of paypoint’s atm 
network is speech
enabled the largest 
proportion of an 
independent network in 
the uk this achievement 
was recognised with an 
‘exemplar’ award by the 
royal national institute of 
blind people in june 2013
paypoint sponsors a 
category award at the 
hertfordshire community 
awards recognising 
exceptional service in the 
community in which many 
of our employees live
shareholders are invited to 
attend the annual general 
meeting and major 
shareholders are visited 
twice a year to discuss the 
group’s results
paypoint has been 
a constituent of the 
ftse4good index since 
2008 paypoint plc annual report 2013 15
corporate social responsibility continued
environment 
paypoint’s main impact on the environment stems from our use 
of resources to run offices in the uk ireland romania canada 
and france and our communications with our retailers 
we measure our carbon footprint using the green house gas 
ghg protocol this allows us to monitor by region our carbon 
footprint and implement where practical targets to reduce our 
carbon footprint
the two primary sources of paypoint’s carbon emissions are 
business travel and energy consumption we visit existing and 
prospective retailers in the uk ireland and romania  routes are 
preplanned to ensure efficiency where possible  management 
regularly visits our businesses to review and improve 
performance  we aim to avoid unnecessary travel  energy 
consumption arises from our offices in the uk romania and 
canada during the period we have promoted a cycle to work 
scheme for our uk employees  whilst not generating a huge 
saving our monthly board reports are now sent electronically to 
the board rather than via the post
we recycle wherever possible including paper cans plastic 
cups cardboard toners and print cartridges we also recycle 
computer equipment this has resulted in an increase in the 
proportion of waste recycled to 57 of all waste generated 
2012 48
co
2 
tonnes
consumption
measure per employee
53 weeks
ended 
31 march
2013
52 weeks
ended 
25 march
2012
53 weeks
ended 
31 march
2013
52 weeks
ended 
25 march
2012
business 
travel 1087 1059 5399km 7113km
energy 
purchased 1236 1130 3995kwh 4395kwh
water 
consumed 1 2 717 m
3
859 m
3
waste
1
56 56
total 2380 2247
53 weeks
ended
31 march
2013
tonnes
52 weeks
ended
25 march
2012
tonnes change 
waste
landfill 118 144 183
recycled 156 131 192
total 274 275 04
 recycled 571 477 94 ppts
employees
paypoint employed on average 620 members of staff during 
the period we operate an equal opportunities policy paypoint’s 
culture is one of openness honesty and accountability and we 
recognise that all employees play a part in delivering the  
group’s performance
paypoint seeks to improve its employees’ working environment 
employees are invited to participate in two staff meetings 
a year where the directors present the performance of the 
group  in addition regular staff meetings and functional 
meetings take place throughout the year at our various 
offices  paypoint believes that keeping its employees informed 
of new developments and products as well as the financial 
performance of the group motivates the employees and helps 
them understand the group’s progress towards its goals and 
objectives
 
paypoint’s employment policies are designed to attract retain 
and motivate the best people all staff have two appraisals per 
annum which cover performance management employee 
development training and succession planning where applicable 
training is undertaken locally and all employees are given equal 
opportunities to develop their experience and their careers
all employees across the group participate in an annual 
employee engagement survey which covers a wide range of 
subjects including job satisfaction employee involvement 
learning and development reward and recognition and 
management effectiveness this survey is used to agree with 
employees the actions necessary for improvement 
paypoint has the following policies in place
equal opportunities  we treat job applicants employees 
and temporary staff equally regardless of their sex sexual 
orientation age race ethnic origin or disability  it is also the 
group’s policy to retain employees who may become disabled 
while in service and provide appropriate training as necessary
whistleblowing  we are committed to ensuring that 
malpractice is prevented and immediately dealt with should it 
arise we encourage employees to raise their concerns about 
any malpractice promptly and we have an established procedure 
for raising any such concerns
health and safety  we recognise that effective health and 
safety management is fundamental to running a successful 
business we are committed to operating high standards 
designed to minimise the risk of injuries and ill health to 
employees contractors visitors and others who come into 
contact with the business so far as is reasonably practicable
disciplinary and grievance procedures  we provide a fair 
and consistent method of dealing with disciplinary problems 
and treat misconduct with appropriate action we ensure that 
we treat any grievance an employee may have relating to their 
employment in a fair and reasonable manner
bullying and harassment  we promote a working 
environment free of harassment and individuals who believe 
that they are being subjected to any form of harassment are 
encouraged to come forward to have the issue resolved 
1  paypoint has adopted the ghg protocol in romania cggi in canada and defra 12 in the uk for the calculation of co
2
 waste and restated the comparative figures on 
the same basis 16 paypoint plc annual report 2013
corporate social responsibility continued
business ethics  we set out clear standards for ethical 
relationships and conduct to be maintained by employees and 
subcontractors and conduct our business in accordance with 
the highest ethical standards we do not offer or accept any 
bribes and
training and development  all employees meet twice a 
year with their line manager to discuss performance and 
any development needs training is provided either inhouse 
or externally we also sponsor employees through further 
professional and technical qualifications we promote internally 
where appropriate
paypoint’s employees
uk rest of the world
2
53 weeks 
ended 
31 march 
2013
52 weeks 
ended 
25 march 
2012
53 weeks 
ended 
31 march 
2013
52 weeks 
ended 
25 march 
2012
general
1
average 
number of staff 
employed during 
the period 464 432 156 148
average length 
of service 5 years 4 years 2 years 3 years
average staff 
turnover during 
the period 23 26 17 28
sickness absence 
rate 15 13 11 20
 working  
parttime 9 10 2 2
women
1
number 
of women 
employed 198 200 59 54
 of all 
employees 43 43 38 37
 of 
management 
grades 20 13 26 14
ethnic 
minorities
1
 of all 
employees 24 16 8 4
 of 
management 
grades 3 3 6 1
disabled 
employees
1
 of all 
employees 0 1 0 1
age profile
1
 
employees      
under 25 54 46 12 12
employees           
25 to 29 90 103 36 31
employees           
30 to 49 262 224 107 101
employees           
50 and over 66 63 3 4
1 numbers based on employees employed at the end of the relevant period
2 rest of the world includes ireland romania canada and france paypoint plc annual report 2013 17
governance
the directors recognise the importance of sound corporate 
governance whilst taking into account the size and nature of the 
company the company has fully complied with the provisions set 
out in the financial reporting council’s uk corporate governance 
the code for the 53 weeks ended 31 march 2013 a copy of 
which can be found at wwwfrcorgukcorporateukcgcodecfm
this statement describes how the principles of corporate 
governance in the code are applied by the company
the board
the board comprises nine directors david newlands the  
nonexecutive chairman three executive directors dominic 
taylor george earle and tim watkinrees and five nonexecutive 
directors eric anstee david morrison andrew robb stephen 
rowley and nick wiles 
the board considers that david newlands eric anstee andrew 
robb stephen rowley and nick wiles are independent for the 
purposes of the code given the size of the company and its 
ownership structure the board has concluded that the proportion 
of independent nonexecutive directors is appropriate
the chairman is responsible for the leadership of the board and 
ensuring the effectiveness on all aspects of its role the board 
is comprised of an appropriate balance of skills experience 
independence and knowledge which enables it to discharge its 
responsibilities effectively the balance of independence creates 
an environment that encourages the effective challenge and 
development of proposals on strategy all the nonexecutive 
directors bring considerable knowledge and experience to board 
deliberations nonexecutive directors do not participate in any 
of the company’s share schemes or bonus schemes and their 
service is nonpensionable 
biographical details of each of the current serving directors 
are set out on page 20 procedures exist to allow the directors 
to seek independent professional advice in respect of their 
duties at the company’s expense where the circumstances are 
appropriate all directors have access to the company secretary
the terms and conditions of appointment of the nonexecutive 
directors and the executive directors’ service contracts are 
available for inspection at the company’s registered office 
during normal business hours and will be available at the annual 
general meeting
the chairman david newlands chairs board meetings and 
regularly consults with the executive directors regarding 
ongoing business his other significant commitments are 
disclosed in his biography on page 20 the board considers 
that these commitments do not hinder his ability to discharge 
his responsibilities to the company and its subsidiaries the 
group effectively
the directors believe it is essential for the company to be led 
and controlled by an effective board which monitors progress 
through monthly reports and management accounts the board 
has a schedule of matters reserved for its approval the most 
significant of these are the approval of
•	 corporate strategy of the group and the annual operating 
and capital expenditure budgets
•	 the appointment of the chief executive other directors and 
the company secretary
•	 major capital investments
•	 annual and half yearly financial statements
•	 interim management statements and
•	 acquisitions and disposals 
the board met six times during the year and all meetings were 
attended by all board members except for andrew robb who 
was unable to attend one meeting where a director is unable 
to attend he provides input through discussion with the 
chairman in advance of the meeting
a formal performance evaluation of the board its committees 
and individual directors took place during the period the 
performance of individual executive directors is appraised 
annually by the chief executive to whom they report the 
performance of the chairman is reviewed by the nonexecutive 
directors led by andrew robb senior independent director 
taking into account the views of the executive directors 
the performance review of the chief executive is conducted by 
the chairman taking into account the views of other directors 
nonexecutive directors’ performance is reviewed by the 
chairman taking into account the views of other directors
the performance evaluation confirmed that the members of 
the board were satisfied with the board’s overall performance 
and there were no material changes recommended  in addition 
to the evaluation of board members the various committees 
carried out selfassessments to determine whether their terms 
of reference had been satisfactorily fulfilled and how their 
processes could be improved 
an external performance evaluation of the board will take place 
next year in line with the requirements of the code
every member of the board will offer himself for reelection 
at the 2013 annual general meeting including andrew robb 
the senior independent director  a new senior independent 
director will be appointed following an evaluation of internal and 
external candidates  andrew robb has agreed to continue as 
senior independent director until that appointment  the board’s 
recommendations in respect of the reelection of each director 
can be found in the notice of meeting on pages 60 to 64
the chief executive proactively manages succession planning 
for the executives and senior management team and keeps the 
board updated on developments as necessary 18 paypoint plc annual report 2013
governance continued
committees of the board
the following formally constituted committees deal with specific 
aspects of the group’s affairs in accordance with the duties and 
responsibilities formally delegated to them by the board the 
terms of reference for each of the committees are available on 
the company’s website at wwwpaypointcom
audit committee
the audit committee comprises eric anstee andrew robb 
stephen rowley and nick wiles the board considers eric 
anstee who is chairman of the audit committee to have recent 
and relevant financial experience in accordance with the code 
the committee met six times during the period all members 
were in attendance with the exception of andrew robb who 
was unable to attend one of the meetings
the audit committee is primarily responsible for monitoring that 
the financial performance of the group is properly measured 
and reported and appropriate financial control systems and 
procedures are in place during the period the committee 
reviewed reports from the auditor relating to the group’s 
accounting and internal controls advised the board on the 
appointment performance independence and objectivity of 
the auditor and the internal auditor reviewed the effectiveness 
of the group’s systems of internal control including fraud 
prevention reviewed the appropriateness of the internal audit 
programme and the reports of the internal auditor and other 
independent audits by clients link and bsi
one of the committee’s roles during the period has been 
to consider correspondence with the financial reporting 
council’s conduct committee frccc which requested some 
information and clarification relating to certain items in the 
group’s 2012 financial statements  following that the directors 
concluded that certain items in the group’s 2012 consolidated 
statement of financial position should be restated details of 
these items are set out in note 1 to the financial statements  
the discussions with the frccc in respect of the group’s 2012 
financial statements have now been concluded the committee 
reviewed and approved all of the group’s correspondence with 
the frccc
the committee considered the level of nonaudit fees for 
services provided by the auditor in order to satisfy itself that 
auditor independence is safeguarded the group has a policy 
which prohibits the auditor providing certain services which 
might impair the auditor’s independence the committee 
monitors compliance with the policy safeguarding the 
independence of the external auditor the policy also prescribes 
that any nonaudit services to be performed by the auditor in 
any one year excluding tax are to be provisionally capped at 
an aggregate total equivalent to the level of the annual audit 
fee any proposal to use the auditor for nonaudit services 
exceeding this will be subject to the prior approval of the audit 
committee in determining the most appropriate provider of 
nonaudit services the committee will consider the knowledge 
and expertise of the potential providers and the proposed costs 
nonaudit services will only be undertaken by the auditor where 
they are deemed to be the preferred provider and the provision 
of services poses no threat to its independence details of the 
remuneration paid to the auditor for the statutory audit and 
nonaudit services which normally are limited to assurance and 
tax advice are set out in note 5 
remuneration committee
the role composition and activities of the remuneration 
committee and details of how the company applies the principles 
of the code in respect of directors’ remuneration are set out in 
the remuneration committee report on pages 23 to 35
nomination committee
the nomination committee comprises eric anstee andrew 
robb stephen rowley david morrison nick wiles and david 
newlands who is its chairman it met once during the period 
and all members were in attendance 
the committee is responsible for considering and making 
recommendations on the appointment of additional directors 
the retirement of existing directors and for reviewing the size 
structure and composition of the board and membership of board 
committees which are considered against objective criteria 
the committee considers the need for progressive refreshment 
and keeps the balance of skills knowledge diversity and 
experience of the board under review during considerations 
on the appointment and retention of nonexecutive directors 
the committee has regard to the need for particularly rigorous 
review and the need to progressively refresh the board where 
terms of appointment are beyond six years
the senior independent director would chair discussions relating 
to succession planning for the chairman in which the chairman 
would not take part
conflicts of interest
under the articles of association the board has authority to 
approve any conflicts or potential conflicts of interest that are 
declared by individual directors conditions may be attached to 
such approvals and directors will generally not be entitled to 
participate in discussions or vote on matters in which they have 
or may have a conflict of interest
a register of conflicts is maintained and is reviewed at least 
annually to ensure all details are kept uptodate authorisation 
is sought prior to the appointment of any new director or if any 
new conflicts arise
the audit committee meets the external auditor without the 
executive directors being present and procedures are in place 
which allow access at any time of both external and internal 
auditor to the audit committee the chairman of the committee 
reports the outcome of each meeting to the board which is 
provided with the minutes of all committee meetings
the appointment of deloitte llp as external auditor is 
kept under annual review  rather than adopt a policy on 
tendering frequency an annual review of the effectiveness 
of the external audit is undertaken by the committee the 
committee’s assessment of the external auditor’s performance 
and independence if satisfactory underpins its recommendation 
to the board to propose to shareholders the reappointment 
of deloitte llp as auditor a resolution for reappointment of 
the auditor will be proposed at the forthcoming annual general 
meeting the notice for which can be found on pages 60 to 64 paypoint plc annual report 2013 19
governance continued
risk management and internal control 
the directors are responsible for establishing and maintaining 
the group’s system of internal control and for regularly 
reviewing its effectiveness procedures have been designed 
to meet the particular needs of the group and its risks 
safeguarding shareholders’ investments and the company’s 
assets such a system is designed to manage rather than 
eliminate the risk of failure to achieve business objectives and 
can only provide reasonable and not absolute assurance against 
material misstatement or loss there is an ongoing process of 
identifying evaluating and managing the significant risks faced 
by the group 
all procedures necessary to comply with the frc’s internal 
control revised guidance for directors on the combined code 
have been in place throughout the period under review and 
up to the date of approval of the annual report and financial 
statements the directors have conducted a formal review of the 
effectiveness of the group’s system of internal control during 
the period no significant failings or weaknesses were identified 
during the review
the operational management of the group is delegated to 
senior managers who are appointed by the chief executive the 
responsibilities of the senior management group include the 
regular review of the main business risks to the group
the group has prepared a detailed risk register which includes 
analysis of all the main operational risks covering all parts of 
the group’s business activities including financial risks the 
group evaluates and prioritises the identified key operational 
risks in order to ensure that this process is managed effectively 
responsibility for each key risk area is assigned to a member 
of senior management who must confirm in writing that the 
potential threats in each area have been properly identified and 
recorded and the appropriate action taken to mitigate risks so 
far as possible this process has been fully embedded into the 
operations of the business the audit committee receives regular 
updates on the ongoing risk management control systems and 
processes which are discussed at their meetings
the audit committee is responsible for approving a rigorous 
internal audit programme covering all the group’s key business 
areas the current programme was approved in march 2011 and 
each year the programme is reviewed to ensure that account 
is taken where necessary of any change kpmg llp provides 
internal audit services to the company as directed by the audit 
committee in accordance with the approved internal audit 
plan they execute a programme of testing designed to assess 
and report on the adequacy reliability and effectiveness of the 
design and operation of the relevant accounting financial and 
business control systems implemented by management and 
report the results to the audit committee
shareholder relations
the directors consider that the annual report and accounts 
play an important role in providing shareholders with an 
evaluation of the company’s position and prospects the board 
aims to achieve clear reporting of financial performance to all 
shareholders the board acknowledges the importance of an 
open dialogue with its institutional shareholders and welcomes 
correspondence from private investors
we believe that in addition to the annual report and the 
company’s website the annual general meeting is an ideal 
forum at which to communicate with investors and the board 
encourages their participation the senior independent director 
is available to address any unresolved shareholder concerns
the company held briefings with institutional fund managers 
analysts and other investors following the announcement of 
half yearly results and feedback from these has been reported to 
the board meetings have been held at other times during the 
period when appropriate 20 paypoint plc annual report 2013
board of directors
david newlands nonexecutive chairman aged 66 
appointed 4 august 1998
david has been chairman of paypoint since 1998 he was 
previously finance director of the general electric company plc 
nonexecutive chairman of britax international plc darty plc 
t omkins plc deputy chairman of the standard life assurance 
company plc and is currently chairman of hellermannt yton group 
plc and a nonexecutive director of a number of other companies
dominic taylor chief executive aged 54 appointed
4 august 1998
dominic joined paypoint in 1997 as retail director and was 
appointed to his current role in august 1998 he was a royal 
naval officer for 12 years following which he completed an 
mba at the cranfield school of management in 1991 dominic 
joined the vodafone group where he led a number of initiatives 
including the development of its sms service and a bid for the 
national lottery before becoming sales and marketing director 
for the indirect sales of mobile phones to retailers in 1996 
dominic joined granada plc as a director of granada technology 
group and managing director of granada business technology 
supplying film and telecommunications products into the hotel 
and leisure sectors
george earle aca group finance director aged 59 
appointed 20 september 2004
george joined paypoint in september 2004 and is responsible 
for the financial affairs of the group george qualified as a 
chartered accountant with touche ross  co now deloitte llp 
in 1979 where he served in the corporate finance and audit 
groups becoming a partner in 1984 in 1987 george moved 
to saatchi  saatchi plc serving as deputy finance director 
george subsequently moved to gec in 1989 where until 2001 
he fulfilled the role of financial services director george left 
marconi formerly gec in 2001 to work as group director 
chief executive’s office at centrica plc and in 2003 was 
appointed as director of financial control
tim watkinrees business development director aged 
50 appointed 22 september 1998
tim was the founder sales and marketing director of paypoint 
in 1996 since 2000 he has been responsible for strategic 
business development prior to paypoint he was a specialist in 
retail banking and payment systems starting with lloyds bank 
in 1984 then as a senior consultant with kpmg management 
consultants in 1988 and head of business planning and director 
of consulting with nexus later sligos and now atos from 
1989 he is an associate of the chartered institute of bankers
david morrison nonexecutive director aged 54 
appointed 12 january 1999
david has been chief executive of prospect investment 
management prospect since 1999 when he started the 
company he became a director of paypoint in 1999 following 
an investment in the company by clients of prospect prior to 
establishing prospect he had worked in the venture capital 
sector with 3i abingworth management and botts  company 
he is currently a nonexecutive director of record plc and also 
chairman of snoozebox holdings plc aim listed and several 
private companies
andrew robb nonexecutive director aged 70 
appointed 18 august 2004
andrew worked for po steam navigation co from 1971 to 
1989 initially as financial controller and from 1983 as group 
finance director from 1989 to 2001 he was group finance 
director of pilkington plc and remained an executive director 
until 2003 andrew is a fellow of the chartered institute of 
cost and management accountants  he is currently a non
executive director of tata steel limited a company quoted in 
india chairman of its wholly owned subsidiary tata steel europe 
limited and a nonexecutive director and chairman of the audit 
committee of jaguar land rover automotive plc
eric anstee nonexecutive director aged 62 appointed 
16 september 2008
eric is currently chief executive of city of london group plc 
an lse listed investment company  he is also a nonexecutive 
director of sun life financial of canada uk limited and insight 
asset management the institutional investment arm of bank 
of new york mellon  he is also a member of the takeover 
panel appeals board his former nonexecutive appointments 
include the financial reporting council chairman of mansell 
plc and nonexecutive director of severn trent plc where he 
was chairman of the treasury and audit committees his former 
executive appointments include chief executive officer of 
the institute of chartered accountants in england and wales 
chief executive at old mutual financial services group finance 
director at old mutual plc and finance director of the energy 
group plc 
 
stephen rowley nonexecutive director aged 54 
appointed 16 september 2008
stephen was chief executive of torex leading its turnaround 
and eventual sale to micros in 2012 he was formerly chief 
executive of anite plc a ftse250 technology firm  his former 
executive appointments include senior vice president corporate 
business development for 3com corporation marketing and 
sales director of cellnet now o2 and director at ibm uk 
where he also held a variety of other senior positions
nick wiles nonexecutive director aged 51 appointed 
22 october 2009
nick retired as chairman of uk investment banking at nomura 
in 2012  he has worked in banking for more than 20 years 
with the majority of this time at cazenove  co where he was 
a partner prior to incorporation he is a nonexecutive director 
of strutt  parker paypoint plc annual report 2013 21
directors’ report
the directors present their annual report on the affairs of 
the company and of the group together with the financial 
statements and independent auditor’s report for the 53 weeks 
ended 31 march 2013
the chairman’s statement chief executive’s review operating 
and financial review and corporate governance statement form 
part of this directors’ report
principal activity
the company is a holding company and its subsidiaries are 
engaged in providing clients with specialist consumer payment and 
other services and products transaction processing and settlement 
paypoint uk  ireland processes transactions for payments 
products and services and collects payments on behalf of the uk 
and ireland’s leading utility and customer service organisations 
and there are 25070 convenience retail outlets using paypoint’s 
terminals on average over 11 million consumer transactions 
are processed weekly by paypoint at a paypoint outlet 
consumers are provided with a one stop shop for making cash 
payments for the wide range of paypoint’s clients in addition 
paypoint provides other services to retail outlets
paypointnet provides secure credit and debit card payments 
services for web merchants 
paypoint romania provides electronic mobile topups scratch 
cards money transfer and a bill payment service to consumers
paybyphone allows consumers to pay for their car parking by 
credit or debit card from their mobile phones and provides other 
services such as text reminders to consumers to warn them of 
parking session expiry bike rental and toll payments
paypoint has a 50 interest in drop and collect limited which 
trades as collect a joint venture with yodel which provides a 
parcel service through selected paypoint outlets
substantial shareholdings
on 31 march 2013 the company had been notified of the 
following disclosable interests in the voting rights of the 
company as required by provision 512 of the fsa’s disclosure 
and transparency rules
name of holder 
no of 
ordinary 
shares 
percentage 
of issued 
capital 
invesco limited 19109440 2815
liontrust asset management plc 4614362 680
troy asset management uk 4514008 665
standard life 4488183 661
legal  general investment 
management limited uk 3457341 509
rit capital partners plc 2896057 427
share capital
as at the date of this report 67881683 ordinary shares of 
13p each have been issued and fully paid up and are quoted 
on the london stock exchange during the 53 weeks ended 
31 march 2013 59886 ordinary shares were issued under the 
company’s share schemes the rights and obligations attaching 
to the company’s ordinary shares as well as the powers of the 
company’s directors are set out in the company’s articles of 
association copies of which can be obtained from companies 
house or by writing to the company secretary
there are no restrictions on the voting rights attaching to the 
ordinary shares or on the transfer of securities in the company 
no person holds securities in the company carrying special 
rights with regard to control of the company the company is 
not aware of any agreements between holders of securities 
that may result in restrictions on the transfer of securities or on 
voting rights unless expressly specified to the contrary in the 
articles of association of the company the company’s articles 
of association may be amended by a special resolution of the 
company’s shareholders
at the annual general meeting on 27 july 2012 the directors 
were given authority to purchase 1499 of its issued share 
capital allot relevant securities up to an aggregate nominal 
amount of £67824 and to disapply preemption rights in 
respect of allotments of relevant securities up to an aggregate 
nominal amount of £10174 resolutions to renew these 
authorities will be proposed at the 2013 annual general 
meeting details of which are set out in the notice of meeting on 
pages 60 to 64
the company’s authorised and issued share capital as at  
31 march 2013 together with details of purchases of own 
shares during the period are set out in note 23
directors
the names of the directors at the date of this report and their 
biographical details are given on page 20 and their interests in 
the ordinary shares of the company are given on page 35
results for the period
the consolidated income statement statement of financial 
position and cash flow statement for the 53 weeks ended  
31 march 2013 are set out on pages 38 to 41 the business 
review of the group for the 53 weeks ended 31 march 2013 
which complies with the accounting standards board’s 2006 
statement on operating and financial reviews including an 
analysis of the group’s key performance indicators and financing 
and treasury policy is set out on pages 6 to 11 and forms part 
of the directors’ report an analysis of risk is set out on pages 
12 to 13 and of risk management on page 19 the statement 
of financial position and cash flow statement of the holding 
company for the 53 weeks ended 31 march 2013 are set out on 
pages 42 and 43 since 1 april 2013 there have been no material 
events likely to impact the future development of the company
qualifying third party indemnity provisions for 
the benefits of directors
under sections 236 1 a and b of the companies act 2006 
companies are obliged to disclose any indemnities which are 
in force in favour of their directors the current articles of 
association of the company contain an indemnity in favour 
of the directors of the company which indemnifies them in 
respect of certain liabilities and costs that they might incur 
in the execution of duties as directors copies of the articles 
of association can be obtained from companies house or by 
writing to the company secretary and will be available at the 
venue of the annual general meeting from 15 minutes before 
the meeting until it ends 22 paypoint plc annual report 2013
change of control
all of the company’ s share schemes contain provisions relating to 
a change of control outstanding options and awards would be 
prorated for time and normally vest on a change of control subject 
to the satisfaction of any performance conditions at that time
the company has a revolving term credit facility for £35 million 
with a remaining term of over three years the terms of the 
facility allow for termination on a change of control subject to 
certain conditions with the exception of the simple payment 
service contract which allows for termination on change of 
control there are no other significant contracts in place that 
would take effect alter or terminate on the change of control 
of the company including compensation for loss of office as a 
result of a takeover bid
suppliers’ payment policy
terms of payment are agreed with individual suppliers prior 
to supply the group aims to pay its creditors promptly in 
accordance with terms agreed for payment provided the supplier 
has provided the goods or services in accordance with the 
agreed terms and conditions the group had 32 days’ purchases 
outstanding at 31 march 2013 2012 33 days based on the 
average daily amount invoiced by suppliers during the period
charitable and political donations
the group made no political donations during the period 2012 
£nil details of the charitable donations policy can be found 
within the operating and financial review on page 11
employee matters and environmental issues
employee matters and environmental issues are discussed in the 
corporate social responsibility report on pages 14 to 16
future developments
future developments are discussed in the operating and 
financial review on pages 7 to 11
dividends
the directors recommend the payment of a final dividend of 
202p 2012 178p together with a special dividend of 15p 
2012 nil per ordinary share amounting to £23910000 2012 
£12074000 to be paid on 25 july 2013 to members on the 
register on 28 june 2013  an interim dividend was declared and 
paid during the period of 102p per share 2011 87p per share 
amounting to £6906000 2011 £5885000
related party transactions
related party transactions that took place during the period can 
be found in note 27
going concern 
at the end of the period the group had cash of £466 million 
and had an undrawn unsecured loan facility of £350 million 
expiring in may 2016 the company’s cash and borrowing 
capacity is adequate to meet the foreseeable needs of the 
group taking into account any risks see pages 12 to 13 the 
directors are satisfied that the group has adequate resources to 
continue in operational existence for the foreseeable future a 
period of not less than 12 months from the date of this report 
therefore the financial statements have been prepared on a 
going concern basis
directors’ report continued
the group’s liquidity review and commentary on the current 
economic climate are shown on page 11 of the operating and 
financial review and commentary on financial risk management 
is shown in note 26
independent auditor
deloitte llp has expressed its willingness to continue as the 
company’s auditor and a resolution for its reappointment will 
be proposed at the forthcoming annual general meeting the 
notice of the annual general meeting can be found on pages  
60 to 64
directors’ report
pages 2 to 22 inclusive of this annual report comprise a report 
of the directors that has been drawn up and presented in 
accordance with english company law and the liabilities of the 
directors in connection with that report shall be subject to the 
limitations and restrictions provided by such law in particular 
directors would be liable to the company but not to any third 
party if the directors’ report contains errors as a result of 
recklessness or knowing misstatement or dishonest concealment 
of a material fact but would not otherwise be liable
statement as to disclosure of information  
to auditor
each of the persons who is a director at the date of approval of 
this report confirms that
1  so far as the director is aware there is no relevant audit 
information of which the company’s auditor is unaware 
and 
2  the director has taken all the steps that he ought reasonably 
to have taken as a director in order to make himself aware 
of any relevant audit information and to establish that the 
company’s auditor is aware of that information
this confirmation is given and should be interpreted in accordance 
with the provisions of s418 of the companies act 2006
annual general meeting
the annual general meeting will be held at the offices of 
paypoint 1 the boulevard shire park welwyn garden city  
al7 1el on 24 july 2013 the notice of meeting and 
explanatory information on the resolutions to be passed at the 
annual general meeting can be found on pages 60 to 64 of the 
annual report 
approved by the board of directors and signed on behalf of 
the board
susan court
company secretary
23 may 2013 paypoint plc annual report 2013 23
remuneration committee report
i report on the activities of the remuneration committee in 
the light of the draft regulatory changes published by the 
department of business innovation and skills bis which are 
likely to become mandatory for annual reports published in 
2014  this remuneration committee report which will be put 
to shareholders for approval at the annual general meeting 
complies with schedule 8 of the large and mediumsized 
companies and groups accounts and reports regulations 
2008 and also the listing rules of the uk listing authority  in 
addition the committee has decided to adopt a number of the 
bis proposals early and as such this report is divided into three 
sections  the first is a forwardlooking policy report which 
details paypoint’s remuneration policies and links to strategy 
as well as projected pay outcomes under various performance 
scenarios  the second section is the implementation report 
which focuses on the remuneration arrangements and 
outcomes for the period under review including the total actual 
remuneration paid to each director and details of performance 
against targets  the final section is the audited information 
required under the existing regulations 
the remuneration committee whose membership and 
responsibilities are set out on page 28 of this report has 
continued to strive to ensure that executive directors’ 
remuneration provides an appropriate incentive to directors to 
create shareholder value and that  the company’s remuneration 
policy is aligned with the interests of shareholders the 
remuneration committee believes that shareholders’ interests are 
best served by focussing a greater proportion of total potential 
remuneration on compensation which varies with performance
short and longterm incentives are structured to align directors’ 
interests with shareholders by rewarding them for enhancing 
shareholder value the value received by executive directors 
under the share incentive arrangements depends on the degree 
to which the associated performance conditions are satisfied 
at the end of the three year performance period and the share 
price of the company at this time this ensures that substantial 
rewards are only received when substantial value has been 
created for shareholders
highlights of the results for the period under review are 
shown on page 1  the group’s performance was strong 
with growth in profits and cash enabling an increase in the 
dividend for shareholders   
no major changes have been made to remuneration during the 
period  for 2013 the committee has agreed salary increases for 
the executive directors of between 32 and 56 taking into 
account individual and company performance as well as salary 
increases across the rest of the group  bonuses for the period 
under review were 862 of maximum reflecting growth 
in economic profit of 18  the bonus structure will remain 
unchanged for 201314  based on our earnings per share 
growth for the three years ended 31 march 2013 of 39 the 
2010 deferred share bonus awards will vest in full 2010 long 
term incentive plan awards will be performancetested in june 
2013 and based on our total shareholder return performance 
to date of above upper quartile relative to the ftse250 index 
excluding investment trusts we expect these awards to vest 
in full subject to the committee’s satisfaction that this is a 
genuine reflection of the underlying financial performance of 
the company
the structure of paypoint’s long term incentives the deferred 
share bonus plan dsb and long term incentive plan ltip 
will remain unchanged for 2013 awards being the last year of 
application of these plans  these plans will expire in 2014 and 
the committee has commissioned a full review of incentives 
with the intention of submitting new proposals to the 2014 
annual general meeting the remuneration committee is aware 
of recent updates to institutional shareholder guidelines asking 
companies to consider simpler incentive structures and will be 
consulting with our major shareholders as part of this review
andrew robb
chairman remuneration committee
statment by chair of the  
remuneration committee 24 paypoint plc annual report 2013
remuneration committee report continued
policy report
executive directors’ remuneration
the table below summarises our policy on each element of the remuneration package for executive directors
elements purpose 
and link to 
strategy
operation opportunity performance 
metrics
changes for 
201314
fixed
base 
salary
takes 
account of 
personal 
contribution 
and 
performance 
against 
company 
strategy
reviewed annually with 
account taken of similar 
positions with comparable 
status responsibility 
and skills in parallel with 
the individual director’s 
performance experience 
and responsibilities 
and pay and conditions 
throughout the company
set broadly 
around median 
level
none from 1 april 2013 
base salaries were 
d taylor £425000 
39 increase 
g earle £320000 
32 increase 
t watkinrees 
£300000  
56 increase
pension provides 
market 
appropriate 
benefits
company contribution to 
personal pension plans
set broadly 
around median 
level
none from 1 april 2013 
pension contributions 
were increased from 
12 to 16 of salary 
in respect of d taylor 
and from 12 to 14 
of salary in respect of  
g earle and t watkin
rees to align better 
with market norms
benefits provides 
market 
appropriate 
benefits
car allowance health 
insurance employee  
share plans 
d taylor £23629 
g earle £21407
t watkinrees 
£20938
none increased from 1 
april 2013 as follows 
to align better with 
market norms
d taylor £25300
g earle £22600
t watkinrees £22100
variable
annual 
bonus
rewards 
achievement 
of stretching 
performance 
targets 
for profit 
and capital 
efficiency
the remuneration 
committee reviews and 
agrees targets at the 
beginning of each financial 
year and may subsequently 
adjust those targets as 
appropriate for investments 
and startup costs that are 
approved after the targets 
have been set and changes 
in rates of tax
maximum cash 
bonus of 100 
of salary
70 payment at 
threshold
95 of plan
80 payment at 
target 100 of 
plan
 
100 payment 
at maximum 
110 of plan
1year economic 
profit  ie operating 
profit including share 
of joint ventures 
less a capital charge 
monthly net asset less 
cash multiplied by the 
cost of capital and the 
actual tax charge
none
deferred 
share 
bonus 
plan  
dsb
encourages 
executives to 
hold equity 
and rewards 
earnings 
growth
mandatory deferral of 
25 of annual bonus and 
voluntary deferral of up to 
a further 25 into shares 
which are matched on the 
third anniversary subject 
to three year earnings per 
share performance and 
continued employment
11 match on 
up to 50 of 
earned bonus 
ie up to 50 
of salary
2013 awards will vest 
subject to minimum 
earnings per share 
growth of rpi3 
pa over a three year 
period
none paypoint plc annual report 2013 25
remuneration committee report continued
elements purpose 
and link to 
strategy
operation opportunity performance 
metrics
changes for 
201314
variable
long 
term 
incentive 
plan 
ltip
links long 
term variable 
pay to 
strategy 
and driving 
shareholder 
returns
encourages 
longterm 
performance 
and 
commitment 
from 
participants
awards of shares vesting 
on three year performance 
and continued employment
maximum 
annual award of 
150 of salary 
other than in 
exceptional 
circumstances
2012 awards 
were 120 of 
salary for the 
chief executive 
and 100 of 
salary for the 
other executive 
directors
2013 awards will vest 
subject to paypoint’s 
3year tsr relative to 
the ftse250 excluding 
investment trusts
vesting 30 at 
median rising on a 
straight line basis to 
100 at upper quartile
none
share 
incentive 
plan sip
encourage 
share 
ownership 
across all 
employees
opportunity to purchase 
shares out of pretax salary 
and receive a matching 
award  the paypoint sip is 
a hmrc approved plan
£1500
11 match on 
investment of up 
to £1500
continued employment 
over three years
none 26 paypoint plc annual report 2013
remuneration committee report continued
the remuneration committee uses the same cost of living award 
for directors as is used for the annual management and staff 
salary reviews  appropriate account is taken of salary and 
benefit benchmarking which is carried out widely throughout 
the company in each of the annual reviews at the end of march 
for directors and management and the end of december for 
other employees
scenarios
in line with the policy to make a substantial part of total 
remuneration dependent on performance 56 and 69 
of total remuneration is performance related at target and 
maximum respectively for the chief executive dominic taylor  
similarly performancerelated pay from 1 april 2013 accounts 
for 52 and 65 at target and maximum respectively for the 
group finance director george earle and 55 and 67 for 
the business development director tim watkinrees as shown 
in the charts below
long term incentives are included on the basis of zero for 
minimum 30 of the award for on target median and 100 
for reaching maximum  bonuses are included at 80 for 
achieving target and 100 for achieving maximum 110 of 
target economic profit  matching shares are included at 50 
of the bonus
no adjustments in value are made to reflect fair value or any 
change in the value of the shares between award and vesting 
service contracts and exit policy 
details of the service contracts of the executive directors of the 
company are as follows 
name company notice 
period
contract date
d taylor 12 months 13 september 2004
g earle 12 months 30 september 2004 
t watkinrees 12 months 13 september 2004 
  
there are no special provisions in service contracts relating to 
cessation of employment or change of control the policy on 
termination is that the company does not make payments beyond 
its contractual obligations and executive directors will be expected 
to mitigate their loss in addition the remuneration committee 
ensures that there are no unjustified payments for failure
under normal circumstances executive directors may receive 
termination payments in lieu of notice equal to fixed pay and 
benefits for the length of their contractual notice period   in 
the event an executive director leaves for reasons of death ill
health redundancy retirement or any other reason which the 
remuneration committee may in its absolute discretion permit 
any outstanding long term incentive awards will be prorated 
for time and performance and will either vest at the end of 
the performance period or immediately at the committee’s 
discretion  for all other circumstances outstanding long term 
incentive awards will lapse  upon a change of control of the 
company awards will be prorated for time and vest immediately 
based on the extent to which the committee determines that the 
performance conditions have been met or are likely to be met  
the committee retains discretion to alter these provisions on a 
casebycase basis following a review of circumstances and to 
ensure fairness for both shareholders and participants
remuneration committee report continued     
  
 
 
  
425 425 425
68 68 68
26 26 26
510
638
153
510
0
200
400
600
800
1000
1200
1400
1600
1800
minimum on target maximum
total remuneration £000
dominic taylor
long term incentive bonus including matching shares
benefits pension
salary
56 
69 
total 
1182 
total 
519 
total 
1667 
            draft 
 
 
 
 
 
  
320 320 320
93 93 93
22 22 22
384
480
96
320
0
200
400
600
800
1000
1200
1400
minimum on target maximum
total remuneration £000
george earle
long term incentive bonus including matching shares
benefits pension
salary
52 
65 
total 
1235 
total 
915 
total 
435 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300 300 300
42 42 42
22 22 22
360
450
90
300
0
200
400
600
800
1000
1200
minimum on target maximum
total remuneration £000
tim watkinrees
long term incentive bonus including matching shares
benefits pension
salary
67 
55 
total 
364 
total 
814 
total 
1114  paypoint plc annual report 2013 27
remuneration committee report continued
nonexecutive directors 
the remuneration of the nonexecutive directors is determined 
by the board based upon recommendations from the chairman 
and chief executive or in the case of the chairman based on 
recommendations from the senior independent director and 
the chief executive and is within the limits set by the articles 
of association nonexecutive directors do not participate in 
any bonus plan or share incentive programme operated by the 
company and are not entitled to pension contributions or other 
benefits provided by the company 
fees 2013
£000
2012
£000
d newlands 125 125 
a robb 47 45 
d morrison 40 38 
e anstee 47 45 
s rowley 40 38 
n wiles 40 38 
the nonexecutive directors do not have service contracts rather 
they have letters of appointment which are subject to a three year 
term details of the terms of appointment of the nonexecutive 
directors are set out in the table below
name date of appointment expiry date 
d newlands 10 august 2004 10 august 2013 
a robb 10 august 2004 10 august 2013 
d morrison 10 august 2004 10 august 2013 
e anstee 16 september 2008 10 august 2013
s rowley 16 september 2008 10 august 2013
n wiles 22 october 2009 10 august 2013
under the company’s articles of association all directors are 
required to submit themselves for reelection every three years 
however in order to comply with the code and as reported last 
year all directors will be subject to annual reelection 
consideration of conditions elsewhere in  
the company
salaries are reviewed annually for all employees generally 
with effect from 1 april for senior managers and directors and 
1 january for other employees   appropriate benchmarking 
is applied across all employee groups when required  senior 
managers participate in the group’s bonus and long term 
incentive schemes along with the directors  all uk employees 
are able to participate in the company’s share incentive plan 
employee engagement surveys are carried out annually across 
the group with questions which seek the employees’ views 
on these matters  participation in these surveys is generally in 
excess of 80 of all employees
consideration of shareholder views
when determining remuneration the committee takes into 
account the guidelines of investor bodies and shareholder views 
in light of the high level of support for the 2012 remuneration 
committee report and the fact that no significant changes have 
been made to remuneration for 201314 the committee did not 
carry out a formal shareholder consultation exercise in 201213 
although it remains open to feedback from shareholders 
on remuneration policy and arrangements and commits to 
undergoing a shareholder consultation in advance of any 
material changes to remuneration policy  as noted previously 
a full review of incentives will be carried out including 
consultation with major shareholders with a view to submitting 
new proposals for approval at the 2014 annual general meeting  
further detail on the votes received on the 2012 remuneration 
committee report and the committee’s response are provided in 
the implementation report   28 paypoint plc annual report 2013
remuneration committee report continued
implementation report
remuneration in 201213
the remuneration committee
the remuneration committee is responsible for developing policy on remuneration for executive directors and senior managers and for 
determining specific remuneration packages for each of the executive directors the committee members are all independent directors 
andrew robb is chairman of the committee and other committee members are eric anstee stephen rowley and nick wiles
the remuneration committee received wholly independent advice on executive compensation and incentives from kepler associates 
during the period no other services were provided to the company by kepler associates during the year the remuneration 
committee is formally constituted with written terms of reference which set out the full remit of the committee a copy of the terms 
of reference is available to shareholders by writing to the company secretary at the registered office the terms of reference are 
also available on the company’s website at wwwpaypointcom the remuneration committee met twice during the period and all 
members were in attendance 
kepler associates was paid £19140 for advice received by the remuneration committee and received no other fees from the company
single total figure of remuneration
to aid transparency for our shareholders the table below sets out the total actual remuneration received by each executive director 
for the 53 weeks ended 31 march 2013  
executive 
director
base salary
1
 
£000
benefits
2
 
£000
pension
3
 
£000
annual bonus
4 
£000
long term 
incentives
5
 
£000
total 
remuneration 
£000
d taylor 409 24 49 352 244 1078
g earle 310 21 78 267 154 830
t watkinrees 284 21 34 245 131 715
nonexecutive director total remuneration
6
 
£000
d newlands 125
a robb 47
d morrison 40
e anstee 47
s rowley 40
n wiles 40
the figures have been calculated as follows
1 base salary amount earned for the period
2 benefits the taxable value of annual benefits received in the period
3 pension the value of the company’s contribution during the period  the audit committee has agreed that g earle’s pension contributions will be paid direct to him 
grossed up for tax 
4 annual bonus the value of the annual incentive payable for performance in the period to march 2013 including any deferral amounts
5 long term incentives includes the value of 2009 dsb and ltip awards vested during the period
6 as previously stated nonexecutive directors do not participate in any bonus plan or share incentive programme and are not entitled to pension contributions or other 
benefits provided by the company
basic salary
the salaries for 2012 and 2013 are set out in the table below together with the average increases across the company
name 1 april 2011 1 april 2012 1 april 2013
d taylor £397000 £409013 30 increase £425000 39 increase
g earle £301000 £310000 30 increase £320000 32 increase
t watkinrees £275000 £284000 33 increase £300000 56 increase
average increase across the 
group
36 increase 32 increase paypoint plc annual report 2013 29
remuneration committee report continued
annual performancerelated bonus
the company’s bonus plan for the 53 weeks ended 31 march 2013 was based on the achievement of an economic profit operating 
profit after tax and a charge for capital employed based on the company’s cost of capital target based upon the actual results for 
the period 862 of the maximum bonus was payable 
the results are set out below
70 payment
threshold
for 95 of plan 
delivery
£000
80
payment threshold 
for plan delivery
£000
100 payment
threshold for 110 
of plan delivery
£000
53 weeks ended
31 march 2013
£000
52 weeks ended
25 march 2012
£000
economic profit 22105 23268 25595 23985 20415
bonuses are subject to a 25 compulsory and a possible additional 25 voluntary deferral  the deferred bonus will be utilised for 
the acquisition of shares bonus shares with the opportunity of earning an additional award of matching shares of an equivalent 
value to the gross bonus deferred ie up to 50 of salary
deferred share bonus plan dsb
awards made during the period
the current dsb was adopted by shareholders at the 2009 annual general meeting   in the year under review executive directors 
deferred 50 of their bonuses and therefore were granted matching awards as detailed below
type of award matching award
basis of award 11 match on deferred amounts 
face value of awards made d taylor £176112 28178 shares
g earle £133300 21328 shares 
t watkinrees £121962 19514 shares
performance period 3 financial years 1 april 2012 – 31 march 2015
performance threshold earnings per share eps growth of rpi3 pa
 vesting at threshold 100 of award
if a participant disposes of any of their deferred shares during the three year deferral period a corresponding proportion of matching 
shares is forfeited  the committee also has discretion to increase or decrease award sizes under the annual bonus and deferred 
bonus plan taking into account the appropriate level of total compensation of executives of the company
vesting awards
dsb awards were made on the same basis as described above in 2010  these awards will vest in full in june 2013 based on 
performance to 31 march 2013  details of awards vesting to executive directors are shown in the table below
matching 
shares held
performance 
period
vesting date eps growth
1
 vesting share price 
at vesting
2
value £000
d taylor 27905 28 march 
2010 –  
31 march 
2013
1 june 2013 target 217
actual 389
100 £858 239
g earle 21122 181
t watkinrees 18043 155
1 based on 2013 eps of 457p 2010 eps of 329p and rpi growth over the 3 year period of 127
2 based on the average share price from 1 january 2013 – 31 march 2013 
in calculating eps growth the remuneration committee will use the principles behind the audited figures disclosed in the company’s 
financial statements and may take advice from independent advisers as to whether any adjustments are required to ensure 
consistency in accordance with the terms of the performance conditions  30 paypoint plc annual report 2013
remuneration committee report continued
long term incentive plan ltip
awards made during the period
the current ltip was adopted at the 2009 annual general meeting  during the year under review executive directors were made the 
following awards
type of award conditional performance vesting shares
basis of award 120 of salary for the chief executive 100 of salary for the other executive directors 
face value of awards made d taylor £490813 79807 shares
g earle £309997 50406 shares 
t watkinrees £283995 46178 shares
performance period 3 years from the date of grant ie 25 may 2012 – 25 may 2015
performance conditions total shareholder return tsr relative to the constituents of the ftse250 index excluding 
investment trusts
below median  0 vesting
median  30 vesting
upper quartile  100 vesting
with proportionate vesting between these points
the remuneration committee will in any event also need to satisfy itself that the recorded tsr is 
a genuine reflection of the underlying financial performance of the company before releasing any 
share awards under the ltip
relative tsr was selected as the performance condition for ltip awards by the remuneration committee as it ensures that the 
executives will have outperformed their peers in the comparator group over the measurement period in delivering shareholder value 
before being entitled to receive any value from their awards irrespective of general market conditions  tsr will be calculated by the 
remuneration committee’s independent advisers
vesting awards
ltip awards were made on the same basis as described above in 2010  if tsr performance to 28 may 2013 matches the 
performance to date and the committee is satisfied that this is a genuine reflection of the underlying financial performance of the 
company the award will vest in full in june 2013 as shown below
shares held performance 
period
vesting date tsr ranking  vesting share price
1
value 
£000
d taylor 162857 28 may 2010 
– 28 may 
2013
28 may 2013 6
th
 position out 
of 182 top 
quartile
100
expected
£858 1397
g earle 102723 881
t watkinrees 87750 753
1 based on the average share price from 1 january 2013 – 31 march 2013
share incentive plan sip
the sip was approved by shareholders prior to admission and adopted by the company at admission
a key board objective is to give employees the opportunity to
•	 invest part of their salary in company shares and
•	 build up a shareholding in the company
the company is currently offering eligible employees including executive directors and senior managers the opportunity to purchase 
£1500 of shares a year out of pretax salary and provide additional matching shares on the basis of one matching share for every 
share purchased these matching shares will normally be released three years after they have been awarded provided that the 
associated shares purchased by the employee have been retained and provided the employee is still employed by a group company 
at the time details of shares held in the sip by executive directors are set out on page 31  paypoint plc annual report 2013 31
remuneration committee report continued
directors’ shareholdings
the directors serving during the period who had interests in the shares of the company were as follows
ordinary shares 
of 
13p each 
31 march 2013
shares in bonus 
trust beneficially 
owned
matching shares 
awarded but 
not vested
5
long term 
incentive shares 
awarded but 
not vested
5
share incentive 
plan
6
e anstee 7700 
g earle
1
226181 30624 59457 213849 6581
d morrison
2
35000 
d newlands
3
 236599 
a robb 16000 
s rowley 21116 
d taylor 1684947 40460 78552 338930 8481
t watkinrees
4
 741542 26781 52085 189483 8531
n wiles 25000 
1 includes 226181 shares held by mrs c earle 
2 held by prospect investment management limited in which david morrison has a 74 beneficial interest 
3 d newlands holds a nonbeneficial interest in a further 600000 shares held in various trusts of which he is a trustee 2012 900000 
4 includes 531422 shares held by mrs e watkinrees 
5 all shares that have not yet vested are subject to performance conditions
6 includes partnership matching and dividend shares purchased awarded and acquired during the year 
directors are not required to own shares in the company
performance graph
financial period 
ending march
single figure total 
remuneration 
£000
annual bonus 
outcome
 of max
ltip vesting outcome
 of max
2013 1080 862 401
2012 819 887 00
2011 701 809 00
2010 883 845 1000
2009 1326 942 1000
chief executive  d taylor
     
 
 
performance graph 
 
  
 
 
0
50
100
150
200
250
31 march 2008 31 march 2009 31 march 2010 31 march 2011 31 march 2012 31 march 2013
annual report 
for the 53 weeks ended 31 march 2013 
 
 
 
 
paypoint plc ftse250 index excluding investment trusts 
value of £100 invested on 31 march 2008 
value of £100 invested 
on 31 march 2008  32 paypoint plc annual report 2013
remuneration committee report continued
statement of shareholder voting
the table below shows the advisory vote on the 2012 remuneration committee report at the 2012 annual general meeting  it is the 
committee’s policy to consult with major shareholders prior to any major changes  
for against abstentions
votes 51086519 
993
196599
04
164271
03
dilution
in accordance with the abi guidelines the company can issue a maximum of 10 of its issued share capital in a rolling ten year 
period to employees under all its share plans the company can only use half of the maximum 5 to satisfy awards under 
discretionary or executive plans
loss of office payments
there were no exit payments made to directors in the period under review paypoint plc annual report 2013 33
 salary
1
bonus
benefits in
kind
2
total pension
3
total
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
executive 
d taylor 409 397 352 352 24 22 785 771 49 48 834 819
g earle 310 301 267 267 21 27 598 595 78 75 676 670
t watkinrees 284 275 245 244 21 20 550 539 34 33 584 572
nonexecutive       
d newlands 125 125     125 125   125 125
a robb 47 45     47 45   47 45
d morrison 40 38     40 38   40 38
e anstee 47 45     47 45   47 45
s rowley 40 38     40 38   40 38
n wiles 40 38     40 38   40 38
total 1342 1302 864 863 66 69 2272 2234 161 156 2433 2390
remuneration committee report continued
audited information
directors’ emoluments
1 salary is the total salary paid during the period from 1 april 2013 executive directors’ base salaries were d taylor £425000 g earle £320000 t watkinrees 
£300000
2 benefits include car allowance private medical cover permanent health insurance and life assurance
3 defined contribution pension scheme of which two current directors are members the remuneration committee has agreed that g earle’s pension contributions will 
be paid direct to him grossed up for tax
long term incentive plan
1
number of 
shares at 
25 march 
2012 
number of
 shares 
awarded 
during 
the period
3
number of 
shares
 released 
during the 
period
number of 
shares
 lapsed 
during the 
period
number of 
shares at 
31 march 
2013
value of
 shares 
awarded
date of 
grant date lapsed
release 
date
d taylor 86445
2
34664 51781  £455997 040609 040612 280612
162857
3
162857 £456000 280510 280513
96266
4
96266 £476517 270511 270514
 79807
5
79807 £490813 250512 250515
g earle 54526
2
21864 32662  £287625 040609 040612 280612
102723
3
102723 £287624 280510 280513
60720
4
60720 £300564 270511 270514
 50406
5
50406 £309997 250512 250515
t watkin
rees 46578
2
18677 27901  £245699 040609 040612 280612
87750
3
87750 £245700 280510 280513
55555
4
55555 £274997 270511 270514
 46178
5
46178 £283995 250512 250515
1 awards under the ltip will only vest if the company’s comparative tsr performance is equal to or greater than the median level of performance over the three year 
holding period at which point 30 of awards will vest with full vesting occurring for upper quartile performance proportionate vesting between points 
awards were granted at the following closing prices on the preceding day
2 £528 per share
3 £280 per share
4 £495 per share
5 £615 per share 34 paypoint plc annual report 2013
remuneration committee report continued
number 
of bonus 
shares 
purchased 
at 
25 march 
2012
2
number of 
matching 
shares 
awarded at
25 march
2012
3
number 
of bonus 
shares 
purchased 
released 
during the 
period
number of 
matching 
shares 
awarded
during the 
period
number 
of 
matching 
shares 
lapsed 
during 
the 
period
number 
of bonus 
shares 
purchased 
at 
31 march 
2013
number 
of 
matching 
shares 
awarded 
at 
31 march
2013
value of 
matching 
shares 
awarded
date of 
grant
date 
lapsed
release 
date
4
d taylor 9241
1
15663
1
9241 15663   £83014 040609 060612
16150
5
27905
5
16150
5
27905
5
£80273 010610 010613
10785
6
22469
6
10785
6
22469
6
£115282 020611 020614
  13525
7
28178
7
13525
7
28178
7
£176113 250512 250515
36176 66037 4284 28178 15663 40460 78552
   
g earle 7097
1
12029
1
7097 12029   £63754 040609 060612
12224
5
21122
5
12224
5
21122
5
£60761 010610 010613
8163
6
17007
6
8163
6
17007
6
£87258 020611 020614
  10237
7
21328
7
10237
7
21328
7
£133300 250512 250515
27484 50158 3140 21328 12029 30624 59457
   
t watkin
rees 6035
1
10228
1
6035 10228   £54208 040609 060612
10442
5
18043
5
10442
5
18043
5
£51903 010610 010613
6973
6
14528
6
6973
6
14528
6
£74539 020611 020614
  9366
7
19514
7
9366
7
19514
7
£121963 250512 250515
23450 42799 3331 19514 10228 26781 52085
deferred share bonus plan
1 the bonus shares were purchased and the matching shares awarded at a share price of £530
2 bonus shares are purchased with the bonus deferred after the deduction of tax
3 matching shares are awarded based on the value of the gross bonus deferred
4 no matching shares will be released unless the company’s earnings per share growth is 3 pa in excess of the retail prices index over the three year holding period
the bonus shares were purchased and the matching shares awarded at share prices of
5 £288 per share
6 £513 per share
7 £625 per share 
 
share incentive plan
number of 
partnership 
shares 
purchased 
at 25 march 
2012
number of 
matching 
shares 
awarded at 
25 march 
2012
number 
of free 
shares
1
 
awar ded at  
25 march 
2012
dividend 
shares
2
 
acquired at 
25 march 
2012
total 
shares at 
25 march 
2012
number of 
partnership 
shares
3
 
purchased 
during the 
period
matching 
shares
4
 
awarded 
during the 
period
dividend 
shares 
acquired 
during the 
period
dates of 
release of 
matching 
and free 
dividend 
shares
total 
shares at 
31 march 
2013
d taylor 2547 2547 1562 1226 7882 197 197 205 150412 – 
150315
8481
g earle 2570 2570  849 5989 197 197 198 150412 – 
150315
6581
t watkinrees 2570 2570 1562 1229 7931 197 197 206 150412 – 
150315
8531
1 free shares are ordinary shares of the company awarded conditionally on 24 september 2004 based on the share price on admission of £192 
2 dividend shares are ordinary shares of the company purchased with the value of dividends paid in respect of all other shares held in the plan
3 partnership shares are ordinary shares of the company purchased on a monthly basis during the period at prices from £628 to £888
4 matching shares are ordinary shares of the company awarded conditionally on a monthly basis during the period at prices from £628 to £888 in conjunction with 
two share purchases paypoint plc annual report 2013 35
remuneration committee report continued
ordinary shares
5
 
at 
31 march 
2013
e anstee 7700 
g earle
1
 226181 
d morrison
2
 35000 
d newlands
3
236599 
a robb 16000 
s rowley 21116 
d taylor 1684947 
t watkinrees
4 
741542 
n wiles 25000 
the directors serving during the period who had interests in the shares of the company were as follows
directors’ shareholdings
1 includes 226181 shares held by mrs c earle 
2 held by prospect investment management limited in which david morrison has a 74 beneficial interest 
3 d newlands holds a nonbeneficial interest in a further 600000 shares held in various trusts of which he is a trustee 2012 900000 
4 includes 531422 shares held by mrs e watkinrees 
5 this holding excludes shares under the company sip and bonus shares under the dsb plan owned by the executive directors
between the end of the period and 23 may 2013 d taylor g earle and t watkinrees each acquired 84 partnership and  
matching shares
the market price of the company’s shares on 31 march 2013 was £887 25 march 2012 £604 per share and the low and high 
share prices during the period were £597 and £901 respectively
this report covers the remuneration of all directors that served during the period
this report has been approved by the remuneration committee
andrew robb
chairman remuneration committee
23 may 2013 36 paypoint plc annual report 2013
statement of directors’ responsibilities
the directors are responsible for preparing the annual report 
and the financial statements in accordance with applicable law 
and regulations
company law requires the directors to prepare financial statements 
for each financial year  under that law the directors are required 
to prepare the group financial statements in accordance with 
international financial reporting standards ifrs as adopted by the 
european union and article 4 of the ias regulation and have also 
chosen to prepare the parent company financial statements under 
ifrs as adopted by the european union  under company law the 
directors must not approve the accounts unless they are satisfied 
that they give a true and fair view of the state of affairs of the 
company and of the profit or loss of the company for that period  
in preparing these financial statements international accounting 
standard 1 requires that directors
•	 properly select and apply accounting policies
•	 present information including accounting policies in a 
manner that provides relevant reliable comparable and 
understandable information 
•	 provide additional disclosures when compliance with the 
specific requirements in ifrs are insufficient to enable users 
to understand the impact of particular transactions other 
events and conditions on the entity’s financial position and 
financial performance and
•	 make an assessment of the company’s ability to continue as a 
going concern
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the company and enable them to ensure 
that the financial statements comply with the companies act 
2006  they are also responsible for safeguarding the assets of 
the company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the 
company’s website  legislation in the united kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions
responsibility statement 
we confirm that to the best of our knowledge
•	 the financial statements prepared in accordance with 
ifrs give a true and fair view of the assets liabilities 
financial position and profit or loss of the company and the 
undertakings included in the consolidation taken as a whole 
and
•	 the management report which is incorporated into the 
directors’ report includes a fair review of the development 
and performance of the business and the position of the 
company and the undertakings included in the consolidation 
taken as a whole together with a description of the principal 
risks and uncertainties that they face
dominic taylor 
chief executive
23 may 2013 paypoint plc annual report 2013 37
independent auditor’s report to the members of paypoint plc
we have audited the financial statements of paypoint plc for 
the 53 week period ended 31 march 2013 which comprise 
the consolidated income statement consolidated statement 
of comprehensive income consolidated and parent company 
statements of financial position consolidated and parent company 
statements of changes in equity consolidated and parent company 
cash flow statements and the related notes 1 to 28  the financial 
reporting framework that has been applied in their preparation 
is applicable law and international financial reporting standards 
ifrs as adopted by the european union and as regards the 
parent company financial statements as applied in accordance 
with the provisions of the companies act 2006
this report is made solely to the company’s members as a body 
in accordance with chapter 3 of part 16 of the companies act 
2006  our audit work has been undertaken so that we might 
state to the company’s members those matters we are required 
to state to them in an auditor’s report and for no other purpose  
to the fullest extent permitted by law we do not accept or 
assume responsibility to anyone other than the company and 
the company’s members as a body for our audit work for this 
report or for the opinions we have formed
respective responsibilities of directors  
and auditor
as explained more fully in the directors’ responsibilities 
statement the directors are responsible for the preparation of 
the financial statements and for being satisfied that they give 
a true and fair view  our responsibility is to audit and express 
an opinion on the financial statements in accordance with 
applicable law and international standards on auditing uk 
and ireland  those standards require us to comply with the 
auditing practices board’s ethical standards for auditors
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free 
from material misstatement whether caused by fraud or 
error  this includes an assessment of whether the accounting 
policies are appropriate to the group’s and the parent 
company’s circumstances and have been consistently applied 
and adequately disclosed the reasonableness of significant 
accounting estimates made by the directors and the overall 
presentation of the financial statements  in addition we read all 
the financial and nonfinancial information in the annual report 
to identify material inconsistencies with the audited financial 
statements and to identify any information that is apparently 
materially incorrect based on or materially inconsistent with the 
knowledge acquired by us in the course of performing the audit  
if we become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report
opinion on financial statements
in our opinion
•	 the financial statements give a true and fair view of the state 
of the group’s and of the parent company’s affairs as at  
31 march 2013 and of the group’s profit for the 53 week 
period then ended
•	 the group financial statements have been properly prepared 
in accordance with ifrs as adopted by the european union
•	 the parent company financial statements have been 
properly prepared in accordance with ifrs as adopted by 
the european union and as applied in accordance with the 
provisions of the companies act 2006 and
•	 the financial statements have been prepared in accordance with 
the requirements of the companies act 2006 and as regards 
the group financial statements article 4 of the ias regulation
opinion on other matters prescribed by the 
companies act 2006
in our opinion
•	 the part of the remuneration committee report to be 
audited has been properly prepared in accordance with the 
companies act 2006 and
•	 the information given in the directors’ report for the  
financial period for which the financial statements are 
prepared is consistent with the financial statements
matters on which we are required to report by 
exception
we have nothing to report in respect of the following
under the companies act 2006 we are required to report to 
you if in our opinion
•	 adequate accounting records have not been kept by the 
parent company or returns adequate for our audit have not 
been received from branches not visited by us or
•	 the parent company financial statements and the part of 
the remuneration committee report to be audited are not in 
agreement with the accounting records and returns or
•	 certain disclosures of directors’ remuneration specified by law 
are not made or
•	 we have not received all the information and explanations we 
require for our audit 
under the listing rules we are required to review
•	 the directors’ statement contained within the directors’ 
report in relation to going concern 
•	 the part of the corporate governance statement relating to 
the company’s compliance with the nine provisions of the uk 
corporate governance code specified for our review and
•	 certain elements of the report to shareholders by the board 
on directors’ remuneration
edward hanson aca senior statutory auditor
for and on behalf of deloitte llp
chartered accountants and statutory auditors 
london uk
23 may 2013 38 paypoint plc annual report 2013
consolidated income statement
note
53 weeks 
ended
31 march 
2013 
£000
52 weeks 
ended
25 march 
2012
£000
continuing operations
revenue 2 208526 200029
cost of sales 118876 121778
gross profit 89650 78251
administrative expenses 47670 39385
operating profit 5 41980 38866
share of loss of joint venture 13 965 1828
investment income 6 314 195
finance costs 6 62 32
profit before tax 41267 37201
tax 7 10316 10262
profit for the period 24 30951 26939
  
attributable to  
equity holders of the parent 30979 26975
noncontrolling interests 25 28 36
30951 26939
  
earnings per share  
basic 9 457p 398p
diluted 9 453p 398p
consolidated statement of comprehensive income
note
53 weeks 
ended
31 march 
2013 
£000
52 weeks 
ended
25 march 
2012
£000
exchange differences on translation of foreign operations 23 1054 831
net income recognised directly in equity 1054 831
profit for the period 30951 26939
total recognised income and expenses for the period 32005 26108
  
attributable to  
equity holders of the parent 32033 26144
noncontrolling interests 28 36
32005 26108 paypoint plc annual report 2013 39
consolidated statement of financial position
note
31 march 
2013 
£000
25 march 
2012
£000
restated
27 march 
2011
£000
restated
noncurrent assets 
goodwill 10 56570 56076 57133
other intangible assets 11 4637 2304 1329
property plant and equipment 12 17729 15212 14520
investment in joint venture 13 43 58 135
deferred tax asset 14 2208 901 1116
investments 15 435 435 435
81622 74986 74668
current assets   
inventories 16 1161 1284 915
trade and other receivables 17 198803 118492 112390
cash and cash equivalents 18 46618 35487 26464
246582 155263 139769
total assets 328204 230249 214437
current liabilities   
trade and other payables 19 216821 133699 128283
current tax liabilities 5339 4938 5287
obligations under finance leases   32
222160 138637 133602
noncurrent liabilities   
other liabilities 21 169 247 240
169 247 240
total liabilities 222329 138884 133842
net assets 105875 91365 80595
equity   
share capital 23 226 226 226
share premium 23 297 25 25
investment in own shares 23  216 216
sharebased payment reserve 23 3265 3138 3005
translation reserve 23 694 360 471
retained earnings 23 101498 88629 77125
total equity attributable to equity holders of the 
parent company 105980 91442 80636
noncontrolling interest 24 105 77 41
total equity 105875 91365 80595
 the 2012 and 2011 consolidated statements of financial position have been restated details of the restatement are explained in note 1 accounting policies – 
restatement of 2012 and 2011 consolidated statements of financial position
these financial statements were approved by the board of directors and authorised for issue on 23 may 2013 and signed on behalf 
of the board of directors
dominic taylor
chief executive 
23 may 2013 40 paypoint plc annual report 2013
consolidated statement of changes in equity
note
share
capital
£000
share
premium
£000
investment 
in own 
shares
£000
share 
based 
payment 
reserve
£000
translation 
reserve
£000
retained 
earnings
£000
total equity 
attributable 
to equity 
holders of 
the parent 
company
£000
non
controlling
interest
note 24
£000
total
equity
£000
opening 
equity  
28 march 2011
226 25 216 3005 471 77125 80636 41 80595
profit for the 
period
     26975 26975 36 26939
dividends paid 8      16450 16450  16450
exchange 
differences 
on translation 
of foreign 
operations
23     831  831  831
movement in 
sharebased 
payment reserve
23    133   133  133
adjustment on 
share scheme 
vesting
23      979 979  979
closing equity 
25 march 2012
226 25 216 3138 360 88629 91442 77 91365
profit for the 
period
     30979 30979 28 30951
dividends paid 8      18957 18957  18957
movement in 
investment in 
own shares 
23   216    216  216
exchange 
differences 
on translation 
of foreign 
operations
23     1054  1054  1054
movement in 
sharebased 
payment reserve
23    127   127  127
share premium 
arising on issue 
of shares
23  272     272  272
adjustment on 
share scheme 
vesting
23      58 58  58
deferred tax 
on sharebased 
payments
14      905 905  905
closing equity 
31 march 2013
226 297  3265 694 101498 105980 105 105875 paypoint plc annual report 2013 41
consolidated cash flow statement
note
53 weeks 
ended
31 march 
2013 
£000
52 weeks 
ended
25 march 
2012
£000
net cash flow from operating activities 28 40060 32868
investing activities   
investment income 187 
purchases of property plant and equipment and technology 9700 5263
proceeds from disposal of property plant and equipment 54 20
loan to joint venture 15 950 1750
net cash used in investing activities 10409 6993
financing activities  
repayments of obligations under finance leases  32
dividends paid 8 18957 16450
net cash used in financing activities 18957 16482
net increase in cash and cash equivalents 10694 9393
cash and cash equivalents at beginning of period 35487 26464
effect of foreign exchange rate changes 437 370
cash and cash equivalents at end of period 46618 35487 42 paypoint plc annual report 2013
note
31 march
2013
£000
25 march
2012
£000
noncurrent assets 
investments 15 118325 114689
118325 114689
current assets   
trade and other receivables 17 498 487
cash and cash equivalents 20 45
518 532
total assets 118843 115221
current liabilities   
current tax liabilities 881 
noncurrent liabilities   
other liabilities 21 21137 3372
total liabilities 22018 3372
net assets 96825 111849
equity   
share capital 23 226 226
share premium 23 297 25
investment in own shares 23  216
sharebased payment reserve 23 3265 3138
retained earnings 23 93037 108676
total equity 96825 111849
these financial statements were approved by the board of directors and authorised for issue on 23 may 2013 and signed on behalf 
of the board of directors
dominic taylor
chief executive
23 may 2013
company statement of financial position paypoint plc annual report 2013 43
company statement of changes in equity
note
share
capital
£000
share
premium
£000
investment in 
own shares
£000
sharebased 
payment 
reserve
£000
retained 
earnings
£000
total
equity
£000
opening equity  
28 march 2011
226 25 216 3005 19616 22656
profit for the period     469 469
dividends paid 8     16450 16450
dividends receivable     105000 105000
movement in share 
based payment 
reserve
23    133  133
adjustment on share 
scheme vesting
23     979 979
closing equity  
25 march 2012
226 25 216 3138 108676 111849
profit for the period        3006 3006
dividends paid 8     18957 18957
movement in 
investment in own 
shares 
23   216   216
movement in share
based payment 
reserve
23    127  127
share premium 
arising on issue of 
shares
23  272    272
adjustment on share 
scheme vesting
23     312 312
closing equity  
31 march 2013
226 297  3265 93037 96825
company cash flow statement
note
53 weeks 
ended
31 march 
2013 
£000
52 weeks 
ended
25 march 
2012
£000
net cash flow from operating activities 28 22568 21358
investing activities   
loan to joint venture 15 950 1750
investment in group companies 15 2686 3132
net cash used in investing activities 3636 4882
financing activities  
dividends paid 8 18957 16450
net cash used in financing activities 18957 16450
net decreaseincrease in cash and cash equivalents 25 26
cash and cash equivalents at beginning of period 45 19
cash and cash equivalents at end of period 20 45 44 paypoint plc annual report 2013
notes to the financial statements
1 accounting policies
these financial statements have been prepared on an historical 
cost basis and on the basis of the policies set out below
restatement of 2012 and 2011 consolidated 
statements of financial position
following the conclusion of recent correspondence with the 
financial reporting council’s conduct committee frccc 
the directors concluded that the accounting policy in respect of 
client settlement amounts should be amended together with 
a restatement of the comparative consolidated statements of 
financial position to reflect the obligation to pay clients which 
arises as soon as retailers collect cash from consumers giving 
rise to a financial liability and a corresponding asset as set out in 
ias 32
the representation of these items has had no effect on the 
consolidated income net assets earnings per share or total cash 
flows as previously reported in the 2012 or 2011 annual reports
historically the group has not recognised a receivable in respect 
of amounts collected by retail agents and correspondingly has 
not recognised a liability for the associated amounts payable 
to the client  the rationale for not recognising these balances 
in the consolidated statement of financial position was that 
paypoint acts as a disclosed agent in the transaction transferring 
cash between the retail agents and clients  paypoint does not 
bear credit risk for the majority of this cash flow nor does the 
majority of the cash pass through accounts to which paypoint 
has title
the affected balances are as follows
year ended
25 march 2012
year ended
27 march 2011
restated 
£000
as 
originally 
stated
 £000
restated
£000
as 
originally 
stated
£000
trade and other 
receivables
118492 21443 112390 17103
trade and other 
payables
133699 36650 128283 32996
in addition as the group is making a prior year restatement in 
accordance with ias 1 the consolidated statement of financial 
position at 27 march 2011 is also being presented
basis of preparation
the financial statements have been prepared in accordance with 
international financial reporting standards ifrs as adopted for 
use in the european union and therefore comply with article 4 
of the eu ias regulation
the directors are satisfied that the group has adequate resources 
to continue in operational existence for the foreseeable future a 
period of not less than 12 months from the date of this report 
the group’s liquidity review can be found in the operating and 
financial review on page 11 the group’s going concern position 
is further discussed in the directors’ report on page 22 the 
financial statements are prepared on a going concern basis
at the date of authorisation of these financial statements the 
following standards and interpretations which have not been 
applied in these financial statements were in issue but not yet 
effective
amendments to 
ifrs 10 ifrs 12 
and ias 27  
oct 2012
investment entities
annual 
improvements to 
ifrss 20092011 
cycle may 2012
annual improvements to ifrss 20092011 
cycle9
amendments to 
ifrs 1  
march 2012
government loans
amendments to 
ias 32 
dec 2011
offsetting financial assets and financial 
liabilities
amendments to 
ifrs 7 dec 2011
disclosures – offsetting financial assets and 
financial liabilities
ifrs 9 financial instruments
amendments to 
ias 1 june 2011
presentation of items of other 
comprehensive income
ias 19  
revised june 2011
employee benefits
ifrs 13 fair value measurement
ifrs 12 disclosure of interests in other entities
ifrs 11 joint arrangements
ifrs 10 consolidated financial statements
ias 28  
revised may 2011
investments in associates and joint ventures
ias 27  
revised may 2011
separate financial statements
amendments to 
ias 12 dec 2010
deferred tax recovery of underlying assets
amendments to 
ifrs 1 dec 2010
severe hyperinflation and removal of fixed 
dates for firsttime adopters
ifric 20 stripping costs in the production phase of a 
surface mine
the group does not consider that these standards and 
interpretations will have a material impact on the financial 
statements of the group when the respective standards or 
interpretations come into effect 
the financial statements are presented in pounds sterling 
because it is the currency of the primary economic environment 
in which the group operates
the principal accounting policies adopted are set out below paypoint plc annual report 2013 45
basis of consolidation
paypoint plc the company acts as a holding company the 
group accounts consolidate the accounts of the company and 
entities controlled by the company its subsidiaries drawn up to 
march each year control is achieved where the company has the 
power to govern the financial and operating policies of an entity 
in which it invests so as to obtain benefits from its activities 
the results of subsidiaries acquired or sold are consolidated for 
the periods from or to the date on which control passed all 
intergroup transactions balances income and expenses are 
eliminated on consolidation except for joint ventures
business combinations
the acquisition of subsidiaries is accounted for using the 
purchase method investments are stated at cost less any 
required provision for impairment the cost of the acquisition 
is measured at the aggregate of the fair values at the date of 
exchange of assets given liabilities incurred or assumed and 
equity instruments issued by the group in exchange for control 
of the acquiree the acquired identifiable assets liabilities and 
contingent liabilities that meet the conditions for recognition 
under ifrs 3 revised are recognised at their fair value at the 
acquisition date except for noncurrent assets that are classified 
as held for resale in accordance with ifrs 5 noncurrent 
assets held for sale and discontinued operations which are 
recognised and measured at fair value less costs to sell
goodwill
goodwill arising on consolidation represents the excess of the 
cost of acquisition over the group’s interest in the fair value of 
the identifiable assets and liabilities of a subsidiary at the date 
of acquisition goodwill is initially recognised as an asset at cost 
and is subsequently measured at cost less any accumulated 
impairment losses 
for the purpose of impairment testing goodwill is allocated to 
each of the group’s cashgenerating units expected to benefit 
from the synergies of the combination cashgenerating units 
to which goodwill has been allocated are tested for impairment 
annually or more frequently when there is an indication that the 
unit may be impaired if the recoverable amount of the cash
generating unit is less than the carrying amount of the unit the 
impairment loss is allocated first to reduce the carrying amount 
of any goodwill allocated to the unit and then to the other 
assets of the unit prorata on the basis of the carrying amount 
of each asset in the unit any impairment loss for goodwill is 
recognised immediately in profit or loss and is not reversed in a 
subsequent year
impairment of tangible and intangible assets 
other than goodwill
at each balance sheet date the group reviews the carrying 
amounts of its tangible and intangible assets to determine 
whether there is any indication that those assets have suffered 
an impairment loss if any such indication exists the recoverable 
amount of the asset is estimated in order to determine the 
extent of the impairment loss if any where the asset does not 
generate cash flows that are independent from other assets the 
group estimates the recoverable amount of the cashgenerating 
unit to which the asset belongs an intangible asset with an 
indefinite useful life is tested for impairment annually and 
whenever there is an indication that the asset may be impaired
recoverable amount is the higher of fair value less costs to sell 
and value in use in assessing value in use the estimated future 
cash flows are discounted to their present value using a pretax 
discount rate that reflects current market assessments of the 
time value of money and the risks specific to the asset for which 
the estimates of future cash flows have not been adjusted
if the recoverable amount of an asset or cashgenerating unit 
is estimated to be less than its carrying amount the carrying 
amount of the asset or cashgenerating unit is reduced to its 
recoverable amount an impairment loss is recognised as an 
expense immediately
the reversal of any impairment loss is limited by the net book 
value to which the relevant asset would have been reduced 
had no impairment occurred a reversal of an impairment loss is 
recognised as income immediately
revenue
revenue is measured at the fair value of the consideration 
received or receivable and comprises the value of sales of 
services excluding sales taxes in the normal course of business
revenue is deferred when cash has been received for the 
provision of the contracted service to the extent that the service 
has not been rendered such as the set up of a new service for 
a client
revenue and cost of sales are recorded according to the 
actual transactions that occur in a given period in ireland and 
romania paypoint is contracted as principal in the supply of 
prepaid mobile topups accordingly revenue includes the sale 
price of the mobile topups and the cost of sales includes the 
cost of the mobile topups to paypoint  in the uk paypoint is 
contracted as agent in the supply of prepaid mobile topups 
and accordingly only the commission receivable from mobile 
operators is included in revenue
dividend income from investments is recognised when the 
shareholders’ rights to receive payment have been established
cost of sales
cost of sales includes agents’ commission the cost of mobile 
topups and sim cards where paypoint acts as principal in 
their purchase and sale consumables communications 
maintenance depreciation amortisation and field service 
costs and any external processing charges levied by credit card 
scheme sponsors all other costs are allocated to administrative 
expenses
pension costs
the group makes payments to a number of defined contribution 
pension schemes the amounts charged to the profit and loss 
account in respect of pension costs represent contributions 
payable in the year differences between contributions payable 
in the year and contributions actually paid are shown as either 
accruals or prepayments in the statement of financial position
notes to the financial statements continued 46 paypoint plc annual report 2013
notes to the financial statements continued
sharebased payments
equitysettled sharebased payments are measured at fair 
value at the date of grant the fair value determined at the 
grant date of the equitysettled sharebased payments is 
expensed on a straight line basis over the vesting period 
based upon independent advice that the shares will eventually 
vest fair value is measured by use of either a monte carlo 
simulation or black scholes model depending upon the 
scheme the expected life used in the model has been 
adjusted based on management’s best estimate for the effects 
of nontransferability exercise restrictions and behavioural 
considerations
interest income
interest income is accrued on a time basis by reference to 
the principal outstanding and at the effective interest rate 
applicable which is the rate that exactly discounts estimated 
future cash receipts through the expected life of the financial 
asset to that asset’s net carrying amount 
taxation
the group operates in a number of different tax jurisdictions 
which leads to some complexity in tax matters this requires a 
degree of estimation of liabilities and delays resolution of issues 
the final resolution of tax issues may give rise to variances in 
profit and loss and cash the group’s policy is to pay tax when 
due but to minimise tax payments where practically possible 
without engaging in aggressive tax schemes
the tax expense represents the sum of the amount payable in 
respect of the period under review based on the taxable profit 
for the period and deferred tax taxable profit differs from net 
profit as reported in the income statement because it excludes 
items of income or expense that are taxable or deductible in 
other years and items that are never taxable or deductible the 
group’s liability for current tax is calculated using tax rates that 
have been enacted or substantively enacted by the balance 
sheet date 
deferred tax is provided in full on temporary differences 
between the tax bases of assets and liabilities and their carrying 
amounts in the consolidated financial statements the provision 
is calculated using tax rates that have been substantively 
enacted by the balance sheet date deferred tax assets are 
recognised to the extent that it is probable that future taxable 
profit will be available against which the tax will be realised
deferred tax liabilities are recognised for taxable temporary 
differences arising on investments in subsidiaries and interests 
in joint ventures except where the group is able to control the 
reversal of the temporary difference and it is probable that the 
temporary difference will not reverse in the foreseeable future
the carrying amount of deferred tax assets is reviewed at each 
balance sheet date and reduced to the extent that it is no longer 
probable that sufficient taxable profits will be available to allow 
all or part of the asset to be recovered deferred tax is charged 
or credited in the income statement except when it relates to 
items charged or credited directly to equity in which case the 
deferred tax is also dealt with in equity
foreign currency
foreign currency transactions are translated into the functional 
currency using the exchange rates prevailing at the dates of 
the transaction at each balance sheet date monetary assets 
and liabilities that are denominated in foreign currencies are 
retranslated at the rates prevailing on the balance sheet date 
nonmonetary assets and liabilities carried at fair value that 
are denominated in foreign currency are translated at the rates 
prevailing at the date when fair value was determined gains 
and losses arising on retranslation are included in net profit or 
loss for the year except for exchange differences arising on non
monetary assets and liabilities where the changes in fair value 
are recognised directly in equity
on consolidation the assets and liabilities of the group’s 
overseas operations are translated at exchange rates prevailing 
on the balance sheet date income and expense items are 
translated at the average exchange rates for the period unless 
exchange rates fluctuate significantly exchange differences 
arising if any are classified as equity and transferred to the 
group’s translation reserve such translation differences are 
recognised as income or as expenses in the year of disposal of 
the operation
intangible assets
i  recognised on acquisition
on acquisitions the group has recognised contracts with 
merchants and acquired systems based on their estimated fair 
values as intangible assets
contracts with merchants are amortised on a straight line basis 
generally between one and five years and acquired systems are 
amortised over their estimated useful economic life of ten years
ii software development expenditure
the group develops computer software for internal use 
software development expenditure on large projects is 
recognised as an intangible asset if it is probable that the asset 
will generate future economic benefits the costs that are 
capitalised are the directly attributable costs necessary to create 
and prepare the asset for operations software development 
costs recognised as an intangible asset are amortised on a 
straight line basis over its useful life which is between 5 and 
10 years other software costs are recognised in administrative 
expenses when incurred 
property plant and equipment
property plant and equipment are stated at cost net of 
depreciation less provision for impairment depreciation is 
provided at rates calculated to write off the cost less estimated 
residual value of each asset on a straight line basis over its 
expected useful life the estimated useful lives are as follows 
and are reviewed on an annual basis
•	 freehold building – 50 years
•	 leasehold improvements – over the life of the lease
•	 terminals – 5 years
•	 automatic teller machines – 4 years
•	 other classes of assets – 3 to 5 years
the gain or loss arising on the disposal or retirement of an asset 
is determined as the difference between the sales proceeds and 
the carrying amount of the asset and is recognised as income paypoint plc annual report 2013 47
notes to the financial statements continued
inventories
inventories are valued at the lower of cost or net realisable value
trade and other receivables
trade receivables represent the amount of commission due 
from clients for which payment has not been received less an 
allowance for doubtful accounts that is estimated based on 
factors such as the credit rating of the customer historical trends 
the current economic environment and other information
items in the course of collection represent gross transaction 
values received by retail agents that have not yet been collected 
by paypoint
trade and other payables
trade payables represent the amount of invoices received from 
suppliers for purchases of goods and services for which payment 
has not been made
settlement payables represent gross transaction values received 
by retail agents that have not yet been settled to clients
joint ventures
a joint venture entity is an entity in which the group holds a 
long term interest and shares joint control over the strategic 
financial and operating decisions with one or more other 
ventures under a contractual arrangement the group’s share of 
net assets post tax profit and loss and dividends are accounted 
for using the equity method of accounting
leases
assets held under finance leases which confer rights and 
obligations similar to those attached to owned assets 
are capitalised as property plant and equipment and are 
depreciated over the shorter of the lease terms and their 
useful lives the capital elements of future lease obligations are 
recorded as liabilities while the interest elements are charged 
to the profit and loss account over the period of the leases to 
produce a constant rate of charge on the remaining balance 
of liability rentals under operating leases are charged on a 
straight line basis over the lease term even if the payments are 
not made on such a basis benefits received and receivable as 
an incentive to sign an operating lease are similarly spread on 
a straight line basis over the lease term service charge income 
received for atms from retail agents under operating leases are 
credited to income on a straight line basis over the lease term
bank and other loans
bank and other loans are initially measured at fair value 
net of any attributable transaction costs if any and are 
subsequently measured at amortised cost using the effective 
interest rate method
dividends
final dividends on ordinary shares are recognised in equity in the 
year in which they are approved by the company’s shareholders 
interim dividends are recognised when declared
own shares
paypoint purchases its own shares for the purpose of employee 
sharebased payment schemes such shares are deducted from 
equity and no profit or loss is recognised on the transactions
cash and cash equivalents
for the purpose of the cash flow statement cash and cash 
equivalents comprise cash at bank and in hand and shortterm 
deposits with original maturity of less than three months and 
are subject to insignificant risk of changes in value
critical accounting judgments
in the application of the group’s accounting policies which are 
described in note 1 the directors are required to make judgments 
estimates and assumptions about the carrying amounts of assets 
and liabilities that are not readily apparent from other sources 
the estimates and associated assumptions are based on historical 
experience and other factors that are considered to be relevant 
actual results may differ from these estimates
 
the estimates and underlying assumptions are reviewed on an 
ongoing basis revisions to accounting estimates are recognised 
in the period in which the estimate is revised if the revision affects 
only that period or in the period of the revision and future 
periods if the revision affects both current and future periods
the critical accounting judgments and key sources of estimation 
uncertainty in the business are the valuation of goodwill of 
£566 million at 31 march 2013 2012 £561 million and other 
intangible assets of £46 million at 31 march 2013 2012 £23 
million management reviews goodwill for any impairment on 
an annual basis note 10 intangible assets are amortised over 
their economic useful life note 11 the accounting policies for 
goodwill and intangible assets are included above in this note 1 48 paypoint plc annual report 2013
notes to the financial statements continued
3 employee information
group company
2013 2012 2013 2012
average number of 
persons employed 
sales distribution and 
marketing 173 205  
operations and 
administration 447 375 6 6
620 580 6 6
staff costs during 
the year including 
directors £000 £000 £000 £000 
wages and salaries 27210 22888 339 625
social security costs 2243 2304 41 47
pension costs  
note 25 706 713  21
30159 25905 380 693
directors’ emoluments pension contributions and share options 
are disclosed in the remuneration committee report on pages 
23 to 35 included within staff costs is a sharebased payment 
charge note 23 of £1332000 2012 £1112000
2 segmental reporting revenue net revenue 
and cost of sales
i segmental information
paypoint is a service provider for consumer transactions through 
various distribution channels involving the processing of high 
volume transactions the management of retailers and clients 
the settlement of funds collection and transmission and 
transmission of data in a secure environment by the application 
of technology
the application of technology is directed on a group basis by 
the group’s executive comprising the chief executive group 
finance director business development director and chief 
information officer to develop products across the business 
prioritised on an economic value basis generally by product 
rather than on a subsidiary by subsidiary basis as the business 
has high fixed operating costs the company regards the analysis 
of net revenue as the most reliable indication of contribution on 
a product by product basis and net revenue analysis is shown in 
the operating and financial review 
whilst the group has a number of different services and 
products these do not meet the definition of different segments 
under ifrs 8 and therefore the group has only one reportable 
class of business being a service provider for consumer payment 
and value added transactions
ii revenue net revenue and cost of sales
revenue comprises the value of sales excluding sales taxes of 
services in the normal course of business 
 
revenue performance of the business is measured by net 
revenue which is calculated as the total revenue from clients 
less commissions paid to retail agents the cost of mobile top
ups and sim cards where paypoint is principal and costs incurred 
by paypoint which are recharged to clients and merchants these 
costs include retail agent commission merchant service charges 
levied by card scheme sponsors and costs for the provision of 
call centres for paybyphone clients
net revenue 53 weeks
ended
31 march
2013
£000
52 weeks
ended
25 march
2012
£000
revenue 
– transaction processing 207437 198699
– service charge income from atms 1089 1330
208526 200029
less 
commission payable to retail agents 69099 69541
cost of mobile topups and sim 
cards as principal 32004 38579
card scheme sponsors’ charges 1766 1467
net revenue 105657 90442
cost of sales
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
cost of sales 
commission payable to retail agents 69099 69541
cost of mobile topups and sim cards 
as principal 32004 38579
card scheme sponsors’ charges 1766 1467
depreciation and amortisation 4071 3333
other 11936 8858
total cost of sales 118876 121778
geographical information
revenue 
uk 167294 153734
ireland 14880 20537
romania 24288 24275
north america 2064 1483
total 208526 200029
noncurrent assets excluding 
deferred tax
uk 77660 71864
romania 1450 1766
north america 304 455
total 79414 74085 paypoint plc annual report 2013 49
notes to the financial statements continued
6 investment income and finance costs 
investment income comprises interest on current and deposit 
accounts
investment income
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
bank deposit interest 314 195
finance costs
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
bank charges 62 32
4 profit of parent company
the company has taken advantage of the exemption under 
s408 of the companies act 2006 and consequently the income 
statement of the parent company is not presented as part of these 
financial statements the profit of the parent company for the 
financial period amounted to £3006000 2012 loss £469000
5 operating profit
group
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
operating profit is after charging
crediting 
inventory expensed – cost of mobile 
topups and sim cards as principal 32004 40046
depreciation on owned assets 3891 3085
loss on disposal of property plant 
and equipment 31 16
amortisation of intangible assets 180 248
operating leases  
– other operating lease charges 520 277
– atm service charge income 1089 1330
auditor’s remuneration note below 368 265
research and development costs 1850 3725
staff costs note 3 30159 25905
2013
£000
2012
£000 
auditor’s remuneration 
fees payable to the company’s 
auditor for the audit of the 
company’s annual accounts 10 10
fees payable to the company’s 
auditor for the audit of the 
company’s subsidiaries 142 137
total audit fees 152 147
fees payable to the group’s auditor 
for the review of the interim results 23 22
auditrelated assurance services 23 22
fees payable to the group’s auditor 
and its associates for other services to 
the group   
tax compliance services 107 64
tax advisory services 86 32
total other services 193 96
total auditor’s remuneration 368 265
fees payable to deloitte llp and its associates for nonaudit 
services to the company are not required to be disclosed 
because the consolidated financial statements are required to 
disclose such fees on a consolidated basis a description of the 
work of the audit committee is set out on page 18 and includes 
an explanation of how auditor independence is safeguarded 
where nonaudit services are provided by the auditor  50 paypoint plc annual report 2013
notes to the financial statements continued
 8 dividends on equity shares
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
equity dividends on ordinary 
shares 
interim dividend paid of 102p per 
share 2012 87p 6906 5885
proposed final dividend of 202p 
per share 2012 paid 178p per 
share 13728 12074
proposed special dividend of 150p 
per share 2012 nil 10182 
total dividends paid and 
recommended of 454p per share 
2012 265p per share 30816 17959
amounts distributed to equity 
holders in the period   
final dividend for the prior year 12051 10565
interim dividend for the current 
period 6906 5885
18957 16450
the proposed final and special dividends are subject to approval 
by shareholders at the annual general meeting and have not 
been included as a liability in these financial statements
9 earnings per share
basic and diluted earnings per share are calculated on the 
following profits and number of shares
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
profit for basic and diluted 
earnings per share is the net profit 
attributable to equity holders of 
the parent 30979 26975
31 march 
2013
number of 
shares
25 march
2012
number of 
shares
weighted average number of 
ordinary shares in issue for basic 
earnings per share 67847512 67766430
potential dilutive ordinary 
shares   
longterm incentive plan 488772 
deferred share bonus 82787 
diluted basis 68419071 67766430
7  tax
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
current tax
charge for current period 10756 10270
adjustment in respect of prior periods 38 223
current tax charge 10718 10047
  
deferred tax  
creditcharge for current period 425 153
adjustment in respect of prior periods 23 62
deferred tax creditcharge note 14 402 215
 
total income tax 
income tax charge 10316 10262
 
the income tax charge is based on 
the united kingdom statutory rate 
of corporation tax for the period of 
24 2012 26 
the charge for the period can be 
reconciled to the profit before tax as 
set out in the consolidated income 
statement  
profit before tax 41267 37201
tax at the uk corporation tax rate of 
24 2012 26 9904 9672
tax effects of  
losses in countries where the tax 
rate is different to the uk 
110 17
disallowable expenses 307 28
utilisation of tax losses not 
previously recognised 
117 
losses in companies where 
a deferred tax asset was not 
recognised 
523 576
adjustments in respect of prior years 15 161
research and development 
allowance
133 291
tax impact of sharebased payments 122 396
revaluation of deferred tax asset 
from 25 to 23
79 59
actual amount of tax charge 10316 10262 paypoint plc annual report 2013 51
notes to the financial statements continued
goodwill arising on acquisition
31 march
2013
£000
25 march
2012
£000
paypointnet 18207 18207
paypoint romania 8704 8547
paybyphone 29659 29322
total 56570 56076
for paypoint romania the difference between the recoverable 
amount and the carrying amount at period end was £205 million 
headroom would reduce to £nil if either the forecast average 
growth in net revenue for the next four years of 121 reduced 
to 47 per annum 
for paybyphone the difference between the recoverable 
amount and the carrying amount at period end was £192 
million headroom would reduce to £nil if either the forecast 
average growth in revenue for the next five years of 303 
reduced to 260 per annum or if the discount rate applied to 
the forecast cash flows were to increase from 132 to 184
management does not consider that a reasonably possible 
change in one or more key assumptions during the next 
year could cause the recoverable amount of the other cash 
generating unit to fall below their carrying amount
11 other intangible assets
acquired
systems
£000
development
costs
£000
contracts 
with 
merchants
£000
total
£000 
cost 
at 25 march 2012 1800 1469 2052 5321
additions  2513  2513
at 31 march 2013 1800 3982 2052 7834
  
amortisation  
at 25 march 2012 965  2052 3017
charge for the 
period 180   180
at 31 march 2013 1145  2052 3197
  
carrying amount  
at 31 march 2013 655 3982  4637
at 25 march 2012 835 1469  2304
the amortisation period for acquired systems and development 
costs incurred is dependent upon their useful economic life and 
is between 5 years and 10 years  amortisation of merchant 
contracts is between 19 years and 46 years depending upon 
the merchant churn in the relevant acquired company
at 31 march 2013 the group had not entered into any material 
contractual commitments for other intangible assets
10 goodwill
the group tests goodwill annually for impairment or more 
frequently if there are indications that goodwill might be 
impaired the recoverable amounts of the cash generating 
units are determined from value in use calculations the key 
assumptions for the value in use calculations are those regarding 
the discount rates growth rates and expected changes to 
selling prices and direct costs during the period management 
estimates discount rates using pretax rates that reflect current 
market assessments of the time value of money and the risks 
specific to the cash generating units the growth rates are based 
on industry growth forecasts changes in selling prices and 
direct costs are based on past experience and expectation of 
future changes in the market
the group prepares cash flow forecasts derived from the most 
recent financial budgets approved by management for the next 
four years for paypointnet four years for paypoint romania and 
five years for paybyphone and extends cash flows to perpetuity 
terminal values are based on growth rates that do not exceed 
3 2012 3 the pretax rates used to discount the forecast 
cash flows are based on the group’s estimated weighted average 
cost of capital adjusted for country or business specific risk 
premiums  the pretax rates used were 130 2012 132 
for paypointnet 119 2012 119 for paypoint romania 
and 132 2012 133 for paybyphone
total 
£000
cost 
at 25 march 2012 56076
exchange rate adjustment 494
at 31 march 2013 56570
accumulated impairment losses  
at 25 march 2012  
 
impairment losses for the period 
at 31 march 2013  
 
carrying amount  
at 31 march 2013 56570
at 25 march 2012 56076
total 
£000
cost 
at 27 march 2011 57133 
exchange rate adjustment 1057
at 25 march 2012 56076
accumulated impairment losses 
at 27 march 2011  
impairment losses for the year
at 25 march 2012  
carrying amount
at 25 march 2012 56076
at 27 march 2011 57133  52 paypoint plc annual report 2013
notes to the financial statements continued
12 property plant and equipment
group
terminals 
and 
atms 
£000 
fixtures 
fittings  
and 
equipment 
£000 
land 
and 
buildings
£000
total 
£000
cost 
at 25 march 2012 35879 6495 6412 48786
additions 5264 1180  6444
disposals 26 230  256
exchange rate 
adjustment 86 36  122
at 31 march 2013 41203 7481 6412 55096
accumulated depreciation 
at 25 march 2012 29660 3627 287 33574
charge for the 
period 3098 705 88 3891
disposals 17 154  171
exchange rate 
adjustment 47 26  73
at 31 march 2013 32788 4204 375 37367
net book value
at 31 march 2013 8415 3277 6037 17729
at 25 march 2012 6219 2868 6125 15212
the cost of atms provided to retail agents under operating 
leases is £100 million 2012 £77 million and the accumulated 
depreciation is £73 million 2012 £62 million at 31 march 
2013 the group had entered into contractual commitments for 
the acquisition of terminals and atms amounting to £06 million 
2012 £16 million
group
terminals 
and 
atms 
£000 
fixtures 
fittings and 
equipment 
£000 
land 
and 
buildings
£000
total 
£000 
cost 
at 27 march 2011 33071 6072 6412 45555
additions 3510 554  4064
disposals 271 51  322
exchange rate 
adjustment 431 80  511
at 25 march 2012 35879 6495 6412 48786
accumulated depreciation 
at 27 march 2011 27632 3204 199 31035
charge for the year 2479 518 88 3085
disposals 244 42  286
exchange rate 
adjustment 207 53  260
at 25 march 2012 29660 3627 287 33574
net book value
at 25 march 2012 6219 2868 6125 15212
at 27 march 2011 5439 2868 6213 14520
13 investment in joint venture
on 5 february 2009 paypoint entered a 5050 joint venture 
with yodel formerly home delivery network the joint venture 
company drop and collect limited trades as collect paypoint 
subscribed to £500000 of ordinary shares in the company the 
joint venture company has the same accounting reference date 
as paypoint plc
paypoint’s share of aggregated 
amounts relating to joint ventures
31 march 
2013
£000  
25 march
2012
£000
total assets 1877 1223
total liabilities 7634 6015
share of net assets 5757 4792
loan to joint venture note 15 5800 4850
investment in joint venture 43 58
paypoint’s share of aggregated 
amounts relating to joint ventures
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
revenues 8876 4015
loss for period 965 1828
acquired
systems
£000
development
costs
£000
contracts 
with 
merchants
£000
total
£000 
cost 
at 27 march 2011 1800 218 2080 4098
additions  1251  1251
exchange rate 
adjustment   28 28
at 25 march 2012 1800 1469 2052 5321
amortisation 
at 27 march 2011 785  1984 2769
charge for the 
year 180  68 248
at 25 march 2012 965  2052 3017
carrying amount 
at 25 march 2012 835 1469  2304
at 27 march 2011 1015 218 96 1329 paypoint plc annual report 2013 53
notes to the financial statements continued
14 deferred tax asset
25 march
2012
£000
credit to 
income 
statement
£000
credit to
equity
£000
31 march
2013
£000
tax 
depreciation 1112 119  1231
sharebased 
payments  199 905 1104
intangibles 209 84  125
shortterm 
temporary 
differences 2   2
total 901 402 905 2208
27 march
2011
£000
charge 
credit to 
income 
statement
£000
25 march
2012
£000
tax depreciation 1304 192 1112
sharebased payments 107 107 
tax losses   
intangibles 293 84 209
shortterm temporary 
differences 2  2
total 1116 215 901
at the balance sheet date a deferred tax asset of £22 million 
2012 £09 million was recognised on the basis that there will 
be sufficient future taxable profits against which the deferred 
tax asset can be recovered based on management forecasts
at the balance sheet date the group had unused tax losses 
of £99 million 2012 £95 million available for offset against 
future profits for which no deferred tax asset is recognised 
included in unrecognised tax losses were losses of £10 million 
which will expire in less than three years and £28 million that 
will expire within four to seven years other losses may be 
carried forward indefinitely
no deferred tax liability has been recognised in respect 
of temporary differences associated with investments in 
subsidiaries because the group is in a position to control the 
timing of the reversal of the temporary differences and it is 
probable that such differences will not reverse in the foreseeable 
future the aggregate amount of these differences was not 
material at the balance sheet date
during the period a reduction in the main rate of corporation 
tax from 24 to 23 was enacted effective from 1 april 2013 
deferred tax has been calculated using the 23 corporation tax 
rate the government has announced that future reductions in 
the main rate of corporation tax to 21 from 1 april 2014 and 
to 20 from 1 april 2015 will be enacted in july 2013 these 
future reductions in the main tax rate are expected to have a 
similar impact as for 2013  however the actual impact will be 
dependent on the deferred tax position at that time  
15 investments
subsidiary undertakings 
the company a holding company has investments directly or 
indirectly in the following subsidiary undertakings
subsidiary of the 
company 
principal activity country of 
registration
paypoint 
network limited 
management of an  
electronic payment service
england and 
wales
paypoint 
collections 
limited 
provision of a payment 
collection service 
england and 
wales
paypoint retail 
solutions limited 
provision of retail services england and 
wales
paypoint ireland 
limited 
holding company in ireland ireland
paypoint 
network ireland 
limited 
management of an 
electronic payment service 
in ireland
ireland
paypoint 
collections 
ireland limited 
payment collection service 
in ireland 
ireland
paypoint services 
romania srl 
management of an 
electronic payment and 
collection service in 
romania
romania
metacharge 
limited 
internet payment service 
provider 
england and 
wales
paypointnet 
limited
internet payment service 
provider 
england and 
wales
counter payment 
managers 
limited 
esop scheme isle of man
paybyphone 
limited
provision of a payment by 
phone service
england and 
wales
paybyphone 
mobile 
technologies inc
provision of a payment by 
phone service
canada
paypoint 
technologies 
canada inc
holding company in 
canada
canada
mobile payment 
services sas
provision of a payment by 
phone service
france
the company holds 100 of the issued share capital of the 
above companies except mobile payment services sas where it 
holds 86 of the issued ordinary share capital 54 paypoint plc annual report 2013
notes to the financial statements continued
15 investments continued
group company
31 march 
2013
£000
25 march
2012
£000
31 march 
2013
£000
25 march
2012
£000
investments 
carried at 
cost
investment in 
ob10 limited 
note 27 435 435 435 435
investments in 
subsidiaries and 
joint venture   117890 114254
435 435 118325 114689
during the period the company loaned collect note 13 £095 
million 2012 £175 million the company also subscribed for 
additional share capital in paybyphone mobile technologies 
inc for £27million 2012 £31 million to paybyphone mobile 
technologies inc
16 inventories
in ireland and romania paypoint trades as principal for the 
processing and sale of mobile phone topups in addition 
paypoint romania purchases and sells mobile scratch cards and 
sim cards in the uk paypoint purchases sim cards stocks of 
evouchers scratch cards and sim cards are held at cost
17 trade and other receivables
group company
31 
march 
2013
£000
25 march
2012
£000
restated
3
27 march
2011
£000
restated
3
31 
march 
2013
£000
25 
march
2012
£000
trade 
receivables
1
21111 19184 14572  
allowance 
for doubtful 
debts 1552 1331 1850  
19559 17853 12722  
items in the 
course of 
collection
2
171982 97049 95287  
other 
receivables 2573 743 1024 496 485
prepayments 
and accrued 
income 4689 2847 3357 2 2
198803 118492 112390 498 487
1 the average credit period on the sale of goods is 32 days 2012 34 days
2 items in the course of collection represent amounts collected for clients 
by retail agents of which paypoint bears credit risk and will have title to 
the cash collected on only £39477000 of this balance at 31 march 2013 
2012 £29875000  credit risk is mitigated by daily direct debiting and the 
suspension of terminals where direct debits fail  at the date of this report all 
but £41000 has been collected from retailers
3 the 2012 and 2011 comparatives have been restated details of the 
restatement are explained in note 1 accounting policies – restatement of 
2011 and 2012 consolidated statements of financial position 
the group’s exposure to the credit risk inherent in its trade 
receivables is discussed in note 26  the concentration of credit 
risk is limited due to the spread of the retail agent merchant and 
client bases  clients retailers and merchants are credit checked 
to mitigate credit risk and in all new client contracts we have the 
right of setoff of funds collected against monies due
the historical level of customer default is low and as a result 
the credit quality of period end trade receivables is considered to 
be high the group reviews trade receivables past due but not 
impaired on a regular basis and in determining the recoverability 
of the trade receivables the group considers any change in the 
credit quality of the trade receivables from the date credit was 
initially granted up to the reporting date
included in the group’s trade receivable balance are debtors 
with a carrying amount of £8076502 2012 £6678275 
which are past due at the reporting date for which the group 
has not provided as there has not been a significant change in 
credit quality and the group believes that the amounts are still 
recoverable the average age of these receivables is 33 days 
2012 34 days and of the total balance £5905367 is past due 
by fewer than 30 days
group company
31 march 
2013
£000
25 march
2012
£000
31 march 
2013
£000
25 march
2012
£000
balance at the 
beginning of 
the year 1331 1850  
amounts 
utilised in the 
period 80 607  
increase in 
allowance 301 88  
balance at end 
of the year 1552 1331  
trade receivables past due by
less 
than 1 
month
£000
12 
months
£000
23 
months
£000
more 
than 3 
months
£000
total
£000
carrying 
value at 
31 march 
2013
5905 183 322 1667 8077
movement in the allowance for doubtful debts paypoint plc annual report 2013 55
18 cash and cash equivalents
included within group cash and cash equivalents is £6951000 
2012 £5073000 relating to monies collected on behalf of 
clients where the group has title to the funds client cash  an 
equivalent balance is included within trade payables note 19
the group operates cash pooling amongst its various bank 
accounts in the uk and therefore individual accounts can be 
overdrawn without penalties being incurred so long as the 
overall position is in credit  at 31 march 2013 the group’s cash 
was £46618000 2012 £35487000
notes to the financial statements continued
19 trade and other payables
group
31 march 
2013
£000
25 march
2012
£000
restated
4
27 march
2011
£000
restated
4
amounts owed in 
respect of client cash
1
 6951 5073 6132
other trade payables
2 
20872 17034 14891
trade payables 27823 22107 21023
settlement payable
3
171982 97049 95287
other taxes and social 
security 1999 2673 2916
other payables 2722 1574 1405
accruals 9593 6189 7110
deferred income 2702 4107 542
216821 133699 128283
1 included within trade payables is £6951000 2012 £5073000 relating 
to monies collected on behalf of clients where the group has title to the 
funds client cash an equivalent balance is included within cash and cash 
equivalents note 18 
2 the group aims to pay its creditors promptly in accordance with terms agreed 
for payment the group had 32 days purchases outstanding at 31 march 
2013 2012 33 days based on the average daily amount invoiced by suppliers 
during the period
3 payable in respect of amounts collected for clients by retail agents
4 the 2012 and 2011 comparatives have been restated details of the 
restatement are explained in note 1 accounting policies – restatement of 
2011 and 2012 consolidated statements of financial position 
20 operating lease receivables
31 march
 2013
£000
25 march
2012
£000
amounts receivable under operating 
leases
within one year 606 883
within two to five years 920 1475
1525 2358
the group enters into operating leases with some of its retail 
agents for the supply of atms the average term of each lease 
entered into is five years
21 other noncurrent liabilities
group company
2013
£000
2012
£000
 2013
£000
2012
£000
deferred income 169 247  
amounts 
owed to group 
companies   21137 3372
169 247 21137 3372
22 financial commitments
operating lease commitments
31 march 2013 25 march 2012
land and 
buildings 
£000
other
£000 
land and 
buildings 
£000 
other 
£000 
leases which 
expire 
within one year 808  608 
within two to 
five years 1523  1105  56 paypoint plc annual report 2013
notes to the financial statements continued
23 equity
sharebased payments equity settled share scheme
the group’s share schemes are described in the remuneration 
committee report on pages 23 to 35 the vesting period for 
all awards is three years and they are forfeited if the employee 
leaves the group before shares vest all awards made are free 
shares  the amount charged to the income statement in the 
period was £1332000 2012 £1112000
details of the share awards outstanding during the period are 
as follows
number
of shares
2013
number
of shares
2012
outstanding at the beginning of  
the period 1216224 1114103
granted during the period – long 
term incentive plan ltip 305559 312532
granted during the period – 
deferred share bonus dsb 91893 73075
lapsed during the period 198942 237263
forfeited during the period 1831 46223
released during the period 157983 
outstanding at end of the period 1254920 1216224
awards granted 
number of 
shares vesting date 
ltip 28 may 2010 488772 28 may 2013
dsb 1 june 2010 82787 1 june 2013
ltip 27 may 2011 312532 28 may 2014
dsb 2 june 2011 73075 1 june 2014
ltip 25 may 2012 305559 25 may 2015
dsb 25 may 2012 91893 25 may 2015
the long term incentive plan tranche partially vested on 4 june 
2012 under ifrs 2 the fair value charges of £952000 relating 
to this tranche that had been previously charged to the income 
statement are reversed through equity the deferred share 
bonus did not vest in june 2012 and accordingly the fair value 
charge of £242000 was also released through equity
the inputs into the black scholes model for the dsb and 
monte carlo model for ltip and dsb awards during the period 
are as follows
2013 2012
ltip dsb ltip dsb
weighted average  
share price 370 543 303 424 
expected volatility 43  51  
expected life 3 years 3 years 3 years 3 years
risk free rate 034  149  
expected dividend yield 440 440 690 680 
other sharebased payment plans
the employee share incentive plan is open to all employees 
of paypoint network paypoint collections paypoint retail 
solutions and paypointnet and provides for a purchase price 
equal to the market price on the date of purchase  the shares 
are purchased each month or employees can opt to purchase 
12 months at the start of each year and are placed in the 
employee share savings plan for a three to five year period
group company
2013
£000
2012
£000
2013
£000 
2012
£000
authorised share 
capital 
4365352200 
ordinary shares of 
13p each 2012 
4365352200 
ordinary shares of 
13p each 14551 14551 14551 14551
14551 14551 14551 14551
called up allotted 
and fully paid 
share capital    
67880234 ordinary 
shares of 13p each 
2012 67815819 
ordinary shares of 
13p each 226 226 226 226
226 226 226 226
called up share 
capital
at start of period 226 226 226 226
at end of period 226 226 226 226
investment in own 
shares
at start of period 216 216 216 216
used on share 
scheme vesting 216  216 
at end of period  216  216
share premium
at start of period 25 25 25 25
arising on issue of 
shares 272  272 
at end of period 297 25 297 25
sharebased 
payment reserve
at start of period 3138 3005 3138 3005
additions in period 1332 1112 1332 1112
released in period 1205 979 1205 979
at end of period 3265 3138 3265 3138
translation reserve
at start of period 360 471  
movement during 
period 1054 831  
at end of period 694 360  
retained earnings    
at start of period 88629 77125 108676 19616
profitloss for period 30951 26939 3006 469
noncontrolling 
interest loss for 
period included in 
above note 24 28 36  
dividends paid 18957 16450 18957 16450
dividends received    105000
adjustment on share 
scheme vesting  58 979 312 979
deferred tax 
on sharebased 
payments 905   
at end of period 101498 88629 93037 108676 paypoint plc annual report 2013 57
notes to the financial statements continued
24 noncontrolling interest
31 march
 2013
£000
25 march
2012
£000
at start of period 77 41
share of loss for period 28 36
at end of period 105 77
25 pension arrangements
the group administers a noncontributory defined contribution 
scheme for executive directors and employees the amount 
charged in the consolidated income statement for the period 
for pension costs of the group under the scheme was £706000   
2012 £713000 there is no accrual for pension contributions 
at the balance sheet date 2012 £nil
26 derivatives and other financial instruments
the group’s financial instruments comprise cash and various 
items such as trade receivables trade payables other payables 
bank loans and accruals which arise directly from the group’s 
operations the group’s policy is not to undertake speculative 
trading in financial instruments
the main risks arising from the group’s financial instruments 
are interest rate risk and liquidity risk the directors review 
and agree policies for managing each of these risks which are 
summarised below these policies have remained unchanged 
during the period the group has not used derivative 
instruments to manage its foreign exchange exposure
a interest rate risk
the group had no interest bearing financial assets at 31 march 
2013 other than sterling euro romanian lei us dollars and 
canadian dollars deposits of £46618000 2012 £35487000 
of these deposits £6951000 2012 £5073000 relates to 
monies held on behalf of clients where paypoint has title to the 
funds for periods of up to seven days
all sterling funds earn interest at the prevailing rate  the funds 
are deposited on shortterm deposits normally weekly or 
monthly or held in current accounts in cash  the group seeks 
to maximise interest receipts within these parameters
finance lease interest is charged on leases at fixed contractual rates
b liquidity risk
the group’s policy throughout the period ended 31 march 2013 
regarding liquidity has been to maximise the return on funds 
placed on deposit whilst minimising the associated risk
the group had no financial liabilities at 31 march 2013 other 
than shortterm payables such as trade payables and accruals
c foreign exchange risk
to date the group has not engaged in an active programme of 
foreign exchange risk management given the size and nature 
of the group’s nonsterling denominated balances the directors 
do not consider hedging necessary 
the group’s currency exposures comprise those transactional 
exposures that give rise to the net currency gains and losses 
recognised in the income statement such exposures comprise 
the monetary assets and monetary liabilities of the group that 
are not denominated in the operating or functional currency of 
the operating unit involved at 31 march 2013 these exposures 
were £nil 2012 £nil
d borrowing facilities
at the period end the group had an undrawn unsecured five 
year £35 million revolving loan facility from may 2011
e fair value of financial assets and liabilities
the directors consider there to be no material difference 
between the book value and the fair value of the group’s 
financial instruments at 31 march 2013
f market price risk
the group’s exposure to market price risk comprises interest 
rate exposure group funds are invested in money market cash 
deposits with the objective of maintaining a balance between 
accessibility of funds and competitive rates of return in practice 
this has meant that no deposits were made with a maturity 
greater than 30 days during the period
g capital risk management
the group’ s objectives when managing capital the definition 
of which is consistent with last year and is the group’ s assets 
and liabilities including cash are to safeguard the group’ s ability 
to continue as a going concern in order to provide returns for 
shareholders and benefits for other stakeholders
h credit risk
the group’s financial assets are cash trade and other receivables 
and investments the group’s credit risk is primarily attributable 
to its trade receivables and retailer debt to the extent that 
paypoint bears the credit risk clients retailers and merchants 
are credit checked to mitigate credit risk and in all new client 
contracts we have the right of setoff of funds collected against 
monies due the group’s maximum exposure at 31 march 2013 
was £63161000 2012 £54002000
i financial instrument sensitivities
financial instruments affected by market risk include deposits 
trade receivables and trade payables any changes in market 
variables exchange rates and interest rates will have an 
immaterial effect on these instruments 58 paypoint plc annual report 2013
notes to the financial statements continued
27 related party transactions
remuneration of the directors who are the key management of 
the group was as follows during the period
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
short term benefits and bonus
1
2272 2234
pension costs
2
161 156
long term incentives
3
529 
total 2962 2390
1 includes salary fees benefits in kind and annual bonus 
2 defined contribution pension scheme of which two current directors are 
members the remuneration committee has agreed that g earle’s pension 
contributions will be paid direct to him grossed up for tax
3 long term incentives include the value of 2009 dsb and ltip awards vested 
during the period 2012 2008 dsb and ltip awards
the remuneration of directors and key executives is determined 
by the remuneration committee having regard to the 
performance of individuals and market trends the directors’ 
remuneration is disclosed in the remuneration committee report 
on pages 23 to 35
paypoint has entered into a loan agreement with its 5050 
joint venture drop and collect limited trading as collect 
and during the period it has lent drop and collect limited an 
additional £095 million bringing the total loan to £580 million
the terms of the loan are
•	 interest payable annually at a rate of 3 months libor
•	 repayable upon termination of the joint venture or upon 
demand by the lender
the company and its subsidiaries in the ordinary course 
of business enter into various sales purchase and service 
transactions with collect these transactions are under terms 
that are no less favourable than those arranged with third 
parties these transactions are not considered to be significant
paypoint has a small investment in ob10 a company that 
specialises in electronic invoicing 
in the view of the directors the aggregate cost of £435000 
represents the fair value of the investment in the shares
david newlands dominic taylor george earle eric anstee and 
nick wiles all hold shareholdings in ob10 as follows
directors’ shareholding in ob10
31 march 
2013
25 march 
2012
 
d newlands 287 287
d taylor 144 144
g earle 040 040
n wiles 102 102
e anstee 008 008
28 notes to the cash flow statement
group company
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
53 weeks 
ended
31 march 
2013
£000
52 weeks 
ended
25 march 
2012
£000
profitloss before tax 41267 37201 3885 469
adjustments for     
depreciation of 
property plant and 
equipment 3891 3085  
amortisation of 
intangible assets 180 248  
share of losses in joint 
venture 965 1828  
net interest income 252 163  
sharebased payment 
charge 1332 1112 1332 1112
operating cash flows 
before movements in 
working capital 47383 43311 5217 643
decreaseincrease  in 
inventories 123 369  
increasedecrease in 
receivables 5378 4545 11 22
increasedecrease in 
payables 
– client cash 1878 1059  
– other payables 6662 6010 17362 20693
cash generated by 
operations 50668 43348 22568 21358
corporation tax paid 10559 10448  
bank charges paid 49 32  
net cash from 
operating activities 40060 32868 22568 21358
movements in items in the course of collection see note 17 and settlement 
payables see note 19 have not been included in this reconciliation as the directors 
do not consider them to be operating working capital balances paypoint plc annual report 2013 59
trading history
 period ended march
2005  
£m
2006  
£m
2007  
£m
2008  
£m
2009  
£m
2010  
£m
2011  
£m
2012  
£m
2013
£m
revenue 891 1200 1571 2121 2244 1966 1932 2000 2085
net revenue 369 461 577 699 774 774 827 904 1057
profit before tax 81 203 266 304 346 326 345 372 413
tax 22 34 79 94 108 105 106 103 103
profit after tax 58 169 187 210 238 221 238 269 310
earnings per share 
basic 87p 250p 277p 311p 356p 329p 352p 398p 457p
diluted 87p 247p 273p 308p 353p 327p 351p 398p 453p
dividend per share
excluding special dividends 52p 75p 91p 104p 116p 218p 234p 265p 304p
this table does not form part of the audited financial statements or notes as listed in the independent auditor’s report on page 37  all numbers quoted 
are reported under ifrs
notes to the financial statements continued 60 paypoint plc annual report 2013
this document is important and requires your immediate attention
if you are in any doubt as to any aspect of the proposals referred to in this document or as to the action you should take you should 
seek your own advice from a stockbroker bank manager solicitor tax adviser accountant or other independent professional adviser 
if you have recently sold or otherwise transferred all of your shares in paypoint plc please pass this document together with the 
accompanying documents to the purchaser or transferee or to the person who arranged the sale or transfer so they can pass these 
documents to the person who now holds the shares as soon as possible
paypoint plc
notice of annual general meeting
notice is hereby given that the 2013 annual general meeting of paypoint plc will be held at the offices of paypoint 1 the boulevard 
shire park welwyn garden city al7 1el on wednesday 24 july at 1500  you will be asked to consider and pass the resolutions 
below  resolutions 17 18 and 19 will be proposed as special resolutions  all other resolutions will be proposed as ordinary resolutions
ordinary business
1  to receive the financial statements and the reports of the directors and the auditor thereon for the 53 weeks ended 31 march 
2013 
2  to receive the remuneration committee report for the 53 weeks ended 31 march 2013 
3  to declare a final dividend of 202p per ordinary share of the company 
4  to declare a special dividend of 150p per ordinary share of the company 
5  to reelect mr eric anstee as a director 
6  to reelect mr george earle as a director 
7  to reelect mr david morrison as a director 
8  to reelect mr david newlands as a director 
9  to reelect mr andrew robb as a director 
10  to reelect mr stephen rowley as a director 
11  to reelect mr dominic taylor as a director  
12  to reelect mr tim watkinrees as a director  
13  to reelect mr nick wiles as a director 
14  to reappoint deloitte llp as auditor of the company  
15  to authorise the directors to determine the auditor’s remuneration  
special business 
16 that the directors are authorised in accordance with section 551 of the companies act 2006 the act to exercise all the powers of 
the company to allot relevant securities as defined in section 560 of the act up to an aggregate nominal amount of £6788168 
representing approximately onethird of the issued share capital of the company excluding treasury shares as at the date of this 
document provided that this authority shall expire on the conclusion of the annual general meeting of the company to be held in 
2014 or if earlier on the date which is 15 months from the date of this resolution save that the company shall be entitled to make 
offers or agreements before the expiry of such authority which would or might require relevant securities to be allotted after such 
expiry and the directors shall be entitled to allot relevant securities pursuant to any such offer or agreement as if this authority had 
not expired and all unexercised authorities previously granted to the directors to allot relevant securities are revoked 
17 that the directors are empowered in accordance with sections 570 and 573 of the act to allot equity securities as defined in 
section 560 of the act for cash under the authority conferred by resolution 16 above or by way of a sale of treasury shares as 
if section 5611 of the act did not apply to any such allotment provided that this power shall be limited to 
a  the allotment of equity securities in connection with a rights issue open offer or other offer of securities in favour of the 
holders of ordinary shares on the register of members at such record dates as the directors may determine where the 
equity securities respectively attributable to the interests of the ordinary shareholders are proportionate as nearly as may be 
to the respective numbers of ordinary shares held by them on any such record dates subject to such exclusions or other  paypoint plc annual report 2013 61
arrangements as the directors may deem necessary or expedient to deal with fractional entitlements or legal or practical 
problems arising under the laws of any overseas territory or the requirements of any regulatory body or stock exchange or 
by virtue of shares being represented by depositary receipts or any other matter whatever and 
b  the allotment otherwise than under subparagraph a above to any person or persons of equity securities up to an 
aggregate nominal amount of £1018225 representing approximately 5 of the issued share capital of the company 
excluding treasury shares as at the date of this document
 and shall expire upon the expiry of the general authority conferred by resolution 16 above save that the company shall be 
entitled to make offers or agreements before the expiry of such power which would or might require equity securities to be 
allotted after such expiry and the directors shall be entitled to allot equity securities pursuant to any such offer or agreement as 
if the power conferred hereby had not expired 
18 that subject to and in accordance with the company’s articles of association and pursuant to section 701 of the act the 
company is authorised to make market purchases within the meaning of section 6934 of the act of ordinary shares of 13 of 
one penny of the company provided that
a  the maximum number of ordinary shares to be acquired is 10175464 representing approximately 1499 of the issued 
share capital of the company excluding treasury shares as at the date of this document 
b  the minimum price exclusive of expenses which may be paid for an ordinary share is the nominal value of such share 
c  the maximum price exclusive of expenses which may be paid for an ordinary share shall not be more than the higher of i 
105 per cent of the average of the middle market quotations for an ordinary share taken from and calculated by reference to 
the london stock exchange daily official list for the five business days immediately preceding the day on which the ordinary 
share is purchased and ii the higher of the price of the last independent trade and the highest current independent bid for 
an ordinary share in the company on the trading venue where the purchase is carried out 
d  this authority shall expire on the conclusion of the annual general meeting of the company to be held in 2014 or if earlier on 
the date which is 15 months from the date of this resolution and 
e  the company may make any purchase of its ordinary shares under a contract concluded before this authority expires and 
which will or may be executed wholly or partly after the expiry of such authority
all shares purchased shall either i be cancelled immediately on completion of the purchase or ii be held sold transferred or 
otherwise dealt with as treasury shares in accordance with the provisions of the act
19 that any general meeting of the company that is not an annual general meeting may be called on not less than 14 clear days’ notice  
by order of the board
susan court
company secretary
23 may 2013
registered office 
1 the boulevard
shire park
welwyn garden city
hertfordshire
al7 1el 62 paypoint plc annual report 2013
notes to the notice of annual general meeting
1    a form of proxy is enclosed with this notice for use by shareholders to be valid a proxy must be received by the company’s 
registrar capita registrars pxs 34 beckenham road beckenham kent br3 4tu not less than 48 hours before the time of the 
annual general meeting appointment of a proxy does not preclude a shareholder from attending the annual general meeting 
and voting in person
2  a member entitled to attend speak and vote at the annual general meeting may appoint one or more proxies who need not 
be a member of the company to attend and on a poll to vote on his or her behalf to appoint more than one proxy you may 
photocopy the proxy form please indicate the proxy holder’s name and the number of shares in relation to which they are 
authorised to act as your proxy which in aggregate should not exceed the number of shares held by you please also indicate 
if the proxy instruction is one of multiple instructions being given all forms must be signed and should be returned together in 
the same envelope
 in order to be valid an appointment of proxy must be returned by one of the following methods 
•	 in hard copy form by post by courier or by hand to the company’s registrar capita registrars pxs 34 beckenham road 
beckenham kent br3 4tu or
•	 in the case of crest members by utilising the crest electronic proxy appointment service in accordance with the 
procedures set out below  
  and in each case must be received by the company not less than 48 hours before the time of the meeting
3 any person to whom this notice is sent who is a person nominated under section 146 of the companies act 2006 to enjoy 
information rights a nominated person may under an agreement between himher and the shareholder by whom heshe was 
nominated have a right to be appointed or to have someone else appointed as a proxy for the annual general meeting  if a 
nominated person has no such proxy appointment right or does not wish to exercise it heshe may under any such agreement 
have a right to give instructions to the shareholder as to the exercise of voting rights 
4  the statement of the rights of shareholders to appoint a proxy in paragraphs one and two above does not apply to nominated 
persons  the rights described in these paragraphs can only be exercised by shareholders of the company 
5 crest members who wish to appoint a proxy or proxies through the crest electronic proxy appointment service may do so 
for the annual general meeting and any adjournment thereof by using the procedures described in the crest manual crest 
personal members or other crest sponsored members and those crest members who have appointed a voting service 
providers should refer to their crest sponsor or voting service providers who will be able to take the appropriate action 
on their behalf in order for a proxy appointment or instruction made by means of crest to be valid the appropriate crest 
message a crest proxy instruction must be properly authenticated in accordance with euroclear uk  ireland limited’s eui 
specifications and must contain the information required for such instructions as described in the crest manual the message 
regardless of whether it relates to the appointment of a proxy or to an amendment to the instruction given to a previously 
appointed proxy must in order to be valid be transmitted so as to be received by the issuer’s agent id ra10 by the latest 
times for receipt of proxy appointments specified in the notice of annual general meeting for this purpose the time of receipt 
will be taken to be the time as determined by the timestamp applied to the message by the crest applications host from 
which the issuer’s agent is able to retrieve the message by enquiry to crest in the manner prescribed by crest the company 
may treat as invalid a crest proxy instruction in the circumstances set out in regulation 355 of the uncertificated securities 
regulations 2001 crest members and where applicable their crest sponsors or voting service providers should note that 
eui does not make available special procedure in crest for any particular messages normal system timings and limitations 
will therefore apply in relation to the input of crest proxy instructions it is therefore the responsibility of the crest member 
concerned to take or if the crest member is a crest personal member or sponsored member or has appointed a voting 
service providers to procure that his crest sponsor or voting service providers takes such action as shall be necessary to 
ensure that a message is transmitted by means of the crest system by any particular time in this connection crest members 
and where applicable their crest sponsors or voting service providers are referred in particular to those sections of the crest 
manual concerning practical limitations of the crest system and timings 
6   to be entitled to attend and vote at the annual general meeting or any adjournment thereof and also for the purpose of calculating 
how many votes a person may cast a person must have hisher name entered on the register of members of the company by  
600pm on 22 july 2013 or 600pm on the date being two days before any adjourned meeting changes to entries on the register 
of members after this time shall be disregarded in determining the rights of any person to attend or vote at the meeting
7  biographical details of the directors of the company are shown on page 20 of the 2013 annual report
8  each member attending the meeting has the right to ask questions relating to the business being dealt with at the meeting 
which in accordance with section 319a of the companies act 2006 and subject to some exceptions the company must cause 
to be answered  however no such answer need be given if
a to do so would interfere unduly with the preparation for the meeting or involve the disclosure of confidential information
b the answer has already been given on a website in the form of an answer to a question or
c it is undesirable in the interests of the company or the good order of the meeting that the question be answered paypoint plc annual report 2013 63
9 information relating to the meeting which the company is required by section 311a of the companies act 2006 to publish on 
a website in advance of the meeting may be viewed at wwwpaypointcom  a member may not use any electronic address 
provided by the company in this document or with any proxy appointment form or in any website for communicating with the 
company for any purpose in relation to the meeting other than as expressly stated in it
10 it is possible that pursuant to members’ requests made in accordance with section 527 of the companies act 2006 the 
company will be required to publish on a website a statement in accordance with section 528 of that act setting out any matter 
that the members concerned propose to raise at the meeting relating to the audit of the company’s latest audited accounts 
the company cannot require the members concerned to pay its expenses in complying with those sections the company must 
forward any such statement to its auditor by the time it makes the statement available on the website the business which may 
be dealt with at the meeting includes any such statement
11  the issued share capital of the company as at 23 may 2013 was 67881683 ordinary shares of 13 pence each carrying one 
vote each the company holds no treasury shares or unallocated shares for the purpose of employee share schemes therefore 
the total number of voting rights in the company on 23 may 2013 was 67881683
12  the following documents are available for inspection at the registered office of the company during normal business hours on 
any weekday and will be available at the place of the annual general meeting from 15 minutes before the meeting until it ends
•	 the	dir ectors’	service	agr eements	and	letters	of	appointment	and
•	 copies	of	the	curr ent	articles	of	association	of	the	company 
recommendation and voting intentions
with respect to resolutions 5 to 13 inclusive the board has considered the retiring directors’ performance and recommends 
that each director be proposed for reelection this opinion is based on an assessment of each director’s relevant knowledge and 
experience and the conclusion that in each case their informed opinions are of significant value and contribute greatly to board 
discussions the directors’ biographies can be found on page 20 of the 2013 annual report
the directors consider that all the resolutions to be put to the meeting are in the best interests of the company and its shareholders 
as a whole and most likely to promote the success of the company for the benefit of those shareholders those directors who are 
shareholders will be voting in favour of the resolutions and unanimously recommend that you do so as well  64 paypoint plc annual report 2013
explanatory notes to certain of the resolutions to be 
proposed at the annual general meeting
resolution 16 directors’ authority to allot shares
by virtue of section 551 of the companies act 2006 the act the directors require the authority of shareholders of the company to 
allot shares or other relevant securities the resolution numbered 16 authorises the directors to make allotments of up to  
22627228 ordinary shares representing approximately onethird of the issued share capital of the company excluding treasury 
shares as at the date of this document this amount is in line with abi guidelines if approved at the forthcoming annual general 
meeting the authority will expire no later than 15 months from the date on which the resolution is passed or on the conclusion of 
the annual general meeting of the company to be held in 2014 whichever is the sooner the directors have no present intention of 
exercising the authority proposed to be conferred pursuant to resolution 16 
resolution 17 authority for disapplication of statutory preemption rights
by virtue of section 561 of the act any issue by the company of equity capital for cash made otherwise than to existing shareholders 
on a proportional basis requires the consent of shareholders of the company unless the company has obtained their authority under 
sections 570 and 573 of the act the resolution numbered 17 is for that purpose it authorises the directors to allot shares by way of 
rights issue or pursuant to an open offer or otherwise than strictly pro rata when the directors consider that it is expedient to do so 
and also allows them to issue for cash up to 3394084 ordinary shares representing approximately five per cent of the issued share 
capital of the company excluding treasury shares as at the date of this document other than on a preemptive basis if approved at 
the forthcoming annual general meeting the authority will expire no later than 15 months from the date on which the resolution is 
passed or on the conclusion of the annual general meeting of the company to be held in 2014 whichever is the sooner 
resolution 18 authority to make market purchases of ordinary shares
by virtue of section 701 of the act the company may make market purchases of its own ordinary shares if authorised to do so by 
shareholders under resolution 18 the directors seek to renew an annual authority to make market purchases of shares each year 
the directors will seek to further renew this authority at the company’s annual general meeting any ordinary shares purchased under 
this authority would either be i cancelled immediately on completion of the purchase and the number of ordinary shares in issue 
reduced accordingly ii held sold transferred or otherwise dealt with as treasury shares in accordance with the provisions of the 
act or iii transferred to an employee benefit trust for the satisfaction of awards under the company’s existing share schemes 
the maximum number of ordinary shares which could be purchased under this authority is 10175464 being 1499 per cent of the 
issued share capital of the company excluding treasury shares as at the date of this document any repurchase of ordinary shares 
carried out by the company would be at a maximum price per ordinary share of 105 per cent of the average middle market price of 
such a share for the five business days immediately preceding the date of the purchase the price equal to the last independent trade 
or the highest current independent bid and at a minimum price equal to the nominal value the authority to repurchase ordinary 
shares will if approved by shareholders only be exercised after careful consideration by the directors and if such exercise would 
result in an increase in earnings per share and be in the best interests of shareholders generally if approved at the forthcoming 
annual general meeting the authority will expire no later than 15 months from the date on which the resolution is passed or on the 
conclusion of the annual general meeting of the company to be held in 2014 whichever is the sooner
resolution 19 authority to allow any general meeting of the company that is not an annual general to be called on not less than 14 
clear days’ notice
further to the implementation of the shareholder rights regulations the directors seek authority to hold general meetings other than 
annual general meetings on 14 rather than 21 days notice if approved at the forthcoming annual general meeting the authority 
will expire no later than 15 months from the date on which the resolution is passed or on the conclusion of the annual general 
meeting of the company to be held in 2014 whichever is the sooner  paypoint plc annual report 2013 65
form of proxy
paypoint plc – annual general meeting
iwe name
of address
hereby appoint the chairman of the meeting or the following personname of proxy
of address
as myour proxy to exercise all or any of myour rights to attend speak and vote in respect of myour voting entitlement of ……………………………… shares on 
myour behalf at the annual general meeting of the company to be held at 1500 on 24 july 2013 at the offices of paypoint plc 1 the boulevard shire park welwyn 
garden city hertfordshire al7 1el and at any adjournment thereof 
please indicate by ticking the box opposite if this proxy appointment is one of multiple appointments being made
 for the appointment of one or more proxy please refer to explanatory note 2 below
items 1 to 15 are items of ordinary business items 16 to 19 are items of special business
resolution
ordinary business
for against withheld
1 to receive the directors’ report and the financial statements for the 53 weeks ended 31 march 2013 together with the 
auditor’s report
2 to approve the remuneration committee report for the 53 weeks ended 31 march 2013
3 to declare a final dividend of 202p per ordinary share of the company
4 to declare a special dividend of 150p per ordinary share of the company
5 to reelect mr eric anstee as a director of the company
6 to reelect mr george earle as a director of the company
7 to reelect mr david morrison as a director of the company
8 to reelect mr david newlands as a director of the company
9 to reelect mr andrew robb as a director of the company
10 to reelect mr stephen rowley as a director of the company
11 to reelect mr dominic taylor as a director of the company
12 to reelect mr tim watkinrees as a director of the company
13 to reelect mr nick wiles as a director of the company
14 to reappoint deloitte llp as auditor of the company
15 to authorise the directors to determine the auditor’s remuneration
special business
16 ordinary resolution to authorise the directors to allot shares pursuant to section 551 of the companies act 
2006
17 special resolution to disapply statutory preemption rights pursuant to section 570 of the companies act 2006
18 special resolution to authorise the company to make market purchases of its ordinary shares up to 1499 of the 
issued share capital
19 special resolution to allow any general meeting other than an annual general meeting to be called on 14 days’ 
notice
to assist with arrangements if you intend attending the meeting in person please place an ‘x’ in the box opposite
signaturedate2013
in the case of a corporation this proxy must be given under its common seal or signed on its behalf by an officer duly authorised stating their capacity eg director company secretary
explanatory notes 
1 every holder has the right to appoint some other persons of their choice who need not be a shareholder as his or her proxy to exercise all or any of his or her rights to attend 
speak and vote on their behalf at the meeting if you wish to appoint a person other than the chairman please insert the name of your chosen proxy holder in the space provided 
see below if the proxy is being appointed in relation to less than your full voting entitlement please enter in the box next to the proxy holder’s name see below the number 
of shares in relation to which they are authorised to act as your proxy if left blank your proxy will be deemed to be authorised in respect of your full voting entitlement or if this 
proxy form has been issued in respect of a designated account for a shareholder the full voting entitlement for that designated account
2 to appoint more than one proxy you may photocopy this form please indicate the proxy holder’s name and the number of shares in relation to which they are authorised to act 
as your proxy which in aggregate may not exceed the number of shares held by you please also indicate if the proxy instruction is one of multiple instructions being given 
all forms must be signed and should be returned together in the same envelope
3 the right to appoint a proxy does not apply to persons whose shares are held on their behalf by another person and who have been nominated to receive communication from 
the company in accordance with section 146 of the companies act 2006 nominated persons nominated persons may have a right under an agreement with the registered 
shareholder who holds shares on their behalf to be appointed or to have someone else appointed as a proxy alternatively if nominated persons do not have such a right or 
do not wish to exercise it they may have a right under such an agreement to give instructions to the person holding the shares as to the exercise of voting rights
4 the vote withheld option above is provided to enable you to abstain on any particular resolution however it should be noted that a vote withheld is not a vote in law and will 
not be counted in the calculation of the proportion of the votes for and against a resolution
5 entitlement to attend and vote at the meeting and the number of votes which may be cast thereat will be determined by reference to the register of members of the company 
at 6pm on the day which is two days before the day of the meeting or adjourned meeting changes to entries on the register of members after that time shall be disregarded 
in determining the rights of any person to attend and vote at the meeting
6 to appoint one or more proxies or to give an instruction to a proxy whether previously appointed or otherwise via the crest system crest messages must be received by 
the issuer’s agent id number ra10 not later than 48 hours before the time appointed for holding the meeting for this purpose the time of receipt will be taken to be the time 
as determined by the timestamp generated by the crest system from which the issuer’s agent is able to retrieve the message the company may treat as invalid a proxy 
appointment sent by crest in the circumstances set out in regulation 355a of the uncertificated securities regulations 2001
7 the completion and return of this form will not preclude a member from attending the meeting and voting in person if you attend the meeting in person your proxy appointment 
will automatically be terminated 
8 to be effective all votes must be lodged not less than 48 hours before the time of the meeting at the office of the company’s registrar at capita registrars pxs 34 beckenham 
road beckenham kent br3 4tu
9 this form is issued only to the addressees and is specific to the unique designated account printed hereon this personalised form is not transferable between different  
i account holders or ii uniquely designated accounts the company and capita registrars accept no liability for any instruction that does not comply with these conditions 
business reply 
licence no rsbhuxkslrbc
pxs
34 beckenham road
beckenham
br3 4tu
3rd fold and tuck in
2nd fold
1st fold officers and professional 
advisers
directors
e anstee
g earle
d morrison
d newlands chairman
a robb
s rowley
d taylor
t watkinrees
n wiles
 nonexecutive directors
company secretary
s court 
registered office
1 the boulevard
shire park
welwyn garden city
hertfordshire al7 1el
united kingdom 
registered in england and wales 
number 3581541
independent auditor
deloitte llp
2 new street square
london ec4a 3bz
united kingdom
brokers
j p  morgan cazenove
25 bank street
london e14 5jp
united kingdom
cannacord genuity limited
88 wood street
london ec2v 7qr
united kingdom
jefferieshoare govett
vintners place 
68 upper thames street 
london ec4v 3bj
united kingdom
registrar
capita registrars
the registry
34 beckenham road 
beckenham
kent br3 4tu
united kingdom
this annual report has been produced using iso 14001 and fsc certified
environmental print technology together with vegetable based inks
furthermore we have worked in partnership with the carbonneutral company
to carbon offset the entire production and distribution of this document paypoint plc
1 the  boulevard shire park welwyn garden city hertfordshire al7 1el united kingdom
telephone 44 01707 600300  fax 44 01707 600333   wwwpaypointcom


Summary:
 2 paypoint plc annual report 2013 paypoint plc annual report 2013 3
chief executive’s review
cashout schemes grow
traditional paypoint payment transactions 
energy prepayment utility payments and 
mobile topups involve consumers paying cash 
in at retailers  paypoint can now offer clients 
the ability to pay cash out to their customers  
this is used for the dwp simple payment 
service for benefit and pension payments 
utilities including british gas and edf energy 
and most recently by local authorities for 
emergency benefit payments for which 
they have taken responsibility from central 
government  retailers earn commission on 
these schemes and with the introduction of 
single daily settlement will benefit from more 
convenient cash management as cashout 
sums will be deducted from direct debits taken 
for other transactions in addition consumers 
are likely to spend some of the money they get 
in store
“paypoint’s cashout scheme has been a 
real success for us in previous years and has 
proven to be the most convenient way for our 
customers to receive their rebates”
jackie kelly value delivery manager at  
british gas
paypoint romania expands  
payment schemes
paypoint in romania is now working with 
the majority of the national utility companies 
in the country and as their customers have 
become accustomed to paying their bills at 
paypoint many of the country’s regional water 
and sanitation service providers have signed 
up with paypoint to enable them to pay their 
water bills at the same time nova apaserv 
company in botoşani county sc vital sa in 
maramures county sc salubris sa which 
provides public sanitation services in iasi and 
the targoviste dambovita water company 
a regional operator of water systems and 
sanitation in dambovita county have all 
introduced the paypoint option to their 
customers during the year
“as well as providing high quality services 
we also wanted to reduce the time people in 
maramures spend paying bills so being able  
to pay them in local neighbourhood stores 
safely and quickly is definitely a great 
advantage for them”
geza gasparik general manager of sc vital sa
paypoint has delivered earnings growth in line with market expectations   our retail 
businesses uk  ireland romania and collect have grown and remain highly 
profitable and cash generative  our em business paypointnet and paybyphone has 
made good progress
the essence of the group’ s capability is the processing of high volume consumer 
transactions whether payments or value added services like parcels through a flexible 
platform adding value to clients in selected vertical markets  payment transactions are 
generally low value and embrace retail internet and mobile technologies and include 
money flowing both to and from the consumer  we add value by providing relevant 
additional services to retailers and online merchants across different geographies  providing 
greater consumer convenience is core to our proposition we are able to grow the 
business through selling to more clients in vertical markets by addressing more verticals by 
engaging more retailers and more merchants driving more consumers to use our services
strategy
our strategy which remains unchanged has four key elements
•	 breadth of payments capability 
the acceptance of a broad range of payments cash cards emoney etc through 
multiple channels retail internet and mobile phone
•	 strength in vertical markets 
t argeting sectors with high volume recurring consumer payments
•	 value added contentservices 
providing additional content or services to the payment channels and chosen vertical 
markets to create differentiation
•	 geographic reach 
identifying regions with attractive payment dynamics to create value through exporting 
our knowhow
paypoint has succeeded in introducing this broad payment hub capability to clients in key 
vertical markets energy telecoms and media financial services parkingtransport public 
sectorsocial housing retail and gamingleisure with the ability to process payments using 
the consumer’ s preferred method of payment and channel the delivery of payments 
between consumers and our clients encompasses transaction authorisation processing 
clearing and settlement and interfacing to banks card schemesnetworks and other 
financial intermediaries paypoint also provides value added content and services within 
each channel to differentiate the paypoint proposition from those of its competitors 
in our retail channels differentiation is achieved through providing retailers with a broad 
range of retail services including atms credit and debit card processing parcel collections 
and returns service sim cards and international money transfer  the high quality of service 
delivery to retailers is also critical to differentiation
in the internet channel differentiation to merchants is driven through a widening base 
of acquiring bank relationships increasingly in different geographies and payment types 
together with the quality of our fraud screening and reporting products 
our mobile channel delivered through paybyphone will similarly drive differentiation 
through its ability to leverage our cash retail payment capability and internet payment 
services combined with improving the consumer experience
technology
t echnology is at the heart of our service delivery and differentiation in all our businesses 
and we plan to continue to increase spending in this area  we see opportunities to 
integrate our payment channel technologies to provide better more efficient and complete 
solutions to our clients across a common platform irrespective of whether their customer 
has paid in a store online or on their phone  improving reporting to merchants and 
upgrading retailer management systems will enhance our ability to provide customers with 
a unique service and will contribute to growth  the reporting system under development 
for online merchants offers opportunity for extension to other clients across all distribution 
channels  as we invest in this more integrated solution we also plan to consolidate our 
data centres in two hosted sites  
growth and prospectslo
paypoint is well positioned in attractive markets to benefit from its strength in multi
channel payments and retail services   the growth in convenience retailing online and 
mobile commerce is expected to continue for the foreseeable future  our position within 
vertical markets including energy telecomsmedia financial services parkingtransport 
gamingleisure and public sectorsocial housing provides us with a platform to benefit from 
the investments being made by our clients and prospects  as businesses seek to serve 
their customers across a wider variety of distribution channels offering many payment 
options we are well placed with the breadth of our payment services and collect to 
serve their needs 4 paypoint plc annual report 2013 paypoint plc annual report 2013 5
chief executive’s review continued
vertical markets
our clients are a who’s who of consumer services companies in the countries we 
serve their needs to innovate and use new delivery channels should continue to 
drive opportunities for us in future in the uk the energy sector continues to grow its 
prepayment base and is now investing in next generation smart meters that should 
further strengthen the demand to serve prepayment customers not just for cash in 
store but also across our web and mobile channels government is mandating that all 
domestic gas and electricity meters should be smart by 2020
in recent years paypoint uk has added public sector capability to its portfolio welfare 
reform such as the universal credit and the related devolution of some benefits to 
the local authority level is likely to have a major impact on the requirements of central 
government local authorities and social housing associations where we are already 
active parking and transport authorities and operators are also keen to adopt smart 
technology mobility and multichannel delivery the very areas in which we deliver
retail
paypoint’s market leadership in retail payments and services remains at the core of 
its success we continue to be strongly differentiated through the unique quality and 
breadth of our client base and retail coverage we contract with the best convenience 
retailers and seek to extend the range of payments and services that we provide 
delivering new retail schemes that drive footfall and commission earnings to our retail 
partners securing their continuing commitment
convenience retailing is evolving from its former guise as a secondary topup shopping 
destination into a principal choice for many busy consumers looking for quality products 
and services as conveniently as possible the sector has benefitted from substantial 
investment in premises and upgraded ranges of local shops as a result of the entry of 
the major grocery multiples and symbol groups paypoint has been at the core of this 
transformation by being the principal innovator of instore payments and services 
helping local stores to become community hubs where consumers visit more often and 
for a greater range of activities we intend to build further on our contribution to the 
breadth and value of the convenience retail offer to local communities
an important recent retail service innovation builds on paypoint’s success in providing 
cash to consumers instore for government disbursements and service rebates in 
addition to the atm cash withdrawals which we have provided for much longer not 
only does cashout provide a further service offering by retailers to their local community 
it also reduces the amount of cash held in store  with the proposed introduction of 
single daily settlement where daily direct debits on retailers are reduced by the amount 
of cashout and atm withdrawals retailers will benefit from reduced cash banking and 
transaction costs further differentiating our services to them  we do not just seek to 
serve consumers through our retailers we also support our retailers with a broad range 
of services that support their own trading including card payments cash machines 
international money transfer promotional offers and sim card distribution 
these retail services boost the bottom line of our retail partners and improve our retail 
yield we have increased our field sales force by half since the latter part of the prior year  
they will help us find further retail sites which by virtue of improved uptake of retail 
services should not dilute our retail yield  there is substantial opportunity to increase the 
retailer base including atms  this will require more capital expenditure than previously 
expected and taken together with other capital plans will result in higher capital spend 
in the current year
international
in romania we have made good progress in growing profitability  cash payment is 
dominant across all demographics and we have nearly all the major consumer service 
companies as our clients our market share in clients we serve c12 is increasing but 
encouragingly for future growth is still at relatively low levels we aim to extend our 
client relationships to become the preferred and more exclusive supplier recently we 
displaced the post office in the county of iasi in the moldova region from the provision 
of bill payment for eon gaz which we will seek to replicate across the region and with 
other clients
the retail services opportunity in romania is at an earlier stage with international money 
transfer progressing well  we expect new retail services to come to market in the 
medium term and to continue to grow our outlet numbers and retail yield 
the potential for further international expansion will be reviewed this year
online support for  
the grand national
the grand national is watched by an estimated 
500 million people worldwide in the uk alone 
as much as twothirds of the adult population 
places a bet with an estimated £150m in 
total being wagered on the result  therefore 
the event is businesscritical for paypointnet’s 
online gaming clients   in the hour before 
the event paypoint saw an uplift in its total 
transactions from the whole gaming industry 
of over 91 compared to the same hour on a 
usual saturday   at peak we were processing 
more than four transactions a second
 
online gaming is one of the most demanding 
sectors for a payment gateway a highly 
global business it requires a very high level of 
security and fraud management a wide range 
of payment methods and the ability to manage 
the outflow of winnings as well as the inflow 
of deposits our clients value enormously the 
reliability of our operation during this critical 
period for them
“the grand national is one of the most 
important events of the year for us so we rely 
on paypointnet to provide us with flawless 
service capable of handling the huge spike in 
volumes while maintaining the high level of 
security and fraud management that we enjoy 
during the rest of the year”
denis kelly ceo stan james
leading the way with  
contactless payments
having been the first cash payments network 
in the uk to introduce contactless credit and 
debit card payments paypoint now operates 
more than 4000 contactless payment 
terminals the largest private sector retail 
network in the uk  
the number of contactless debit and credit 
cards in the uk passed 32 million at the end 
of 2012 retailers carry no financial risk and 
benefit from a transaction fee that is lower 
than for debit cards whilst consumers benefit 
from a faster transaction the convenience of 
not having to enter their pin and from not 
having to carry cash
as the range of locations where customers 
can use them grows – in taxis restaurants 
coffee shops sports centres buses car parks 
and on vending machines – customers are not 
only getting used to using their contactless 
cards but are increasingly expecting to be 
able to use them almost anywhere they spend 
their money because of the low value limit 
for contactless transactions they are ideal for 
purchases in convenience stores 4 paypoint plc annual report 2013 paypoint plc annual report 2013 5
collect
our most exciting new retail service in recent years has been collect a 5050 joint 
venture with yodel this service enables consumers to collect and return their home 
shopping parcels from any of over 5250 stores within the paypoint network the 
service is now in its fourth year and has an annual parcel run rate of over 9 million with 
significant growth potential the service has recently attracted new competition but 
we have a lead over our new competitors none of which come close to the breadth 
of coverage or volume of parcels that collect provides through a convenience retail 
channel  collect continues our successful strategy of providing consumers and clients 
with more convenient and cost effective alternatives to the post office this year should 
see a substantial expansion in our consumer send volumes with the launch of a faster 
service delivery option as an enhancement to the existing 35 day service collect is 
already proving attractive to consumers and small traders and is integrated into the 
amazon and ebay platforms
em commerce
our em commerce businesses paypointnet in the internet channel and paybyphone in 
the mobile channel operate in highly competitive markets which have attracted heavy 
investment from a wide range of market players ranging from global giants all the way 
down the scale to many innovative small startups  in this context paypoint has handled 
tens of millions of payments annually across both web and mobile channels and is still 
growing  however margin erosion in paypointnet and the continuing need to invest in 
paybyphone in advance of revenues have adversely affected profitability in the period 
under review  in order to realise the full potential that these businesses present we have 
now put them under single management to position better our capability in this fast 
changing market place and to benefit from potential cost synergies  both internet and 
mobile continue to be the highest growth areas of retail displacing and complementing 
traditional high street retailers  paypoint is applying focus to key vertical markets as we 
aim to build successful capabilities where we should be well rewarded and maintain a 
loyal client and merchant base
 
paybyphone parking will continue to concentrate on metropolitan opportunities in the 
uk france usa canada and selected other big cities we have had recent success in 
seattle paris suburbs london and in new york with a trial showing that this approach 
is helping us to secure the biggest available opportunities our westminster service is still 
amongst the most successful phone parking services in the world and we are the market 
leader in our core markets of the uk and north america
paypointnet will continue to promote and develop its range of payment services 
including connections to a broad range of acquirers support of international gateways 
sophisticated fraud screening payment card industry data security standard compliance 
and enhanced management reporting and control systems  these support our 
positioning as a wellrespected payment service provider we have a comprehensive 
service portfolio in the market and recognised strength in gaming and general 
ecommerce as paypointnet merchants and prospects look to add mobile payment 
capability the closer integration with paybyphone should enable us to be distinctively 
positioned with proven high volume products
consumers 
paypoint has traditionally served consumers through our business to business b2b 
relationships and we have remained a b2b or b2b2c consumer company in our 
approach however our innovation is taking us deeper into services which have a direct 
relationship with the consumer for example both collect and paybyphone have 
substantial consumer bases 
in addition the footfall from more than 11 million weekly transactions in paypoint retail 
outlets provides opportunity for enhanced consumer relationships paypoint achieved an 
82 brand awareness in our most recent bmrb survey and a 98 consumer satisfaction 
result surveyed by ipsos mori – a level in excess of most consumer service organisations  
our recently launched social networking activities have attracted bigger followings in a 
few months than many big name consumer service organisations have achieved in several 
years these are strong foundations on which to build our consumer brand more directly
as we build our group capability going forward we will be looking to extend our 
consumer base and to develop more value added propositions to increase our consumer 
yield as well as our client and retailer yields in doing this we should benefit from the 
strong consumer brand we have already developed  paypoint is one of the companies 
best placed to make further gains in the fast moving payment industry particularly in 
em commerce and has a market leading position in retail services on which we intend 
to build
dominic taylor
chief executive
23 may 2013
chief executive’s review continued
paybyphone reaches out to  
new york
following the recent introduction of 
paybyphone in seattle and new castle nj 
new york city has launched a paybyphone 
cashless parking pilot in the bronx the pilot 
allows motorists to pay for parking via the 
paybyphone app the internet or by telephone 
along 18 blocks and at the belmont municipal 
parking field there are no additional fees 
or changes to parking rates while motorists 
will also be warned via email or text message 
when their time is about to expire enabling 
them to pay for additional time paybyphone 
is also working with the new york police 
department whose traffic enforcement agents 
use handheld scanners to enter license plate 
numbers which are instantly crosschecked 
against received payments
“you can purchase parking time … you will 
receive a text message or email confirming 
your purchase you also get text or email 
warnings before your meter time expires and 
you can use paybyphone to extend your meter 
time without ever going back to your car so 
it really is everything you can think of to make 
your life better”
mayor michael r bloomberg of new york city
collect adding value for stores
by offering collect retailers in the paypoint 
network gain significant recurring footfall 
and commercial benefit as well as a valuable 
edge over their local competitors the service 
provides additional opportunities to raise 
customer loyalty and generate incremental 
sales over and above the commission earned 
from collect
research in 2013 showed that the average 
collect store earns additional annual revenue 
of £2712 as a direct result of offering the 
service collect contributes £673 per annum 
on average in commission with an additional 
£2039 of income generated from instore 
purchases by collect customers
almost two thirds 64 of customers had 
not used the store before using collect 
with 63 of customers stating that they 
would use the store again for other purchases 
in addition to using collect and nearly 
50 of customers purchasing other items 
from the store there are instant and lasting 
benefits for participating stores over a third 
of customers are using a mixture of collect 
services demonstrating the broad appeal of 
the collect product range