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Registered number: 02973115









PAYPOINT NETWORK LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
PAYPOINT NETWORK LIMITED
 
 
COMPANY INFORMATION


Directors
R Harding (appointed 14 August 2023)
N Wiles 




Company secretary
Indigo Corporate Secretary Limited



Registered number
02973115



Registered office
No 1 The Boulevard, Shire Park

Welwyn Garden City

Hertfordshire

AL7 1EL




Independent auditors
PricewaterhouseCoopers LLP, Statutory Auditors
Chartered Accountants

40 Clarendon Road

Watford

Hertforshire

WD17 1JJ





 
PAYPOINT NETWORK LIMITED
 

CONTENTS



Page(s)
Strategic Report
1 - 8
Directors' Report
9 - 12
Independent Auditors' Report to The Members of PayPoint Network Limited
13 - 15
Statement of Comprehensive Income
16
Statement of Financial Position
17 - 18
Statement of Changes in Equity
19
Notes to the Financial Statements
20 - 40


 
PAYPOINT NETWORK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present their Strategic Report together with the audited financial statements for the year ended 31 March 2024. The following strategic review is aligned to the PayPoint Group. 

Business review
 
The PayPoint Group provides a multichannel payments platform and delivers community services through our retailer partner and SME networks. Our financial performance has been positive, with net revenue growth across all our business divisions, excellent progress in parcels and digital payments, and good momentum in our key growth areas of Open Banking and integrated payments.

Accelerated revenue growth and momentum across all business divisions

Shopping

In Shopping, our consumer engagement platform for FMCG brands, PayPoint Engage, has driven campaigns, sales and consumer footfall into more of our stores over the year, with a healthy pipeline of activity continuing into the current financial year. In addition, we will be expanding this service by introducing a terminal-based app that will enable retailers to engage with these brands digitally, earning rewards for stocking certain products and providing insights. In addition, we have trialled a foreign currency service, in partnership with eurochange, and will continue to optimise this over the coming months. Our portfolio of services continues to grow, and is now delivering real commission earning opportunities to our retailer partners, with overall commission paid up 21.5% year on year.

We launched our new device, PayPoint Mini, in November 2023, delivering faster transaction times and a smaller, mobile device. Feedback has been very positive from our retailer partners and we are now rolling out our integrated solution, PayPoint Connect, partnering with third party EPoS suppliers to widen availability of our services and open up further integrated card payments opportunities within our extensive network.

E-commerce

In E-commerce, our year-on-year performance has been excellent, driven by our strength in the clothing and fashion categories, the continued expansion of new services with carrier partners, and the investment we have made over the past few years in ‘print-in-store’ technology which has unlocked significant additional volume, particularly from Vinted. Print in Store service now available in over 80% of network across circa 9,100 sites, enabled by the further rollout of Zebra label printers. In each of our carrier relationships, we have developed plans for the year ahead to grow volumes further through our network and to continue enhancing the in-store customer experience. 

Payments & Banking

In Payments and Banking, we continue to enhanced our capabilities, across Open Banking, cards, cash and Direct Debit, have given us a strong platform to secure a record level of new business this year, with further clients secured in the Housing sector, our first major Charity client in East Anglian Air Ambulance and continued progress in energy, local and central government. We were also delighted to have secured the DVLA contract for International Driving Permits, which launched on 1 April 2024.


Page 1

 
PAYPOINT NETWORK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks, financial risks and uncertainties
 
The Company is a subsidiary of PayPoint plc which manages risk and uncertainties from a central risk function. The risk function monitors risks and uncertainties from a wholistic group basis with risks and uncertainties common to all group companies.

The risk management and internal control framework, as part of the wider governance framework, aims to provide assurance and confidence to stakeholders about PayPoint’s ability to deliver its objectives and manage principal risks. During the year, the Group Audit Committee received and reviewed risk information relating to the key risk areas below, together with details of actions taken and relevant mitigating controls, prior to advising the Board in this regard.

The Board then carried out its formal assessment and gave final approval to the list of principal risks which were disclosed in the annual accounts of PayPoint plc and are extracted in the section below:


Risk Trend & Appetite
Potential Impact 
Mitigation Strategies 
Status 
Principal Risks 
Market Risks
1
Competition and Markets


Trend = Increasing 

Appetite =
High 


PayPoint’s markets and competitors continue to evolve. The decline in legacy business cash usage is expected to continue prompting the need for further business diversification. The current economic climate, of continually rising prices and lower spend levels by consumers, has continued from the previous financial year. The impact in particular markets, such as the Cards market, has been noticeable with transaction process volumes remaining subdued.

The Executive Board closely monitors consumer trends and spending behaviour, regularly re-assessing our markets, competitor activity, along with any opportunities to further de-risk its legacy business. We continue to develop our service offerings and to adapt to changes in consumer needs and behaviours, including strategic acquisitions or investments, where appropriate.
Risk is increasing as cost of living pressures have continued in the year causing changes in consumer activities, particularly in spending behaviours. This, along with the continued decline in cash legacy business has impacted income streams for certain parts of the business.
2
Emerging Technology



Trend = Stable 

Appetite = Medium 




As our markets continue to evolve, so does the technology supporting the service provision. Pressures to deliver new and innovative products remain and failure to keep pace with this technological change is a risk for the Group.
We continually review technological developments (including the evolution of AI) to understand how new technologies can be used to support and enhance our service offerings. The Executive Board closely monitors emerging technologies and the impact they may have on the Group. We also develop and implement our own innovative technology, where appropriate.


Risk is stable as Group acquisitions, investments and partnerships have helped to mitigate risks associated with emerging technologies. The ongoing programme of replatforming our digital proposition will facilitate the further expansion of our presence in digital payment markets. We continue to roll out the new, updated version of our retailer terminal – the PayPoint Mini.
Page 2

 
PAYPOINT NETWORK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


Risk Trend & Appetite
Potential Impact 
Mitigation Strategies 
Status
Strategic Risks 
3
IT Trans-formation 

Trend = Increasing 

Appetite = Medium 
Several significant IT projects are in our 3-year plan and the delivery of these projects will be key to delivering our business strategy and growth aspirations, along with platform resilience.
The Executive Board is accountable for the management and delivery of these projects, with oversight from the Group Board.
Risk is increasing as several of these projects have been mobilised after the FY24 year end and will be delivered over the course of the next 2 – 3 years.
Business Risks 
4
Client Services 


Trend = Increasing 

Appetite = Medium 
Clients expectations in terms of service level standards and compliance are increasing as the business diversifies into new products/ channels (such as community banking). Client retention and the exposure to clients developing in house solutions as an alternative to our services remains an ongoing risk, along with customer concentration risk, such as in Parcels.
PayPoint builds and carefully manages strategic relationships with key clients, retailers, redemption partners and suppliers. We continually seek to improve and diversify services through new initiatives, products and technology and our involvement in new and innovative markets.
Risk is increasing. We continue to renew contracts and onboard new retailers, clients, merchants and redemption partners in line with expectations. We have built on our services and continue to encourage our clients to diversify and utilise more than one of our service provisions. Working with our clients to continue to understand their requirements and how best we can meet our clients needs remains a priority for the Group.
5
Legal and
Regulatory


Trend = Increasing 

Appetite = Low 



PayPoint is required to comply with numerous contractual, legal, and continuously evolving regulatory requirements. Failure to anticipate and meet obligations may result in fines, penalties, prosecution and reputational damage. Increased levels of regulatory supervision, the implementation of consumer duty and the addition of new service offerings, such as open banking and PISP, have all increased the complexity of the regulatory environment in which we operate.
Our Legal and Compliance teams work closely with the business on all legal and regulatory matters and adopt strategies to ensure PayPoint is appropriately protected and complies with regulatory requirements. The teams advise on all key contracts and legal matters and oversee regulatory compliance, monitoring and reporting. Emerging regulations are incorporated into strategic planning, and we engage with regulators to ensure our frameworks are appropriate to support new products and initiatives.
Risk is stable. We continue to manage new legal and regulatory exposures through our risk  management framework and this framework has been rolled out across our Love2shop business following its acquisition in  2023. The two claims served on a number of companies in the Group in relation to the matters addressed by commitments made to Ofgem in 2021 in resolution of Ofgem’s competition concerns are still ongoing. The Group's position remains unchanged and we are confident that we will successfully defend these claims.
6
People 

Trend = Increasing  

Failure to retain and attract key talent impacts many areas of our business. A key element of the 3 year plan is revenue growth, and we
The Executive Board continues to monitor this risk, with oversight from the Remuneration Committee. We continue to invest in our
Risk is increasing. The delivery of £100m EBITDA requires significant revenue growth over FY25 and FY26 and a key element of this is
Page 3

 
PAYPOINT NETWORK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


Risk Trend & Appetite
Potential Impact 
Mitigation Strategies
Status
6

Appetite = Low
need to be confident we can attract/retain those individuals who are instrumental in driving top line growth, along with individuals who will support the operational transformation of our business. Key person dependencies, at both executive and senior management levels, have been noted as a key risk. 
people, with a clear focus on retaining talent and key person dependency. PayPoint’s purpose, vision and values, are defined and embedded within the business, our expected behaviours and our review and monitoring processes. An employee forum comprising employees from across the business engages directly with the Executive Board on employee matters.
retaining and attracting key talent to support delivery of this growth. Employee engagement surveys remain positive and key actions around cost-of-living support, better employee interaction and flexible working have been implemented.
Operational Risks 
7
Cyber
Security 


Trend = Increasing  

Appetite = Low



Cyber security risk continues to grow due to the growing volume and ever-increasing sophistication of the nature of these attacks and our expanding digital footprint. Such attacks may significantly impact service delivery and data protection causing harm to PayPoint, our customers and stakeholders. As the geographical instability has continued and increased over the last year, cyber-crime and its potential impact on our Group continues to increase as do our efforts to mitigate the likelihood of such an attack and in monitoring activities for potential instances of attack.
Recognising the importance and potential impact this risk poses to our business, the Executive Board regularly assesses PayPoint’s cyber security and data protection framework, and the Cyber Security and IT Sub-Committee of the Audit Committee maintains oversight. Our IT security framework is comprehensive, with multiple security systems and controls deployed across the Group. We are ISO27001 and PCI DSS Level 1 certified, and systems are constantly monitored for attacks with response plans implemented and tested. Employees receive regular cyber security training, and awareness is promoted through phishing simulations and other initiatives. We have implemented tools to assist in quick identification of potential threats. We operate a robust incident response framework to  address potential and actual breaches in our estate or within our supply chain. We  engage with stakeholders, including suppliers on cyber-crime and proactively manage adherence with data
Risk is increasing because of the growing volume and sophistication of cyber-attacks, coupled with our expanding digital footprint. We continue to enhance our architecture, systems, processes and cyber monitoring and response capabilities. We regularly engage third parties to assess and assist on our cyber defences and strengthen our controls and have implemented strong monitoring capability across the Group.
Page 4

 
PAYPOINT NETWORK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


Risk Trend & Appetite
Potential Impact 
Mitigation Strategies 
Status 



 protection requirements.

8
Business
Interruption

Trend = Increasing  

Appetite = Low  
Failure to provide a stable infrastructure environment or to promptly recover failed services following an incident can lead to loss of service provision, and financial and reputational loss. Interruptions may be caused by system failures, cyber-attack, failure by a third party or failure of an internal process. Recovery of the service can be hampered by lack of appropriate resilience levels.

PayPoint’s has developed a comprehensive and robust business continuity framework. This is reviewed by the Executive Board and the Cyber Security and IT sub-Committee of the Audit Committee maintains oversight of the framework and its implementation. Business continuity, disaster recovery and major incident response plans are maintained and tested with failover capabilities across third party data centres and the cloud. Systems are routinely upgraded with numerous change management processes deployed and resilience embedded where possible.Risk from supplier failure is managed through  contractual arrangements, alternative supplier arrangements and business continuity plans.
Risk is increasing. System disruption is an inherent business risk. However, we recognise that the acquisition of Love2shop, our IT transformation projects and our expansion into different products contribute to an increasing complexity of our operations. Better staff training and retention has enhanced our ability to detect and recover from service issues.
9
Credit and Liquidity/ Treasury Management 

Trend = Stable

Appetite = Low


The Group has significant exposures to large clients/ retailers, redemption partners and other counterparties. We process high volumes of payments which are dependent upon effective operational controls. The Group also operates a number of debt/banking covenants and interest expenses which must be carefully managed. Cashflow management plays an increasingly important role in the Group’s operations.
PayPoint has effective credit and operational processes and controls. Retailers and counterparties are subject to ongoing credit reviews, and effective debt management processes are implemented. Settlement systems and controls are continually assessed and enhanced with new technology. We have effective governance with oversight committees, delegated authorities and policies for key processes. Segregation of duties and approvals are implemented for all areas where fraud or material error may occur. Residual risk associated with potential default of gift card providers is mitigated through insurance.
Risk is stable. Cost of living pressures may impact our client and retail estate. However, we have robust monitoring and an increase in support payment processing in place to reduce default rates and impacts. The risk profile of our business operations remains stable. We continue to review and enhance our operational processes and controls, and relationships with our funding partners. We successfully refinanced to support the acquisition of Love2shop and our cash generation remains robust. We also successfully refinanced our facility in June 2024. Liquidity targets as planned for the year have been met.
Page 5

 
PAYPOINT NETWORK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


Risk Trend & Appetite
Potential Impact 
Mitigation Strategies 
Status 
10
Operational Delivery 


Trend = Stable  

Appetite = Low 

Delivery of key initiatives and strategic objectives, including sales and service delivery growth, is key to achieving the desired success levels anticipated for the group. Successful planning, forecasting and successful execution of all business function areas are key to ensuring operational delivery. Supply chain management is also a key factor in delivering our operational targets. Failure to manage this risk would hamper our business performance, impact our stakeholders, and lead to regulatory or legal sanctions.
The Executive Board has overall responsibility for delivering key initiatives implementing a robust control framework. The Executive Board have implemented a robust and effective reporting suite to ensure management of BAU activity is supported by timely and accurate business analysis. We continue to develop our Business Intelligence and Management information reporting capabilities to enhance, support and develop our management functions. Our project management methodology ensures projects are prioritised and governed effectively. Our existing processes are continuously reviewed to make sure they are efficient and well controlled. 
Risk is stable. We continue to focus on effective integration of Love2shop into our business. We continue to develop new services and enhance existing capabilities.
Emerging Risks
11
ESG and Climate 


Trend = Stable  

Appetite = Medium 

We continue to focus on environmental, social and governance matters and recognise that our business needs to be environmentally responsible to create shared value for all stakeholders. PayPoint continues to seek ways to reduce carbon emissions and its environmental impact. We continue to closely monitor the impacts on our business to ensure our revenue streams remain sustainable.
The CEO and the Executive Board have overall accountability for PayPoint’s climate and social responsibility agendas, and they recommend strategy to the Board. PayPoint aligns its business with reducing carbon emissions, and continually assesses its approach to environmental risk and social responsibility, which are embedded in our decision-making processes. We have multiple policies and processes governing our social responsibility strategy and we continually assess and evolve our strategy and working practices to ensure the best outcomes for stakeholders and the environment.
Our ESG working group has implemented various measures as we embed low carbon strategies into our working practices and business strategy. The roll out of the PayPoint Mini, our new terminal, supports reduction of our carbon footprint through production of lower emissions. We continue the move toward electric cars for our company fleet, helping our field team to travel in more environmentally friendly ways. We run an employee forum and have implemented various measures as a result, such as cost of living support.


Page 6

 
PAYPOINT NETWORK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial key performance indicators
 
The Company’s revenue has increased by 1.1% to £76,418(2023: £75,554k) mainly due to additional PayPoint one revenue generating sites in the network along with increase in parcel transactions volume. 
Cost of revenue has decreased by 3.0% to £31,820
(2023: £32,804k) due to decrease in cash out printing cost. 
Administrative costs have increased to £32,309
(2023: £30,476k), a increase of 6.1% on prior year mainly due to increased employee costs following an increase in staff numbers 
Profit before tax has increased by £611k to £12,278k
 (2023: £11,667k).

Other key performance indicators
 
Employee wellbeing, which is measured in the engagement survey, increased by 2% to 73% compared to the prior year which is very positive. This is an important measure due to the link between wellbeing at work and productivity.    
The financial and non financial key performance indicators of PayPoint plc, which includes the Company, are discussed in the group's annual report which does not form part of this report.

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172(1) of the Companies Act 2006 requires directors of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In doing this, section 172(1) requires directors to have regard to, amongst other matters, the:

Likely consequences of any decisions in the long-term.

Interests of the company’s employees.

Need to foster the company’s business relationships with suppliers, customers and others.

Impact of the company’s operations on the community and environment.

Desirability of the company maintaining a reputation for high standards of business conduct.

Need to act fairly as between members of the company.

In discharging our section 172(1) duties, we have regard to the factors set out above. In addition, we also have regard to other factors which we consider relevant to the decisions being made. Those factors, for example, include the interest and views of our clients; our retailer partners; regulatory bodies; and our relationship with our lenders.By considering the Company’s purpose, vision and values together with its strategic priorities and having a process in place for decision making, we aim to make sure that our decisions are consistent and appropriate in all circumstances.

We delegate authority for day-to-day management of the Company to the Executive Board and then engage management in setting, approving and overseeing execution of the business strategy and related policies. Board meetings are held periodically at which the Directors consider the Company’s activities and make decisions.

How we consider our stakeholders

The Company is part of the wider PayPoint Group and considers its stakeholders in alignment with the wider group. Engaging regularly with our stakeholders is fundamental to the way we do business, enabling us to consider their needs, concerns and the potential impact on stakeholders when making decisions in the Boardroom. Further information about how the Company engages with all of its stakeholders can be found in PayPoint plc annual report.

Page 7

 
PAYPOINT NETWORK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


This report was approved by the board and signed on its behalf.



R Harding
Director

Date: 29 November 2024

Page 8

 
PAYPOINT NETWORK LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the audited financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the Company in the year under review was operating an electronic transaction processing system, selling SIM cards and parcel processing.

Results and dividends

The profit for the year, after taxation, amounted to £9,254k (2023 - £9,766k).

During the year no dividends were declared or paid (2023: £nil).

Directors

The directors of the Company who were in office during the year and up to the date of signing the financial statements were:

A Dale (resigned 6 December 2023)
R Harding (appointed 14 August 2023)
N Wiles 

Environmental matters

The primary source of carbon emissions is business travel, mainly to visit existing and prospective retailers in the UK. We aim to reduce unnecessary travel and routes are pre planned to ensure efficiency where possible. Our second largest source of CO2 emissions arises from our energy consumption in our office. The Company promotes a cycle to work scheme and car sharing for our UK employees, where drivers offer lifts to other employees who live near them or on their route to work. We recycle paper, cans, plastic cups, cardboard, toners and print cartridges. Where possible, we also aim to recycle computer equipment. 
The Group's environmental policy can be found in PayPoint plc annual report. 

Future developments

Our strategic priorities have been refreshed for the FY25 financial year to reflect the expansion of our business and materially enhanced platform across the Group delivering sustainable, profitable growth and enhanced rewards for our shareholders.

Shopping business division

FMCG – further growth from our consumer engagement platform, PayPoint Engage.

Foreign Currency – development of our partnership with eurochange in circa 500 stores.

Park Christmas Savings – optimisation of our network of Super Agents for recruiting savers

E-commerce business division

Expanded carrier relationships – broadening range of services offered to each of our carrier partners, leveraging our superior in-store technology and network to drive further volume growth.

Network expansion – expanding from extensive convenience retail network into new sectors and locations, including student unions, transport hubs and hospitals.

Print In Store – further rollout of circa 2,000 additional Zebra label printers to widen access to service and support new partnerships, including Royal Mail.


Page 9

 
PAYPOINT NETWORK LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Payments & banking business division

New business growth – build a more systematic approach to growing our client base in target sectors of Housing and Charities for our MultiPay platform.

Open Banking growth – further expansion of our Open Banking services to new and existing sectors, leveraging CCS/DPS frameworks and working in partnership with OBConnect and Aperidata.

Government services – expand range of services provided for central and local government, building on the DVLA International Driving Permit service win and the existing DWP Payment Exception Service.

People, Technology & ESG

Deliver secure and resilient technology platform and services to all partners and launch improvements to core billing/settlement systems

Make further progress on our ESG approach across the enlarged business to deliver responsible and sustainable value for shareholders

Continue Women in Tech Forum and support for Pride, International Women’s Day and other relevant events.

Execute with intensity and accountability

People and culture

We aim to create a positive working environment that enables us to attract and retain a talented workforce. We recruit externally from a wide range of industries.
We keep our people informed of Company performance and new developments through different channels including formal business updates, staff briefings and regular team meetings.
PayPoint values diversity and it is important to us that our working environment is one where all are treated equally and which is free from discrimination in respect of gender, ethnicity, religion, sexual orientation, age or disability. We are committed to offering equal opportunities to all our people. Our Diversity and Inclusion Policy can be found on our website.

Engagement with suppliers, customers and others

This is covered in the Strategic Report under the section "Directors' statement of compliance with their duty to promote the success of the Company".

Disabled employees

The Company is committed to treating applicants with disabilities equally and supporting people who become disabled during their career with the Company. This includes making reasonable adjustments both to the recruitment process for applicants and to the working environment, including offering appropriate training, in order that disabled employees can achieve their full potential.

Qualifying third party indemnity provisions

In addition to the indemnity provisions in the Articles of Association, the Company has entered into direct indemnity agreements with each of the Directors who served during the financial year. These indemnities constitute qualifying indemnities for the purposes of the Companies Act 2006 and remain in force for all current serving Directors at the date of approval of this report without any payment having been made under them. The Company also maintains directors’ and officers’ liability insurance which gives appropriate cover for any legal action brought against its Directors.

Page 10

 
PAYPOINT NETWORK LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Matters covered in the Strategic Report

The Company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Company’s Strategic Report information required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors’ report. It has done so in respect of financial risk management. 

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Statement of directors’ responsibilities in respect of the financial statements

The directors are responsible for preparing the Annual Report and Financial Statements 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 have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 “Reduced Disclosure Framework”, and applicable law).
 
Under company law, directors must not approve the financial statements 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, the directors are required to:

select suitable accounting policies and then apply them consistently;

state whether applicable UK Accounting Standards, comprising FRS 101 have been followed, subject to any material departures disclosed and explained in the financial statements;

make judgements and accounting estimates that are reasonable and prudent; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are 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 also 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.

The directors are responsible for the maintenance and integrity of the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Directors’ confirmations

In the case of each director in office at the date the directors' report is approved:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 11

 
PAYPOINT NETWORK LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Independent auditors

The independent auditorsPricewaterhouseCoopers LLP, Statutory Auditorswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

The financial statements on pages 16 to 40 were approved by the Board of Directors and signed on its behalf by.
 





R Harding
Director

Date: 29 November 2024

No 1 The Boulevard, Shire Park
Welwyn Garden City
Hertfordshire
AL7 1EL


Page 12

 
PAYPOINT NETWORK LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYPOINT NETWORK LIMITED



Report on the audit of the financial statements

Opinion
In our opinion, PayPoint Network Limited's financial statements: 

give a true and fair view of the state of the company’s affairs as at 31 March 2024 and of its profit for the year then ended; 

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”, and applicable law); and 

have been prepared in accordance with the requirements of the Companies Act 2006.


We have audited the financial statements included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the statement of financial position as at 31 March 2024; the statement of comprehensive Income and the statement of changes in equity for the year then ended; and the notes to the financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence
We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern 
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
 
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
Page 13

 
PAYPOINT NETWORK LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYPOINT NETWORK LIMITED (CONTINUED)


With respect to the Strategic report and Directors' report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

Strategic report and Directors' report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors' report for the year ended 31 March 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors' report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements
As explained more fully in the statement of directors' responsibilities, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of data protection regulations and employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as Companies Act 2006 and UK tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the engagement team included:

Discussions with management and directors, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

Challenging assumptions and judgements made by management in any significant accounting estimates and judgements and considering adequacy of any associated disclosures;

Identifying and testing journal entries, in particular any unusual or unexpected journals;

Page 14

 
PAYPOINT NETWORK LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAYPOINT NETWORK LIMITED (CONTINUED)

As required by ISA 240, an element of unpredictability was incorporated into our audit testing.


There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting  
Under the Companies Act 2006 we are required to report to you if, in our opinion: 

we have not obtained all the information and explanations we require for our audit; or

adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or

certain disclosures of directors’ remuneration specified by law are not made; or

the financial statements are not in agreement with the accounting records and returns.


We have no exceptions to report arising from this responsibility. 




David Beer (Senior statutory auditor)
  
for and on behalf of
PricewaterhouseCoopers LLP, Statutory Auditors
Chartered Accountants
40 Clarendon Road
Watford
Hertforshire
WD17 1JJ

29 November 2024

Page 15

 
PAYPOINT NETWORK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£000
£000

  

Revenue
 4 
76,418
75,554

Cost of revenue
  
(31,820)
(32,804)

Gross profit
  
44,598
42,750

Administrative expenses
  
(32,309)
(30,476)

Operating profit
 5 
12,289
12,274

Interest receivable and similar income
 9 
307
53

Interest payable and similar expenses
 10 
(318)
(660)

Profit before tax
  
12,278
11,667

Tax on profit
 11 
(3,024)
(1,901)

Profit for the financial year
  
9,254
9,766

Other comprehensive income
  
-
-

Total comprehensive income for the year
  
9,254
9,766

The notes on pages 20 to 40 form part of these financial statements.

Page 16

 
PAYPOINT NETWORK LIMITED
REGISTERED NUMBER:02973115

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

  

Fixed assets
  

Intangible assets
 12 
6,771
7,090

Property, plant and equipment
 13 
17,800
18,395

Investments
 14 
-
-

  
24,571
25,485

Current assets
  

Inventories
 15 
17
18

Debtors: amounts falling due after more than one year
 16 
221
691

Debtors: amounts falling due within one year
 16 
28,833
20,590

Cash at bank and in hand
 17 
-
232

  
29,071
21,531

Creditors: amounts falling due within one year
 18 
(23,738)
(15,818)

Net current assets
  
 
 
5,333
 
 
5,713

Total assets less current liabilities
  
29,904
31,198

  

Creditors: amounts falling due after more than one year
 19 
(122)
(11,477)

Provisions for liabilities
  

Deferred taxation
 21 
(326)
(189)

Other provisions
 22 
(670)
-

  

Net assets
  
28,786
19,532


Capital and reserves
  

Called up share capital 
 23 
100
100

Profit and loss account
 24 
28,686
19,432

Total equity
  
28,786
19,532


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Page 17

 
PAYPOINT NETWORK LIMITED
REGISTERED NUMBER:02973115
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2024


R Harding
Director

Date: 29 November 2024

The notes on pages 20 to 40 form part of these financial statements.
Page 18

 
PAYPOINT NETWORK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£000
£000
£000

At 1 April 2023
100
19,432
19,532


Comprehensive income for the year

Profit for the financial year
-
9,254
9,254
Total comprehensive income for the year
-
9,254
9,254


At 31 March 2024
100
28,686
28,786



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£000
£000
£000

At 1 April 2022
100
9,666
9,766


Comprehensive income for the year

Profit for the financial year
-
9,766
9,766
Total comprehensive income for the year
-
9,766
9,766


At 31 March 2023
100
19,432
19,532


The notes on pages 20 to 40 form part of these financial statements.

Page 19

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

PayPoint Network Limited ('the company') is a private limited company by shares and incorporated, domiciled and registered in England in the United Kingdom, under the Companies Act 2006. The address of the registered office is given on the Company Information page and the nature of the Company's operations and its principal activity are set out in the Strategic Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework'  and the Companies Act 2006.
These financial statements are presented in Pounds Sterling rounded to thousands (£’000). The Pound Sterling is the currency of the primary economic environment in which the Company operates.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied consistently, other than where new
policies have been adopted:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
 - paragraph 118(e) of IAS 38 Intangible Assets;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
the requirements of paragraph 74A(b) of IAS 16
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a
Page 20

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.2
Financial Reporting Standard 101 - reduced disclosure exemptions (continued)

party to the transaction is wholly owned by such a member
   the requirement of new but not yet effective IFRS's.
 
This information is included in the consolidated financial statements of PayPoint plc for the year ended 31 March 2024 and these financial statements may be obtained from 1 The Boulevard, Shire Park, Welwyn Garden City, Hertfordshire, AL7 1EL.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.4

Going concern

At 31 March 2024, the Company had cash at bank and in hand of £(73)(2023: £232k). The Company has a resilient statement of financial position, with net assets of £28,786(2023: £19,532k) as at 31 March 2024, having made a profit for the year of £9,254(2023: £9,766k).

The Company meets its day-to-day working capital requirements through its cash reserves and group borrowings. The current economic conditions continue to create uncertainty, particularly over the level of demand for the Company’s services. The Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate within the level of its current cash reserves and group borrowings. After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 21

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Revenue

Revenue, as reported in the statement of comprehensive income, is derived from contracts with customers. It represents the value of services and goods delivered or sold to clients, retailer partners and SME partners. It is measured using the fair value of the consideration received or receivable, net of valueadded tax. Performance obligations are identified at contract inception and the revenue is recognised once the performance obligations are satisfied. Upfront payments for management fees and set-up and development fees in respect of contracts with clients, retailer partners and SME partners are deferred and recognised on a straight-line basis over the contracted period, which appropriately reflects that the clients, retailer partners and SME partners receive and consume the benefits of those performance obligations evenly throughout the contract.

The Company provides shopping and e-commerce services to retailer partners, which form part of PayPoint’s network. 

Shopping (retail services) revenue comprises:

Service fees from retailers that use PayPoint One, legacy terminals and EPoS, all of which are charged for on a weekly or monthly basis, and recognised on a straight-line basis over the period of the contract. Retailers simultaneously receive and consume the benefits related to the services fee; therefore, a straight-line approach appropriately reflects the transfer of the service.

Fees for receipt advertising and FMCG revenue from digital vouchering, digital screen advertising, sales data, and PayPoint’s retailer engagement channels which are recognised over the period of the campaign on a straight-line basis.

e-commerce revenue comprises:

Fees earned for processing parcels which are recognised when each parcel has been delivered or returned through the PayPoint network.

Payments and banking revenue is recognised as performance obligations are satisfied which is usually at the point in time each transaction is processed. Other than for the sale of SIM cards as principal, PayPoint is contracted as agent in the supply of payments and banking services and accordingly the commission earned from clients for processing transactions is recognised as revenue when each transaction is processed. 

Cash bill payments: customers of PayPoint’s clients can pay their bills (due to the client) over-the-counter at any of PayPoint’s retailer partners. PayPoint provides the technology for recording the payment of bills and transmission of that payment data to the client. PayPoint then collects bill payment funds from retailer partners and remits those funds to clients. 

Cash top-ups:  customers of PayPoint’s clients can top up their mobiles over-the-counter at any of PayPoint’s retailer partners. This category also includes revenue from the sale of SIM cards which is primarily earned from the mobile operators based on the value of top-ups after the initial activation. This revenue is contingent on the customer actions and is recognised at the point in time when the consumer tops up the SIM card. PayPoint contracts as principal for SIM card sales as it obtains control of the SIM cards before transferring control to the customer, therefore revenue is recognised at the gross sale price and cost of revenue includes the related cost.

Digital payments: CashOut enables the rapid dispersal of funds through secure digital channels, including the Payment Exception Service which is run for the Department for Work and Pensions by i-movo, delivering payments to those without access to a standard bank account. i-movo also issues digital newspaper vouchers which enable newspaper publishers to digitise consumer subscription services and home news delivery in local convenience stores.

Cash through to digital: CashOut enables the rapid dispersal of funds through secure digital
Page 22

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.6
Revenue (continued)

channels, including the Payment Exception Service which is run for the Department for Work and Pensions by i-movo, delivering payments to those without access to a standard bank account. i-movo also issues digital newspaper vouchers which enable newspaper publishers to digitise consumer subscription services and home news delivery in local convenience stores.

Cash through to digital: PayPoint provides the physical network of retail locations for consumers to convert cash into electronic funds with online organisations. Consumers pay for a ‘pin on receipt’ code in any of PayPoint’s retail locations and then can use that value online with their chosen digital brand or service across a comprehensive portfolio of banking, e-commerce, gaming and loyalty card partners.

 
2.7

Leases

The Company assesses whether a contract is a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases and leases of low value assets. For these leases, the Company recognises the lease payment as an operating expense on a straight-line basis over the term of the lease. 
The lease is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease. The lease liability is subsequently increased by the interest cost on the lease and decreased by payments made. In the event of a change in future lease payments, the lease liability will be remeasured and the difference recognised in the right-of-use asset. The lease liability is presented as a separate line in the Statement of Financial Position. 
The Company remeasures the lease liability and makes a corresponding adjustment to the right-of-use asset whenever there has been a lease payment change, the lease contract is modified or any other significant event. 
The right-of-use asset is initially measured at cost and subsequently at cost less accumulated depreciation and impairment losses. The right-of-use asset is depreciated over the shorter of the period of the lease term and useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use asset is presented within property, plant and equipment note. The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified loss as described in the ‘Property, plant and equipment’ policy.
The Company assessed whether it had any assets where it was a lessor and concluded that it does not lease any assets.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 23

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

 
2.13

Current and deferred taxation

The tax expense represents the amount payable in respect of the year under review based on the taxable profit for the year and deferred tax. Taxable profit differs from net profit as reported in the Statement of Profit or Loss because it excludes items of income or expense that are taxable or deductible in other years and items that are not taxable or deductible. 
The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the Statement of Financial Position date. 

Deferred tax is provided in full on taxable temporary differences between the tax bases of assets and liabilities and their carrying amounts. Deferred tax is calculated using tax rates that have been substantively enacted by the Statement of Financial Position date. Deferred tax assets are recognised on deductible temporary differences to the extent that it is probable that future taxable profit will be available against which the tax will be realised.
 
Page 24

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.13
Current and deferred taxation (continued)

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and interests in joint ventures, except where the Company 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 Statement of Profit or Loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is recorded in equity.
The credit for research and development tax claims is recognised within operating profit in the statement of comprehensive income.

 
2.14

Intangible assets

Intangible assets are stated at cost less accumulated amortisation and less accumulated impairment losses.  The Company develops computer software and other intangible assets for its own use. 
Development expenditure on large projects is recognised as an intangible asset if the product or process is technically and commercially feasible and the Company intends to and has the technical ability and sufficient resources to complete development, future economic benefits are probable and if the Company can measure reliably the expenditure attributable to the intangible asset during its development. The costs that are capitalised are the directly attributable costs necessary to create and prepare the asset for operations. Development costs recognised as an intangible asset are amortised on a straight-line basis over its useful life, which is between two & half and five years. Other software costs are recognised in administrative expenses when incurred. 
Costs incurred in the configuration and customisation of cloud-hosted SaaS arrangements are expensed where they do not give rise to an identifiable intangible asset which the Company controls. Amounts paid to the cloud vendor for configuration and customisation that are not distinct from access to the cloud software are expensed over the SaaS contract term. 

 
2.15

Property, plant and equipment

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold buildings
-
50 years straight line
Fixtures and fittings
-
3 to 5 years straight line
Terminals and equipment
-
3 to 5 years straight line
Right of use assets
-
3 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted
Page 25

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.15
Property, plant and equipment (continued)

prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Inventories

Inventories comprises stocks of SIM cards. These are stated at the lower of cost or net realisable value.


 
2.18

Debtors

Trade receivables are initially recorded at fair value and represent the amount of commission due from clients   or fees from retailers 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.

 
2.19

Cash and cash equivalents

For the purpose of the Statement of Financial Position, cash and cash equivalents comprise cash at bank and in hand and short term deposits with original maturity of less than three months and are subject to insignificant risk of changes in value.

 
2.20

Creditors

Trade payables are initially recorded at fair value and represent the value of invoices received from suppliers for purchases of goods and services for which payment has not been made.


 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.22

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
Page 26

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.22
Financial instruments (continued)

directly attributable to the acquisition or issue of financial assets or financial liabilities are added to or deducted from fair value on initial recognition.

Financial assets

Financial assets are classified depending on their nature and purpose and the classification is determined at the time of initial recognition.
Trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short term receivables when the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each Statement of Financial Position date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. 
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed on a collective basis.  Objective evidence of impairment for a portfolio of receivables includes past experience of collecting payments and the ageing of the receivables.
For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial assets original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables. A provision is created for trade receivables and any amounts that are subsequently written off are written off against the provision. Any changes in the provision are recognised in the Statement of Profit or Loss.
If in a subsequent period the amount of the impairment loss decreases and this decrease can be related objectively to events occurring after the impairment was recognised, the previously recognised impairment loss is reversed through the profit or loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
Financial assets are derecognised when, and only when, the contractual rights to the cash flows expire or when it transfers substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset, the difference between the asset’s carrying amount and
Page 27

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.22
Financial instruments (continued)

the sum of the consideration received and receivable is recognised in the Statement of Profit or Loss.

Financial liabilities

Financial liabilities including borrowing costs are initially measured at fair value, net of transaction costs, and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when, and only when the Company’s obligations are discharged, cancelled or they expire.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgements, 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.

Estimates and underlying assumptions are reviewed on an on going 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.

Critical estimate: Useful economic lives of intangible assets 

This is a critical estimate for the amount of amortisation that is recognised in the Profit or Loss Account and the carrying value of the asset in the Statement of Financial Position. The useful life used to amortise intangible assets relates to the expected future performance of the assets and management’s judgement of the period over which economic benefit will be derived from the asset. For development costs, the Company has determined the useful life based on historical experience with similar products and platforms controlled by the Company as well as anticipation of future events which may impact their life such as changes in technology.

A reasonably possible change to this critical estimate could impact the annual amortisation charge by a decrease of £618k (2023: decrease of £645k)


4.


Revenue

The whole of the revenue is attributable to the operation of the Company's electronic transaction processing system, commission from the sale of SIM cards and parcel processing.

All turnover arose within the United Kingdom.

Page 28

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£000
£000

Depreciation of tangible fixed assets
3,498
3,490

Amortisation of intangible assets, including goodwill
1,950
1,593

Exchange differences
15
28

Defined contribution pension cost
2,050
1,814

Cost of stocks recognised as an expense
163
199


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£000
£000

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
80
80

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs were as follows:


2024
2023
£000
£000

Wages and salaries
20,607
18,945

Social security costs
1,891
1,864

Cost of defined contribution scheme
2,050
1,814

24,548
22,623


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Sales, distribution and marketing
75
102



Operations and administration
458
366

533
468
Page 29

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Directors' remuneration

The directors below received total remuneration of £2,452k (2023: £1,851k) from the parent company during the year. The Company has not been charged for services provided to the Company by parent company. Following amounts would have been charged to the Company.
The allocation to the Company is based on a time basis.


2024
2023
£000
£000



N Wiles
365
352

A Dale
65
135

R Harding
86
-

516
487


9.


Interest receivable and similar income

2024
2023
£000
£000


Interest receivable from group companies
268
26

Other interest receivable
39
27

307
53


10.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
7
-

Interest on loans from group undertakings
282
655

Other interest payable
29
5

318
660

Page 30

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Tax on profit


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
3,134
1,802

Adjustments in respect of previous periods
(247)
37


Total current tax
2,887
1,839

Deferred tax


Origination and reversal of timing differences
137
120

Adjustment in respect of previous periods
-
(58)

Total deferred tax
137
62


Tax on profit
3,024
1,901

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£000
£000


Profit before tax
12,278
11,667


Profit before tax multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
3,070
2,217

Effects of:


Expenses not deductible in determining taxable profit
3
5

Capital allowances for year in excess of depreciation
6
(23)

Super deduction
-
(160)

Adjustments in respect of previous periods
(247)
(21)

Tax impact of share-based payments
192
(146)

Revaluation of deferred tax due to rate change
-
29

Total tax charge for the year
3,024
1,901

Page 31

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
11.Tax on profit (continued)


Factors that may affect future tax charges

The income tax charge is based on the UK statutory rate of corporation tax for the year of 25% (2023: 19%). Deferred tax has been calculated using the enacted tax rates that are expected to apply when the liability is settled, or the asset realised. During the prior financial year, an increase in the main rate of UK corporation tax from 19% to 25% with effect from 1 April 2023 was enacted. Deferred tax has been calculated based on the rate applicable at the date timing differences are expected to reverse.


12.


Intangible assets




Development expenditure

£000



Cost


At 1 April 2023
23,420


Additions - external
1,631


Disposals
(7,111)



At 31 March 2024

17,940



Accumulated amortisation


At 1 April 2023
16,330


Charge for the year on owned assets
1,950


On disposals
(7,111)



At 31 March 2024

11,169



Net book value



At 31 March 2024
6,771



At 31 March 2023
7,090

Intangible assets amortisation is recorded in cost of revenue in the statement of comprehensive income.




Page 32

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Property, plant and equipment





Freehold property
Fixtures and fittings
Terminals and equipment
Right of use assets
Total

£000
£000
£000
£000
£000



Cost 


At 1 April 2023
11,074
3,426
30,413
139
45,052


Additions
-
68
2,460
410
2,938


Disposals
(7)
(504)
(4,687)
(139)
(5,337)


Transfers between classes
-
(429)
429
-
-



At 31 March 2024

11,067
2,561
28,615
410
42,653



Accumulated depreciation


At 1 April 2023
2,348
1,915
22,273
121
26,657


Charge for the year on owned assets
220
80
3,044
154
3,498


Disposals
(7)
(504)
(4,652)
(139)
(5,302)


Transfers between classes
(22)
825
(803)
-
-



At 31 March 2024

2,539
2,316
19,862
136
24,853



Net book value



At 31 March 2024
8,528
245
8,753
274
17,800



At 31 March 2023
8,726
1,511
8,140
18
18,395


The net book value of owned and leased assets included as "Tangible fixed assets" in the Statement of Financial Position is as follows:

2024
2023
£000
£000


Tangible fixed assets owned
17,526
18,377

Right-of-use tangible fixed assets
274
18

17,800
18,395

Page 33

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           13.Property, plant and equipment (continued)

Information about right-of-use assets is summarised below:

Net book value

2024
2023
£000
£000

Motor vehicles
274
18

274
18




14.

Investments









Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

PayPoint Trust Managers Limited
1 The Boulevard, Shire Park, Welwyn Garden City, Hertfordshire, AL7 1EL
Dormant
Ordinary
100%
Event Payment Services Limited
1 The Boulevard, Shire Park, Welwyn Garden City, Hertfordshire, AL7 1EL
Dormant
Ordinary
100%


15.


Inventories

2024
2023
£000
£000

Finished goods and goods for resale
17
18

17
18


The Company holds stocks of mobile phone SIMs for resale to retailers. Stocks of SIMs are held at the lower of cost and net realisable value.


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 34

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Debtors

2024
2023
£000
£000

Amounts falling due after more than one year

Amounts owed by group undertakings
221
691

221
691


2024
2023
£000
£000

Amounts falling due within one year

Trade debtors
12,766
7,793

Amounts owed by group undertakings
9,958
5,199

Other debtors
101
1,184

Prepayments and accrued income
2,618
3,604

Contract assets
3,390
2,810

28,833
20,590


Amounts owed by group undertakings are unsecured, interest bearing 6.76% per annum (2023: between 3% & 3.5%), have no fixed date of repayment and are repayable on demand.


17.


Cash at bank and in hand

2024
2023
£000
£000

Cash at bank
-
232

Less: bank overdrafts
(73)
-

(73)
232


Page 35

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Creditors: Amounts falling due within one year

2024
2023
£000
£000

Bank overdrafts
73
-

Trade creditors
2,560
1,837

Amounts owed to group undertakings
11,972
5,578

Corporation tax
1,697
-

Other taxation and social security
1,957
3,264

Lease liabilities
136
12

Other creditors
462
291

Accruals and deferred income
4,678
4,255

Contract liabilities
203
581

23,738
15,818


Amounts owed to group undertakings are unsecured, interest bearing 6.76% per annum (2023: between 3% & 3.5%), have no fixed date of repayment and are repayable on demand.


19.


Creditors: Amounts falling due after more than one year

2024
2023
£000
£000

Lease liabilities
122
-

Amounts owed to group undertakings
-
11,477

122
11,477


Page 36

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Financial instruments

2024
2023
£000
£000

Financial assets


Cash at bank measured at fair value
-
232

Loans and receivables measured at amortised cost
26,229
16,638

26,229
16,870


Financial liabilities


Bank overdraft measured at fair value
(73)
-

Financial liabilities measured at amortised cost
(20,147)
(24,031)

(20,220)
(24,031)


The Company’s financial instruments comprise cash and various items such as trade receivables, trade payables and other payables, which arise directly from the Company’s operations. The Company's policy is not to undertake speculative trading in financial instruments.


21.


Deferred taxation




2024
2023


£000

£000






At beginning of year
(189)
(127)


Charged to profit or loss
(137)
(62)



At end of year
(326)
(189)

The provision for deferred taxation is made up as follows:

2024
2023
£000
£000


Accelerated capital allowances
(482)
(330)

Intangible assets
(251)
(310)

Share based payments
378
409

Other temporary differences
29
42

(326)
(189)

Page 37

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.

Deferred taxation (continue)

Deferred tax analysis


Accelerated capital allowance
Intangible assets
Share based payments
Other temporary differences
Total

£000
£000
£000
£000
£000

At 1 April 2022
(6)
(420)
190
109
(127)

Charged to profit or loss
(324)
110
219
(67)
(62)

At 31 March 2023
(330)
(310)
409
42
(189)

Charged to profit or loss
(152)
59
(31)
(13)
(137)

At 31 March 2024
(482)
(251)
378
29
(326)


22.


Other provisions




Other provision

£000





Charged to profit or loss
670



At 31 March 2024
670

During the year PayPoint plc conducted a group-wide review of its organisational structure to identify efficiencies which will enable future reinvestment in the business. The review resulted in the redundancy of 36 roles at PayPoint Networks Limited. The provision is expected to be fully utilised by October 2024.


23.


Called up share capital

2024
2023
£000
£000
Allotted, called up and fully paid



10,000,000 (2023 - 10,000,000) Ordinary shares of £0.01 each
100
100

Share capital represents the nominal value of shares issued.



24.


Profit and loss account

Retained earnings represents cumulative profits and losses, net of dividends paid and other adjustments.

Page 38

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


Share-based payments

The PayPoint Group’s share schemes are described in the Directors’ Remuneration Report of the Group’s Annual Report and consist of the Deferred Annual Bonus Scheme (DABS) and Restricted Share Awards (RSA) equity-settled share schemes.
51,993 share awards were granted under the RSA scheme in the year 
(2023: 93,258), vesting over two to three years, between 08 September 2025 and 08 September 2026. The RSAs do not contain any IFRS 2 performance conditions.
Nil share awards were granted under the DABS scheme in the year 
(2023: 3,266). The DABS do not contain any IFRS 2 performance conditions.
The amount charged to the statement of comprehensive income in the year was £555
(2023: £342k). A total charge of £nil (2023: £nil) previously recognised directly to equity for schemes which have now lapsed or vested was transferred from the share-based payments reserve to retained earnings during the year.

Share awards movement during the year:

Number
2024
Number
2023



Outstanding at the beginning of the year
220,124
198,917

Granted during the year
51,993
96,524

Share awards transferred to PayPoint plc during the year
-
-

Exercised during the year
(89,117)
(38,319)

Expired during the year
-
(36,998)

Outstanding at the end of the year
183,000
220,124

All awards granted are for free shares and therefore the weighted average exercise price for all outstanding schemes is £nil.

Share incentive plan

£294k (2023: £272k) related to the Employee Share Incentive Plan. For each share purchased by the employee under the Employee Share Incentive Plan, PayPoint plc issues a free matching share which will vest subject to the employee remaining employed with the Group for three years from the date each share was purchased by the employee.

For shares which vested under the Employee Share Incentive Plan, a charge of £150k (2023: £119k), which was previously recognised directly in equity, for schemes which have now lapsed or vested, was transferred from the share-based payments reserve to retained earnings during the year.


26.


Contingent liabilities

In FY24, a number of companies in the PayPoint Group, including PayPoint Network Limited, received two claims relating to issues addressed by commitments accepted by Ofgem in November 2021 as a resolution of Ofgem’s concerns raised in its Statement of Objections received by the PayPoint Group in September 2020. The Ofgem resolution did not include any infringement findings.

Page 39

 
PAYPOINT NETWORK LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

26.Contingent liabilities (continued)

The first claim was served by Utilita Energy Limited and Utilita Services Limited (subsequently renamed Luxion Sales Limited) (“Utilita”) on 16 June 2023. The second claim was served by Global-365 plc and Global Prepaid Solution Limited (“Global 365”) on 18 July 2023. A first Case Management Conference (CMC) was held on 31 October 2023 at the Competition Appeal Tribunal relating to these claims. The focus of the first CMC was to agree disclosure and a timetable for proceedings. A second CMC was held on 26 April 2024 to agree further disclosure and the appointment of expert witnesses for all parties. Both claims have been listed for a joint trial at the Competition Appeal Tribunal starting on 10 June 2025.

The Group’s position remains unchanged: it is confident that it will successfully defend the claim by Utilita, which does not provide any clear evidence to support the cause of action or the amount claimed, and also that it will successfully defend the claim by Global 365, which fundamentally misunderstands the energy market and the relationships between the relevant Group companies and the major energy providers, whilst also over-estimating the opportunity available, if any, for the products offered by Global 365. Consequently, no accounting provision has been made for these claims.

The Group will continue to update the market on a regular basis as part of its financial reporting cycle.


27.


Capital commitments

At 31 March 2024, the Company had £466k contractual commitments for the acquisition of Property, Plant and Equipment and software development (2023: £311k)


28.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £2,050(2023: £1,814k). There were unpaid pension contributions at the reporting date of £244(2023: £1k). This was paid following the year end.


29.


Controlling party

The immediate parent undertaking and ultimate controlling party of the Company is PayPoint plc.
The smallest and largest group to consolidate these financial statements is that headed by PayPoint plc. Copies of the PayPoint plc consolidated financial statements can be obtained from the Company Secretary at 1 The Boulevard, Shire Park, Welwyn Garden City, Hertfordshire, AL7 1EL. No other group financial statements include the results of the Company.

Page 40