PayPoint temporarily suspends CEO search process
Nick Wiles will remain in the role of executive chairman for the time being, in support of the executive team.
Paypoint plc (LON:PAY) today announces that its Board has decided to put on hold the search for Chief Executive Officer.
The company believes that, in the current environment, maintaining clarity and continuity in the leadership of the business is the most appropriate course of action. Nick Wiles will remain in the role of executive chairman during this period, in support of the executive team. Consequently, the CEO search process has been temporarily suspended and will be resumed once the situation becomes clearer.
Back in December 2019, FinanceFeeds reported that Patrick Headon stepped down from his role as CEO of the company.
In September 2019, Mr Headon took a temporary leave of absence from the company to receive treatment for a medical condition.
In December, PayPoint said that the company’s Chairman, Nick Wiles, has agreed to continue in the role of Executive Chairman until a new Chief Executive is appointed.
Paypoint notes that recent trading across the business has continued to be robust and most recently the company has seen areas of increased activity across its network, with consumers currently making higher levels of energy top-ups and increasingly using cards as their preferred payment method. As a result the Board remains confident that progress will be made in profit before tax and exceptional items for the financial year ending March 31, 2020.
However, the Board recognises that as one of the UK’s leading Bill Payment services providers, measures taken by the government through this period to provide financial support to UK households, such as a waiver on utility bill payments, may have as yet unclear and potentially adverse consequences for PayPoint bill payments volumes.
In terms of outlook for the next financial year, PayPoint’s initiatives to grow parcels, develop the EPoS proposition and other new services across the retailer network are expected to be slower than had been anticipated. As a result, the business will find it challenging to mitigate the impact from the loss of the British Gas contract and pricing pressure from other utility clients.
The Board is currently reviewing the impact of these challenges on PayPoint’s outlook for the financial year ending March 31, 2021 but at this stage cannot give precise guidance as to the impact.
PayPoint had net debt of £13.3 million (excluding cash held in respect of short term client settlement obligations) as at the end of December 2019. To ensure PayPoint remains in the best possible position to withstand a sustained period of disruption to trading, the £70 million revolving credit facility (forming part of an overall £75 million financing facility) has been fully drawn down.
