Financial News

  • 30 January 2014, 11:05

PayPoint To Name Warren Tucker As Chairman

The listed payment services provider PayPoint is poised to name a former executive at engineering group Cobham as its next chairman, bringing the incumbent's 15-year reign to a close.

Sky News understands PayPoint is close to appointing Warren Tucker to the post as the company targets an ambitious expansion of its network.

Mr Tucker, whose arrival could be announced as soon as this week, will succeed David Newlands, who has been PayPoint's chairman since 1998.

He will take over a decade after PayPoint became a public company.

The finance director of Cobham until last year, Mr Tucker previously worked for British Airways and Cable & Wireless. He is now a non-executive director of Reckitt Benckiser, the consumer goods group, and the travel company Thomas Cook.

PayPoint, which has a market value of more than 700m, has grown into one of the biggest networks of retail payment services in the UK, handling more than 14bn from 760 million transactions each year.

Its name is ubiquitous across British high streets, with terminals in retailers such as the Co-op, Sainsbury's Local, Tesco Express and Londis, as well as thousands of independent outlets.

PayPoint terminals process energy meter prepayments, bill payments, mobile phone top-ups, transport tickets, TV licences and cash withdrawals and are benefiting from the rapid growth of mobile commerce and the automation of financial services.

The company also operates a consumer parcel drop-off and collection service using its retail network through Collect+, a joint venture with the delivery group Yodel.

Customers of the service include Amazon, eBay, ASOS, New Look, Boden, John Lewis, House of Fraser and Asda Direct.

The company also has 3,400 LINK-branded cash machines, while 8,000 of its terminals provide debit and credit card acceptance for retail partners.

In a trading update last week, PayPoint said it was performing in line with City expectations.

"Our retail businesses are continuing to generate satisfactory growth this year," it said.

"Bringing the (e-commerce and mobile commerce) businesses under single management will provide the opportunity to unlock better growth, which should lead to improved returns on our invested capital in these businesses."

PayPoint declined to comment.

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