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PayPoint and Royal Mail Strengthen Partnership with Strategic Investment in Collect+

Story Highlights
  • PayPoint and IDS announce a strategic investment in Collect+, with IDS taking a 49% stake.
  • The partnership aims to expand Royal Mail services across Collect+’s network, enhancing market position.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
PayPoint and Royal Mail Strengthen Partnership with Strategic Investment in Collect+

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The latest update is out from Paypoint ( (GB:PAY) ).

PayPoint Plc and International Distribution Services (IDS), owner of Royal Mail, have announced a strategic investment in Collect+, with IDS acquiring a 49% stake for £43.9 million, valuing the business at £90 million. This partnership aims to expand Royal Mail services across Collect+’s network, enhancing its market position as a leading OOH store network in the UK. PayPoint will issue a special dividend and share consolidation, expected to be EPS enhancing by March 2027, reflecting the anticipated growth from this collaboration.

The most recent analyst rating on (GB:PAY) stock is a Sell with a £6.00 price target. To see the full list of analyst forecasts on Paypoint stock, see the GB:PAY Stock Forecast page.

Spark’s Take on GB:PAY Stock

According to Spark, TipRanks’ AI Analyst, GB:PAY is a Neutral.

Paypoint’s overall stock score reflects a combination of financial challenges and technical weakness. The most significant factor is the mixed financial performance, with stable revenue but declining profitability and increased leverage. Technical indicators suggest a bearish trend, which further impacts the score. Valuation offers some positive aspects due to a decent dividend yield, but the high P/E ratio limits its attractiveness.

To see Spark’s full report on GB:PAY stock, click here.

More about Paypoint

PayPoint Plc operates in the financial services industry, focusing on providing payment solutions and retail services. The company offers a network of Out of Home (OOH) locations across the UK, facilitating parcel collection, sending, and return services, as well as local banking and cash access services. PayPoint is known for its partnerships with carrier services to enhance consumer convenience in parcel handling.

Average Trading Volume: 148,868

Technical Sentiment Signal: Buy

Current Market Cap: £462.9M

See more data about PAY stock on TipRanks’ Stock Analysis page.

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