PayPoint plc (LON:PAY) was discussed by Gervais Williams, Co-Fund Manager of Diverse Income Trust plc (LON:DIVI) in a wide-ranging exclusive interview about the Trust and LSE-listed companies in his portfolio.
DirectorsTalk asked:
In the financial services sector, PayPoint plc offer a system for channel payments and retailer services. They completed a strategic investment in obconnect, specialising in Open Banking technology at the end of 2024. Can you tell us more about how they’re doing?
Gervais Williams commented:
This is a company which is very UK-centric at the moment, you see it many times when you go into the corner shops. The great advantage of this company is actually its users are very resilient, so we expect whether there’s a recession or whether there’s good recovery, we think it’ll do perfectly well.
Most particularly over recent years, its valuation has been overlooked. It has been outperforming recently, and it is beginning to sell its technology overseas, as you mentioned with the Open Banking software. So, if anything, we think actually it’s standing at an overlooked valuation.
You’re looking at a company really where it is only on 10 times PE ratio as of Bloomberg’s analysis, going through to May ‘25, with a decent yield, 5.5% yield and growing, a nice, resilient outcome.
Diverse Income Trust plc invests primarily in quoted or traded UK companies with a wide range of market capitalisations, but a long-term bias toward small and medium sized companies.
