PayPoint plc outperforming with 5.5% yield and growing resilient income, says fund manager

PayPoint

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.

Share on:
Find more news, interviews, share price & company profile here for:

Latest Company News

Norcros plc offers “considerable upside” as acquisitions strengthen growth, highlights fund manager (LON:NXR)

Gervais Williams of Diverse Income Trust, discusses Norcros’ resilient first-half performance, its move away from capital-intensive manufacturing, and how targeted acquisitions and operational synergies are supporting growth despite weak end-market demand.

Victorian Plumbing Group set for strong growth as scale and efficiency improve, hails fund manager

Gervais Williams, Co-Fund Manager of Diverse Income Trust, explains why Victorian Plumbing’s acquisition of the MFI brand is less about the name and more about logistics, service levels, and market share gains.

Gervais Williams backs Ithaca Energy for sustained returns and exceptional dividend potential (LON:ITH)

In a DirectorsTalk interview, Gervais Williams, co-fund manager of Diverse Income Trust, said Ithaca Energy remains well positioned to deliver attractive returns despite oil price volatility.

ACG Metals positioned for strong cash generation and long-term value as copper production ramps up, highlights DIVI fund manager

Gervais Williams, Co-Fund Manager of Diverse Income Trust, explains why ACG Metals’ Turkey-based copper project is generating stronger-than-expected cash flow, how rising commodity prices are supporting valuation, and why the company could deliver long-term shareholder value through growth and future dividends.

Primary Health Properties surplus cash fuels generous dividend, Gervais Williams impressed

Gervais Williams highlights the benefits of long-dated, inflation-linked leases, fixed-rate debt, and synergies from the Assura acquisition, which he believes support resilient earnings, dividend growth, and balance sheet strength despite higher interest rates.

Arbuthnot Banking Group ‘remarkably low valuation given its prospects’ says DIVI Fund Manager

Gervais Williams discusses how Arbuthnot Banking Group’s rising funds under management, deposit growth, and cautious lending strategy contribute to sustainable earnings and dividend potential, positioning the £142m bank as an overlooked opportunity in the UK financial sector.

Search

Search