PayPoint has reported a hike in full-year sales and profits thanks to record transaction volumes and the growing popularity of its click & collect service Collect+.

Profits rose 10.9% to £41.3m in the year to 31 March, on sales up 4.2% to  £208.5m.

Group transaction volume rose 12% to a record 739 million during the period, while transactions in its UK & Ireland network rose 9%.

Collect+, its 50:50 joint venture with Yodel, more than doubled transactions to 7.7 million during the period. However, it remains loss making, reporting a loss of £1.9m, reduced from £3.6m the year before. PayPoint said it expected “substantial further improvement this year”.

Chairman David Newlands added: “For the current financial year, trading is in line with the company’s expectations. Our retail networks are strong and developing well. We intend to pursue further opportunities to grow the retail network, thereby increasing market share in bill payment and retail services, including ATMs, in the UK, Ireland and Romania.”

“We expect continued progress in the internet and mobile payment channels. Together, our businesses provide a strong foundation to deliver value for our shareholders.”