CAB Payments moves to reassure investors after profit warning
The payments firm now says total income for 2023 will be up 25 per cent
In the wake of its disastrous profit warning last October that wiped nearly 75 per cent off of its share price, London-listed payments firm CAB Payments this week moved to reassure investors.
In a trading update, the company said that its total income for 2023 will be up 25 per cent year-on-year on the £109.4m it delivered in 2022 when its results are announced at the end of March.
Along with this, CAB Payments wrote that it has “a high quality and growing customer base” that it says includes G10 government entities, global remittance companies and major market banks.
“The Company continues to believe that successful execution of its strategy will provide material growth opportunities in the coming years and support its robust profit and cash generation.”
Last July CAB Payments listed on the London Stock Exchange for £3.35 per share giving it a valuation of over £850m, today the company’s stock trades at around 93p for a valuation of £238m.
The sharp downturn was triggered after CAB revealed its 2023 revenue would be 17 per cent lower than forecast due to “a number of changes to the market conditions in some of its key currency corridors”.
It blamed the Nigerian Naira, which fell by nearly 40 per cent against the dollar last year, and recent turmoil in the value of the Central African franc and West African franc all having the impact of “compressing margins and reducing trading volume”.
This week CAB’s stock rose around 5 per cent following the publication of the trading update.