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CAB Payments Holdings PLC on Thursday reported a drop in earnings but said it ‘remains profitable and cash generative’ despite a challenging environment.
Shares in CAB were down 8.7% at 48.95 pence early on Thursday afternoon in London.
The London-based payment processing and foreign exchange provider reported £17.6 million in pretax profit for 2024, down 53% from £37.6 million. Earnings per share fell 40% to 6p from 10p.
Total transactional income decreased 33% to £68.5 million from £102.7 million. This included Wholesale FX income falling 40% to £41.2 million, while Payments income declined 20% to £27.3 million from £34.2 million.
Operating free cash flow dropped 73% to £15.5 million from £56.8 million. Earnings before interest, tax, depreciation and amortisation decreased 38% to £27.0 million from £43.5 million.
However, CAB pointed out: ‘The group remains profitable and cash generative, whilst navigating macro-economic challenges.
‘Operational KPIs indicate positive strategic momentum, with elevated levels of investment in 2024 to build a more robust and sustainable business model.’
The company noted that volumes rose 7% to £37.2 billion from £34.7 billion, with those for developed markets rising 13% to £23.7 billion although volumes for emerging markets decreased 1% to £13.5 billion.
CAB declared no dividend, unchanged from 2023, saying it ‘has been investing surplus capital generated into the business’.
Looking ahead, CAB Payments commented: ‘The business is structured to optimise earnings growth through a more sustainable business model, driving lower income concentration and increased diversification...The strategic diversification of the income base driven by a stronger in-geography sales focus, expansion of its network and having a more integrated solutions based banking and customer proposition will go towards mitigating evolving macro headwinds.’
The company also said it expects to generate on-year income growth in 2025.
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