CAB Payments Holdings PLC on Tuesday predicted revenue grew 25% in 2023, as the cross-border payments and foreign exchange firm looks to win back some market confidence after its shares were battered by a guidance cut in October.
CAB said total income in 2023 is expected to have risen 25% from the £109.4 million achieved in 2022.
‘The company continues to benefit from the structural shift in its markets from incumbent providers to specialists such as CAB Payments. The company has a high quality and growing customer base, made up of G10 government entities, some of the world’s best known international development organisations, global remittance companies, emerging markets financial institutions and, increasingly, major market banks,’ CAB said.
‘CAB Payments has laid out a clear strategy to grow its customer base, expand its presence to new markets and broaden its product offering.’
In October, the firm predicted total income to be ‘at least’ 20% ahead of the £109.4 million achieved in 2022. That outlook was about ‘17% below previously issued guidance’, however, CAB added.
‘In recent weeks, the company has seen a number of changes to the market conditions in some of its key currency corridors, on top of the ongoing uncertainties surrounding the naira, which are impacting both volumes and margins; most notably, the Central African franc and West African franc. At the present time, these market conditions are compressing margins and reducing trading volume,’ CAB warned at the time.
The naira is the currency of Nigeria. The Central African franc is used in Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea and Gabon. The West African franc is used in Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo.
Shares in the company plunged 72% on October 24, the day of the guidance cut.
The stock float in July at £3.35 per share, giving it a market capitalisation on admission of £851.4 million.
Shares in the company fell 2.9% to 93.90 pence each in London on Tuesday morning, down 70% from its initial public offering price.
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