30th Oct 2024 14:14
(Alliance News) - CAB Payments Holdings PLC on Wednesday said it no longer expects "positive leverage" in the second half of the year on account of reduced revenue, while it remains in discussions for a potential takeover offer.
CAB Payments is a payment processing and foreign exchange company based in London.
CAB Payments said revenue for July and August was in line with management expectations.
However, by the end of September revenue was marginally below expectations.
Cab Payments said it expects a sharp reduction in volumes from international developmental organisation clients due to global macro-economic and political factors, and said it is likely that the reduced volumes will continue into 2025.
More positively, CAB Payments said it is making good progress in executing its four strategic pillars.
The firm added that operating costs are expected to remain in line with expectations.
Chief Executive Officer Neeraj Kapur commented: "I am pleased with the progress that has been made since setting out our strategic framework in early September. We are continuing to diversify the business and enhance relationships with our clients at a senior level, including with key central banks. Our business model remains robust and we are still winning market share despite short-term market headwinds."
CAB Payments also noted that discussions regarding a possible takeover offer from StoneX Group Inc are continuing, and StoneX and its advisers are undertaking due diligence.
CAB Payments shares were up 0.7% at 121.92 pence each in London on Wednesday afternoon.
By Lydia Doye, Alliance News reporter
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