13th Sep 2023 13:32
(Alliance News) - CAB Payments Holdings PLC on Wednesday said it delivered "another set of record results" and was confident for the future amid significant growth in revenue and profit.
The Surrey, England-based business-to-business cross-border payments and foreign exchange provider is the largest company to list on the London Main Market so far in 2023, with a market capitalisation over GBP850 million at its initial public offering in July.
On Wednesday, CAB Payments reported pretax profit of GBP23.8 million in the first half of 2023, more than double the GBP11.2 million achieved a year prior.
The increased profitability came as CAB Payments reported a net foreign exchange gain of GBP48.2 million in the period, up sharply from GBP26.7 million a year before, and a GBP4.6 million gain on money market funds, compared to a gain of just GBP501,000 the previous year.
CAB's net interest income multiplied to GBP11.0 million from GBP2.4 million, further boosting profit. The company also recorded a GBP1.1 million net gain on financial assets mandatorily held at fair value through profit or loss, compared to a loss of GBP78,000 the year prior.
"CAB Payments made strong progress in the first half of 2023, reflected in another set of record results and significant growth in revenue and profit. We are making strong progress against our strategic objectives, with a significant expansion of our global network, the signing of some important new clients and an ongoing shift to our digital channel, EMPower Payments Gateway. This bodes very well for the future," said Chief Executive Bhairav Trivedi.
CAB said that while it was still early into the second half of the year, trading during the third quarter so far has been returning to more normal levels. It said that these positive trends, alongside a number of initiatives already in progress, provided the company confidence in both its short-term and medium-term outlook.
"The industry dynamics continue to be supportive to specialist providers like CAB Payments and our unique proposition and set of strengths positions the company well to deliver increasing shareholder returns into the future," the company said.
CAB Payments declared no dividend on Wednesday. However, prior to its IPO, it paid GBP5.6 million to shareholders in April and GBP5.7 million in June.
Shares in the firm were 4.4% to 274.00 pence on Wednesday afternoon in London, giving it currently a market cap of GBP696.4 million. The stock is down 18% from its IPO price of 335p.
By Heather Rydings, Alliance News senior economics reporter
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