(Alliance News) - 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 GBP17.6 million in pretax profit for 2024, down 53% from GBP37.6 million. Earnings per share fell 40% to 6p from 10p.
Total transactional income decreased 33% to GBP68.5 million from GBP102.7 million. This included Wholesale FX income falling 40% to GBP41.2 million, while Payments income declined 20% to GBP27.3 million from GBP34.2 million.
Operating free cash flow dropped 73% to GBP15.5 million from GBP56.8 million. Earnings before interest, tax, depreciation and amortisation decreased 38% to GBP27.0 million from GBP43.5 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 GBP37.2 billion from GBP34.7 billion, with those for developed markets rising 13% to GBP23.7 billion although volumes for emerging markets decreased 1% to GBP13.5 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.
By Emma Curzon, Alliance News reporter
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