Profits down at London-listed fintech CAB Payments

Profits at London-listed money transfer firm CAB Payments dropped by almost a third despite growth in gross income.

Cab Payments posted a profit of £23.9m after tax for last year, a 29% decrease from 2022.

The firm grew its gross income by a quarter, reaching £137.1m, credited in part to a solid onboarding of new clients. However, costs rose sharply, with staff and operating expenses rising by 27% and 45% respectively.

CEO Bhairav Trivedi said the firm was in the “final stages of the application process” for an EU licence and remained hopeful for its “US licence to be granted in the second half of this year”.

Trivedi said: “These licences will open up significant additional sales channels for CAB Payments among high-quality development organisations and remittance providers.”

CAB Payments, which provides business-to-business payment processing and foreign exchange services, listed on the London Stock Exchange last July with a valuation of £851m. The IPO was seen as a much-needed boost for the markets during London’s slowest year for public floats since 2010.

Shares in the company plummeted by more than 70% last October to 47.55 GBX, following a reduced revenue guidance for the year.

CAB Payments’ share value recovered slightly but remains significantly lower than its IPO price of 310.00 GBX. At the time of publication, CAB Payments shares are valued at 99.30 GBX.