CAB Payments Holdings PLC

Latest Results (21.12.2025):

Summary — CAB Payments Holdings PLC (Q4 2024 / Full year 2024): The company’s Annual Report & Accounts 2024 reports group revenue of £106.0m for the year, adjusted EBITDA of £30.8m (29% margin), and adjusted gross volumes of £37.2bn (growth +7%). Active B2B clients rose to 546 and network counterparties to 390. The business remains capital‑generative with total capital of £116.0m, no leverage and an operating free cash flow of £15.5m, although cash conversion weakened (50% in 2024 vs 88% in 2023). Management implemented a strategic reset in H2 2024 (new CEO and executive hires, organisational reshaping) and will not propose a dividend for 2024.

Financial headline

Revenue and margins: Group revenue £106.0m (FY2024) with adjusted EBITDA £30.8m and an adjusted EBITDA margin of 29% (down from c.47% in 2023). Adjusted gross volumes processed £37.2bn (+7% YoY).

Revenue drivers and profitability

Mix and pressures: Wholesale FX & Payments revenue (excluding certain currency effects) fell — reported Wholesale FX/Payments ~£41.8m after adjusting for NXX effects — and net interest income was £30.9m (2023: £31.7m). Management attributes margin and revenue compression to a stronger US dollar, weaker development‑aid budgets and softer IDO activity, plus a decline in some corridor‑specific tailwinds.

Cash, capital and balance sheet

Balance sheet: Total capital £116.0m (2023: £107.5m) with c.£10m identified as excess capital; the Group reports ample liquidity and no financial leverage. Operating free cash flow was £15.5m and cash conversion fell to 50% (2023: 88%). No dividend is proposed for 2024; capital allocation will prioritise growth and strategic investment, with buybacks/dividends to be considered only when sustainable.

Banking, trade finance and product actions

Banking leverage and trade finance: The Group increased Trade Finance and Working Capital limits (to £200m and £75m respectively) and trade finance assets increased to £180m (c.2.1x). Management highlights banking capabilities as a competitive advantage (e.g., IMTO licence in Nigeria) to deepen client relationships and improve FX pricing. The report also notes early use of asset sales (first asset sale referenced in Feb 2025) as part of capital management.

Network, clients and volumes

Commercial footprint: Active clients rose to 546 (+7%, 71 new clients in FY24); network counterparties increased to 390 (+18%). Top 20 clients represent ~44% of income, and geographic diversification increased with LATAM/MENA/APAC flows rising to ~7% of volumes. The Group states it processed significant development and remittance flows (report references £2.7bn in development aid flows and £1.8bn in remittance flows in FY2024, alongside broader payment flows into low/middle‑income countries).

Strategic reset and outlook

Management and strategy: Neeraj Kapur became CEO in June 2024; the executive team and CFO were refreshed and a restructuring (c.20% reduction in FTEs announced) was undertaken to realign costs and execution. The strategy focuses on four pillars — Clients, Network, Platform (banking licence), and Invest & Innovate — with continued investment in technology, expanded international presence (Amsterdam, New York, Abu Dhabi) and a VISA partnership. The Board expects improvements in revenue and margin over time but flags near‑term uncertainty given macro conditions and aid budget pressures.

ESG / impact

Sustainability and social impact: CAB highlights its B‑Corp certification and role in facilitating payments into emerging markets. The report emphasises support for development and humanitarian flows and positions ESG credentials as a commercial differentiator with development and multilateral clients.