CAB Payments Holdings PLC

Latest Results (13.06.2024):

Revenue Growth

In the financial year ended 31 December 2023, CAB Payments Holdings PLC reported a significant increase in gross income, which rose by 25% year-on-year to £137.1 million. This growth was observed across all four client segments, highlighting the company's expanding influence in the business-to-business payments and foreign exchange sectors.

EBITDA Performance

CAB Payments Holdings PLC's adjusted EBITDA for the year 2023 increased by 17% to £64.6 million, up from £55.0 million in 2022. However, the EBITDA margin slightly decreased from 50% in the previous year to 47%. The company also faced a 12% decrease in EBITDA to £43.5 million, primarily due to costs associated with their Initial Public Offering (IPO).

Client and Partner Expansion

Throughout 2023, CAB Payments Holdings PLC saw a growth in its client base and banking partners. The total number of active clients increased by 12% to 509, and the number of banking partners grew by 16% to 331. This expansion underscores CAB Payments' strengthening network and its capability to attract and maintain high-quality clients and partners.

Strategic Licensing Developments

CAB Payments Holdings PLC is nearing the completion of its application for an EU license and anticipates the approval of a US license in the second half of 2024. These strategic moves are expected to significantly enhance the company's market opportunities, particularly with high-quality development organizations and remittance providers.

Profitability and Future Outlook

Despite robust revenue growth, CAB Payments Holdings PLC experienced a decline in profitability, with profit before tax decreasing by 14% to £37.6 million and profit after tax down by 29% to £23.9 million in 2023. Looking forward, the company remains optimistic about its growth prospects and its ability to capitalize on new market opportunities with the impending approval of new licenses.