CAB Payments profit slumps as currency moves hit first-half earnings

Fintech firm CAB Payments has reported a significant decline in profits for the first half of 2024, largely affected by adverse currency movements.

In their market update on Wednesday, the London-based company announced that its pretax profit for six months to 30 June was £13.7m, a considerable 43% decrease from the same period the previous year. Earnings per share also suffered, sliding to 4p from 6.1p.

The announcement further detailed a sharp reduction in adjusted EBITDA, which fell to £18.7m from the prior year's figure of £40m, with the adjusted EBITDA margin now at 33.5%, down from 55.7%.

CAB, which operates within the FX and cross-border payments sphere specifically targeting "hard-to-reach markets", went public on the London Stock Exchange in the previous summer and was pronounced the city's largest IPO of 2023 with a valuation of £800m.

Nevertheless, the firm was not immune to troubles and soon released a profit warning after suffering the impacts of substantial foreign currency policy changes by the Nigerian central bankone of several reasons causing a decline in r