CAB Payments (CABP) H2 2024 earnings summary

Executive summary

• Executing a four-pillar strategy focused on network improvement, client-centricity, platform leverage, and technology innovation for growth.

• Transitioning to a global, relationship-driven model with new hubs in Amsterdam, New York, and Abu Dhabi to deepen market proximity and regulatory engagement.

• Business model is becoming more sustainable and diversified, with increased focus on client, product, and geographic diversity.

• Leadership team refreshed with major hires, including CFO, COO, and global heads for sales, payments, and banking, to support strategic execution and global expansion.

• Strategic initiatives and business transformation are underway to drive future growth.

Financial highlights

• Gross income declined 23% to £105.5 million in 2024 from £137.1 million in 2023, reflecting macro headwinds and margin compression.

• Adjusted EBITDA margin at 29%; adjusted EBITDA fell 52% to £30.8 million; adjusted profit after tax dropped 64% to £16 million.

• Volumes increased 7% to £37.2 billion; client base and network counterparties grew by 7% and 18%, respectively.

• Deposit base grew to £1.6 billion; CET1 ratio decreased to 19.2% from 25.5%.

• Operating costs rose 6% to £76.2 million, with staff costs flat at £45.5 million; 70% of costs are fixed.

Outlook and guidance

• CapEx expected to decrease to under £8 million in 2025 as major projects complete, with focus shifting to product enhancements.

• Positive operational leverage anticipated as income grows, with cost actions underway.

• New income initiatives in 2025 include enhanced payments, FX derivatives, structured solutions, and guaranteed deposits.

• Transformation program underway, targeting steady growth, operational leverage, and diversified revenue streams.