Shares in CAB Payments, a British business-to-business cross-border payments firm, plummeted by over 60% following a significant downward revision of its revenue guidance.
The company had previously raised up to £335 million through its London Stock Exchange listing just three months ago. In a recent trading update, CAB Payments stated that it has been adversely affected by shifts in market conditions within key currency corridors, coupled with ongoing uncertainties surrounding the Naira. These factors are impacting both transaction volumes and profit margins. As a result, the firm now projects that its group revenue for 2023 will be at least 20% higher than the previous year, but about 17% lower than earlier forecasts.
To mitigate the impact on profitability, CAB Payments plans to implement cost-cutting measures and seek efficiency improvements. So far in 2023, the company has signed on 74 new customers and is optimistic that these additions will contribute to growth moving forward. However, the firm cautions that if the current adverse market conditions persist in key currency corridors, the softer exit rate from 2023 might lead to revenue growth in 2024 falling short of medium-term expectations.