Full-year income on track at Cab Payments

(Sharecast News) - Cab Payments Holdings said it had seen a 25% jump in full-year income on Tuesday, marginally ahead of expectations. Updating on end-of-year trading, the payment processing specialist said total income for the year to 31 December was set to be 25% higher than the previous year. Total income in 2022 was £109.4m.

Most analysts were expecting total income of around £132m in 2023.

Cab, which debuted on the London market last summer, said it had benefited from customers switching from incumbent providers to specialists such as itself. The fintech helps businesses make payments in traditionally hard-to-reach markets.

It continued: "The company has a high quality and growing customer base, made up of G10 government entities, some of the world's best known international development organisations, global remittance companies, emerging markets financial institutions and, increasingly, major market banks.

"Cab has laid out a clear strategy to grow its customer base, expand its presence to new markets and broaden its product offering."

Cab joined the London market in July at just over 300p. The shares then plunged in autumn, however, after it warned on profits.

At the time, Cab said it had been hit by the steep drop in the Nigerian naira as well as central bank intervention in the central African franc.

Canaccord Genuity said on Tuesday: "We are comforted to see Cab deliver a small beat to our own and consensus forecasts for the 2023 full-year.

"We believe continued rebuilding of trust with the market post the October profit warning, demonstrated through managing and exceeding expectations, is required to drive any meaningful re-rating."

Canaccord has a 'speculative buy' rating and a target price of 246p.

As at 0915 GMT, the shares were up 2% at 98.50p.