CAB Payments, a prominent player in the FX and cross-border payments market, has reported a noteworthy decline in its profits for the first half of 2024.
The London-listed firm attributes this downturn primarily to adverse currency movements, which have significantly impacted their financial performance.
CAB Payments announced a substantial decrease in pretax profit for the six months ending 30 June. The firm reported a pretax profit of £13.7 million, marking a 43% drop compared to the same period in the previous year. This substantial decline underscores the severe impact of adverse currency movements on their operations.
These figures highlight the financial strain the company has faced, attributed mainly to currency fluctuations and other external economic factors.
Despite the initial success, the company faced challenges soon after, including a significant profit warning linked to foreign currency policy changes by the Nigerian central bank.
Furthermore, the total transaction volume saw a 4% uptick, reaching £17.6 billion, contrasting with a 5% decline in market-wide payment flows in Sub-Saharan Africa, where the company primarily operates.
The company has also revamped its strategy, focusing on a more execution-focused approach. This includes new key appointments such as a global head of sales, head of network, head of payments, head of European business development, and chief operating officer.
The aim is to develop a diversified business model that ensures sustainable growth. This strategic shift is expected to address the current challenges and position the company for future success.
Despite this, the company remains optimistic about its future, expecting good growth across a broader range of currency corridors and an overall improvement in trading conditions.
CAB Payments has faced a challenging first half of 2024, with significant impacts from adverse currency movements affecting its financial performance.
However, with a strategic shift and new leadership in place, the company aims to navigate these challenges and pursue sustainable growth in the future.