CAB Payments Holdings PLC (LSE:CABP) will next Tuesday provide the first update since the cross-border payments group's shock profit warning in October sent its shares crashing almost 80%.
That trading statement, which came only a few months after its £851 million float, stated that revenues would be 17% lower than expected as trading volumes and profit margins were being reduced in key African currencies, namely Central African franc (XAF) and West African franc (XOF), which together are used by 14 countries, and “ongoing uncertainties” surrounding the Nigerian naira.
Revenues for 2023 were still expected to come in at least 20% ahead of the £109.4 million made the previous year.
Profits would be hit though, as while cost cuts and efficiency measures were planned to try and lessen the impact, management said they did not want to hamper potential growth.
Analysts at Liberum said management's reputation was "in tatters" and while they saw a strong proposition with a large market for the underlying business, "management's inability to foresee events and guide is a major concern".
Another commentator said the market is punishing CAB for a lack of transparency during the IPO and agreed there had been a “massive loss of trust” in CAB leadership.
The shares, which had slipped at 335p at the IPO to a 216p before the profit warning, tanked to below 50p in the aftermath, but have attracted bargain hunters and climbed back above 92p since.