Africa-focused cross-border payments group CAB Payments Holdings PLC (LSE:CABP) has outlined a business game plan to resuscitate its underwhelming financial performance since debuting on the London Stock Exchange in July 2023.
In a first-half earnings report published on Wednesday, management outlined four “strategic pillars” to diversify its business model.
This plan includes expanding the breadth and depth of its network, particularly by strengthening its presence in new regions like Latin America and the Middle East.
The company hopes to utilise its PRA-regulated UK banking licence to greater effect.
CAB also announced a sweeping change to its senior leadership team, with a new head of payments, head of European business development and chief operating officer to help with the strategic shift.
The stakes are undoubtedly high for CAB. Its share price has fallen by more than 60% since its initial public offering amid lower payment volumes and currency headwinds in its sub-Saharan Africa wheelhouse.
Adjusted half-year earnings in 2024 were 53% lower year on year at £18.7 million, while statutory profit before tax plummeted 43% to £13.7 million.
Chief executive Neeraj Kapur, who took over in June, stated: “My aim is to make sure the Group takes advantage of the significant growth opportunities available to it through careful and judicious investment in our business, delivering on our purpose and driving value for all of our stakeholders.”
For now, the market is clearly cautious. CAB’s share price fell another 15% when markets opened on Tuesday.