CAB Payments Holdings PLC (LSE:CABP) shares fell 3% after it essentially warned on profits but said talks were continuing with Nasdaq-listed StoneX Group Inc, which proposed a possible cash offer earlier in the month.
"Discussions with StoneX are continuing and StoneX and its advisers are undertaking due diligence," CAB said today.
It also provided an update on third-quarter trading, with revenue in July and August better than management expectations but for September "marginally below".
Sales volumes are growing but CAB said it has faced a "dilution in overall take-rates", resulting from the mix of flows shifting towards lower-margin currencies and slower economic trading activity in core markets.
Furthermore, hopes that budgets from international developmental organisation (IDO) clients would recover in the fourth quarter due to usual seasonality have now largely evaporated, "owing to changing global macro-economic and political factors".
IDO volumes are expected to be reduced "significantly" for the full year, with some volumes likely to be pushed into 2025.
For the nine months to end-September, FX & Payments volumes were up 9%, while market-wide global payment volumes fell 6%.
"Given the lower revenues, the positive operating leverage that was expected in H2 is now not expected to materialise," it said.
Shares fell 3% to 117p.