Shares in CAB Payments plummeted by more than 70% just three months after its IPO after the money transfer firm lowered revenue guidance for the year.
The business-to-business payments firm reduced its 2023 revenue forecast by 17% from previously issued guidance.
This sent its shares sliding by over 70% on Tuesday, with trading being halted. The company, which provides infrastructure for cross-border money transfers and foreign exchange, cited volatility in African currencies as the drag on margins and trading volume.
“At the present time, these market conditions are compressing margins and reducing trading volume,” CAB Payments said in a third-quarter trading update.
“These challenges are recent but continuing, and coincide with the traditionally strong fourth quarter for both of these corridors; it is unclear when and to what extent conditions in these markets may improve.”
In July the company completed its debut on the London Stock Exchange at an £851m valuation, providing hope to a resurgence in public listings in the UK capital.
Today’s losses threaten to wipe out three-quarters of its debut valuation.
CAB Payments said it plans to implement “cost reduction measures and efficiencies”.
The fintech said that quarter-on-quarter revenue increased by 10% across the group.
So far this year CAB Payments has secured 74 new customers.
“While the company is disappointed with recent market volumes, CAB Payments remains confident that the trends within the business-to-business cross-border FX and Payments market continue to be supportive,” CAB Payments added.
The Sutton-based company organises cross-border payment flows to and from over 150 countries. It reported revenue of £109.9m and pre-tax profits of £43.5m in 2022.