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Most folk looking at this can't understand the reason for the drop today. you'd think it'd be closer to 150 in expectation of the news to come.
have to assume it'll be a small daily rise from now until the news drops.
Debt free
Excellent platform and great reputation within the industry
25% increase in income
Final stage discussions with other tier 1 banks
EU licence imminent - Gamechanger -huge opportunities and new market for CABP to excel in
Holy Grail US licence on track for H2 - Game Changed
Ever increasing number of clients
APAC region now in focus as a fast follower
What is not to like......no brainer long term investment from my perspective....serious re-rate in due course. GLA
Would be good to see some Directors buying in the next day or so....
European Licence in the next month :-)
USA Licence in H2 2024
All good!
I'm happy with the update looking forward to get the licences over the line, this year.
Simply read the RNS in black and white.
Analysts and institutional investors will be on the call soon.
Profitable, churning out cash like no tomorrow, and zero debt for a £250m market cap company LOL
Transformational news on the horizon with the licenses.
And Dividends to come..
Weak hands out, smart investors will be loading up. (Same with Kingfisher yesterday, opened down to 224p on results, today 250p LOL). Funny old markets.
DYOR
A lot of positives here, debt free, in growth mode albeit a drop in net profit and a higher average tax rate. The next kick ups will be EU license and later US and I think they are keeping some good stuff back for the new CEO to fly the flag on. Probably settle around 100p for a while then start rising again is my sense of things.
Are these results actually significantly better than what they announced in October when it dropped to 48p? I'm not seeing anything massively different other than a firmer timeline for EU and US licenses.
So the fact that it hasn't dropped back to 50p instantly might suggest that any drop this morning is just going to be noise to trigger weak hands.
Probably best course of action is to hold and see how the day develops.
Any share price is all about future outlook.
Acquiring the EU and US licences in 2024 will have a significant material impact on income and profits. They are also in the final stages of discussions with other tier 1 banks. These FACTS will mean a significant rerate of the SP to above 250p-300p in due course. DYOR
SmallMoves, I agree with you there. The wording was absolutely abysmal. Anything he says should be checked by a responsible adult prior to release.
After reading the RNS I'm not surprised it's dropping. The sooner the CEO goes away and they get somebody who can open their mouth without putting their foot in it the better. Of the many annoying phrases in the RNS, this has to be one of the most delusional and shameless narcissistic notes I've read in a while...
"We did finish 2023 on a disappointing note, with negative surprises in two of our important markets. While we are not dependent on a short-term recovery here, we expect these to be important markets for us over the medium term. These changes highlighted a requirement for the Group to be increasingly proactive and influential at the highest level across the world, not only predicting change, but helping to shape effective regulation in the markets we serve."
In other words, in my new role and special advisor I'll be the one doing all the important stuff.
I think they are happy to take out the 10% stop losses set this morning and let's see where it goes from there. Since the over estimation of projected income/profit, this is an easy share for the markets to knock.
Market trickery to shake some frightened holders into selling cheap. This morning.
Other Matters
During the year, the Group undertook three activities of note which were covered in detail as part of the half year interim results announcement detailed in H1 2023:
1. The Group restructured its shares in issue to only have one class of ordinary share 'class A shares';
2. The Group undertook, as part of the pre-IPO shareholding restructure, a payment in dividends to shareholders; and
3. The Group also disposed of Crown Agents Asset Investment Management (CAIM) and JCF Nominees Limited (JCF) with effect from 31 March 2023.
In the year 2023, very few companies grow at the rate of 25%. Moreover they were busy sorting out IPO issues.
Presenting outlook will be given to new CEO. Probably new CEO will announce share buybacks/dividends.
EU licence in the next quarter and USA licence in H2 will be huge positive.
Im pretty sure they are referring to october where it dropped from £2 to 50p -market already knows about the 'disappointing note'
But they still grew income by 25%
US licence on track H2 204
EU licence imminent
These licences are truly game changing and both will be acquired in 2024.....amazing news. GLA
This will open down probably 10/15%
My bet we revisit the 75 area soon
I really don't like the way they phrase some of the things that get put in these announcements.
Are these surprises something new vs. the outlook at IPO time, or surprises vs. the outlook after the October announcement disaster?
In other words, are these two new surprises (in which case why no heads up in at any time in past 3 months), or just ones we already know about (in which case calling them a surprise is a rather naive choice of words).
They'd better have a decent explanation for this at 9.30, and also I want to see some projections for 2024. On the plus side, there's a firmer timeline for both the EU and US licenses now.
Gross income increased 25%
EU licence approval imminent
US licence on track for H2 2024
In the near term we continue to focus on geographical diversification, establishing new market footprints in the United States, Europe and further developing our presence in LATAM. In future we will look to expand further establishing a presence in the APAC region.
We onboarded 83 new clients, of which 42 clients generated income in year, while 41 clients are expected to trade early in 2024.
We are in negotiations with several major financial institutions and expect some of these to begin operating with CAB Payments in the very near future.
Brilliant. As expected and more, so much info. Key points below.
Investor call at 930am will be enlightening.
The Board will actively manage capital allocation with an emphasis on growth, but will also consider distributions to shareholders at the appropriate time.
EU licence in final stages
US license H2 2024
Adj EBITDA £65m
Free Cash flow £57m
Growth 25%
DEBT FREE.
The Group remains debt free with no debt securities in issue, we are proud that our debt free and highly-liquid balance sheet enables us to move in an agile manner to seize on growth opportunities
In 2023, we onboarded many high-quality clients, including Barclays, Inpay, Plan International and SNV Global, joining such institutions as Save the Children International, the Norwegian Refugee Council and PagoNxt/Santander.
We are in negotiations with several major financial institutions and expect some of these to begin operating with CAB Payments in the very near future
We have some sizeable clients we have already signed up who are yet carried out their first transaction; we will seek to guide them rapidly and smoothly through the activation process
DYOR
Financial and Operating Summary:
· Gross income1 increased 25% year-on-year to £137.1 million (2022: £109.4 million).
o Income growth in all four client segments.
o Wholesale FX and Payment FX income 1, when excluding Nigerian Naira, increased 28% year-on-year
· Adjusted EBITDA 1 £64.6 million, up 17% (2022: £55.0 million).
o Adjusted EBITDA margin1 47% (2022: 50%).
· EBITDA1 down 12% at £43.5 million (2022: £49.7 million), largely driven by IPO related costs.
· Total active clients increased 12% to 509 (2022: 456).
· Banking partners increased 16% to 331 (2022: 287), including 17% growth in payment partners.
· EU licence in final stages. US licence timeline H2 2024, providing significant market opportunities.
A presentation webcast and live Q&A conference call for analysts and institutional investors will take place on March 26th 2024 at 9.30 am UK Time, and a webcast of the presentation will be made available on the Group's website at Investors Home (cabpayments.com), where you can also register for this event.