CAB Payments returns to revenue, earnings growth as it resists takeover bid

(Sharecast News) - CAB Payments reported a return to revenue and earnings growth in 2025 on Thursday, as the specialist emerging markets payments bank expanded its client base, increased transaction volumes and strengthened its global network, while the board reiterated its opposition to a takeover approach from a consortium led by Helios. The London-listed company reported total income of £119m for the year ended 31 December 2025, up 12% from the prior year, while adjusted EBITDA rose 14% to £35m.

Its adjusted EBITDA margin improved to 30% from 29% in 2024, reflecting increasing operating leverage as activity accelerated in the second half.

Adjusted earnings per share increased 9% to 6.8p, while reported earnings per share fell slightly to 5.4p after one-off restructuring costs.

Chief executive Neeraj Kapur said the results marked a turning point for the business.

"These results mark a turning point. We have exceeded market expectations and delivered strong growth in revenue, volumes, client numbers and underlying profitability."

Activity across the platform increased during the year, with wholesale and payments foreign exchange volumes rising 13% to £41.9bn and the number of payments processed increasing 19% to 1.2m transactions.

Active clients rose to 592 from 546 a year earlier, while onboarding times were reduced by around 40%.

The company said revenue growth was supported by deeper client relationships and the rollout of new capabilities across its payments infrastructure.

Trade finance income rose 52% during the year as the group expanded its distribution capabilities and supported a larger number of clients.

Average deposits increased 4% to £1.5bn, while the group maintained a strong capital position with a pro-forma Common Equity Tier 1 ratio of 22.1%, up from 19.2% in 2024.

CAB Payments also continued to expand its geographic footprint and payments network.

The company opened a new office in New York in December and launched an office in Abu Dhabi in January, while adding an additional dollar and euro clearing banking partner to strengthen capacity and operational resilience.

Its network was also expanded with 39 new nostro accounts and 11 additional liquidity providers, bringing the total number of partners to 440.

The company said its automated clearing house payment rails now supported 54 currencies and new services including payment-to-mobile capabilities.

Kapur said the strategy implemented during the past two years was beginning to deliver results.

"We are seeing the benefits of the strategic realignment of the business that took place in the second half of 2024 and the first half of 2025.

"Our relationship-led approach is winning and growing clients."

Looking ahead, the group said it expects total income excluding net interest income to grow at a high-teens to low-twenties compound annual rate over the next three years, supported by further expansion in client activity and new products.

Lower US interest rates were expected to create near-term pressure on net interest income, while capital expenditure was expected to rise in 2026 as the company continued to invest in its technology platform and network.

Alongside the results, CAB Payments reiterated its rejection of a takeover proposal from the Helios Consortium, which the board said "highly opportunistic and fundamentally undervalues CAB Payments."

The company said 2025 marked a "clear positive inflection point" in its performance, citing improvements in revenue growth, client expansion and diversification of its commercial base.

It said the top five currency corridors accounted for around 32% of revenue in 2025, compared with roughly 45% in 2023.

The board said the company's improving performance and strategic progress reinforced its view that shareholders should reject the approach.

"The independent board's unanimous recommendation is that shareholders reject the Helios Consortium offer," the company said, advising investors to take no action in relation to the proposal at this stage.

At 1211 GMT, shares in CAB Payments Holdings were up 0.07% at 87.86p.

Reporting by Josh White for Sharecast.com.