REG - CAB Payments Hldgs - Interim results for the six months to 30 June 2025
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RNS Number : 2580V CAB Payments Holdings PLC 14 August 2025
14 August 2025
CAB Payments Holdings plc and its subsidiaries
("CAB", "CAB Payments", the "Group" or the "Company")
Interim results for the six months ended 30 June 2025
Good strategic progress and momentum going into H2
CAB Payments, a specialist in B2B FX and cross-border payments in
hard-to-reach markets, announces its interim results for the six months ended
30 June 2025.
Having embarked upon its transformation in the second half of 2024, the Group
has made good strategic progress, generating growth, momentum and confidence
in future performance.
Highlights:
· Good strategic progress with tangible delivery
· Business stable with modest growth, Total Income up 3% to
£51.8m vs H2 2024
· Adjusted EBITDA up 8% vs H2 2024 to £13.1m and Adjusted PAT up
9% vs H2 2024 to £5.4m
· Strategic KPIs demonstrate strong client growth, network growth
and reduced revenue concentration
· Global expansion strategy continuing: Europe growing, New York
licence received, increased on-the-ground presence in Africa and proposed
office in Abu Dhabi
· Relationship model delivering with improved local connectivity
in a number of specific African markets
· Strategic restructuring exercise successfully delivered,
headcount reduced by approximately 100 FTE and a renewed focus on client
delivery
· Confidence in business momentum going into H2 2025, expecting
further HoH growth
Neeraj Kapur, Group CEO of CAB Payments, commented:
"We are demonstrating good progress in executing our strategic priorities
evidenced by a return to modest half-on-half revenue growth. Work continues to
be done but the business is now better positioned to drive diversified and
sustainable revenue growth, supported by more active clients, a deeper network
and entry into new markets. We have built a strong pipeline of client
activity, leveraging the strength of our integrated FX and Payments business,
enhanced by our banking licence.
"The team has delivered significant and tangible strategic milestones, such as
obtaining our licence to commence sales operations in New York, new client
wins in Europe and an enhanced product suite, all designed to serve broader
client demands.
"There is a significant market opportunity for us to serve more clients in
hard-to-reach currencies. The foundations we have built in the first half give
us confidence to continue growing into the second half of the year."
Financial performance stabilised into 2025, income streams diversified, and
foundations built for growth
Note: "YoY" refers to H1 2025 compared to H1 2024 and "HoH" refers to H1 2025
compared to H2 2024.
· Total income of £51.8m was up 3% HoH, however fell 8% YoY
reflecting the non-repeat of a dislocated currency in the first half of 2024
and the impact of macro-economic uncertainty amongst a subset of clients
· Active (revenue generating) clients increased to 573 (FY 2024:
546), reflecting good demand for the Group's services with 52 new clients
onboarded in H1 2025
· Improved revenue diversification with 27% of Total Income
driven by Top 5 currency corridors (H1 2024: 32%, H1 2023: 49%) and a wider
spread of income derived across FX spreads, fees and interest rates
· Total FX volumes were up 2% HoH (up 13% YoY) to £19.9bn
- Developed FX volumes increased 5% HoH (+26% YoY) primarily driven by
Banking clients in Emerging Markets
- Emerging FX volumes fell 6% HoH (down 7% YoY) largely reflecting
declines in IDO activity
· Wholesale FX & Payments FX income was broadly flat HoH
(down 20% YoY) to £23.9m
- HoH performance driven by broadly stable take rates and a slight mix
shift towards towards developed FX, with an underlying trend of more client
sign-ups to the platform
- YoY performance reflects the compression in emerging FX take-rates
seen throughout 2024 combined with the effects of a brief dislocation in H1
2024 which added to income in that period
· Banking income increased 6% HoH (+9% YoY) to £20.4m reflecting
a change in mix towards call account balances and an increase in overall
average client deposits, and growth in Trade Finance
· Total underlying operating expenses (excluding Depreciation and
Amortisation) of £38.7m remain well controlled (flat HoH, +3% YoY) following
the successful completion of the announced restructuring exercise earlier in
the year and the continuing delivery of key efficiency initiatives
· Adjusted EBITDA of £13.1m in the period was up 8% HoH and down
30% YoY (H1 2024: £18.7m, H2 2024: £12.1m), delivering an Adjusted EBITDA
margin of 25% (H1 2024: 33%, H2 2024: 24%)
· Capital expenditure of £3.5m was controlled and in line with
expectations. The Group maintains its target of around £8 million total capex
spend for 2025, which is largely focused on delivering product capability to
clients
· Depreciation and amortisation increased 37% YoY to £5.2m
reflecting the amortisation of the higher levels of capital expenditure in
2023 and 2024
· Adjusted EPS was up 9% HoH and down 51% YoY at 2.1 pence per
share
· Adjusted Profit After Tax of £5.4m was up 9% HoH whilst
Reported Profit After Tax of £2.3m was down 43% HoH and down 77% YoY as a
result of the impact of non-underlying costs, principally costs to execute the
strategic restructuring
· The Group remains profitable, strongly capitalised with a CET1
ratio of 19.5% (FY 2024: 19.2%), and highly liquid with an NSFR ratio of
134.4% (FY 2024: 142.2%),LCR ratio of 138.8% (FY 2024: 136.5%) and cash
generative with an operating free cash flow of £9.5m at a conversion rate of
72%.
Note:
(a) H1 2024 Total Income has been re-presented to add back IFRS 16
interest expense on lease liabilities reflecting updated presentation of the
Group's financial statements. The IFRS 16 interest expense on lease
liabilities is reflected separately in the Profit and Loss statement under
other finance costs.
(b) In Q1 2025, a review of the primary nature of client payment activity
was completed and a portion of client income was reclassified from Wholesale
FX income to Payment FX income. To ensure comparability, prior period
financial information related to these products has been reclassified,
amounting to £2.2m of FY24 income (£1.1m in both H1 and H2 2024) moving from
Wholesale FX to Payment FX
Strategic progress alongside client growth underpins confidence for delivery
in H2 2025
· The Group added 46 new network counterparties, taking the total
size of the network to 436 liquidity and nostro providers (2024: 390). Our
growing network enables us to better serve our client needs
· Successfully executed the first sale of trade finance loans
from our portfolio driving additional and scalable fee-based income. Trade
finance balances stood at £199m as at H1 2025 (H1 2024: £105m), cementing
strong relationships with local banks and liquidity providers
· Received a licence to operate a representative sales office in
New York
· Approved by the Central Bank of Nigeria to operate an IMTO
licence in July 2025, enabling greater participation in Naira transactions
· Processed the first payments through CAB's partnership with
Visa, 52 supported currencies now live via Automated Clearing House ('ACH')
rails
· Added capability to quote any currency against the Chinese
Renminbi (CNY) reflecting the increased importance of the CNY in cross-border
payments
· FX Derivatives undergoing pilot testing and guaranteed deposits
operationally ready and expected to be launched in H2
Outlook
The business has made strong strategic progress during the first half of 2025,
with financial performance stabilised and income showing modest growth
compared to the second half of 2024. Given the progress made on key strategic
priorities, the increase in the number of active clients and market
initiatives now live, the business is expecting an improved performance in the
second half of 2025 and maintains the expectation of overall year-on-year
income growth for the 2025 financial year along with more meaningful growth in
2026.
Analyst and Institutional Investor Webcast
A presentation webcast and live Q&A conference call for analysts and
institutional investors will take place on 14(th) August 2025 at 09.30 am UK
time. A copy of the presentation will be made available on the Company's
website at https://www.cabpayments.com/investors.
The presentation will be hosted by Neeraj Kapur, Group CEO and James
Hopkinson, Group CFO.
To register for the webcast, please go to:
https://secure.emincote.com/client/cab/2025interims
To register for the conference call, please go to:
https://secure.emincote.com/client/cab/2025interims/vip_connect
If analysts wish to ask questions verbally, please also dial in via the
conference line to do so.
Retail Investor Webcast
CAB Payments will also host a presentation for retail shareholders and
prospective shareholders. This will take place at 09.30am UK Time on Friday
15(th) August. The presentation will be hosted by Neeraj Kapur, Group CEO and
James Hopkinson, Group CFO and can be accessed via the link below:
https://www.equitydevelopment.co.uk/news-and-events/cab-payments-investor-presentation-hy-results-15th-august-2025
Questions can be submitted via the platform any time during the live
presentation.
Selected Financial Information and KPIs
Note: all percentages are calculated based on actual numbers in '000s
Adjusted Income statement (£m) Six Months Ended YoY HoH
30 June 2025 Re-presented 30 June 2024 31 December 2024 % %
Wholesale FX 17.7 21.7 17.3 (18) % 2 %
Payments 13.7 15.6 13.9 (12) % (1) %
Banking 20.4 18.7 19.2 9 % 6 %
Total Income 51.8 56.0 50.4 (8) % 3 %
Staff costs (22.7) (23.0) (22.7) 1 % - %
Other operating expenses (16.0) (14.6) (15.9) (10) % (1) %
Impairment provisions 0.1 0.4 0.2 75 % 50 %
Adjusted EBITDA 13.1 18.7 12.1 (30) % 8 %
IFRS 16 Interest expense on lease liabilities (0.7) (0.2) (0.7) (250) % - %
Depreciation & Amortisation (5.2) (3.8) (4.7) (37) % (11) %
Adjusted Profit Before Tax 7.2 14.7 6.7 (51) % 7 %
Taxation (1.8) (3.7) (1.7) 51 % (6) %
Adjusted Profit after Tax 5.4 11.0 5.0 (51) % 9 %
Adjusted EPS (pence) 2.1 4.3 2.0 (51) % 9 %
2 %
Payments
13.7
15.6
13.9
(12) %
(1) %
Banking
20.4
18.7
19.2
9 %
6 %
Total Income
51.8
56.0
50.4
(8) %
3 %
Staff costs
(22.7)
(23.0)
(22.7)
1 %
- %
Other operating expenses
(16.0)
(14.6)
(15.9)
(10) %
(1) %
Impairment provisions
0.1
0.4
0.2
75 %
50 %
Adjusted EBITDA
13.1
18.7
12.1
(30) %
8 %
IFRS 16 Interest expense on lease liabilities
(0.7)
(0.2)
(0.7)
(250) %
- %
Depreciation & Amortisation
(5.2)
(3.8)
(4.7)
(37) %
(11) %
Adjusted Profit Before Tax
7.2
14.7
6.7
(51) %
7 %
Taxation
(1.8)
(3.7)
(1.7)
51 %
(6) %
Adjusted Profit after Tax
5.4
11.0
5.0
(51) %
9 %
Adjusted EPS (pence)
2.1
4.3
2.0
(51) %
9 %
Note: refer to "Alternative Performance Measures" for definitions of Adjusted
EBITDA, Adjusted Profit Before Tax and Adjusted Profit After Tax
(1 )In H1 2025, a review of the primary nature of client payment
activity was completed and a portion of client income was reclassified from
Wholesale FX to Payment FX, see Note 3a to the financial statements for
further details.
(2 )A reclassification of interest expense on lease liabilities has
increased HY2024 net interest income by £0.2m. See Note 4a to the financial
statements for further details.
Selected Reported Financial Information (£m) Six Months Ended YoY HoH
30 June 2025 30 June 2024 31 December 2024 % %
EBITDA 8.9 17.7 9.3 (50) % (4) %
Profit before tax 3.1 13.7 3.9 (77) % (21) %
Profit after tax 2.3 10.2 4.0 (77) % (43) %
Earnings per share (pence) 0.9 4.0 1.6 (78) % (44) %
(4) %
Profit before tax
3.1
13.7
3.9
(77) %
(21) %
Profit after tax
2.3
10.2
4.0
(77) %
(43) %
Earnings per share (pence)
0.9
4.0
1.6
(78) %
(44) %
Wholesale FX and Payments FX Information
Income (£m)
H1 2025 H1 2024 H2 2024 YoY HoH
Developed FX 8.9 7.5 7.8 19 % 14 %
Emerging FX 15.0 22.3 16.2 (33) % (7) %
Total 23.9 29.8 24.0 (20) % - %
7.5
7.8
19 %
14 %
Emerging FX
15.0
22.3
16.2
(33) %
(7) %
Total
23.9
29.8
24.0
(20) %
- %
Volume (£bn)
H1 2025 H1 2024 H2 2024 YoY HoH
Developed FX 13.6 10.8 12.9 26 % 5 %
Emerging FX 6.3 6.8 6.7 (7) % (6) %
Total 19.9 17.6 19.6 13 % 2 %
10.8
12.9
26 %
5 %
Emerging FX
6.3
6.8
6.7
(7) %
(6) %
Total
19.9
17.6
19.6
13 %
2 %
Take
rate (%)
H1 2025 H1 2024 H2 2024
Developed FX 0.07 % 0.07 % 0.06 %
Emerging FX 0.24 % 0.33 % 0.24 %
Total 0.12 % 0.17 % 0.12 %
0.07 %
0.06 %
Emerging FX
0.24 %
0.33 %
0.24 %
Total
0.12 %
0.17 %
0.12 %
Other Management Information Six Months Ended YoY HoH
30 June 2025 30 June 2024 31 December 2024 % %
Capital & Investment
Core Capex (£m) 3.5 6.8 5.7 (49)% (39)%
Capital intensity (% of Total Income) 7% 12% 11%
Adjusted EBITDA Margin (%) 25% 33% 24%
Operating Free Cash Flow (£m) 9.5 9.4 6.1 1% 56%
Operating Free Cash Flow Conversion (%) 72% 50% 50%
Total CET1 Capital (£m) 115.4 113.5 116.0 2% (1)%
CET1 Ratio (%) 19.5% 22.5% 19.2%
Income
Wholesale FX & Payments FX (£m) 23.9 29.8 24.0 (20)% -%
Income by client type
Banks (£m) 33.6 30.5 31.9 10% 5%
IDO (£m) 5.9 8.4 6.8 (30)% (13)%
NBFI and Fintech (£m) 12.3 17.1 11.7 (28)% 5%
FY24 Total Income (£m) - Re-presented Previously disclosed Re-presented
12 Months Ended 12 Months Ended
31 December 2024 31 December 2024
Wholesale FX 41.2 39.0
Payments 27.3 29.5
of which
Payments FX 12.6 14.8
Other Payments 14.7 14.7
Banking 37.0 37.9
of which
Net Interest Income 30.9 31.8
Trade finance and other Income 6.1 6.1
Total Income 105.5 106.4
About CAB Payments
CAB Payments Holdings plc is the holding company for Crown Agents Bank
Limited. Regulated in the UK, Crown Agents Bank specialises in FX and
cross-border payments for hard-to-reach markets. Its strength of network and
deep expertise means it can move money into and out of the world's most
complex financial markets. Trusted by a global ecosystem of leading
institutions across the public, private and development sectors, Crown Agents
Bank's strength lies in its network which connects its clients to underserved
geographies, giving them access to 100+ currencies across 700+ currency pairs.
The delivery of fast, transparent and efficient transactions moves money where
it's needed. Crown Agents Bank's network offers multiple transaction
solutions, delivered via a single API, digital trading platforms, or through
bespoke approaches developed by its specialist teams.
Crown Agents Bank is one of the first banks to achieve B Corporation™
status. The Bank was awarded the Platinum Sustainability Rating by EcoVadis in
2025, ranked within the top 1% of 100,000 companies assessed across 160
countries and over 200+ industries. Crown Agents Bank was awarded a Gold
EcoVadis rating in 2022, 2023 and 2024.
CAB Payments Holdings plc Ordinary Shares are traded on the London Stock
Exchange (ticker: CABP; LEI: 8945007OZHZDN4LW1G21).
For further information, please contact:
CAB Payments Holdings plc
Gaurav Patel, Head of Investor Relations
ir@cabpayments.com
www.cabpayments.com
FTI Consulting
(Public Relations Adviser to CAB Payments)
Edward Bridges +44 (0) 7768 216 607
Katie Bell +44 (0) 7976 870 961
cabpayments@fticonsulting.com
Chief Executive Officer's Review
Our first half 2025 (H1 2025) results confirm that we are successfully
executing against our strategic plan having made significant progress since we
set out a new strategic framework in late 2024. While there is still more to
be done, we are making clear progress and the steps we've taken are starting
to deliver momentum despite the challenging environment.
At a time when markets remain volatile, global trade patterns are shifting and
development aid budgets are under pressure, our business has been resilient.
We have stayed close to our clients, ensuring we are best positioned to
partner with them in providing solutions to deliver fast, reliable, and
compliant FX and cross-border payments.
We continue to be the trusted FX and cross-border payments provider in
emerging and frontier markets. It is our enduring understanding of the local
markets we operate in that means we are uniquely placed to provide liquidity
and manage risk for clients in hard-to-reach currencies.
We have made meaningful operating advances during the first half. Our strategy
is working, and after delivering a satisfactory first half financial
performance, together with successfully completing the transformation of our
business, we exit H1 with confidence in our ability to deliver increased
revenue in the second half and beyond.
Our first half achievements show progress against each of our strategic
pillars:
Clients
· Onboarded 52 new clients overall, of which 21 were already
transacting with us in the first half reflecting faster onboarding times, in
addition to a further 15 new active clients that were onboarded last year
· Onboarded our first customers in our CAB Europe office who are
already generating revenue
· Won the Global Markets Award at the 2025 Central Banking Awards,
validating our strong central bank relationships and that we are a key partner
for them
Network
· Secured the licence to operate a representative office in New
York, our gateway to the US market which also brings us closer to our USD
clearing partners
· Approved by the Central Bank of Nigeria to operate an IMTO
licence, enabling greater participation in Naira transactions
Platform
· Opened 39 new FX and payment corridors across development
agencies, banks and financial institutions
· Platform agility allowed us to add CNY conversion to all currency
pairs
· Continued to deepen relationships in key footprint markets,
including opening up several exciting new markets in Africa
Invest & Innovate
· Launched our enhanced USD smart-routing platform, optimising our
dollar clearing capabilities
· Reduced client onboarding times through increased automation
· Executed a number of "firsts" including:
- Processing our first client payments through our Visa partnership
- Conducting our first sale from our trade finance portfolio
- Executing our first test client derivative transaction
Importantly, we also successfully completed the strategic restructuring
exercise that we outlined at the beginning of the year as part of our
transformation plan. We have now right-sized our business, removed (c.100)
surplus roles, and have increased the proportion of roles that are client
facing, our total headcount was 345 as at the end of H1. Where we see
opportunity to invest in further sustainable revenue-generating roles we will
look to increase this proportion further. We remain on track to deliver
broadly flat staff costs year-on-year, before potential variable pay.
In the first half of the year we have onboarded 52 new clients of which 21
have already started to transact through our platform. This new cohort will
mature in the coming months and will help to drive momentum in the second half
of the year. This brings our total active client base to 573 (2024: 546).
With the granting of the licence to operate a representative office in New
York, a proposed new office in Abu Dhabi (subject to regulatory approval)
together with our existing Amsterdam and UK locations, we are increasing the
reach and relevance of our business to a broadening client base. Our expanded
footprint allows us to get closer to clients and immerse ourselves in a
greater number of significant global payment streams.
Our network remains a key competitive advantage underpinning our FX &
Payments infrastructure. In H1 2025, we added 46 new nostro accounts and
liquidity providers versus our position at the end of 2024. Local banks want
to partner with us based on our high standard of operating processes driven by
our UK banking licence, strong brand and a reputation of trust and client
service.
Stabilised performance, expecting an improved performance in H2
Looking at the performance in the first half, our total volumes continued to
grow, up 13% YoY and 2% HoH to £19.9bn (H1 2024: £17.6bn) as we grew our
client base and focused on our relationship-led business model. We experienced
developed FX volume growth (+26% YoY, 5% HoH) due to the onboarding of more
EMFI clients who utilise our platform for all types of FX and Payment flows.
Emerging FX volumes declined 7% YoY and 6% HoH, largely as a result of well
publicised, reduced capacity and uncertainty in International Developmental
Organisation (IDO) activity. We remain fully committed to supporting this
important activity for our clients.
Our overall take rates have remained in-line with the levels we saw towards
the end of 2024 and appear to have broadly stabilised. This is aligned to our
near-term expectations. Take rates reflect a number of factors such as the
prevailing market economic conditions, local market demand for hard currency,
the relative mix of corridors traded in our portfolio and levels and types of
central bank interventions. As we move towards a multi-product, fee-based
solutions model, working alongside central banks and other clients, we should
be less dependent on volatile take rates.
While total income in H1 2025 of £51.8m (H1 2024: £56.0m) represented a
decrease of 8% year-on-year, it was up 3% half-on-half (H2 2024: £50.4m) as
we stabilised revenue. Importantly, we have spent the first half of 2025
adding new clients, many of whom have recently started transacting with us or
are set to do so in the near term, whilst also adding product enhancements and
services to better serve the needs of our clients as outlined above.
Outlook: continuing with strategic execution, expect revenue growth in 2025
The business has made strong strategic progress during the first half of 2025
with financial performance stabilised and income showing modest growth
compared to the second half of 2024. Given the progress made on key strategic
priorities, the increase in the number of active clients and market
initiatives now live, we can expect an improved performance in the second half
of 2025 and we maintain the expectation of overall year-on-year income growth
for the 2025 financial year and more meaningful growth in 2026.
I would like to thank all our staff for their dedication and hard work to get
us to this point as we undergo our transformation journey. They have
demonstrated continued professionalism especially during the restructuring
exercise that we conducted earlier in the year and have remained focused on
delivering value to our clients.
Financial Review
The first half of 2025 marked a period of operational and strategic progress,
and financial stabilisation for the Group. While Total Income declined 8% YoY
to £51.8m (H1 2024: £56.0m), income performance was up 3% compared to H2
2024 (£50.4m). The YoY decline in Total Income was driven by an increased mix
towards lower-margin developed FX volumes while also experiencing lower
Emerging FX take rates throughout H2 2024 and H1 2025. The HoH total income
stabilisation has resulted from the focus on delivering our strategic and
client priorities that were set in late 2024.
Adjusted EBITDA of £13.1m was 30% lower than the first half of 2024 given the
decline in income noted above. However, it was up 8% versus H2 2024 (£12.1m),
illustrating the early signs of operational leverage as Income growth (+3%)
outstripped growth in Total Operating Expenses before non-underlying expenses
(+2%). Total Operating Expenses benefitted from the strategic restructuring
exercise in March, which more than offset both the full year impact of hires
made in the prior year and the effects of inflation.
Adjusted Operating Free Cash Flow remained robust at £9.5m, up 1% YoY and up
56% HoH with a strong conversion rate of 72%, evidencing the underlying
cash-generative nature of the business and low capital intensity.
Reported Profit After Tax fell to £2.3m (H1 2024: £10.2m) largely reflecting
the exceptional restructuring costs of £2.5m alongside other non-underlying
expenses and the decrease in Income. Earnings Per Share decreased to 0.9 pence
(H1 2024: 4 pence).
Summary Financial Information and KPIs
£m unless stated otherwise Six Months Ended YoY HoH
30 June 2025 30 June 2024 31 December 2024 % %
Total Income 51.8 56.0 50.4 (8) % 3 %
Profit After Tax 2.3 10.2 4.0 (77) % (43) %
Adjusted EBITDA¹ 13.1 18.7 12.1 (30) % 8 %
Adjusted EBITDA margin¹ 25 % 33 % 24 %
Operating Free Cashflow¹ 9.5 9.4 6.1 1 % 56 %
Operating Free Cashflow Conversion (%)¹ 72 % 50 % 50 %
Total Deposits (£m) 1,387 1,443 1,581 (4) % (12) %
CET1 Ratio (%) 19.5 % 22.5 % 19.2 % (13) % 2 %
Earnings Per Share (pence) 0.9 4.0 1.6 (78) % (44) %
Adjusted Earnings Per Share (pence)¹ 2.1 4.3 2.0 (51) % 9 %
3 %
Profit After Tax
2.3
10.2
4.0
(77) %
(43) %
Adjusted EBITDA¹
13.1
18.7
12.1
(30) %
8 %
Adjusted EBITDA margin¹
25 %
33 %
24 %
Operating Free Cashflow¹
9.5
9.4
6.1
1 %
56 %
Operating Free Cashflow Conversion (%)¹
72 %
50 %
50 %
Total Deposits (£m)
1,387
1,443
1,581
(4) %
(12) %
CET1 Ratio (%)
19.5 %
22.5 %
19.2 %
(13) %
2 %
Earnings Per Share (pence)
0.9
4.0
1.6
(78) %
(44) %
Adjusted Earnings Per Share (pence)¹
2.1
4.3
2.0
(51) %
9 %
(¹) (See Alternative Performance Measures)
Total Income
Further Analysis of Total Income (£m) Six Months Ended YoY HoH
30 June 2025 Re-presented 30 June 2024 31 December 2024 % %
Wholesale FX 17.7 21.7 17.3 (18) % 2 %
Payments 13.7 15.6 13.9 (12) % (1) %
of which
Payments FX 6.2 8.1 6.7 (23) % (7) %
Other Payments 7.5 7.5 7.2 - % 4 %
Total transactional income 31.4 37.3 31.2 (16) % 1 %
Banking 20.4 18.7 19.2 9 % 6 %
of which
Net Interest Income 16.5 16.4 15.4 1 % 7 %
Trade finance and other Income 3.9 2.3 3.8 70 % 3 %
Total Income 51.8 56.0 50.4 (8) % 3 %
2 %
Payments
13.7
15.6
13.9
(12) %
(1) %
of which
Payments FX
6.2
8.1
6.7
(23) %
(7) %
Other Payments
7.5
7.5
7.2
- %
4 %
Total transactional income
31.4
37.3
31.2
(16) %
1 %
Banking
20.4
18.7
19.2
9 %
6 %
of which
Net Interest Income
16.5
16.4
15.4
1 %
7 %
Trade finance and other Income
3.9
2.3
3.8
70 %
3 %
Total Income
51.8
56.0
50.4
(8) %
3 %
Wholesale FX and Payments FX Income
Total Wholesale FX and Payment FX income has stabilised versus H2 2024 with H1
2025 income at £23.9m (H2 2024: £24.0m) with lower Emerging FX volumes (down
6%) largely offset by higher Developed FX volumes (up 5%). Compared to H1
2024, income was 20% lower largely reflecting a compression in Emerging take
rates as well as non-repeat of a short-lived market dislocation in Q1 2024.
Developed FX volumes grew 26% YoY to £13.6bn (H1 2024: £10.8bn) and 5% HoH
(H2 2024: £12.9bn). This reflected the benefit of deeper relationships with
EMFI clients and the impact of a wider product offering, including trade
finance, derivatives, deposits and correspondent banking.
Emerging FX volumes at £6.3bn declined 7% YoY (H1 2024: £6.8bn) driven
largely by lower volumes from the IDO sector as a result of well publicised
funding constraints. Furthermore, a stronger dollar compared to emerging FX
currencies in the first half of the year lowered average transaction sizes.
FX take rates across Developed and Emerging currencies at 0.12% compressed
throughout 2024. Blended take rates remained stable HoH at 0.12%, but were
down 0.05% YoY, largely reflecting: the impact of volume mix with a larger
proportion of developed FX volumes in H1 2025, Emerging FX take rate
compression in the second half of 2024 and a short-lived dislocation in a
particular currency at the beginning of 2024.
Other Payments
Other Payments revenue, which includes correspondent banking and income from
pension payments was up 4% HoH, driven by the successful onboarding of new
correspondent banking clients across H2 2024 and H1 2025, as we continue to
deepen our USD Clearing partnerships.
Banking Services
Net Interest Income (NII) at £16.5m grew 7% HoH and 1% YoY as the impact of
falling global interest rates was offset by an increase in average call
deposit balances (H1 2025: £771m; H1 2024: £596m). We are increasingly being
seen by clients as a trusted deposit partner, increasing our Clients' ease of
connecting with our payments and FX businesses.
Average Deposits (£m) Six Months Ended YoY HoH
30 June 2025 30 June 2024 31 December 2024 % %
Call deposits 771 596 629 29 % 23 %
Fixed Term Deposits 694 797 785 (13) % (12) %
Total Deposits 1,465 1,393 1,414 5 % 4 %
23 %
Fixed Term Deposits
694
797
785
(13) %
(12) %
Total Deposits
1,465
1,393
1,414
5 %
4 %
Trade finance and other banking services income was £3.9m in the period,
which was up versus both H2 2024 (+3%) and H1 2024 (+70%), primarily
reflecting actively managed growth in the trade book throughout 2024. We have
demonstrated our ability to originate and maintain the portfolio at around the
levels of our capital appetite. Further income growth will be driven by
execution of our origination and distribution model. In the period we also
executed the first trade finance asset sale transaction, demonstrating the
ability to distribute these assets and drive a scalable, low capital and
fee-based revenue stream.
Client Performance
During the period we consolidated previous segments of EMFIs and Major Market
Banks (MMBs) into a single 'Banks' segment which better reflects how we manage
the business and our go-to-market strategy.
Client Sector Analysis: Income YoY HoH
Six months ended: 30 June 2025 30 June 2024 31 December 2024 % %
Banks (£m) 33.6 30.5 31.9 10 % 5 %
IDO (£m) 5.9 8.4 6.8 (30) % (13) %
NBFI and Fintech (£m) 12.3 17.1 11.7 (28) % 5 %
Total 51.8 56.0 50.4 (8) % 3 %
5 %
IDO (£m)
5.9
8.4
6.8
(30) %
(13) %
NBFI and Fintech (£m)
12.3
17.1
11.7
(28) %
5 %
Total
51.8
56.0
50.4
(8) %
3 %
The Banks segment grew 10% YoY and 5% HoH driven by increased call deposits,
growth in trade finance and increased FX through the onboarding of new
correspondent banking relationships. The Banks segment was the biggest driver
of the increase in developed FX volumes.
The IDO segment, representing around 11% of income, delivered lower revenues
principally due to continued funding pressure for the IDOs which started in
the second half of 2024. We remain committed to supporting their vital work.
The NBFI and Fintech segment income grew 5% HoH but was down 28% year YoY,
reflecting the non-repeat of income earned in market dislocations in H1 2024.
We have grown the client numbers through H1 and continue to be well positioned
to serve this client segment going forward.
Expenses
£m Six Months Ended YoY HoH
30 June 2025 30 June 2024 31 December 2024 % %
Staff expenses 22.7 23.0 22.7 1 % - %
Other operating expenses 16.0 14.6 15.9 (10) % (1) %
Total operating expenses (excluding depreciation and amortisation) 38.7 37.6 38.6 (3) % - %
Depreciation and amortisation 5.2 3.8 4.7 (37) % (11) %
Total operating expenses before non-underlying items 44.0 41.4 43.3 (6) % (2) %
Non-underlying items 4.2 1.0 2.7 (320) % (56) %
Total operating expenses after non-underlying items 48.1 42.4 46.0 (13) % (5) %
- %
Other operating expenses
16.0
14.6
15.9
(10) %
(1) %
Total operating expenses (excluding depreciation and amortisation)
38.7
37.6
38.6
(3) %
- %
Depreciation and amortisation
5.2
3.8
4.7
(37) %
(11) %
Total operating expenses before non-underlying items
44.0
41.4
43.3
(6) %
(2) %
Non-underlying items
4.2
1.0
2.7
(320) %
(56) %
Total operating expenses after non-underlying items
48.1
42.4
46.0
(13) %
(5) %
Operating expenses were managed tightly in H1 despite inflationary pressures
and the impact of previous investment leading to higher depreciation and
amortisation costs. Total operating expenses at £48.1m were up 13% YoY and up
5% HoH.
Within this, Staff costs of £22.7m were flat HoH and marginally down YoY
despite staff cost inflation, annualisation effects of prior year hires,
accruals for discretionary variable pay, as well as the prioritisation of
investment in revenue generating teams. The successful execution of the
restructuring exercise in March 2025, where approximately 100 roles were
removed, resulted in a FTE of 345 as at 30th June 2025.
Following the strategic restructuring exercise, the company remains on track
to deliver broadly flat staff costs YoY, excluding discretionary variable pay.
Other operating expenses at £16.0m were up 10% YoY (1% up HoH) largely
reflecting higher levels of operational activity and the non-repeat of a
£0.6m VAT refund recognised in H1 2024.
Depreciation and Amortisation increased to £5.2m (H1 2024: £3.8m),
reflecting the combination of higher levels of investment in 2024 and in H1
2025, along with £1.0m right of use depreciation, up £0.5m (H1 2024:
£0.5m).
Non-underlying items increased to £4.2m (H1 2024: £1.0m), reflecting £2.5m
of redundancy costs, £1.1m of transitioning costs related to executive
committee roles and £0.6m of transformational costs.
Capital, Liquidity & Investment
The Group's unique business model led by FX and Payments, means that it is
significantly less capital intensive than that of other banks given a large
proportion of income is derived from transactional activity. Accordingly, the
Group remains strongly capitalised with a CET1 ratio of 19.5% (H1 2024:
22.5%). The CET1 ratio reduced through 2024 largely as a result of the
controlled growth of the Trade Finance portfolio. The CET1 Ratio does not yet
take into account profits generated in the first half. These profits will be
reflected as capital following the completion of the full-year results
process. The bank remains profitable with a Total CET1 capital of £115.4m,
representing a significant surplus over regulatory requirements.
Liquidity metrics remain strong and with both LCR and NSFR well above
regulatory minimums at 138.8% and 134.4% respectively.
Core intangible capital expenditure for the first half of 2025 was £3.5m,
with the Group reiterating guidance that full-year capex will be managed to
under £8 million and focused on delivering new product initiatives for
clients.
Taxation
The tax charge arising during the period of £0.8m (H1 2024: £3.4m) is based
on an effective tax rate of 25.1% (being the expected rate for the entire
year). This is comparable to the H1 2024 effective tax rate of 25.1%. The tax
rate takes into account the standard corporation tax rate of 25%.
Dividends
No dividends have been declared in 2025 (2024: nil). The Group does not
currently have a dividend policy and chooses, at this time, to reinvest
retained profits into client focused growth initiatives.
Related Parties
Please refer to Note 23 to the interim condensed consolidated financial
statements where detailed disclosures on related parties are made.
Summary
The business has made good financial, strategic and operational progress
during the first half of 2025 with growth in total Income and adjusted EBITDA
starting to come through versus H2 2024. We will continue to deliver our
strategic initiatives throughout the second half, which, alongside our strong
pipeline, gives us confidence in an improved income performance in H2.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Group were disclosed on pages
43 to 48 of the CAB Payments Holdings plc 2024 Annual Report and Account after
review and approval by the Board. The Group considered that the overall
principal risks and uncertainties, risk appetite, key risks and management of
risks unchanged.
The principal risks include:
• Business risk
• Financial crime risk
• Operational risk
• Credit risk
• Market risk
• Regulatory and compliance risk
• Capital adequacy risk
• Liquidity and funding risk
• Conduct risk
Statement of directors' responsibilities
The directors confirm that these condensed interim financial statements have
been prepared in accordance with UK adopted International Accounting Standard
34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority and that
the interim management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
• An indication of important events that have occurred during the
first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
• Material related-party transactions in the first six months and any
material changes in the related-party transactions described in the last
annual report
The maintenance and integrity of the CAB Payments Holding Plc website is the
responsibility of the directors; the work carried out by the authors does not
involve consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that might have occurred to the interim
financial statements since they were initially presented on the website.
A list of current directors is maintained on the CAB Payments Holding Plc
website:
www.cabpayments.com
By order of the Board,
Neeraj Kapur
Group Chief Executive Officer
James Hopkinson
Group Chief Financial Officer
13 August 2025
Alternative Performance Measures
CAB Payments uses alternative performance measures ('APM') when presenting its
financial results. Management believes these provide stakeholders with
additional useful information to interpret the underlying performance of the
business. They are used by the Directors and management to monitor
performance.
APMs used within this Annual Report are supplemental to, but not a substitute
for, IFRS measures presented within the Financial Statements. They may not be
comparable with the APMs of other companies. The APMs are calculated on the
same basis as the prior year.
Total Income
The Group's focus is on controlled investment, whether as capital expenditure
or through operating costs, to drive income growth. Total Income is the same
as 'Total income, net of interest expense' as reported in the Interim
Condensed Consolidated Statement of Profit and Loss.
In H1 2025, £0.7m of IFRS 16 lease costs was reclassified, which were
previously recorded as an interest expense within Total Income, moving these
costs to their own separate line in the financial statements under 'Other
finance costs'. The effect of this on H1 2024 has been to increase total
income by £0.2m but has had no impact on EBITDA or Adjusted EBITDA. No other
adjustments were made to interest expense.
EBITDA
EBITDA is the key measure of profitability used internally at Executive
Committees and Board, and externally with investors.
It is calculated as Profit before Tax and IFRS 16 lease liability interest
expense, depreciation and amortisation. Although it is typical to calculate
EBITDA before interest, our net interest income is generated from client
deposits and subsequent reinvestment to generate returns for shareholders and
therefore remains included within EBITDA.
The calculation for EBITDA can be seen in Note 3 Segment reporting.
Adjusted EBITDA and Adjusted EBITDA Margin
The Group believes that Adjusted EBITDA is a useful measure for investors
because it is closely tracked by management to evaluate the Group's
performance for making financial, strategic and operating decisions, as well
as aiding investors to understand and evaluate the underlying trends in the
Group's performance period on period, in a comparable manner.
Adjusted EBITDA margin is another measure of profitability, by understanding
how much of the income is converted to profit, by calculating Adjusted EBITDA
as a percentage of total income.
Adjusted EBITDA Reference Six Months Ended
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
EBITDA from continuing operations Note 3 A 8,937 17,669 9,355
Add back: Non-underlying items Note 7 b) B 4,162 1,002 2,739
Adjusted EBITDA A+B 13,099 18,671 12,094
Six Months Ended
30 June 2025 30 June 2024 31 December 2024
Adjusted EBITDA margin Reference £'000 £'000 £'000
Adjusted EBITDA Table above A 13,099 18,671 12,094
Total income (defined as total income, net of interest expense) Consolidated Statement of Profit or Loss B 51,818 55,966 50,475
Adjusted EBITDA margin A / B 25 % 33 % 24 %
33 %
24 %
Adjusted Profit and Earnings Per Share
A measure of profitability based on adjusting the statutory profit after tax
by removing identified items that do not form part of the ongoing running
costs of the business.
Adjusted Profit After Tax Reference Six Months Ended
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Profit Before Tax Consolidated Statement of Profit or Loss A 3,075 13,673 3,921
Add back: Non-underlying items Consolidated Statement of Profit or Loss B 4,162 1,002 2,739
Adjusted Profit Before Tax C = A+B 7,237 14,675 6,660
Adjusted Tax (at standard rates: 2024: 25%) D (1,809) (3,669) (1,665)
Adjusted Profit After Tax E = C-D 5,428 11,006 4,995
Number of Shares Note 21 F 254,143 254,143 254,143
Adjusted Earnings Per Share (pence) E / F 2.1 4.3 2.0
(3,669)
(1,665)
Adjusted Profit After Tax
E = C-D
5,428
11,006
4,995
Number of Shares
Note 21
F
254,143
254,143
254,143
Adjusted Earnings Per Share (pence)
E / F
2.1
4.3
2.0
Operating Free Cash Flow and Free Cash Flow conversion
A measure of cash flow generated by the business. It is a non-statutory
measure used by the Board and the senior management team to measure the
ability of the Group to support future business expansion, distributions, or
financing. It is calculated as Adjusted EBITDA before the cost of purchasing
property, plant and equipment, the cost of intangible asset additions, and the
cost of lease payments. The Group also measures free cash flow conversion,
being operating free cash flow as a percentage of Adjusted EBITDA.
Six Months Ended
30 June 2025 30 June 2024 31 December 2024
Operating free cash flow: Reference £'000 £'000 £'000
Adjusted EBITDA Note 3 (b) A 13,099 18,671 12,094
Less: additions of tangible fixed assets Note 15 (20) (2,213) (215)
Less: additions of intangible fixed assets Note 17 (3,516) (6,813) (5,711)
Less: cash payments made on property leases Note 16 B (111) (264) (64)
Operating free cash flow B 9,452 9,381 6,104
Operating free cash flow conversion B / A 72 % 50 % 50 %
50 %
50 %
Independent Review Report to the members of CAB Payments Holdings plc
Report on the interim condensed consolidated financial statements
Our conclusion
We have reviewed CAB Payments Holdings plc's interim condensed consolidated
financial statements (the "interim financial statements") in the Interim
results of CAB Payments Holdings plc for the 6 month period ended 30 June 2025
(the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Interim Condensed Consolidated Statement of Financial
Position as at 30 June 2025;
· the Interim Condensed Consolidated Statement of Profit or Loss
for the period then ended;
· the Interim Condensed Consolidated Statement of Other
Comprehensive Income for the period then ended;
· the Interim Condensed Consolidated Statement of Cash Flows for
the period then ended;
· the Interim Condensed Consolidated Statement of Changes in
Equity for the period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim results of CAB
Payments Holdings plc have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Interim results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Interim results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Interim results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Interim results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Interim results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
13 August 2025
Interim Condensed Consolidated Statement of Profit or Loss
for the six months ended 30 June 2025
Six months ended
30 June 2025 30 June 2024
Note £'000 £'000
Interest income 4 28,509 28,697
Interest expense 4 (15,263) (19,394)
Net interest income 13,246 9,303
Gain on money market funds 7,921 8,546
Net (loss)/gain on financial assets and financial liabilities mandatorily held (1,151) 179
at fair value through profit or loss
Fees and commission income 5 7,924 8,090
Net foreign exchange gain 6 23,878 29,848
Total income, net of interest expense 51,818 55,966
Operating expenses before non-underlying items 7 (43,952) (41,420)
Non-underlying items 7 (4,162) (1,002)
Operating expenses after non-underlying items 7 (48,114) (42,422)
Other finance costs 4a (682) (227)
Impairment reversal on financial assets at amortised cost 53 356
Profit before tax 3,075 13,673
Tax expense 8 (771) (3,432)
Profit for the period 2,304 10,241
28,697
Interest expense
4
(15,263)
(19,394)
Net interest income
13,246
9,303
Gain on money market funds
7,921
8,546
Net (loss)/gain on financial assets and financial liabilities mandatorily held
at fair value through profit or loss
(1,151)
179
Fees and commission income
5
7,924
8,090
Net foreign exchange gain
6
23,878
29,848
Total income, net of interest expense
51,818
55,966
Operating expenses before non-underlying items
7
(43,952)
(41,420)
Non-underlying items
7
(4,162)
(1,002)
Operating expenses after non-underlying items
7
(48,114)
(42,422)
Other finance costs
4a
(682)
(227)
Impairment reversal on financial assets at amortised cost
53
356
Profit before tax
3,075
13,673
Tax expense
8
(771)
(3,432)
Profit for the period
2,304
10,241
Six months ended
30 June 2025 30 June 2024
pence pence
Basic and diluted earnings per share 27
Basic earnings per share 0.9 4.0
Diluted earnings per share 0.9 4.0
4.0
Diluted earnings per share
0.9
4.0
The notes to the accounts form part of these interim condensed consolidated
financial statements.
Interim Condensed Consolidated Statement of Other Comprehensive Income
for the six months ended 30 June 2025
Six months ended
30 June 2025 30 June 2024
Note £'000 £'000
Profit for the period 2,304 10,241
Other comprehensive income for the period:
Items that may be reclassified subsequently to profit or loss:
Foreign exchange losses on translation of foreign operations (190) (36)
Items that will not be reclassified subsequently to profit or loss:
Movement in investment revaluation reserve for equity instruments at fair 94 20
value through other comprehensive income
Other comprehensive loss net of tax (96) (16)
Total comprehensive income 2,208 10,225
10,241
Other comprehensive income for the period:
Items that may be reclassified subsequently to profit or loss:
Foreign exchange losses on translation of foreign operations
(190)
(36)
Items that will not be reclassified subsequently to profit or loss:
Movement in investment revaluation reserve for equity instruments at fair
value through other comprehensive income
94
20
Other comprehensive loss net of tax
(96)
(16)
Total comprehensive income
2,208
10,225
The notes to the accounts form part of these interim condensed consolidated
financial statements.
Interim Condensed Consolidated Statement of Financial Position
as at 30 June 2025
As at As at
30 June 2025 31 December 2024
Note £'000 £'000
Assets
Cash and balances at central banks 9 433,116 584,679
Money market funds 10 301,033 488,197
Loans and advances on demand to banks 11 129,799 185,559
Investment in debt securities 13 417,969 246,021
Other loans and advances to banks 11 203,480 180,084
Other loans and advances to non-banks 11 28,994 32,596
Unsettled transactions 14 24,918 10,866
Derivative financial assets 12 1,094 4,884
Investment in equity securities 667 553
Other assets 14 21,576 19,341
Accrued income 1,301 925
Property, plant and equipment 15 2,475 2,781
Right of use assets 16 16,733 17,754
Intangible assets 17 30,210 30,605
Total assets 1,613,365 1,804,845
Liabilities
Customer accounts 18 1,387,052 1,585,000
Derivative financial liabilities 12 3,403 539
Unsettled transactions 19 32,002 35,173
Other liabilities 19 12,597 5,967
Accruals 19 6,472 10,380
Lease liabilities 16 18,495 18,069
Deferred tax liability 1,875 1,217
Provisions 20 2,010 1,949
Total liabilities 1,463,906 1,658,294
Equity
Called up share capital 21 85 85
Treasury shares reserve (244) (244)
Retained earnings 149,728 146,724
Investment revaluation reserve 220 126
Foreign currency translation reserve (330) (140)
Shareholders' funds 149,459 146,551
Total liabilities and equity 1,613,365 1,804,845
584,679
Money market funds
10
301,033
488,197
Loans and advances on demand to banks
11
129,799
185,559
Investment in debt securities
13
417,969
246,021
Other loans and advances to banks
11
203,480
180,084
Other loans and advances to non-banks
11
28,994
32,596
Unsettled transactions
14
24,918
10,866
Derivative financial assets
12
1,094
4,884
Investment in equity securities
667
553
Other assets
14
21,576
19,341
Accrued income
1,301
925
Property, plant and equipment
15
2,475
2,781
Right of use assets
16
16,733
17,754
Intangible assets
17
30,210
30,605
Total assets
1,613,365
1,804,845
Liabilities
Customer accounts
18
1,387,052
1,585,000
Derivative financial liabilities
12
3,403
539
Unsettled transactions
19
32,002
35,173
Other liabilities
19
12,597
5,967
Accruals
19
6,472
10,380
Lease liabilities
16
18,495
18,069
Deferred tax liability
1,875
1,217
Provisions
20
2,010
1,949
Total liabilities
1,463,906
1,658,294
Equity
Called up share capital
21
85
85
Treasury shares reserve
(244)
(244)
Retained earnings
149,728
146,724
Investment revaluation reserve
220
126
Foreign currency translation reserve
(330)
(140)
Shareholders' funds
149,459
146,551
Total liabilities and equity
1,613,365
1,804,845
Company registration number - 09659405
The notes to the accounts form part of these interim condensed consolidated
financial statements.
The Board of Directors approved the interim condensed consolidated financial
statements on 13 August 2025.
N Kapur J Hopkinson
Group Chief Executive Officer Group Chief Finance Officer
Interim Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 June 2025
Attributable to owners of the parent
Share capital Treasury shares reserve Retained earnings Investment revaluation reserve Foreign currency translation reserve Total Total shareholders' funds
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2025 85 (244) 146,724 126 (140) 146,551 146,551
Profit for the period - - 2,304 - - 2,304 2,304
Other comprehensive income:
Foreign exchange gain on translation of foreign operations - - - - (190) (190) (190)
Movement in investment revaluation reserve for equity instruments at fair - - - 94 - 94 94
value through other comprehensive income
Income tax relating to these items - - - - - - -
Other comprehensive loss net of tax - - - 94 (190) (96) (96)
Total comprehensive income/(loss) - - 2,304 94 (190) 2,208 2,208
Transactions with owners in their capacity as owners:
Share-based payment expense - - 700 - - 700 700
Total - - 700 - - 700 700
Balance at 30 June 2025 85 (244) 149,728 220 (330) 149,459 149,459
Balance at 1 January 2024 85 - 131,478 111 (144) 131,530 131,530
Profit for the period - - 10,241 - - 10,241 10,241
Other comprehensive income:
Foreign exchange losses on translation of foreign operations - - - - (36) (36) (36)
Movement in investment revaluation reserve for equity instruments at fair - - - 20 - 20 20
value through other comprehensive income
Income tax relating to these items - - - - - - -
Other comprehensive income/(loss) net of tax - - - 20 (36) (16) (16)
Total comprehensive income/(loss) - - 10,241 20 (36) 10,225 10,225
Transactions with owners in their capacity as owners:
Share-based payment expense - - 520 - - 520 520
Stamp duty refund - - 38 - - 38 38
Acquisition of treasury shares by EBT - (242) - - - (242) (242)
Total - (242) 558 - - 316 316
Balance at 30 June 2024 85 (242) 142,277 131 (180) 142,071 142,071
(244)
146,724
126
(140)
146,551
146,551
Profit for the period
-
-
2,304
-
-
2,304
2,304
Other comprehensive income:
Foreign exchange gain on translation of foreign operations
-
-
-
-
(190)
(190)
(190)
Movement in investment revaluation reserve for equity instruments at fair
value through other comprehensive income
-
-
-
94
-
94
94
Income tax relating to these items
-
-
-
-
-
-
-
Other comprehensive loss net of tax
-
-
-
94
(190)
(96)
(96)
Total comprehensive income/(loss)
-
-
2,304
94
(190)
2,208
2,208
Transactions with owners in their capacity as owners:
Share-based payment expense
-
-
700
-
-
700
700
Total
-
-
700
-
-
700
700
Balance at 30 June 2025
85
(244)
149,728
220
(330)
149,459
149,459
Balance at 1 January 2024
85
-
131,478
111
(144)
131,530
131,530
Profit for the period
-
-
10,241
-
-
10,241
10,241
Other comprehensive income:
Foreign exchange losses on translation of foreign operations
-
-
-
-
(36)
(36)
(36)
Movement in investment revaluation reserve for equity instruments at fair
value through other comprehensive income
-
-
-
20
-
20
20
Income tax relating to these items
-
-
-
-
-
-
-
Other comprehensive income/(loss) net of tax
-
-
-
20
(36)
(16)
(16)
Total comprehensive income/(loss)
-
-
10,241
20
(36)
10,225
10,225
Transactions with owners in their capacity as owners:
Share-based payment expense
-
-
520
-
-
520
520
Stamp duty refund
-
-
38
-
-
38
38
Acquisition of treasury shares by EBT
-
(242)
-
-
-
(242)
(242)
Total
-
(242)
558
-
-
316
316
Balance at 30 June 2024
85
(242)
142,277
131
(180)
142,071
142,071
The notes to the accounts form part of these interim condensed consolidated
financial statements.
Interim Condensed Consolidated Statement of Cash Flows
for the six months ended 30 June 2025
Half-year to
30 June 2025 30 June 2024
Note £'000 £'000
Cash outflow from operating activities 22 (350,711) (138,344)
Tax paid (2,927) (11,347)
Payments for interest on lease liabilities (24) (212)
Net cash used in operating activities (353,662) (149,903)
Cash flow used in investing activities
Purchase of property, plant and equipment 15 (20) (2,213)
Purchase of intangible assets 17 (3,155) (6,813)
Net cash used in investing activities (3,175) (9,026)
Cash flow used in financing activities
Repayment of principal portion of the lease liability (87) (264)
Purchase of treasury shares 30 - (242)
Increase in overdraft accounts - 174
Net cash used in financing activities (87) (332)
Net decrease in cash and cash equivalents (356,924) (159,261)
Cash and cash equivalents at the beginning of the year 1,258,435 1,182,339
Effect of exchange rate changes on cash and cash equivalents (37,563) (2,554)
Cash and cash equivalents at the end of the period 863,948 1,020,524
Analysed as follows:
Cash and balances at central banks 9 433,116 499,725
Money market funds 10 301,033 390,084
Loans and advances on demand to banks 11 129,799 130,715
(138,344)
Tax paid
(2,927)
(11,347)
Payments for interest on lease liabilities
(24)
(212)
Net cash used in operating activities
(353,662)
(149,903)
Cash flow used in investing activities
Purchase of property, plant and equipment
15
(20)
(2,213)
Purchase of intangible assets
17
(3,155)
(6,813)
Net cash used in investing activities
(3,175)
(9,026)
Cash flow used in financing activities
Repayment of principal portion of the lease liability
(87)
(264)
Purchase of treasury shares
30
-
(242)
Increase in overdraft accounts
-
174
Net cash used in financing activities
(87)
(332)
Net decrease in cash and cash equivalents
(356,924)
(159,261)
Cash and cash equivalents at the beginning of the year
1,258,435
1,182,339
Effect of exchange rate changes on cash and cash equivalents
(37,563)
(2,554)
Cash and cash equivalents at the end of the period
863,948
1,020,524
Analysed as follows:
Cash and balances at central banks
9
433,116
499,725
Money market funds
10
301,033
390,084
Loans and advances on demand to banks
11
129,799
130,715
The notes to the accounts form part of these interim condensed consolidated
financial statements.
Notes to the Interim Condensed Consolidated Financial Statements
for the six months ended 30 June 2025
1. Statement of Accounting Policies
The following accounting policies relate to the financial statements of CAB
Payments Holdings plc ("the Company") and its subsidiaries (collectively
referred to as "the Group").
a) General information
The Company is incorporated and domiciled in England. The address of its
registered office as at 30 June 2025 is 3 London Bridge St, London, SE1 9SG,
England. The Company's shares trade under the ticker code of CABP.L.
The Group is a market leader in business-to-business cross-border payments and
foreign exchange, specialising in hard-to-reach markets.
b) Basis of preparation
The interim condensed consolidated financial statements comprise (i) the
interim condensed consolidated statements of profit or loss, (ii) the interim
condensed consolidated statement of other comprehensive income, (iii) the
interim condensed consolidated statement of financial position, (iv) the
interim condensed consolidated statement of changes in equity, (v) the interim
condensed consolidated statement of cash flows and (vi) the related notes of
the Group, for the six months ended 30 June 2025.
The interim condensed consolidated financial statements have been prepared in
accordance with the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority and with UK adopted International Accounting
Standard 34 "Interim Financial Reporting''.
The interim condensed consolidated financial statements have not been audited
and do not constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006 but has been reviewed by the auditor in accordance with
International Standard on Review Engagements (UK) 2410 issued by the Financial
Reporting Council. The Group's statutory accounts for the year ended 31
December 2024, prepared in accordance with UK adopted international accounting
standards, have been delivered to the Registrar of Companies. The report of
the auditor on these financial statements was unqualified, did not draw
attention to any matters by way of emphasis and did not contain any statement
under section 498(2) or (3) of the Companies Act 2006.
The interim condensed consolidated financial statements should be read in
conjunction with the Annual Report and Accounts for the year ended 31 December
2024 from which the comparative information as at 31 December 2024 has been
derived. The interim condensed consolidated financial statements dated 30 June
2025 and 30 June 2024 have been reviewed, but not audited. The comparative
financial statements dated 31 December 2024 have been audited as part of the
2024 financial statements unless noted otherwise.
'Non-underlying items' presented in the consolidated statement of profit or
loss and related notes have been referred to as 'adjusting items' in the prior
year.
The interim condensed consolidated financial statements are presented in
British Pound Sterling ("£"). All values are rounded to the nearest thousand
("£'000"), except where otherwise indicated.
The accounting policies and presentation applied by the Group in these interim
condensed consolidated financial statements are consistent with those applied
in the Annual Report and Accounts for the year ended 31 December 2024 and
those expected to be applied in the year to 31 December 2025.
The annual financial statements of the Group will be prepared in accordance
with UK adopted International Accounting Standards ("IFRSs").
The Group has adopted the following new or amended IFRSs and interpretations
that are effective from 1 January 2025, none of which had any material impact
on the Group's interim condensed consolidated financial statements.
Accounting standard Amendment/interpretation
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (Issued August 2023). The standard is effective 1
January 2025.
c) Going concern
The Directors have assessed the ability of the Company and of the Group to
continue as a going concern based on the net current asset position,
regulatory capital requirements and estimated future cash flows. The Directors
have formed the view that the Company and the Group have adequate resources to
continue in existence for a period of 12 months from when these financial
statements are authorised for issuance. Accordingly, the financial statements
of the Company and the Group have been prepared on a going concern basis.
Critical to reaching this view were:
· The output of internal stress assessments which were conducted
at a Company and a Group level and modelled the impact of severe yet plausible
stresses which underpinned the Going concern assessment.
· The output of the reverse stress testing assessment which
modelled the scenarios that would have to occur in order for the Group to fall
below its Total Capital Requirement (being the aggregate of Pillar 1 and
Pillar 2A capital requirements).
In reaching their conclusions, the Directors also considered the results of
the 2024 ILAAP and the 2024 ICAAP.
Internal stress assessments
In total, three stresses were considered:
· Market & Climate Change Stress which modelled the impacts
of a severe global recession which leads to increased credit defaults and
widespread credit rating downgrades, a low interest rate environment
detrimentally impacting Net Interest Income and GBP sharply depreciating
against USD which led to material increases in USD denominated Credit Risk
Weighted Assets (CRWA);
· Idiosyncratic Stress which modelled the impact of a material
reduction in revenue driven by idiosyncratic events; and
· A Combined Stress which modelled the impact of the Market &
Climate Stress occurring concurrently with the Idiosyncratic Stress.
The Group's most recent ICAAP was approved by the Board in June 2025 and thus
its conclusions were based on a version of the corporate plan agreed by the
Board during December 2024. As part of this Going Concern assessment, severe,
but plausible Idiosyncratic, Market and Climate, and Combined stresses similar
to those applied in the ICAAP are applied to the Group Corporate Plan which
was Board approved during in June 2025.
In all the stresses noted above the Group maintained sizeable surpluses to the
Total Capital Requirement and liquidity requirements.
ii. Reverse stress tests
The reverse stress tests are used to assess vulnerabilities of the Group and
determine what extreme adverse events would cause the business to fail. Where
any of these events are deemed to be plausible, the Group will adopt measures
to mitigate the impact of such events where plausible.
The Group did not identify reasonably possible scenarios which could result in
failure to continue in operational existence for a period of 12 months from
when these financial statements are authorised for issuance.
iii. Conclusion
The Directors are of the view that:
· There are no material uncertainties relating to events or
conditions that cast significant doubt on the Company's and the Group's
ability to continue as a going concern; and
· The significant judgements and estimates made by management in
determining whether or not the adoption of the going concern is appropriate
are disclosed in Note 2 of the 2024 Annual Report. There were no significant
changes to the judgement and estimates during the period. The forecasts and
assumptions used for impairment assessments were the same used for the going
concern assessment.
Accordingly, the financial statements have been prepared on a going concern
basis.
d) New and revised IFRS accounting standards in issue but not yet effective
At the date of authorisation of these interim condensed consolidated financial
statements, the Group has not applied the following new and revised IFRS
Accounting Standards that have been issued but are not yet effective.
Accounting standard* Details of amendment
Amendments to the Classification and Measurement of Financial Instruments - The amendments provide guidance related to:
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: • Financial assets with ESG-linked features;
Disclosures effective 1 January 2026
• Settlement of financial liabilities by electronic payments.
New sustainability standards issued by the International Sustainability The ISSB issued its first two sustainability reporting standards on 26 June
Standards Board (ISSB) effective 1 January 2026 in the UK 2023. This included:
• General Requirements for Disclosure of Sustainability-related
Financial Information (IFRS S1), the core framework for the disclosure of
material information about sustainability-related risks and opportunities
across an entity's value chain.
• Climate-related Disclosures (IFRS S2), the first thematic
standard issued that sets out requirements for entities to disclose
information about climate-related risks and opportunities.
IFRS 18 Presentation and Disclosure in Financial Statements effective 1 IFRS 18 affects all companies, bringing significant changes to how companies
January 2027 present their income and what information companies need to disclose, and
making certain 'non-GAAP' measures part of audited financial statements for
the first time. There will be three new categories of income and expenses, two
defined income statement subtotals and one single note on management-defined
performance measures.
IFRS 19 Reduced Disclosures for Subsidiaries without public accountability To simplify and reduce the cost of financial reporting by subsidiaries while
maintaining the usefulness of their financial statements. This standard is not
applicable to the Group consolidated financial statements.
New sustainability standards issued by the International Sustainability
Standards Board (ISSB) effective 1 January 2026 in the UK
The ISSB issued its first two sustainability reporting standards on 26 June
2023. This included:
• General Requirements for Disclosure of Sustainability-related
Financial Information (IFRS S1), the core framework for the disclosure of
material information about sustainability-related risks and opportunities
across an entity's value chain.
• Climate-related Disclosures (IFRS S2), the first thematic
standard issued that sets out requirements for entities to disclose
information about climate-related risks and opportunities.
IFRS 18 Presentation and Disclosure in Financial Statements effective 1
January 2027
IFRS 18 affects all companies, bringing significant changes to how companies
present their income and what information companies need to disclose, and
making certain 'non-GAAP' measures part of audited financial statements for
the first time. There will be three new categories of income and expenses, two
defined income statement subtotals and one single note on management-defined
performance measures.
IFRS 19 Reduced Disclosures for Subsidiaries without public accountability
To simplify and reduce the cost of financial reporting by subsidiaries while
maintaining the usefulness of their financial statements. This standard is not
applicable to the Group consolidated financial statements.
* Anything not mentioned in the above table is not relevant.
The Group does not expect that the adoption of the Standards listed above will
have a material impact on the interim condensed consolidated financial
statements of the Group in future periods, with the exception of IFRS 18 where
the impact has yet to be determined.
2. Critical Accounting Judgements and Key Sources of Estimation Uncertainty
In preparing the interim condensed consolidated financial statements,
management has made judgements and estimates that affect the application of
accounting policies and the reported amounts. For the interim period ended 30
June 2025, none of the judgements and estimates made were assessed as critical
for the purposes of interim reporting.
3. Segment Reporting
Operating segments are determined by the Group's internal reporting to the
Chief Operating Decision Maker (CODM). The CODM has been determined to be the
Group's Executive Committee. The information regularly reported to the
Executive Committee for the purposes of resource allocation and the assessment
of performance, is based wholly on the overall activities of the Group. Based
on the Group's business model, the Group has determined that it has only one
reportable segment which is its continuing operations.
The CODM assesses the profitability of the segment based on a measure of
EBITDA and Adjusted EBITDA which are defined as follows:
· EBITDA - Calculated as Profit before Tax and IFRS 16 lease
liability interest, depreciation and amortisation. Although it is typical to
calculate EBITDA before interest, our net interest income is generated from
operational client deposits and subsequent re-investment to generate returns
for the shareholder and therefore remains included within EBITDA.
· Adjusted EBITDA - EBITDA before Non-underlying items.
Revenue from external clients is largely generated through its business
operations and trading infrastructure located in the UK and on that basis is
wholly attributable to the UK and all non-current assets, other than financial
instruments and deferred tax assets, are located in the UK.
a) Income
The Group derives its income as follows:
Income by business line from continuing operations Six months ended
30 June 2025 30 June 2024
£'000 £'000
FX ¹ 17,672 21,723
Payments ¹ 13,751 15,604
Banking services and other income ² 20,395 18,639
Total income - net of interest expense 51,818 55,966
21,723
Payments ¹
13,751
15,604
Banking services and other income ²
20,395
18,639
Total income - net of interest expense
51,818
55,966
(1) Prior period reclassification
At the beginning of the financial period ended 30 June 2025, the Group
reassessed its client classifications within the FX and Payments segments and
concluded that certain clients more appropriately meet the definition of
Payments clients. To improve the clarity and comparability of the reported
financial information in line with IFRS 8, income related to these clients
amounting to £1,127k has been reclassified from the FX line to the Payments
line for the 2024 comparative period.
This reclassification is presentational in nature and does not impact
previously reported profit before tax, profit for the year, earnings per
share, equity, or the statement of financial position.
(2) Refer to Note 4a for details on the reclassification of interest expense
on lease liabilities disclosed within related to Banking Services and Other
Income.
FX: Revenue categorised as FX is from clients with a need to exchange an
amount from one currency for another without onward payment to another party.
The Group's FX revenue is also derived from profit on settlement of FX
contracts, remeasurement of sterling balances, fair value (losses)/gains on
derivatives and FX gain on payment transaction revenue.
Payments: The Group's payments revenue includes payments FX, same currency
payments (corresponding activity income, and account management fees), pension
payments and platform revenue. Payments FX comprises of the margin derived
from bid-ask spreads on foreign currency conversion and fees paid by clients
to transfer money from or to a third party, cross borders.
Same currency relates to payment services provided for payments transacted
without an exchange of foreign currency largely relating to major market
currency clearing and includes fees for account management activities and
payments execution. Pension payments fees relate to amounts earned on
processing of pension scheme foreign currency payments. Platform revenue
relates to recurring fixed fees rather than fees earned on transaction
volumes.
Banking services and other income: The Group also generates income from trade
finance (including trade finance and letters of credit), working capital
services and risk management consulting fees, interest earned from other
placements with banks, interest earned from advances to non-banks outside the
Working Capital facility, interest from staff loans, and net gains from
financial assets/liabilities measured at fair value. The Group takes client
funds earmarked for other needs as client deposits and makes short-term
investments in the money market to seek to generate gains on money market
funds.
b) Profitability
The Group measures profitability for the reporting segment on an EBITDA and
Adjusted EBITDA basis. EBITDA is useful as a measure of comparative operating
performance between both previous periods and other companies as it removes
the effect of taxation, depreciation and amortisation as well as items
relating to capital structure, while adjusted EBITDA also removes the effect
of Non-underlying items.
Six months ended
Reconciliation of profit before tax from continuing operations to EBITDA 30 June 2025 30 June 2024
and Adjusted EBITDA
£'000 £'000
Profit before taxation 3,075 13,673
Adjusted for:
Interest expenses on lease liabilities (Note 16) 682 227
Amortisation (Note 7) 3,833 2,826
Depreciation (Note 7) ¹ 1,347 943
EBITDA 8,937 17,669
Non-underlying items (Note 7b) 4,162 1,002
Adjusted EBITDA 13,099 18,671
30 June 2025
30 June 2024
£'000
£'000
Profit before taxation
3,075
13,673
Adjusted for:
Interest expenses on lease liabilities (Note 16)
682
227
Amortisation (Note 7)
3,833
2,826
Depreciation (Note 7) ¹
1,347
943
EBITDA
8,937
17,669
Non-underlying items (Note 7b)
4,162
1,002
Adjusted EBITDA
13,099
18,671
(1) Balance includes depreciation on property, plant and equipment and right
of use of asset.
4. Net Interest Income
Six months ended
30 June 2025 30 June 2024
Interest income: £'000 £'000
Interest on cash and balances at central banks 13,437 14,505
Interest on loans and advances 7,296 6,058
Interest on letters of credit 931 476
Interest on investment in debt securities 6,671 7,586
Other interest income and similar income¹ 174 72
Interest income 28,509 28,697
Interest expense:
Interest on financial liabilities at amortised cost (15,127) (19,283)
Other interest expense¹ (136) (111)
Interest expense (Note 4a) (15,263) (19,394)
Total net interest income (Note 4a) 13,246 9,303
14,505
Interest on loans and advances
7,296
6,058
Interest on letters of credit
931
476
Interest on investment in debt securities
6,671
7,586
Other interest income and similar income¹
174
72
Interest income
28,509
28,697
Interest expense:
Interest on financial liabilities at amortised cost
(15,127)
(19,283)
Other interest expense¹
(136)
(111)
Interest expense (Note 4a)
(15,263)
(19,394)
Total net interest income (Note 4a)
13,246
9,303
1 Other interest income and similar income and other
interest expense are interest received, interest accrued, or interest paid on
the collateral balances paid to or received from our FX Swap Counterparties.
4a) Other finance costs
Six months ended
30 June 2025 30 June 2024
£'000 £'000
Interest expense on lease liabilities (Note 16c)* (682) (227)
(227)
*Prior period reclassification
During the period ended 30 June 2025, the Bank revised its presentation of
interest expense on lease liabilities. This interest expense, previously
included within the overall "Interest Expense" line, is now presented
separately on the face of the Statement of Profit or Loss under the heading
"Other Finance Costs" to enhance understandability of transactions of a
similar nature.
As a result, the comparative figures for the period ended 30 June 2024 have
been reclassified to conform to the current year's presentation. The
reclassification is presentational only and has no impact on previously
reported profit before tax, profit for the year, earnings per share, equity or
the interim condensed consolidated statement of financial position. The impact
of the reclassification on the comparative statement of profit or loss is as
follows:
As previously reported Adjustment Reclassified
For the period ended 30 June 2024 £'000 £'000 £'000
Interest expense (19,621) 227 (19,394)
Net interest income 9,076 227 9,303
Total income, net of interest expense 55,739 227 55,966
Other finance costs - 227 227
227
(19,394)
Net interest income
9,076
227
9,303
Total income, net of interest expense
55,739
227
55,966
Other finance costs
-
227
227
5. Fees and Commissions Income
Six months ended
30 June 2025 30 June 2024
£'000 £'000
Fees and commissions income:
Account management and payments 6,663 6,265
Pension payment fees 824 784
Trade finance 379 571
Electronic platform fees 58 160
FX payment fees - 310
Total fees and commission income 7,924 8,090
6,265
Pension payment fees
824
784
Trade finance
379
571
Electronic platform fees
58
160
FX payment fees
-
310
Total fees and commission income
7,924
8,090
At 30 June 2025, the Group held on its consolidated statement of financial
position £646k (at 30 June 2024: £946k) of accrued income in respect of
services provided to clients and £67k (six months ended 30 June 2024: £29k)
of deferred income (entirely recognised within one year) in respect of amounts
received from clients for services to be provided after the year end.
6. Net Foreign Exchange Gain
Six months ended
30 June 2025 30 June 2024
£'000 £'000
Profit on settlement of FX contracts and remeasurement of non-sterling 24,328 14,161
balances
Fair value (losses)/gains on derivatives¹ (6,655) 8,689
FX gain on payment transaction revenue 6,205 6,998
Total 23,878 29,848
14,161
Fair value (losses)/gains on derivatives¹
(6,655)
8,689
FX gain on payment transaction revenue
6,205
6,998
Total
23,878
29,848
(1 )Foreign exchange derivative financial instruments are
mandatorily held at fair value through profit or loss and this balance relates
to (loss)/gain during the period. At 30 June 2025 the mark to market value of
open FX trades came to a loss of (£2,310k) (six months ended 30th June 2024:
gain of £2,829k). As noted in Note 12 the derivatives have been transacted to
i) economically hedge assets and liabilities in foreign currencies and ii)
trade on behalf of clients.
7. Operating Expenses
Six months ended
30 June 2025 30 June 2024
£'000 £'000
Staff costs and Directors' emoluments
Salaries and bonuses 18,576 18,740
Share-based payments 700 520
Social security costs 2,085 2,401
Pension costs 1,344 1,345
Depreciation and amortisation
Amortisation of intangible assets (Note 17) 3,833 2,826
Depreciation of property, plant, and equipment (Note 15) 326 423
Depreciation of right-of-use assets (Note 16) 1,021 520
Other expenses
Low-value lease expenses 42 30
Clearing costs 1,283 1,154
Other bank charges 1,621 1,555
Software support/licences 4,174 3,698
Process automation costs (see Note 24 B(ii)(a)) 1,063 1,053
Professional fees 1,048 1,155
Irrecoverable VAT 886 319
Other operating expenses¹ 5,950 5,681
Operating expenses before non-underlying items¹ 43,952 41,420
Non-underlying items (Note 7b) ¹ 4,162 1,002
Total operating expenses after non-underlying items 48,114 42,422
18,740
Share-based payments
700
520
Social security costs
2,085
2,401
Pension costs
1,344
1,345
Depreciation and amortisation
Amortisation of intangible assets (Note 17)
3,833
2,826
Depreciation of property, plant, and equipment (Note 15)
326
423
Depreciation of right-of-use assets (Note 16)
1,021
520
Other expenses
Low-value lease expenses
42
30
Clearing costs
1,283
1,154
Other bank charges
1,621
1,555
Software support/licences
4,174
3,698
Process automation costs (see Note 24 B(ii)(a))
1,063
1,053
Professional fees
1,048
1,155
Irrecoverable VAT
886
319
Other operating expenses¹
5,950
5,681
Operating expenses before non-underlying items¹
43,952
41,420
Non-underlying items (Note 7b) ¹
4,162
1,002
Total operating expenses after non-underlying items
48,114
42,422
(1 )The accounting policy for non-underlying items was updated as at 31
December 2024 to enhance the presentation of the Group's underlying
performance within the Statement of Profit or Loss (refer to Note 7b). As this
update occurred after the publication of the interim results for the period
ended 30 June 2024, a reclassification has been made to ensure consistency and
comparability. Strategic restructuring costs of £590k, previously reported
within "Other operating expenses" in HY2024, have been reclassified to
non-underlying items in accordance with the updated policy and results.
This reclassification is presentational in nature and does not impact
previously reported profit before tax, profit for the year, earnings per
share, equity, or the statement of financial position.
The impact of the reclassification on the comparative balances is as follows:
Six months ended 30 June 2024 As previously reported Adjustment Reclassified
£'000 £'000 £'000
Other operating expenses 6,271 (590) 5,681
Operating expenses before non-underlying items 42,010 (590) 41,420
Non-underlying items 412 590 1,002
7a) Number of employees
The monthly average number of full-time equivalent staff employed within the
Group, including Executive Directors for the six months ended 30 June 2025
was 373 (six months ended 30 June 2024: 415).
Six months ended
Average number of persons employed during the year by legal entity 30 June 2025 30 June 2024
Crown Agents Bank Limited 359 400
CAB US Inc (formerly Segovia Technology Company) 3 6
CAB Europe BV 11 9
Total 373 415
400
CAB US Inc (formerly Segovia Technology Company)
3
6
CAB Europe BV
11
9
Total
373
415
7b) Non-underlying items
The Group separately identifies results before non-underlying items. These
measures are not measures of performance under IFRS and should be considered
in addition to, and not as a substitute for, IFRS measures of financial
performance and liquidity. The Group uses its judgement to classify items as
non-underlying. Income or expenses are recognised and classified as
non-underlying when the following criteria are met:
• The item does not arise in the normal course of business; and
• The items are material by amount or nature.
Non-underlying items include other income or expenses not considered to drive
the operating results of the Group including transaction, transformational, as
well as restructuring costs. When items meet the criteria, they are recognised
and classified as non-underlying and this is applied consistently from year to
year.
The balance is broken down as follows:
Six months ended
Non-underlying items 30 June 2025 30 June 2024
£'000 £'000
Transformational costs(1) 557 412
Redundancy costs 2,517 -
Transition costs ² 1,088 590
Total 4,162 1,002
412
Redundancy costs
2,517
-
Transition costs ²
1,088
590
Total
4,162
1,002
(1 )Transformational costs comprise payments to consultants involved in
strategic initiatives (6 months ended 30 June 2025: £307k and 6 months ended
30 June 2024:£412k) and business setup costs (6 months ended 30 June 2025:
£250k and 6 months ended 30 June 2024:nil);
(2 )Transitional costs relate to dual running, recruitment and settlement
agreements.
8. Tax Expense
Analysis of tax expense for the period
Six months ended
30 June 2025 30 June 2024
£'000 £'000
Current tax
Corporation tax based on the taxable profit for the period 113 1,319
Total current income tax for the period 113 1,319
Deferred tax
Deferred tax debit in profit or loss 658 2,113
Total deferred tax expense for the period 658 2,113
Total tax expense for the period 771 3,432
The income tax expense for the period is based on an estimate of the annual
effective tax rate expected for the full year which is then applied to the
pre-tax income of the six-month period.
The effective tax rate for the six months ended 30 June 2025 is 25.1% (six
months ended 30 June 2024: 25.1%).
9. Cash and Balances at Central Banks
As at As at
30 June 2025 31 December 2024
£'000 £'000
Cash and balances at central banks 433,116 584,679
Less: Impairment loss allowance - -
433,116 584,679
As at As at
30 June 2025 30 June 2024
£'000 £'000
Component of cash and balances included in the interim condensed consolidated
statement of cash flow under:
Cash and cash equivalents 433,116 499,725
584,679
Less: Impairment loss allowance
-
-
433,116
584,679
As at
30 June 2025
As at
30 June 2024
£'000
£'000
Component of cash and balances included in the interim condensed consolidated
statement of cash flow under:
Cash and cash equivalents
433,116
499,725
Cash and balances at central banks includes accrued interest of £716k (31
December 2024: £1,060k)
Cash and balances at central banks include no encumbered assets (at
31 December 2024: £nil).
There are no restricted amounts within cash and balances at central banks. The
cash and bank balances at central banks are measured at amortised cost as they
meet the Solely Payment of Principal and Interest (''SPPI'') criteria and are
held to collect the contractual cash flows.
The carrying amount of these assets is approximately equal to their fair
value.
10. Money Market Funds
As at As at
30 June 2025 31 December 2024
£'000 £'000
Open Ended Investment Companies
Morgan Stanley Euro Liquidity Fund - 25,748
Goldman Sachs USD Treasury Liquid Reserves Fund 208,849 402,594
Black Rock ICS USD Liquidity Fund 51,269 11,971
JP Morgan USD Liquidity LVNAV Fund - 7,981
BlackRock ICS US Treasury Fund Class Premier Distributing USD - 39,903
JP Morgan - USD Treasury Capital 18,306 -
JP Morgan - USD Liquidity Capital 18,309 -
JP Morgan - EUR Liquidity LVNAV Capital Dist 4,300 -
301,033 488,197
As at As at
30 June 2025 30 June 2024
£'000 £'000
Component of money market funds included in the interim condensed consolidated
statement of cash flows under:
Cash and cash equivalent balances 301,033 390,084
25,748
Goldman Sachs USD Treasury Liquid Reserves Fund
208,849
402,594
Black Rock ICS USD Liquidity Fund
51,269
11,971
JP Morgan USD Liquidity LVNAV Fund
-
7,981
BlackRock ICS US Treasury Fund Class Premier Distributing USD
-
39,903
JP Morgan - USD Treasury Capital
18,306
-
JP Morgan - USD Liquidity Capital
18,309
-
JP Morgan - EUR Liquidity LVNAV Capital Dist
4,300
-
301,033
488,197
As at
30 June 2025
As at
30 June 2024
£'000
£'000
Component of money market funds included in the interim condensed consolidated
statement of cash flows under:
Cash and cash equivalent balances
301,033
390,084
Money Market Funds are mandatorily held at fair value through profit or loss
as they do not satisfy the SPPI criterion set out in IFRS 9. The funds are all
rated AAA (as at 30 June 2025 and 30 June 2024) based on a basket of credit
ratings agencies, all approved by the Financial Conduct Authority.
Refer to Note 26 on fair value measurements for further details.
11. Loans and Advances
Loans and advances are measured at amortised cost as they meet the SPPI
criteria and are held to collect the contractual cash flows.
As at As at
30 June 2025 31 December 2024
£'000 £'000
Loans and advances (gross)
Loans and advances on demand to banks 129,801 185,563
Other loans and advances to banks 203,509 180,148
Other loans and advances to non-banks 29,227 32,835
Total 362,537 398,546
Less: Impairment loss allowance
Loans and advances on demand to banks (2) (4)
Other loans and advances to banks (29) (64)
Other loans and advances to non-banks (233) (239)
Total (264) (307)
Net Loans and advances on demand to banks 129,799 185,559
Net Other loans and advances to banks 203,480 180,084
Net Other loans and advances to non-banks 28,994 32,596
Net loans and advances 362,273 398,239
As at As at
30 June 2025 30 June 2024
Component of loans and advances included in the interim condensed consolidated £'000 £'000
statement of cash flows under:
Cash and cash equivalents 129,799 130,715
Total 129,799 130,715
185,563
Other loans and advances to banks
203,509
180,148
Other loans and advances to non-banks
29,227
32,835
Total
362,537
398,546
Less: Impairment loss allowance
Loans and advances on demand to banks
(2)
(4)
Other loans and advances to banks
(29)
(64)
Other loans and advances to non-banks
(233)
(239)
Total
(264)
(307)
Net Loans and advances on demand to banks
129,799
185,559
Net Other loans and advances to banks
203,480
180,084
Net Other loans and advances to non-banks
28,994
32,596
Net loans and advances
362,273
398,239
As at
30 June 2025
As at
30 June 2024
Component of loans and advances included in the interim condensed consolidated
statement of cash flows under:
£'000
£'000
Cash and cash equivalents
129,799
130,715
Total
129,799
130,715
The Group's other loans and advances to banks include £4,221k of encumbered
assets (at 31 December 2024: £410k) in relation to derivative contracts with
other financial institutions and the balances are not overdue.
12. Derivative Financial Instruments
At 30 June 2025, the derivative assets and liabilities are set out below.
These are FX Forward Contracts held to manage foreign currency exposure, for
cash management, and for customers. They are not designated in hedge
accounting relationships for risk management purposes.
As at 30 June 2025 As at 31 December 2024
Notional principal Assets (Carrying amounts) Liabilities (Carrying amounts Notional principal Assets (Carrying amounts) Liabilities (Carrying amounts)
FX Forwards: £'000 £'000 £'000 £'000 £'000 £'000
Total derivative assets/(liabilities) held for economic hedging 722,250 1,094 (3,403) 652,297 4,877 (539)
Total derivative assets/(liabilities) held for trading 34 - - 733 7 -
Total derivative assets/(liabilities) 722,284 1,094 (3,403) 653,030 4,884 (539)
1,094
(3,403)
652,297
4,877
(539)
Total derivative assets/(liabilities) held for trading
34
-
-
733
7
-
Total derivative assets/(liabilities)
722,284
1,094
(3,403)
653,030
4,884
(539)
The forward FX contracts have been transacted to economically hedge assets and
liabilities in foreign currencies and trading on behalf of clients. The fair
value movement at the statement of financial position date is loss £(2,310)k
(at 31 December 2024: fair value gain £4,345k). These derivative financial
instruments and the underlying transactions will mature during 2026 (at
31 December 2024: mature during 2025).
Offsetting derivative assets and derivative liabilities
The 'Net amounts' presented are not intended to represent the Group's actual
exposure to credit risk, as a variety of credit mitigation strategies are
employed in addition to netting and collateral arrangements.
As at 30 June 2025
£'000 Gross amounts Gross amounts set off in the balance sheet Net amounts presented in the balance sheet Amounts subjected on master netting arrangements¹ Net amount
£'000 £'000 £'000 £'000 £'000
Financial assets
Derivative assets 1,094 - 1,094 (390) 704
Financial liabilities
Derivative liabilities (3,403) - (3,403) (2,851) (6,254)
-
1,094
(390)
704
Financial liabilities
Derivative liabilities
(3,403)
-
(3,403)
(2,851)
(6,254)
As at 31 December 2024
£'000 Gross amounts Gross amounts set off in the balance sheet Net amounts presented in the balance sheet Amounts subjected on master netting arrangements¹ Net amount
£'000 £'000 £'000 £'000 £'000
Financial assets
Derivative assets 4,884 - 4,884 (4,690) 194
Financial liabilities
Derivative liabilities (539) - (539) (408) (947)
-
4,884
(4,690)
194
Financial liabilities
Derivative liabilities
(539)
-
(539)
(408)
(947)
1 ( )Agreements with derivative counterparties are based on an ISDA
Master Agreement and other similar master netting arrangement with other
counterparties. Under the terms of these arrangements, only where certain
credit events occur (such as termination of the contract or default of the
other party), will the net position owing/ receivable to a single counterparty
in the same currency be taken as owing and all the relevant arrangements
terminated. As the Group does not presently have a legally enforceable right
of set-off, these amounts have not been offset in the balance sheet, but have
been presented separately in the table above.
The fair value of a derivative contract represents the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date (an exit
price).
13. Investment in Debt Securities
The Group's investment in debt securities consist of fixed rate bonds issued
(or guaranteed) by central and private banks and floating rate notes. These
are measured at amortised cost as they meet the SPPI criterion and are held to
collect the contractual cash flows.
As at As at
30 June 2025 31 December 2024
£'000 £'000
Investment in debt securities at amortised cost
Balance at the beginning of the year 246,021 353,028
Purchases 249,564 211,209
Redemptions (69,374) (321,926)
Exchange losses (7,494) (314)
Movement in (discount)/premium and accrued interest receivable (742) 4,031
417,975 246,028
Less: Impairment loss allowance (6) (7)
Balance at the end of the year 417,969 246,021
353,028
Purchases
249,564
211,209
Redemptions
(69,374)
(321,926)
Exchange losses
(7,494)
(314)
Movement in (discount)/premium and accrued interest receivable
(742)
4,031
417,975
246,028
Less: Impairment loss allowance
(6)
(7)
Balance at the end of the year
417,969
246,021
The amortised cost carrying amount approximates its fair value based on market
prices. Refer to Note 26 for fair value measurements.
14. Other Assets and Unsettled Transactions
A. Other assets
As at As at
30 June 2025 31 December 2024
£'000 £'000
Financial assets:
Balances with mobile network operators¹ 914 1,468
Staff loans 358 349
Transactions debited by third party Nostro provider ² 768 566
Funds paid in advance 180 140
Other assets 1,300 885
Less: impairment loss (5) (18)
Total 3,515 3,390
Non-financial assets:
VAT refund 1,196 2,592
Corporation tax 12,190 9,397
Prepayments 4,419 3,741
Deferred tax 256 221
Total 18,061 15,951
Total other assets 21,576 19,341
1,468
Staff loans
358
349
Transactions debited by third party Nostro provider ²
768
566
Funds paid in advance
180
140
Other assets
1,300
885
Less: impairment loss
(5)
(18)
Total
3,515
3,390
Non-financial assets:
VAT refund
1,196
2,592
Corporation tax
12,190
9,397
Prepayments
4,419
3,741
Deferred tax
256
221
Total
18,061
15,951
Total other assets
21,576
19,341
( )
(1 )Balances with mobile network operators (MNOs) are due to the Group in
respect of mobile money transfers. The Group charges fees for services it
provides to aid transfer of funds by its clients to beneficiaries via mobile
money using MNOs. These balances are funds with the MNO which have yet to be
transferred to beneficiaries.
2 These balances represent amounts that are debited in advance by third
party nostro providers at period end and funds
paid/deducted in error.
Financial assets are measured at amortised cost as they meet the SPPI
criterion and are held to collect the contractual cash flows.
B. Unsettled transactions
As at As at
30 June 2025 31 December 2024
£'000 £'000
Unsettled transactions 24,924 10,870
Less: impairment loss (6) (4)
Unsettled transactions³ 24,918 10,866
10,870
Less: impairment loss
(6)
(4)
Unsettled transactions³
24,918
10,866
( )
3 Unsettled foreign currency transactions that are delayed
due to time differences, public holidays in other countries (where the
counterparties are located) or similar operational reasons. The arising
balances are short-term in nature (typically less than four days) and were
settled early in the following period.
15. Property, Plant and Equipment
Consolidated
Leasehold improvements¹ Computer equipment Fixtures & fittings² Total
£'000 £'000 £'000 £'000
Cost
At 1 January 2025 2,717 4,067 540 7,324
Additions - 20 - 20
Disposals - - - -
At 30 June 2025 2,717 4,087 540 7,344
Accumulated depreciation and impairment
At 1 January 2025 1,778 2,317 448 4,543
Charge to profit or loss 54 262 10 326
Disposals - - - -
At 30 June 2025 1,832 2,579 458 4,869
Net book value
At 1 January 2025 939 1,750 92 2,781
At 30 June 2025 885 1,508 82 2,475
4,067
540
7,324
Additions
-
20
-
20
Disposals
-
-
-
-
At 30 June 2025
2,717
4,087
540
7,344
Accumulated depreciation and impairment
At 1 January 2025
1,778
2,317
448
4,543
Charge to profit or loss
54
262
10
326
Disposals
-
-
-
-
At 30 June 2025
1,832
2,579
458
4,869
Net book value
At 1 January 2025
939
1,750
92
2,781
At 30 June 2025
885
1,508
82
2,475
( )
(1) Includes Office fit out costs reclassified from Fixtures and fittings.
(2) Includes artwork.
The Directors assess property and plant for indicators of impairment at least
annually, or when there is an indicator of impairment. None has been noted and
therefore, no impairment charge was taken in the period. Refer to Note 17 for
further details.
16. Leases (Group as a Lessee)
The Group has recognised right-of-use (ROU) assets and lease liabilities for
its property leases which have been accounted for as individual assets and
liabilities. The discount rates used are the incremental borrowing rates in
the range of 5.33% - 7.06% (at 31 December 2024: (5.33% - 7.06%).
The Group makes monthly/quarterly fixed payments in advance, to the lessors
for the use of the properties, and there are no variable payments. The
property leases have lease incentives, with the lease incentive receivable
being deducted from the future lease payments.
The services provided by the lessors, such as cleaning, security, maintenance,
and utilities, as part of the contract, are components which are not included
in the ROU calculation and have been expensed in the 'Other operating
expenses' line item in Note 7. These expenses amount to £434k (six months
ended 30 June 2024: £500k).
Dilapidation provision as at 30 June 2025 amounted to £1,950k (at
31 December 2024: £1,884k) with £66k (six months ended 30 June 2024: £0k)
interest recognised in the statement of profit or loss and other comprehensive
income.
The Group's leases of low-value fixtures and equipment are expensed in the
'Other operating expenses' line item in Note 7 on a straight-line basis (see
accounting policy in Note 1 for leases). These amounted to £42k (six months
ended 30 June 2024: £30k).
There were no short-term leases during the period (six months ended 30 June
2024: none).
The lease terms covers only the non-cancellable lease term. There are no
purchase, extension, or termination options and residual guarantees in the
leases.
There are also no restrictions or covenants imposed by the leases.
The Group had no lease payments under non-cancellable lease during the six
months ended 30 June 2025 (six months ended 30 June 2024: none).
a) Right-of-use assets
All the Group's right-of-use assets are non-current assets. A reconciliation
of the Group's right-of-use assets as at 30 June 2025 and 31 December 2024
are shown below:
Leasehold property¹
£'000
Cost
At 1 January 2025 20,126
At 30 June 2025 20,126
Accumulated depreciation
At 1 January 2025 2,372
Charge to profit or loss 1,021
At 30 June 2025 3,393
Net book value
At 30 June 2025 16,733
At 30 June 2025
20,126
Accumulated depreciation
At 1 January 2025
2,372
Charge to profit or loss
1,021
At 30 June 2025
3,393
Net book value
At 30 June 2025
16,733
( )
(1) There is only one class of right-of-use assets which are the property
leases.
The Directors consider ROU assets for indicators of impairment at least
annually, or when there is an indicator of impairment. There are no physically
visible impairment indicators on the leased properties at period end. Refer to
Note 17 for further details.
b) Lease liabilities
A reconciliation of the Group's remaining operating lease payments as at
30 June 2025 and 31 December 2024 are shown below:
Leasehold property
£'000
Lease liabilities as at 1 January 2025 18,069
Payments during the period¹ (111)
Foreign exchange revaluation (79)
Add: interest on lease liabilities 616
At 30 June 2025 18,495
Payments during the period¹
(111)
Foreign exchange revaluation
(79)
Add: interest on lease liabilities
616
At 30 June 2025
18,495
¹ Payments during the period include payments for interest on lease
liabilities and the repayment of the principal portion of the lease liability
for the US Office.
There were no variable lease payments expenses in the reporting period (six
months ended 30 June 2024: £nil).
The Group's lease liabilities as at 30 June 2025 and 31 December 2024 are
split into current and non-current portions as follows:
As at As at
30 June 2025 31 December 2024
£'000 £'000
Non-current 18,028 16,681
Current 467 1,388
Lease liabilities 18,495 18,069
16,681
Current
467
1,388
Lease liabilities
18,495
18,069
c) Impact on the interim condensed consolidated statement of profit or loss
The following are the amounts recognised in the interim condensed consolidated
statement of profit or loss:
six months ended
30 June 2025 30 June 2024
£'000 £'000
Depreciation expense of right-of-use assets (Note 7) 1,021 520
Interest expense on lease liabilities (Note 4a) 682 227
- Interest expense on leases liabilities 616 143
- Interest expense on dilapidation provision 66 84
Expense relating to leases of low-value assets (Note 7) 42 30
Total amount recognised in profit or loss 1,745 777
520
Interest expense on lease liabilities (Note 4a)
682
227
- Interest expense on leases liabilities
616
143
- Interest expense on dilapidation provision
66
84
Expense relating to leases of low-value assets (Note 7)
42
30
Total amount recognised in profit or loss
1,745
777
The Group had total cash outflows for all leases of £111k (six months ended
30 June 2024: £264k).
17. Intangible Assets
Goodwill Core accounting Other software Brand/name Total
software
£'000 £'000 £'000 £'000 £'000
Cost
At 1 January 2025 5,919 5,922 44,150 1,483 57,474
Additions - 136 3,380 - 3,516
Impairments - (78) - - (78)
At 30 June 2025 5,919 5,980 47,530 1,483 60,912
Accumulated amortisation and impairment
At 1 January 2025 - 4,557 22,093 219 26,869
Charged for the year - 335 3,474 24 3,833
At 30 June 2025 - 4,892 25,567 243 30,702
Net book value
At 1 January 2025 5,919 1,365 22,057 1,264 30,605
At 30 June 2025 5,919 1,088 21,963 1,240 30,210
Other software
Brand/name
Total
£'000
£'000
£'000
£'000
£'000
Cost
At 1 January 2025
5,919
5,922
44,150
1,483
57,474
Additions
-
136
3,380
-
3,516
Impairments
-
(78)
-
-
(78)
At 30 June 2025
5,919
5,980
47,530
1,483
60,912
Accumulated amortisation and impairment
At 1 January 2025
-
4,557
22,093
219
26,869
Charged for the year
-
335
3,474
24
3,833
At 30 June 2025
-
4,892
25,567
243
30,702
Net book value
At 1 January 2025
5,919
1,365
22,057
1,264
30,605
At 30 June 2025
5,919
1,088
21,963
1,240
30,210
Impairment assessment
The decrease in the market capitalisation below the net asset value of the
Company as at 30 June 2025 was identified as a potential impairment indicator
and as required by IAS 36, an impairment assessment was performed.
The Directors treat the business as a single cash-generating unit ('CGU') for
the purposes of testing goodwill for impairment. The recoverable amount of
goodwill and intangible assets (Including PPE and ROU) were calculated by
reference to the business estimated value-in-use.
The inputs and assumptions used in the calculation of the value in use at
year-end were refreshed to reflect changes since year end and the impairment
calculation was updated accordingly. The resulting impairment review concluded
that no impairment was required for intangible assets, goodwill, PPE, or ROU
assets (2024: nil), because the Group's recoverable amount is higher than its
net asset value. The resulting headroom was assessed to be substantial, and as
such, none of the estimates are considered significant or sensitive.
Management has therefore not disclosed the detailed inputs and sensitivities,
as no reasonably possible change would result in an impairment.
The directors and management have considered and assessed reasonably possible
changes for other key assumptions, and they have not identified any other
instances that could cause the carrying amount of the Group CGU to exceed its
recoverable amount.
18. Customer Accounts
As at As at
30 June 2025 31 December 2024
£'000 £'000
Repayable on demand 758,754 676,720
Other customers' accounts with agreed maturity dates or periods of notice by
residual maturity repayable:
3 months or less 593,334 845,081
1 year or less but over 3 months 34,964 63,199
1,387,052 1,585,000
676,720
Other customers' accounts with agreed maturity dates or periods of notice by
residual maturity repayable:
3 months or less
593,334
845,081
1 year or less but over 3 months
34,964
63,199
1,387,052
1,585,000
Customer accounts are accounts that customers hold with the Group. A
substantial proportion of customer accounts are easy access accounts that,
although repayable on demand, have historically formed a stable deposit base.
Customer accounts also include cash collateral amounting to £22,485k (At
31 December 2024: £17,806k) held by the Group in respect of the assets'
underlying financial guarantees and letters of credit noted Note 20. These are
not restricted cash and are available for use by the Group.
19. Other Liabilities, Unsettled Transactions and Accruals
A. Other liabilities
As at As at
30 June 2025 31 December 2024
£'000 £'000
Financial liabilities
Trade creditors 737 828
Funds received in advance 9,559 891
Transactions credited by third party nostro providers ¹ 186 1,437
Other creditors 84 143
Total financial liabilities 10,566 3,299
Non-financial liabilities
Tax liabilities 1,416 1,937
Deferred income ² 615 731
Total non-financial liabilities 2,031 2,668
Total other liabilities 12,597 5,967
828
Funds received in advance
9,559
891
Transactions credited by third party nostro providers ¹
186
1,437
Other creditors
84
143
Total financial liabilities
10,566
3,299
Non-financial liabilities
Tax liabilities
1,416
1,937
Deferred income ²
615
731
Total non-financial liabilities
2,031
2,668
Total other liabilities
12,597
5,967
1 These balances represent amounts that are credited incorrectly by third
party Nostro providers at period-end.
4 Deferred income relates to payments that are received from
customers before the services are provided to customers.
B. Unsettled transactions
As at As at
30 June 2025 31 December 2024
£'000 £'000
Unsettled transactions ³ 32,002 35,173
35,173
5 Unsettled transactions result from foreign exchange
transactions that are delayed due to time differences, public holidays in
other countries (where the counterparties are located) or similar operational
reasons. The arising balances are short-term in nature (typically less than
four days) and were settled shortly after the balance sheet date.
C. Accruals
As at As at
30 June 2025 31 December 2024
£'000 £'000
Accruals (4) 6,472 10,380
10,380
6 Accruals comprise various balances which have not yet been
invoiced for goods received or services provided e.g. audit fees, bank
charges, professional fees, and payroll accruals.
20. Provisions
As at As at
30 June 2025 31 December 2024
£'000 £'000
Expected credit loss for off balance sheet balances:
Financial guarantee liability - 1
Liability for letter of credit confirmations/bill acceptances - 2
Working capital facilities - undrawn commitments 60 62
ECL for off balance sheet balances 60 65
Dilapidation provision for the London Bridge Lease (Note 16) 1,950 1,884
At 1 January 2025 1,884 -
Additions - 1,800
Interest on dilapidation provision 66 84
Provisions 2,010 1,949
1
Liability for letter of credit confirmations/bill acceptances
-
2
Working capital facilities - undrawn commitments
60
62
ECL for off balance sheet balances
60
65
Dilapidation provision for the London Bridge Lease (Note 16)
1,950
1,884
At 1 January 2025
1,884
-
Additions
-
1,800
Interest on dilapidation provision
66
84
Provisions
2,010
1,949
i. Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make
specified payments to reimburse the holder for a loss it incurs because a
specified debtor fails to make payments when due in accordance with the terms
of a debt instrument. The Group provides financial guarantees to multiple
counterparties. The Group received premiums of £2k (six months ended 30 June
2024: £17k).
ii. Letter of credit confirmations/bill acceptances
A letter of credit confirmation/bill acceptance is a letter from an issuing
bank guaranteeing that a buyer's payment to a seller will be received on time
and for the correct amount. The Group confirmed the letters of credit issued
by an issuing bank and charged fixed fees which are received either in advance
or at a later date. The Group provides these acceptances to multiple
counterparties. The Group received premiums of £396k (six months ended
30 June 2024: £334k).
The uncertainties relating to the amount or timing of any outflow are those
inherent within the products concerned, notably that the relevant counterparty
will not carry out its obligations. At 30 June 2025, cash collateral of
£22,485k (31 December 2024: £17,806k) was held by the Group in respect of
the assets' underlying financial guarantees and letters of credit noted above.
This cash is not restricted and is available for use by the Group.
iii. Working Capital facilities - undrawn commitments
Working Capital is a credit facility offered by the Group to its clients. The
Group charges a facility fee for provision of each facility when drawn down.
The Group provides this facility to multiple counterparties. The Group
received facility fees of £nil (six months ended 30 June 2024: £nil).
21. Called Up Share Capital
As at As at
30 June 2025 31 December 2024
Number of ordinary shares '000 '000
Authorised, allotted, issued, and fully paid (Ordinary Shares) 254,143 254,143
254,143
As at As at
30 June 2025 31 December 2024
Ordinary share balances £'000 £'000
Authorised, allotted, issued, and fully paid (Ordinary Shares) 85 85
85
22. Notes to the Interim Condensed Consolidated Statement of Cash Flows
i. Reconciliation of profit before taxation to net cash outflow from operating
activities
Six months ended
30 June 2025 30 June 2024
£'000 £'000
Profit before taxation 3,075 13,673
Adjusted for non-cash items:
Effect of currency exchange rate change¹ (37,050) (7,944)
Effect of other mark to market revaluations (114) 20
Amortisation 3,833 2,826
Depreciation
- Right of use of assets 1,021 520
- Property, plant and equipment 326 423
Share-based payment charge 700 520
Impairment of assets 78 -
Intangible assets accrued (361) -
Interest accrued on lease liabilities 682 212
(27,810) 10,250
Changes in working capital:
Net increase in loans and advances to banks other than on demand (32,923) (61,136)
Net decrease in customer accounts (98,176) (95,156)
Net (increase)/decrease in investment in debt securities (181,007) 36,285
Net decrease in other loans and advances to non-banks 3,698 146
Net decrease in unsettled transactions (17,223) (24,719)
Net increase in other assets (2,425) (7,949)
Net decrease in other liabilities 9,439 8,909
Net increase/(decrease) in lease liabilities - (1,095)
Net decrease in accrued income (376) (633)
Increase in accruals, provisions and deferred tax (3,908) (3,246)
Net cash used in operating activities¹ (350,711) (138,344)
13,673
Adjusted for non-cash items:
Effect of currency exchange rate change¹
(37,050)
(7,944)
Effect of other mark to market revaluations
(114)
20
Amortisation
3,833
2,826
Depreciation
- Right of use of assets
1,021
520
- Property, plant and equipment
326
423
Share-based payment charge
700
520
Impairment of assets
78
-
Intangible assets accrued
(361)
-
Interest accrued on lease liabilities
682
212
(27,810)
10,250
Changes in working capital:
Net increase in loans and advances to banks other than on demand
(32,923)
(61,136)
Net decrease in customer accounts
(98,176)
(95,156)
Net (increase)/decrease in investment in debt securities
(181,007)
36,285
Net decrease in other loans and advances to non-banks
3,698
146
Net decrease in unsettled transactions
(17,223)
(24,719)
Net increase in other assets
(2,425)
(7,949)
Net decrease in other liabilities
9,439
8,909
Net increase/(decrease) in lease liabilities
-
(1,095)
Net decrease in accrued income
(376)
(633)
Increase in accruals, provisions and deferred tax
(3,908)
(3,246)
Net cash used in operating activities¹
(350,711)
(138,344)
1 Effects of currency exchange rate change include the fair value (loss)/gain
on derivatives which is disclosed in Note 6.
2 Cash flows from operating activities include interest received of
£27,707k (six months ended 30 June 2024: £30,757k) and interest paid of
£17,322k (six months ended 30 June 2024: £15,474k).
Changes in liabilities arising from financing activities
The Group's changes in lease liabilities are detailed in Note 16. There are no
other changes in liabilities from financing activities.
23. Related Parties
Ultimate control
The immediate parent undertaking of the Company which had control up to 6 July
2023 was Merlin Midco Limited. As at the period end Merlin Midco Limited's
ownership was 45.1% (six months ended 30 June 2024: 45.1%), which is held by
a nominee company Diagonal Nominees Limited and has the highest shareholding,
as such no company is required to consolidate these financial statements this
period (six months ended 30 June 2024: no company consolidated the entity).
The related party transactions (which were all at arm's length and were
transacted at market prices) are as follows:
a) Balances with related parties outside the Group
As at 30 June 2025 the Group had one related party balance of £178k (at
31 December 2024: £49k), payable to Helios Investors Genpar III LP
('Helios'). The amount relates to the outstanding balance of the director's
fees payable by CAB to Helios.
b) Remuneration of key management personnel (including Executive Directors)
The remuneration of the Group's key management personnel is set out below in
aggregate for each of the categories specified in IAS 24 Related Party
Disclosures.
Six months ended
30 June 2025 30 June 2024
£'000 £'000
Short-term employee benefits (including bonuses and Employer's NICs) 3,200 2,426
Post-employment benefits 37 114
Share-based payments 280 238
Total remuneration 3,517 2,778
2,426
Post-employment benefits
37
114
Share-based payments
280
238
Total remuneration
3,517
2,778
No contributions were made by the Group to a defined contribution pension
scheme on behalf of Directors (in the six months ended 30 June 2024, £48k
were made by the Group on behalf of two Directors to a defined contribution
pension scheme). No retirement benefits accrued for any Director under a
defined benefit pension scheme (six months ended 30 June 2024: £nil).
The aggregate emoluments (including pension contributions and exit
compensation) of the Group's key management (excluding Directors) were
£2,713k (six months ended 30 June 2024: £1,773k).
The aggregate emoluments (including share-based payment charge) and accrued
pension contributions of the highest paid Director in the Group were £709k
(six months ended 30 June 2024: £425k) and £nil (six months ended 30 June
2024: £32k).
24. Contingent Liabilities, Commitments and Guarantees
a) Contingent liabilities
The Group does not have contingent liabilities at the balance sheet date other
than those disclosed in Note 20.
b) Commitments
i. Capital commitments
The Group does not have any capital commitments at the balance sheet date (at
31 December 2024: nil) nor any which have been approved but not contracted
(at 31 December 2024: nil).
ii. Other commitments
a) In 2020, the Group entered into a five-year contract to assist with the
ongoing automation of manual processes. The following payments are due under
the contract:
As at As at
30 June 2025 31 December 2024
Payment Due £'000 £'000
Not later than one year 1,130 1,883
Later than one year and not later than five years - -
1,130 1,883
1,883
Later than one year and not later than five years
-
-
1,130
1,883
The total of the amounts due under the contract are expensed to the interim
condensed consolidated statement of profit or loss over the life of the
contract in line with the benefits received.
b) Further commitments are discussed in Note 20 and Note 16.
25. Classification of Financial Instruments
The carrying values of the Group's financial assets and financial liabilities
are summarised by category below:
As at As at
30 June 2025 31 December 2024
Financial assets £'000 £'000
Mandatorily measured at fair value through profit or loss
Money market funds 301,033 488,197
Derivative financial instruments - foreign exchange related contracts 1,094 4,884
302,127 493,081
Measured at amortised cost
Cash and balances at central banks 433,116 584,679
Loans and advances on demand to banks 129,799 185,559
Other loans and advances to banks 203,480 180,084
Other loans and advances to non-banks 28,994 32,596
Investment in debt securities 417,969 246,021
Unsettled transactions 24,918 10,866
Other assets (excluding non-financial assets) 3,515 3,390
Accrued income 1,301 925
1,243,092 1,244,120
Measured at fair value through other comprehensive income
Investment in equity securities 667 553
488,197
Derivative financial instruments - foreign exchange related contracts
1,094
4,884
302,127
493,081
Measured at amortised cost
Cash and balances at central banks
433,116
584,679
Loans and advances on demand to banks
129,799
185,559
Other loans and advances to banks
203,480
180,084
Other loans and advances to non-banks
28,994
32,596
Investment in debt securities
417,969
246,021
Unsettled transactions
24,918
10,866
Other assets (excluding non-financial assets)
3,515
3,390
Accrued income
1,301
925
1,243,092
1,244,120
Measured at fair value through other comprehensive income
Investment in equity securities
667
553
As at As at
30 June 2025 31 December 2024
Financial liabilities £'000 £'000
Mandatorily measured at fair value through profit or loss
Derivative financial instruments - FX related contracts 3,403 539
3,403 539
Measured at amortised cost
Customer accounts 1,387,052 1,585,000
Unsettled transactions 32,002 35,173
Other liabilities (excluding non-financial liabilities) 10,566 3,299
Lease liabilities 18,495 18,069
Accruals 6,472 10,380
1,454,587 1,651,922
539
3,403
539
Measured at amortised cost
Customer accounts
1,387,052
1,585,000
Unsettled transactions
32,002
35,173
Other liabilities (excluding non-financial liabilities)
10,566
3,299
Lease liabilities
18,495
18,069
Accruals
6,472
10,380
1,454,587
1,651,922
26. Fair Value Measurements
a) Fair value methodology
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date. Fair values are determined at prices quoted in active
markets, where available. In some instances, such price information is not
available for all instruments and the Group applies valuation techniques to
measure such instruments. These valuation techniques make maximum use of
market observable data but in some cases, management estimate unobservable
market inputs within the valuation model. There is no standard model and
different assumptions would generate different results. To provide an
indication about the reliability of the inputs used in determining fair value,
the Group has classified its financial instruments that are measured at fair
value into the three levels of fair value hierarchy explained further below,
based on the lowest level input that is significant to the entire measurement
of the instrument.
b) Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or
liabilities
Inputs to Level 1 fair value are quoted prices (unadjusted) in active markets
for identical assets. An active market is one in which transactions for the
asset occur with sufficient frequency and volume to provide pricing
information on an ongoing basis.
Level 2 - Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly
The fair value of financial instruments that are not traded in an active
market (for example, over-the-counter derivative financial instruments) is
determined using valuation techniques which maximise the use of observable
market data and rely as little as possible on entity-specific estimates. If
all significant inputs required to fair value such an instrument are
observable, the instrument is included in Level 2.
Fair values of derivative financial instruments (FX contracts), money market
funds and investment in equity securities are included in Level 2.
Money market funds and exchange traded funds are valued at fair value based on
the price a willing buyer would pay for the asset. Any gain or loss is taken
through the profit and loss account. The money market funds include
contractual terms such that they are traded at par until the total market
value of the underlying instruments deviates from that par value by a certain
amount (typically 20bps). The funds have each traded at par at all times since
the initial investment by the Group.
The fair value of the Group's investment in debt securities is determined by
using discounted cash flow models that use market interest rates as at the end
of the period.
Level 3 - Unobservable inputs for the asset or liability
Inputs to Level 3 fair values are based on unobservable inputs for the assets
at the last measurement date. If all significant inputs required to fair value
an instrument are observable then the instrument is included in Level 2, if
not it is included in Level 3.
There were no transfers between fair value hierarchy level during the period
(at 31 December 2024: nil). There were no changes in valuation techniques used
during the period (at 31 December 2024: nil).
c) Financial assets and liabilities through FVTPL and FVTOCI are categorised
at Level 2 fair value hierarchy
Financial instruments Valuation techniques Inputs
Derivative financial assets (FVTPL) The Mark-to-Market (MTM) calculation for FX forwards is performed within Core Reuters quoted spot rates and forward points.
Banking System (CBS) based on market inputs pulled from Reuters at the end of
each trading day.
CBS applies a straight-line interpolation calculation to derive the requisite
forward points for each currency based on the maturity date of the transaction
-these points are added to the spot rate to derive a revaluation rate.
Money market funds (FVTPL) Net asset value based on the valuation of the underlying Level 1 investments. Quoted market prices but not for identical assets.
Investment in equity securities (FVTOCI) In order to undertake its business, the Group utilises the SWIFT payment The fair value is calculated annually based on the share price received from
system, the conditions of which oblige participants to invest in the shares of SWIFT and is approved annually.
SWIFT, in proportion to participants' financial contributions to SWIFT.
Derivative financial liabilities (FVTPL) The MTM calculation for FX forwards is performed within CBS based on market Reuters quoted spot rates and forward points.
inputs pulled from Reuters at the end of each trading day.
CBS applies a straight-line interpolation calculation to derive the requisite
forward points for each currency based on the maturity date of the transaction
-these points are added to the spot rate to derive a revaluation rate.
Reuters quoted spot rates and forward points.
Money market funds (FVTPL)
Net asset value based on the valuation of the underlying Level 1 investments.
Quoted market prices but not for identical assets.
Investment in equity securities (FVTOCI)
In order to undertake its business, the Group utilises the SWIFT payment
system, the conditions of which oblige participants to invest in the shares of
SWIFT, in proportion to participants' financial contributions to SWIFT.
The fair value is calculated annually based on the share price received from
SWIFT and is approved annually.
Derivative financial liabilities (FVTPL)
The MTM calculation for FX forwards is performed within CBS based on market
inputs pulled from Reuters at the end of each trading day.
CBS applies a straight-line interpolation calculation to derive the requisite
forward points for each currency based on the maturity date of the transaction
- these points are added to the spot rate to derive a revaluation rate.
Reuters quoted spot rates and forward points.
d) Financial assets and financial liabilities at fair value through profit or
loss
Forward foreign exchange contracts have been transacted to economically hedge
assets and liabilities in foreign currencies with movements recognised at fair
value through profit or loss.
The gains, losses, and changes in fair values of financial assets at fair
value through profit or loss are recorded in the interim condensed
consolidated statement of profit or loss and other comprehensive income as
follows:
Six months ended
30 June 2025 30 June 2024
£'000 £'000
Gain on money market funds 7,921 8,546
Net (loss)/gain on financial assets and financial liabilities mandatorily held (1,151) 179
at fair value through profit or loss
Fair value (losses)/gains on derivatives (Note 6) (6,655) 8,689
115 17,414
8,546
Net (loss)/gain on financial assets and financial liabilities mandatorily held
at fair value through profit or loss
(1,151)
179
Fair value (losses)/gains on derivatives (Note 6)
(6,655)
8,689
115
17,414
e) Fair values of financial assets that are measured at amortised cost
For the Group, apart from the fixed rate bonds, the carrying amounts of
financial assets and liabilities measured at amortised cost are approximately
the same as their fair values due to their short-term nature. The fair value
of the fixed rate bonds is provided below.
f) Financial liabilities measured at amortised cost
For the Group, the carrying amounts of financial liabilities at amortised cost
are approximately the same as their fair values due to their short-term
nature.
g) Financial instruments measured at fair value
The valuation levels of the financial assets and financial liabilities
accounted for at fair value are as follows:
Level 2 Sensitivity
As at 30 June 2025 £'000 Stress £'000
Financial assets at fair value
- Derivative financial assets 1,094 £ exchange-rate rise of 1% (901)
Financial liabilities at fair value
- Derivative financial liabilities (3,403) £ exchange-rate rise of 1% (2,946)
(2,310) (3,847)
£ exchange-rate rise of 1%
(901)
Financial liabilities at fair value
- Derivative financial liabilities
(3,403)
£ exchange-rate rise of 1%
(2,946)
(2,310)
(3,847)
Level 2 Sensitivity
As at 31 December 2024 £'000 Stress £'000
Financial assets at fair value
- Derivative financial assets 4,884 £ exchange-rate rise of 1% (4,184)
Financial liabilities at fair value
- Derivative financial liabilities (539) £ exchange-rate rise of 1% (901)
4,345 (5,085)
£ exchange-rate rise of 1%
(4,184)
Financial liabilities at fair value
- Derivative financial liabilities
(539)
£ exchange-rate rise of 1%
(901)
4,345
(5,085)
These are all recurring fair value measurements. There were no financial
assets classified as Level 1 and Level 3, and there were no movements between
fair value levels. The fair value sensitivities on Money Market Funds and
Equity positions are considered immaterial and excluded from the sensitivity
analysis.
h) Fair value and carrying amount of investment in debt securities
As at 30 June 2025 As at 31 December 2024
£'000 £'000
Carrying value Fair value Carrying value Fair value
Fixed and floating rate bonds
- US Treasury Bills (excluding accrued interest) 155,991 156,164 - -
- Other fixed rate bonds (excluding accrued interest) 215,164 216,705 243,847 243,796
Floating rate bonds 43,547 43,446 - -
Accrued interest 3,267 3,267 2,174 2,079
417,969 419,582 246,021 245,875
156,164
-
-
- Other fixed rate bonds (excluding accrued interest)
215,164
216,705
243,847
243,796
Floating rate bonds
43,547
43,446
-
-
Accrued interest
3,267
3,267
2,174
2,079
417,969
419,582
246,021
245,875
Note: the fair values of the fixed rate bonds are based on market quoted
prices. They are classified as Level 1 fair values in the fair value hierarchy
due to the liquid nature of the bond holdings, having observable and
transparent secondary market pricing.
27. Earnings Per Share
The calculation of the basic and diluted earnings per share at the reporting
date is based on the following data:
Six months ended
30 June 2025 30 June 2024
Earnings attributable to owners of the Group: £'000 £'000
Continuing operations 2,304 10,241
2,304 10,241
10,241
2,304
10,241
Six months ended
30 June 2025 30 June 2024
Weighted average number of ordinary shares 000 000
Weighted average number of ordinary shares for basic earnings per share 254,143 254,143
Effect of dilutive share awards 4,397 1,142
Weighted average number of ordinary shares for diluted earnings per share 258,540 255,285
254,143
Effect of dilutive share awards
4,397
1,142
Weighted average number of ordinary shares for diluted earnings per share
258,540
255,285
The basic and diluted earnings per share are as follows:
Six months ended
30 June 2025 30 June 2024
pence pence
Basic and diluted earnings per share
Basic earnings per share 0.9 4.0
Diluted earnings per share 0.9 4.0
4.0
Diluted earnings per share
0.9
4.0
28. Events after the Reporting Period
There were no events after the reporting period requiring disclosure or
further adjustments to the financial information.
29. Board Approval
The interim condensed consolidated financial statements for the period ended
30 June 2025 were approved by the Board of Directors and authorised for issue
on 13 August 2025.
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