London fintech CAB Payments saw its share price plummet more than 60% as markets opened this morning after it warned of a sudden slump insales.
The Sutton-based business, which achieved unicorn status after its debut on the London Stock Exchange in July, raising hopes for the end of a months-long IPO drought, has now seen its market cap collapse to around a quarter of itsinitial value as investor hopes for its rapid global growth were quickly dashed.
CAB, which processes business-to-business cross-border payments and foreign exchange, today said its fourth quarter revenue was set to come in 17% below previous guidance after market conditions crumbled, adding it was “unclear when and to what extent conditions in these markets may improve.”
"In recent weeks, the company has seen a number of changes to the market conditions in some of its key currency corridors, on top of the ongoing uncertainties surrounding the Naira, which are impacting both volumes and margins,” the firm said.
"These market conditions are compressing margins and reducing trading volume. These challenges are recent but continuing, and coincide with the traditionally strong fourth quarter."
CAB added that revenues were still set to climb at least 20%on than last year and it was seeking new growth opportunities, including obtaining a regulatory license to operate in the EU.
The downturn in CAB’s fortunes come in stark contrast the bullish tone the fintech struck after publishing its half-year results barely more than a month ago, in which it said its “market is expected to grow rapidly”adding that its staffing numbers were up by around 50% in a year to keep pace with demand.
In June CEO Bhairav Trivedi said the firm’s IPO was “a sign of confidence in the high quality offering we provide to our customers in a large and growing market [and] confidence in our strong financial profile.”
