Shares in British business-to-business cross-border payments firm CAB Payments more than halved after the company revised revenue guidance sharply downwards.
The firm raised up to £335 million through a listing on the London Stock Exchange just three months ago.
In a trading update it says the business has been impacted by changes to the market conditions in some of its key currency corridors, on top of the ongoing uncertainties surrounding the Naira, which are hitting both volumes and margins. As a result, the company now expects group revenue for 2023 to be at least 20% ahead of the prior year, around 17% below previously issued guidance.
The firm says it will look to lessen the impact on profitability by pushing through cost reduction measures and efficiency improvements.
To this point in 2023, CAB Payments has signed 74 new customers and is confident these customers will deliver good growth into the future. "However, should the current market conditions persist in some of our key currency corridors, as described above, the softer exit rate from 2023 could result in 2024 revenue growth falling below the medium-term potential," the firm warns.
Shares in the group tumbled by 60% in early morning trading.