Sydney-based payments provider Cuscal (ASX: CCL) has hit the ground running after posting solid gains in its underlying business in the first half of FY25, the company’s first profit announcement since its $489 million ASX listing in November.
While Cuscal reported an 11 per cent fall in net profit to $12.2 million for the six months to the end of December, the company notes that the bottom line was materially affected by one-off costs relating to the company’s market listing to the tune of $13.3 million before tax.
However, on a pro-forma basis, net profit after tax (NPAT) surged 42 per cent to $21.5 million while pro forma NPAT margin rose 380 basis points to 14.7 per cent.
Cuscal, an authorised Australian deposit-taking institution, provides payment services to banks, financial technology companies and corporates, enabling its clients to provide payment services to their customers.
Outside of the major banks, Cuscal is the largest centralised provider of payments infrastructure in the Australian payments industry.
The company, which can trace its history back to 1966 when it began as the Australian Federation of Credit Union Leagues, issued 134.7 million shares at $2.50 each ahead of its share market listing on 25 November 2024.
The business recorded a 7 per cent increase in total transaction volumes to $2.12 billion in the first half of FY25 compared to the previous corresponding period, putting the group on track to “meet or modestly exceed” its FY25 pro forma NPAT prospectus forecast.
“We are pleased to deliver our maiden first-half result, with the business tracking well against our FY25 prospectus forecast, with continued growth across our core capabilities,” says Cuscal’s managing director Craig Kennedy.
“The second half of FY25 will focus on continuing to strengthen our core to support and enable the aspirations of our clients and preparation to execute on our avenues of growth for the next five years.
“We will look to deploy surplus capital through accretive M&A (mergers and acquisitions) in a disciplined way and we continue to actively explore opportunities.”
Cuscal has forecast mid-to-high single-digit transaction volume growth in FY25 which is expected to translate to low double-digit NPAT growth.
The company’s shares were trading above their issue price today at $2.70, up 14c, at 12.31pm (AEDT).
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