Shares in cross-border payments firm CAB Payments (LSE: CABP) jumped 5.5% on Friday after the company pledged to investors that it would achieve a revised revenue target for 2023.
The FTSE 250 firm’s shares plunged more than 70% last month after a profit warning. Year-over-year shares are down 78%.
According to fund manager Oliver Brown of R.C. Brown, a top-20 investor in CAB, the company called him on Friday and was “very contrite” about the profit warning. CAB is adamant it will not issue another warning in 2023, Brown said, but he cautioned it could take years to rebuild trust.
“We feel we have been over-promised,” Brown commented. “If they don’t hit these revised numbers, there will be even bigger questions.”
CAB said in a statement that it is focused on delivering strong growth forecasts to investors. The fast-growing fintech provides cross-border payment services to governments, NGOs and others in emerging markets. It plans to publish a trading update in January as it works to regain market confidence.
