Meeting its prospectus forecasts and lifting its return on equity, Cuscal Limited continues to leave its investors (via November’s IPO) wondering what the real use of $337 million in new capital is really for.
Inorganic growth via acquisition is the most likely uses of these funds, not that too many rumours are yet building on Australian-based payment processors that might interest Cuscal.
On a pro forma basis, which ignore offer costs in the order of $14 million, Cuscal yesterday reported a net profit of $21.5 million over the half year to December 2024, up from $15.1 million in the December 2023 half.
Total income increased seven per cent to $147 million.
Staff costs fell six per cent to $58 million, but total expenses increased two per cent, largely due to a heavy technology spend.
There was a “slower ramp up of expenses, positively skewing” the first half profit, Cuscal said yesterday.
The pro forma return on equity increased to 6.3 per cent in the current half, up from 4.9 per cent in the 2024 first half and 3.5 per cent in the 2023 first half.
Cuscal did not declare any interim dividend, but the FY2025 final dividend forecast of 5.5 cents per share “remains unchanged” Craig Kennedy, managing director of Cuscal said.
Cuscal is “on track to meet or modestly exceed the prospectus FY2025 pro forma NPAT forecast, based on “mid-to-high single digit transaction volume growth expected to translate to low double-digit NPAT growth.”