Float hopeful Cuscal reveals revenue and cost growth ahead of roadshow

afr.com:

Cuscal, the payment infrastructure business used widely by smaller banks, has lifted its operating income by almost one-third over the past 12 months but says costs are also rising because of staff and technology expenses.

The company will next week brief institutional investors on its planned ASX listing, a float that could kickstart what has otherwise been a dormant market. Cuscal wants to raise about $300 million and list by late November with a market capitalisation of about $500 million.

The roadshow will launch on Monday in New Zealand and meetings are being arranged in Auckland and Wellington, followed by Sydney and Melbourne. The international roadshow begins on October 23 where senior management, led by Cuscal managing director Craig Kennedy, will meet prospective investors in London, Singapore and Hong Kong.

Bendigo and Adelaide Bank is a major user of Cuscal, the payments service provider targetting an ASX listing this year. Eamon Gallagher

In filings with the corporate regulator, Cuscal reported a net profit of $26.1 million for the year ending June 30, up 12 per cent on the previous full year.

Adjusted EBITDA of $45.6 million was up 27 per cent and return on equity of 8.8 per cent was up on the 7.4 per cent reported in the previous year. The accounts also show Cuscal paid total dividends in 2023 of 7.5¢ per share, worth $13.1 million, representing a full-year payout ratio of 50 per cent.

Cuscal has built payments infrastructure that is used by smaller banks, non-bank lenders and fintechs to accept and receive payments across various payment types, including cards and debit transfers. This allows its customers to provide payment services with cards, digital wallets, Bpay, and debit systems.

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