Half Year 2026 Cuscal Ltd Earnings Call Transcript
Key Points
- Cuscal Ltd (ASX:CCL) reported a 9% increase in transaction volumes, leading to a 13% growth in underlying NPAT.
- The acquisition of Indue is expected to deliver EPS accretion of over 25% and a return on invested capital of over 20%.
- Net operating income grew by 10%, with a significant contribution from Indue.
- The company declared an interim dividend of AUD0.045, consistent with the previous year's pre-IPO dividend.
- Cuscal Ltd (ASX:CCL) has a strong balance sheet with a stable credit rating from S&P and a capital adequacy ratio above the target range.
- The integration of Indue is expected to cause a slight near-term drag due to its lower margin profile.
- Employee costs increased by 20% due to the addition of Indue and investments in fraud monitoring and cybersecurity.
- The capital adequacy ratio decreased from 27.3% to 19.7% following the Indue acquisition.
- There is a potential risk of not achieving the full run rate cost synergies from the Indue acquisition until FY29.
- The company expects a slight decrease in net interest income in the second half due to the deployment of capital in the Indue acquisition.
(Background Music)
Thank you for standing by and welcome to the Cuscal Limited 1H FY26 results.
(Operator Instructions)
I would now like to hand the conference over to Mr. Craig Kennedy, Managing Director and CEO. Please go ahead.
Good morning, everyone, and thanks for joining us today for the announcement of Cuscal's results for the half year ended 31st December 2025.
I'm Craig Kennedy, Managing Director of Cuscal, and I'm joined today by our CFO, Jennifer Brice, who joined the business in October 2025. This marks Jen's first earnings call with us as CFO, and I'm pleased to say that she's hit the ground running, bringing momentum and a clear vision to the role.
Before we begin, I would like to acknowledge the Traditional Custodians of the land on which we gather today, the Gadigal people of the Eora nation, and pay my respects to their elders' past, present, and emerging. I extend that respect to all First Nations people joining us today.
Today I'll
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