*

CAB Payments ( CABPF ) sees 2024 gross income below market view

*

Company's shares have fallen over 80% since IPO; down 5%

on

Thursday

*

Restructuring expected in Q1 2025

*

Stronger dollar, political uncertainty and fall in aid

payments

weigh on performance

(Adds detail in paragraphs 5-7, analyst in paragraph 8)

By Yadarisa Shabong

Jan 16 (Reuters) - British money transfer group CAB

Payments ( CABPF ) will axe about 20% of its workforce to cut

costs and focus on investment in artificial intelligence and

automation in the face of weak trading and increased payroll

taxes, it said on Thursday.

The announcement chimes with a broader trend of British

companies cutting jobs, limiting hiring and increasing their

reliance on technology after finance minister Rachel Reeves

raised employer social security contributions and the minimum

wage, leading to cost increases this year.

The company, which provides foreign exchange and

cross-border payments for more than 150 countries globally, has

had a bumpy ride since its 2023 London market debut, including a

profit warning, a CEO change and a takeover attempt.

"We can do more with less," CEO Neeraj Kapur, who took

office last year, said in the company's statement.

CAB Payments ( CABPF ) shares traded more than 5% lower at 0839 GMT

after the company forecast annual gross income of about 105

million pounds ($128 million), below market expectations.

The company said a stronger dollar, political uncertainty

and reduced humanitarian and development aid had all affected

demand for cross-border payments, hitting its performance since

October.

The restructuring is expected to take place during the first

quarter of 2025, the company said, but a spokesman declined to

say how many jobs would be affected. CAB Payments ( CABPF ) had 381

employees at the end of 2023, its latest annual report shows.

"Rebuilding confidence is likely to take time, whilst

efforts to refocus strategy to drive more sustainable growth and

reduce costs to improve operational leverage should be taken

positively," Shore Capital analyst Vivek Raja said in a note.

Shares in CAB Payments ( CABPF ) have fallen more than 80% from their

IPO price of 335 pence apiece and lost about 17% of their value

last year.

U.S. rival StoneX Group ( SNEX ) pulled out of takeover

talks in November. CAB Payments ( CABPF ) said it was still waiting for

its licence to operate in the United States.

($1 = 0.8194 pounds)