Cuscal Posts $38.4M NPAT, Announces $75M Acquisition of Indue

Strong Financial Performance

Cuscal Limited, a key player in Australia's payments and banking services, has reported a robust financial performance for the fiscal year ending June 2025. The company’s pro forma net profit after tax (NPAT) reached $38.4 million, surpassing its initial Prospectus forecast. This achievement underscores Cuscal’s successful transition since its ASX listing in November 2024 and reflects solid growth in transaction volumes and operating income.

Despite a 9% decline in statutory NPAT to $28.7 million due to one-off listing costs, the underlying business showed strength with transaction volumes up 8% and adjusted net operating income increasing by 6% to $290.4 million. The company also declared a final dividend of 5.5 cents per share, signaling confidence in its ongoing profitability.

Strategic Acquisition of Indue

In a significant move to expand its footprint and capabilities, Cuscal announced the acquisition of Indue Limited for $75 million in cash. This deal, subject to regulatory approvals, is expected to complete by the end of 2025. The acquisition aligns two culturally similar organisations with deep roots in the mutual banking sector, promising enhanced product offerings and operational efficiencies.

The combined entity is projected to realise $15-$20 million in annual post-tax cost synergies by FY29, driven by reductions in duplicated functions and improved capital generation. While integration costs of $25-$30 million are anticipated over three years, the acquisition is forecasted to deliver over 25% earnings per share accretion and a return on invested capital exceeding 20% once synergies are fully realised.

Market Position and Outlook

Cuscal’s management remains optimistic about the future, maintaining guidance for low double-digit underlying NPAT growth supported by mid-to-high single-digit transaction volume increases. The acquisition of Indue is expected to diversify revenue streams, particularly through Indue’s government contracts, and strengthen resilience against regulatory and market challenges.

Managing Director Craig Kennedy highlighted the strategic importance of the acquisition, emphasizing the enhanced scale, innovation capacity, and sustainability it brings. The integration will be overseen by a dedicated advisory committee to ensure smooth client transitions and value creation for shareholders.

Overall, Cuscal’s FY25 results and the Indue acquisition mark a pivotal step in its evolution as a competitive and innovative payments provider in Australia’s financial landscape.