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Highlights

  • Pro forma NPAT of AUD 38.4 million in FY25 exceeded Prospectus forecast, with a final dividend of 5.5 cents per share.

  • Cuscal to acquire Indue Limited for AUD 75 million, expected to deliver AUD 15–20 million in annual cost synergies by FY29.

  • Outlook maintained with low double-digit underlying NPAT growth.

Cuscal Limited (ASX:CCL) announced its financial results for the year ended 30 June 2025 (FY25), posting earnings ahead of expectations and unveiling a strategic acquisition to support long-term growth. Shares of Cuscal rose 19.3% to AUD 3.52 per share on 22 August morning following the announcements.

Cuscal, which listed on the Australian Securities Exchange on 25 November 2024, reported pro forma net profit after tax (NPAT) of AUD 38.4 million, surpassing the Prospectus forecast. This result represents a 17% year-on-year increase, with pro forma NPAT margin expanding by 120 basis points to 13.2%. A final dividend of 5.5 cents per share was declared.

Statutory NPAT was AUD 28.7 million, down 9% from the prior year, reflecting one-off listing costs of AUD 13.9 million before tax (AUD 9.7 million after tax).

For the year, transaction volumes increased by 8%, supporting growth across all financial metrics. Adjusted net operating income rose 6% to AUD 290.4 million, while pro forma adjusted EBITDA increased 13% to AUD 65.7 million, with margin improvement of 140 basis points to 22.6%. Pro forma earnings per share grew 16% to 20 cents.

Alongside the results, Cuscal announced the acquisition of Indue Limited through a conditional agreement to purchase 100% of its shares for AUD 75 million in cash consideration. Completion is subject to regulatory approvals and other conditions.

Indue, which has a long-standing role in the mutual banking sector and established government contracts, is expected to provide strategic benefits including enhanced client services, operational efficiencies, and expanded innovation capacity. Post-integration, the combined business is anticipated to deliver AUD 15–20 million in annual run-rate cost synergies by FY29, driving earnings per share accretion of over 25% and a return on invested capital above 20%.

The acquisition will be cash funded, with the combined entity expected to maintain a Common Equity Tier 1 (CET1) ratio of around 18–19%, consistent with Cuscal’s capital targets and above regulatory requirements. Integration costs are projected at AUD 25–30 million (post-tax), mostly incurred within the first two years following completion, resulting in initial EPS dilution on a statutory basis.

Cuscal highlighted additional benefits of the acquisition, including enhanced resilience in cybersecurity, fraud monitoring, and regulatory compliance, as well as reduced duplication in systems, compliance, and corporate costs. The increased scale is also expected to boost investment capacity, enabling greater innovation and product development.

Looking forward, Cuscal reaffirmed its outlook, targeting low double-digit underlying NPAT growth for the next financial year, supported by ongoing transaction growth, operational efficiencies, and contributions from the Indue acquisition.