The Sensible logo displayed on a smartphone screen.
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Shares of British money transfer company Sensible dropped on Thursday after the corporate projected weaker annual revenue growth in the present fiscal yr.
The firm’s stock was down 9.8% at 1:30 p.m. London time, after falling as much as nearly 21% earlier within the session.
The buyer payments company, which lets customers send or spend their money overseas at cheaper rates, said it was expecting underlying year-over-year income growth of 15-20% for the full-year ending March 2025.
That is lower than the 31% underlying income growth to £1.2 billion ($1.53 billion), which Sensible reported on Thursday in its results for the fiscal yr that ended March 31.
Underlying income strips out advantages paid on customer balances or net interest income above the primary 1% gross interest yield.
Underlying pre-tax profit, which Sensible said accounts for costs and reinvestment, got here in at £242 million for the total yr, up by 226% year-over-year. Sensible had a profit before tax margin of 21%, the corporate said.
Price reductions
The softer income growth projection got here off the back of price reductions that Sensible implemented at first of its current financial yr.
Analysts at Jefferies said in a note out Thursday that Sensible’s announced guidance was “disappointing at first glance given the value reduction.”
At 15-20%, Sensible’s forecast for total income growth was 2% below consensus estimates on the mid-point, Jefferies’ analysts said. They added that they think Sensible’s price cuts “boost confidence in medium-term growth.”
Sensible said it ended its financial yr with 12.8 million energetic customers, up 29% on the yr. The corporate processed £118.5 billion price of cross-border transactions, higher by 13% year-over-year.
Sensible said more of its clients are using their account to store money, with the firm now sitting on £16 billion of customer deposits across money and Assets, the corporate’s investment account.
