“Valuations are supported by an outlook for profit growth, strong free cash conversion and a history of fully franked dividends,” the report said.
Cuscal was created in 1990 by member organisations including Australia’s largest credit union CUA, and is owned by MasterCard, Bendigo and Adelaide Bank and most of the big credit unions. The business offers payments infrastructure for a range of needs including cards and real-time payments, serving banks, credit unions and fintechs.
It has 87 customers, including Bendigo and Adelaide Bank, Rabobank, ING, Great Southern Bank and Regional Australia Bank.
Cuscal reported a $26.1 million net profit for the year ending June 30, up 12 per cent in the year. Adjusted EBITDA rose 27 per cent to $45.6 million. Return on equity was 8.8 per cent, higher than the 7.4 per cent reported in the previous year.
Shares are expected to commence trading on the ASX on November 23 – in a listing that would be closely watched by other ECM teams.
Source: afr.com
