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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Financial Services

Cornerstone FS: FY earnings to significantly exceed forecasts

Cornerstone FS PLC (AIM:CSFS), the foreign exchange and payments solutions specialist, said its full-year 2023 results will significantly outpace market expectations, marking its first full year of positive adjusted earnings (EBITDA).

Interim results for the six months ending 30 June 2023 revealed a 90% surge in revenue to £3.6 million with this growth is attributed to the expansion of Cornerstone's payment capabilities and ongoing investment in sales.

The gross margin remained stable at 61%, and the company achieved its maiden half-year adjusted EBITDA of £200,000, a significant turnaround from a £500,000 loss in the same period last year.

Operational highlights include an increase in the proportion of revenue from direct clients to 91%, up from 74% in H1-2022.

The number of active customers rose to 874, and the company expanded its payout capabilities to over 150 countries in 58 currencies.

Chief executive, James Hickman, said: "It has been an excellent six months for Cornerstone, delivering substantial revenue growth and achieving our first half-year period of profitability and operating cash generation.

"This has been driven by our enhanced sales efforts and focus on more fully commercialising our platform alongside important action to carefully manage our cost base as we grow."

The CEO expressed confidence in the company's funding position to support existing growth plans and highlighted the strong trading momentum that has continued into the second half of the year.

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