Cornerstone FS PLC (AIM:CSFS), a UK-based foreign exchange and payments provider, has posted promising interim results for the first half of 2023, according to a research note by Shore Capital.
The company reported maiden positive adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £200,000, a significant turnaround from a £500,000 loss in the previous year.
Revenue soared to £3.6 million, up from £1.9 million in the prior year, driven by an increase in direct sales and a growing customer base, which now stands at 874 active customers.
This positive financial performance could be attributed to robust revenue growth and effective cost management, broker Shore said.
Cornerstone has also expanded its global footprint, now capable of making payments to over 150 countries in 58 currencies.
Despite a slight contraction in gross margin to 61%, the company has managed to maintain tight control over its operating expenses.
The firm ended the period with cash balances of £816,000, marking an improvement from £682,000 at the end of December 2022.
With a positive outlook and a successful business reorganisation, Cornerstone appears well-positioned to capitalise on the ongoing shift from traditional banking to specialist financial firms, Shore said in its note.
The shares were 17% at 13.75p in morning trade.