Cornerstone FS, a leading foreign exchange and payments group, has been making waves in the financial sector with its recent positive trading update.
In conversation with Proactive’s Stephen Gunnion, chief executive James Hickman devled into the company's strategies, growth, and future prospects.
From discussing the shift in sales strategies to the expansion of Cornerstone’s currency offerings, Hickman provides a comprehensive insight into the workings and ambitions of Cornerstone FS. Read on for the detailed Q&A session.
Stephen Gunnion: So you're off the trading update this morning, you've raised your full-year revenue and underlying profit guidance. So strong momentum continuing into the second half of your financial year.
James Hickman: Absolutely. Our focus on revenue on the sales side of things is definitely coming to fruition. We're seeing that month-on-month increase, very positive. We've got the right team in place to capitalise on this. And we're very optimistic for the future.
SG: You do talk about enhanced sales efforts and a bigger sales team. So take us through some of those enhanced sales efforts that you've put in place, James.
JH: The audience may remember that we have originally been selling Cornerstone effectively as a SaaS product to other FX companies. We've changed tack on that and have been going direct. In line with that strategy, we've increased our sales team across all our target markets. That really is coming to fruition. We've hired a couple of really good people to head that up. They're really showing their worth, and will continue to do so. We're actually continuing to hire in our UK sales arm. So that strategy is continuing.
SG: So despite all the new hires, James, you do say that you've been keeping a lid on costs. So your adjusted EBITDA is also going to be higher than previous guidance.
JH: We're investing where we know we're gonna get a return on that investment. It's very much trial and error, we're not speculating at all. We've kept a lid on the operational costs. Over the past two, three years, we've invested in the operational systems, our compliance and our regulatory piece.
We have spent money on and improved, particularly around the onboarding process. So we're very much geared towards future growth. And in terms of incremental cost, that focus of keeping a lid on costs will definitely continue. We will invest where we know we're gonna get a return. But we're not gambling with it.
SG: Apart from more active customers, you've also reported higher average transaction values. Do you expect that trend to continue?
JH: Ultimately, yes, but it will be very incremental and dependent on the types of transaction. But our strategy is very much geared towards service. And those types of clients who want a service will tend to have a higher average transaction value. Yes, to a degree, but there is ultimately a cap on that.
SG: So, broadening the range of currencies and the countries where you transact. So plenty of scope going forward there, then, James.
JH: Yeah, absolutely. It's been a very important decision for us to increase the number of countries and the number of currencies. And we're doing that through partnership rather than trying to do everything ourselves. So it is a very low-cost model to implement. But it gives our customers a broad range and a good choice of currencies that they can come to us for. So that will definitely continue throughout this year and through to next year.
(Note: This interview may be been edited and simplified without changing context of participants' comments.)