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The Markets
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Financial Services

Cornerstone FS says sales and profits margins surge as direct clients grow

Direct clients made up 56% of turnover in 2021, compared with 12% for the previous year

Cornerstone FS PLC (AIM:CSFS) said it enjoyed a substantial improvement in revenues and profit margins last year, helped by its new Asia team.

The cloud-based provider of international payment, currency risk management and electronic account services to SMEs said it expects to report full year revenue of approximately £2.3mln, which would represent a year-on-year increase of 38%.

Second-half revenue was roughly 75% higher than in the first six months, driven by increased sales to direct clients, especially via the Asia team that was brought on board in the second half.

Direct clients made up 56% of turnover, compared with 12% for the previous year, with the introducer network making up the remaining 44%.

As a result of higher proportion of direct sales the group expects gross margin to rise to around 51.5% from 29.8%, subject to audit.

“The board remains confident in the group's prospects and looks forward to updating the market on further progress,” the company said in the statement.

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