Cornerstone FS (CSFS) , a forex and payments solutions company, released unaudited interim results for the six months ended 30 June 2023 (H1 2023).
Cornerstone reported a near doubling of revenues to £3.6m from £1.9m in H1 2022 through continued expansion of its payments offerings and ongoing investment in sales. Gross margin remained broadly unchanged at 61% and the maiden half-year EBITDA was £0.2m from a £0.5m loss last year.
Operating profit inched into positive territory at £0.1m from last year's £3.0m loss, and profit before tax was £23k from a loss of £3m in H1 2022. Cash increased slightly to £816k from £682k.
Operationally, the company saw the proportion of revenues by direct clients increase to 91% from 74% last year, reflecting its decision to rationalise the majority of its historic white label business. Active customers increased to 874 from 697 last year. New partnerships established during the period mean Cornerstone can now pay out to over 150 countries in 58 currencies.
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Excellent interim results from Cornerstone, showing a maiden interim period of profitability and cash generation, with 90% revenue growth growth during the 6 months, reflective of a substantial increase in sales generated by clients the company serves directly.
The results put Cornerstone on track to finish FY23 significantly ahead of market expectations, including its first full-year positive adjusted EBITDA. Shares jumped 10.6% on the positive update.
The strong momentum from H1 has carried over to H2, with higher sales, new partnerships, and expanded offerings and payment methods. Cost management measures and operational improvements should extend the company's current cash position to support its existing expansion plans. We expect the upward revenue trend to be maintained if not accelerated throughout the rest of the year.
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