Cornerstone FS Plc (AIM: CSFS), a foreign exchange and payments company offering multi-currency accounts to businesses and individuals, announces its final results for the year ended 31 December 2022. In addition, the Company gives notices of its annual general meeting (“AGM”) and publication of its annual report and accounts, both of which are being posted on the Company’s website at: https://investors.cornerstonefs.com/document-centre/.
· Revenue increased 110% to £4.8m (2021: £2.3m)
· Gross margin improved to 60.9% (2021: 51.6%)
· Adjusted* EBITDA loss reduced to £0.9m (2021: £1.3m loss)
· Transacted payments totalling £584m (2021: £363m), up 61%
· Number of active customers increased by 38% to 803 (2021: 583)
· Acquired Capital Currencies, a well-established foreign exchange broker, and Pangea FX, a specialist FX and treasury consultancy
· Expanded the Group’s partnerships to increase the number of currencies, countries and sectors that it services, and, post period, introduce new products
· Entered an agreement to sell Avila House Ltd, a non-core subsidiary, for £300k and licence the Group’s platform to the buyer, which completed post period
· Cash and cash equivalents at 31 December 2022 were £682k (31 December 2021: £348k)
* Excluding share-based compensation, transaction costs and depreciation & amortisation charges (see the Financial Review for further detail)
James Hickman, CEO of Cornerstone, said:
“During 2022, Cornerstone continued to deliver on its strategy, improved operationally and achieved a strong financial performance with revenues more than doubling and an increase in gross margin. This growth was accelerated by two acquisitions during the year, which also supported the completion of our transition to a business that services customers directly. Through the expansion of our offer, enhancement of our platform and strengthening of our team, we took important actions to position Cornerstone for an even greater 2023.
“The strong trading momentum experienced in 2022 has been sustained into the current year, and we remain on track for a significant increase in revenue for full year 2023 and are optimistic in terms of adjusted EBITDA positivity. As a result, and as we continue to broaden our partnership network and offer, we remain confident in the future and look forward to reporting on our progress.”