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17 Nov 2022 07:00
Certain information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon publication of this Announcement, this information is now considered to be in the public domain.
17 November 2022
Cornerstone FS Plc
("Cornerstone" or "the Company" or "the Group")
Trading Update
Cornerstone FS Plc (AIM: CSFS), the cloud-based provider of international payment, currency risk management and electronic account services to SMEs, is pleased to provide the following unaudited update on trading.
As noted in the interim results announcement, the Group entered the second half of the year with strong trading momentum and Cornerstone is pleased to report that this has been sustained through the period. As a result, the Group expects to report total revenue for 2022 of approximately £4.3m, representing growth of 87% over 2021. This reflects significant organic growth as well as the contribution from Capital Currencies Ltd and Pangea FX Ltd, which were acquired during the year.
The growth in revenue was driven by clients that the Group serves directly, which is expected to account for approximately 78% of total revenue (2021: 56%). A key contributor to this was the Group's Asia team that was brought on board in the second half of 2021 as well as the contributions from Capital Currencies and Pangea FX. The change to majority direct revenue has had a positive impact on the Group's gross margin, which is expected to improve to approximately 61% for 2022 compared with 52% for 2021.
The Group is pleased to report that the Pangea FX acquisition has now been fully integrated and that Cornerstone has expanded its sales team, in line with stated strategy, and is experiencing the initial benefit from this action. The Group's strategy continues to be to increase its direct business and, in particular, it is focused on expanding the functionality of its digital account offering to enhance its competitive position as well as broaden the target customer base. The Group's priority is to drive revenue growth, while maintaining tight control over costs, and the Board looks forward to updating the market on progress in due course.
Enquiries:
Cornerstone FS Plc | +44 (0)203 971 4865 |
James Hickman, Chief Executive Officer Judy Happe, Chief Financial Officer | |
SPARK Advisory Partners Limited (Nomad) | +44 (0)203 368 3550 |
Mark Brady, Adam Dawes | |
SP Angel Corporate Finance LLP (Broker) | +44 (0)203 470 0470 |
Jeff Keating, Harry Davies-Ball | |
Gracechurch Group (Financial PR) | +44 (0)204 582 3500 |
Harry Chathli, Claire Norbury |
About Cornerstone FS PLC
Cornerstone FS Plc is a payments focused fintech business that makes managing currency simple for SMEs. It provides international payment, currency risk management and electronic account services using a proprietary cloud-based multi-currency payments platform. These services are delivered directly and via white label partners on a SaaS basis to UK-based SMEs that engage in international trade. Cornerstone also serves some high-net worth individual clients.
Headquartered in the City of London and with offices in Tunbridge Wells and Dubai, Cornerstone is listed on AIM under the trading symbol 'CSFS'. For more information, please visit www.cornerstonefs.com.
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