Cornerstone Estimates Revenue Jump of 89% in H1 2023

<p>Cornerstone
FS Plc (AIM: <a href="https://www.financemagnates.com/tag/cornerstone-fs/" target="_blank" rel="follow">CSFS</a>), a London-based forex and <a href="https://www.financemagnates.com/terms/p/payments/">payments</a> company, has announced an
estimated total revenue of £3.6 million for the first six months of 2023. This
represents a significant increase of 89% compared to the first half of 2022.
Thanks to strong revenue growth and the maintained gross margin, the company is set
to report a positive adjusted EBITDA for H1 2023.</p><p>Cornerstone Reports Sustained
Momentum and Growth</p><p>The company
ended the first half of the year with strong momentum following high revenue growth in Q1. This momentum continued through the second quarter, contributing
to the substantial increase in revenue in H1 2023.</p><p>This growth
reflects Cornerstone's intensified focus on revenue generation, which was largely
attributed to the introduction of a new sales team at the end of last year.
Notably, the revenue generated by direct client services grew by approximately
121%. It made up 87% of total revenue compared to 74% in the first half of the
previous year.</p><p>James
Hickman, the CEO of Cornerstone, expressed his satisfaction with the results
and described the last six months as 'excellent'.</p><p>"I'm
delighted that we have achieved our first half-year period of being adjusted
EBITDA positive. This has been driven by our enhanced sales efforts as we
realise the benefits of the actions that we took at the end of last year to
strengthen our team. As a result, we remain on track to deliver significant
growth for the full year and look to the future with confidence," Hickman
commented.</p><p>In 2022, Cornerstone
managed to increase revenue by 110%, <a href="https://www.financemagnates.com/institutional-forex/cornerstone-fs-reports-110-rise-in-2022-revenue/" target="_blank" rel="follow">to £4.8 million</a> compared to £2.3 million
in the previous year. In its latest trading update, the company forecasts that
it will be able to maintain its growth momentum in the second part of the year
as well, and will deliver significant revenue growth throughout 2023. More
details on the company's financial health will be published along with the
interim report on September 12, 2023.</p><p>Sale of Avila and Stake
Purchase</p><p>Cornerstone
recently made the decision to sell its <a href="https://www.financemagnates.com/institutional-forex/cornerstone-agrees-to-sell-emi-licensed-subsidiary-avila-for-300k/" target="_blank" rel="follow">subsidiary Avila House</a>, an electronic
money institute, to Aspire Commerce (trading as MulootMoney.com) for £300,000,
marking the end of 2022. As part of the <a href="https://www.financemagnates.com/terms/a/acquisition/">acquisition</a> agreement, Aspire obtained a 12-month license for the Cornerstone platform, ensuring a minimum
revenue of £290,000 for the London-listed company.</p><p>In a more
recent development, five directors from Cornerstone <a href="https://www.financemagnates.com/fintech/five-directors-buy-189-stake-in-cornerstone-amidst-revenue-boost/" target="_blank" rel="follow">successfully acquired</a> a
combined total of 1.89% shares in the company through the London Stock Exchange
(LSE). This transaction was finalized on 20 January. The five directors
involved in this share acquisition consist of Gareth Edwards (Non-Executive Chairman),
Judy Happe (Chief Financial Officer), James Hickman (Chief Executive Officer), Simon
Bullock (Non-Executive Director) and John Burns (Non-Executive Director).</p>

This article was written by Damian Chmiel at www.financemagnates.com.