Cornerstone FS PLC Announces Strong FY23 Outlook of £8 Million

<p>Cornerstone
FS plc (LSE: <a href="https://www.financemagnates.com/tag/cornerstone-fs/" target="_blank" rel="follow">CSFS</a>), a foreign exchange and <a href="https://www.financemagnates.com/terms/p/payments/">payments</a> solutions provider, released
today (Wednesday) an unaudited trading update. The company expects to report a
full-year revenue of at least £8 million for the fiscal year 2023 (FY23). This
figure exceeds prior expectations and represents an annual growth rate of 66%.</p><p>Cornerstone FS PLC Exceeds
Board Expectations</p><p>The
company's performance is attributed to several strategic moves. These include
the expansion of its sales team and the broadening of its transaction
capabilities. Consequently, Cornerstone has seen a rise in both the number of
active customers and the average transaction value.</p><p>"We
are continuing to experience excellent trading momentum," James Hickman, the
CEO of Cornerstone, said. "We are executing higher value transactions and
with a greater number of active customers, which is being driven by our
enhanced sales efforts and focus on more fully commercialising our platform."</p><p>The company
has focused on growing its sales team and enhancing its service offerings. This
has increased the number of counterparties, allowing the company to transact in
a broader range of currencies and countries. As a result, the average
transaction value has risen, and the number of active customers has increased
year-on-year.</p><p>In
September 2023, the company <a href="https://www.financemagnates.com/fintech/cornerstones-revenue-soars-90-as-forex-provider-beats-market-forecasts/" target="_blank" rel="follow">reported results for the first half of 2023</a>,
showing a jump of 90% in revenue <a href="https://www.financemagnates.com/fintech/cornerstone-estimates-revenue-jump-in-h1-2023-of-89/" target="_blank" rel="follow">to £3.6 million</a>. It now claims that it has maintained good momentum in the second half of FY23, which will result in
better-than-expected performance.</p><p>"At
the same time, we are carefully managing our cost base as we grow. Accordingly,
we look forward to reporting better than expected revenue and adjusted EBITDA
for FY 2023, and the Board continues to have great confidence in the future of
the Group," the CEO added.</p><p>Cornerstone Aims to
Maintain 2022 Momentum</p><p>If
Cornerstone manages to close 2023 in line with its forecasts, it will continue
<a href="https://www.financemagnates.com/institutional-forex/cornerstone-fs-reports-110-rise-in-2022-revenue/" target="_blank" rel="follow">the strong performance observed in 2022</a>. The company reported a significant revenue
growth, increasing 110% to £4.8 million compared to £2.3 million in the previous
year. </p><p>This uptick
was mainly due to a boost of 38% in revenue from directly served clients, which
accounted for 78% of the total revenue, or £3.8 million. On the other hand,
revenue generated through the company's introducer network made up 22% of the
total, amounting to £1.1 million.</p><p>"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," Hickman commented a year ago.</p><p>The
majority of the company's income came from its foreign exchange and payment
services, particularly from spot and forward transactions. These contributed to
92% and 8% of the total revenue, respectively. This marks a minor change from
the prior year where spot transactions made up 89% and forward transactions
constituted 11% of the revenue.</p>

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