Cornerstone Predicts FY23 Revenue Above Market Views, Shares Surge

<p>Shares of
Cornerstone, a foreign exchange and payments solution provider, surged nearly
35% today (Monday) on the London Stock Exchange following a trading update that
suggested their revenue and EBITDA for the fiscal year 2023 (FY23) will be
"materially above current market expectations." Although the company
did not provide specific figures, this information was sufficient to spark
optimism among investors.</p><p>Cornerstone's Revenue
Expected to Exceed £8 Million</p><p>The latest
trading update came after an announcement at the end of October, when the
company reported that its full revenue for FY23 is expected to be <a href="https://www.financemagnates.com/fintech/cornerstone-fs-plc-announces-strong-fy23-outlook-of-8-million/" target="_blank" rel="follow">at least £8
million</a>, marking a 66% increase year-over-year. </p><p>Now, the
company hints that the final results will be higher than previously
anticipated as it continues to experience "strong trading momentum,"
reflecting changes made in its operations over the past year. </p><p>"Very
strong trading has continued to date and, as a result, the Group now
anticipates reporting revenue and adjusted EBITDA for the year to 31 December
2023 materially ahead of current market expectations," the company
commented. </p><p>These
developments led Cornerstone's shares to rise by 34.8% to 16.3 pence on Monday,
testing over-monthly highs.</p><p>Continued Strong
Performance for Cornerstone</p><p>In the <a href="https://www.financemagnates.com/fintech/cornerstones-revenue-soars-90-as-forex-provider-beats-market-forecasts/" target="_blank" rel="follow">first half of 2023</a>, Cornerstone announced a 90% increase in
revenue, <a href="https://www.financemagnates.com/fintech/cornerstone-estimates-revenue-jump-in-h1-2023-of-89/" target="_blank" rel="follow">reaching £3.6 million</a>. The company was optimistic about maintaining
this positive trend in the latter half of the fiscal year 2023, anticipating
results that surpass expectations.</p><p>Should Cornerstone achieve or exceed its projected outcomes for 2023, it
would mark a continuation of the impressive growth <a href="https://www.financemagnates.com/institutional-forex/cornerstone-fs-reports-110-rise-in-2022-revenue/" target="_blank" rel="follow">seen in 2022</a>. Last year, the
company saw its revenue soar by 110% to £4.8 million, up from £2.3 million the
year before.</p><p>A significant portion of Cornerstone's revenue is attributed to its core
services in foreign <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> and <a href="https://www.financemagnates.com/terms/p/payments/">payments</a>, especially from spot and forward
transactions. These services accounted for 92% and 8% of the total revenue,
respectively.</p>

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