REG - Cornerstone FS PLC - Trading Update

Cornerstone FSAnnouncement

17/11/2022 07:00

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RNS Number : 7476G  Cornerstone FS PLC  17 November 2022

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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