She owns Cornerstone FS Plc (LON: CSFS), a leading foreign exchange and payments company Unveiling its final results For the fiscal year ending December 31, 2022.
company Recorded significant revenue growth (110%), up an astounding £4.8m from £2.3m the previous year. This increase was primarily due to increased revenue from direct customers (38% increase), accounting for 78% of total revenue, of £3.8m. In contrast, revenue generated through the company’s introduction network accounted for 22% of total revenue, totaling £1.1m.
“Through 2022, Cornerstone continued to execute on its strategy, improved operationally and delivered strong financial performance with more than doubling revenue and an increase in gross margin,” said James Hickman, CEO of Cornerstone. “This growth was accelerated by two acquisitions during the year, which also supported the completion of our transition into a direct-to-customer business.”
Revenues were mainly generated through foreign exchange and payments services, specifically spot and forward transactions, which accounted for 92% and 8% of revenues respectively. This represents a slight shift from the previous year, with spot transactions accounting for 89% and forward transactions accounting for 11% of revenue.
While the majority of transactions took place between various combinations of GBP, EUR and USD, the company also saw an increase in the total number of currency pairs involved, rising from 42 to 58 during the fiscal year.
Both corporate accounts and high net worth individuals (HNWIs) contributed to the revenue growth, with a significant increase in revenue from HNWIs, mostly driven by the addition of Team Asia. As a result, the share of total revenue accounted for by the wealthy rose from 25% in 2021 to 53% in 2022. Over the course of the year, the group also processed payments of up to £584m (up from £363m in 2021).
On the other hand, operating expenses for 2022 were £8.6m, reflecting an increase from £5.4m a year earlier. The rise can be primarily attributed to an increase of £1.9m in share-based (non-cash) compensation, to £4.3m, primarily related to equity-based incentives for the Asia team and Managing Director Asia Pacific and Middle East. In addition, other administrative expenses increased by £1.6m to £4.2m, partially offset by a decrease of £0.3m in transaction costs related to the company’s initial public offering and acquisition strategy.
Excluding share-based compensation, transaction costs, and depreciation and amortization charges, adjusted operating expenses, which consist of administrative expenses, improved to 79% of revenue compared to 107% in 2021. As a result, the Group’s loss in EBITDA decreased to £0.9m from £1.3m the previous year.
Cornerstone is optimistic for 2023
The strong trading momentum seen in 2022 continued into the current year, with an even greater increase during the first quarter of 2023, resulting in revenue performance that exceeded expectations. Notably, Cornerstone achieved its first quarter unaudited EBITDA on an adjusted basis.
Although trading in the second quarter of 2023 returned to levels of growth originally projected, rather than the exceptionally high levels seen previously, the Group remains on track to achieve a significant increase in revenue for the full year 2023 compared to 2022. The company is bullish about achieving positive adjusted EBITDA, as it continues to make progress in its business and benefits from operational and strategic improvements implemented in late 2022 and throughout 2023.
Cornerstone will continue to expand its partner network and enhance its offering. As such, and in accordance with the Company’s Strategic Report, the Board of Directors maintains confidence in the future outlook and eagerly anticipates reporting on the Group’s progress.
“The strong trading momentum we saw in 2022 has continued into the current year, we remain on track to deliver a significant increase in revenue for the full year 2023 and we are bullish in terms of positive adjusted EBITDA,” Heckman said. “As a result, as we continue to expand our partnership network and offerings, we remain confident in the future and look forward to reporting on our progress.”
She owns Cornerstone FS Plc (LON: CSFS), a leading foreign exchange and payments company Unveiling its final results For the fiscal year ending December 31, 2022.
company Recorded significant revenue growth (110%), up an astounding £4.8m from £2.3m the previous year. This increase was primarily due to increased revenue from direct customers (38% increase), accounting for 78% of total revenue, of £3.8m. In contrast, revenue generated through the company’s introduction network accounted for 22% of total revenue, totaling £1.1m.
“Through 2022, Cornerstone continued to execute on its strategy, improved operationally and delivered strong financial performance with more than doubling revenue and an increase in gross margin,” said James Hickman, CEO of Cornerstone. “This growth was accelerated by two acquisitions during the year, which also supported the completion of our transition into a direct-to-customer business.”
Revenues were mainly generated through foreign exchange and payments services, specifically spot and forward transactions, which accounted for 92% and 8% of revenues respectively. This represents a slight shift from the previous year, with spot transactions accounting for 89% and forward transactions accounting for 11% of revenue.
While the majority of transactions took place between various combinations of GBP, EUR and USD, the company also saw an increase in the total number of currency pairs involved, rising from 42 to 58 during the fiscal year.
Both corporate accounts and high net worth individuals (HNWIs) contributed to the revenue growth, with a significant increase in revenue from HNWIs, mostly driven by the addition of Team Asia. As a result, the share of total revenue accounted for by the wealthy rose from 25% in 2021 to 53% in 2022. Over the course of the year, the group also processed payments of up to £584m (up from £363m in 2021).
On the other hand, operating expenses for 2022 were £8.6m, reflecting an increase from £5.4m a year earlier. The rise can be primarily attributed to an increase of £1.9m in share-based (non-cash) compensation, to £4.3m, primarily related to equity-based incentives for the Asia team and Managing Director Asia Pacific and Middle East. In addition, other administrative expenses increased by £1.6m to £4.2m, partially offset by a decrease of £0.3m in transaction costs related to the company’s initial public offering and acquisition strategy.
Excluding share-based compensation, transaction costs, and depreciation and amortization charges, adjusted operating expenses, which consist of administrative expenses, improved to 79% of revenue compared to 107% in 2021. As a result, the Group’s loss in EBITDA decreased to £0.9m from £1.3m the previous year.
Cornerstone is optimistic for 2023
The strong trading momentum seen in 2022 continued into the current year, with an even greater increase during the first quarter of 2023, resulting in revenue performance that exceeded expectations. Notably, Cornerstone achieved its first quarter unaudited EBITDA on an adjusted basis.
Although trading in the second quarter of 2023 returned to levels of growth originally projected, rather than the exceptionally high levels seen previously, the Group remains on track to achieve a significant increase in revenue for the full year 2023 compared to 2022. The Company is bullish on achieving positive adjusted EBITDA, as it continues to make progress in its business and benefits from the operational and strategic improvements implemented in late 2022 and throughout 2023.
Cornerstone will continue to expand its partner network and enhance its offering. As such, and in accordance with the Company’s Strategic Report, the Board of Directors maintains confidence in the future outlook and eagerly anticipates reporting on the Group’s progress.
“The strong trading momentum we saw in 2022 has continued into the current year, we remain on track to deliver a significant increase in revenue for the full year 2023, and we are bullish on the positive EBITDA,” Heckman said. “As a result, as we continue to expand our partnership network and offerings, we remain confident in the future and look forward to reporting on our progress.”
