London-based forex and payments provider, Cornerstone Fs Plc (AIM: CSFS) has confirmed strong financial results initially reported over two months ago. The company saw a jump of 90% in revenue in H1 2023, reaching £3.6 million. Additionally, it claims that due to a robust first half, it will be able to beat analysts' forecasts for the entire year of 2023.

Cornerstone FS Reports Stellar H1 2023

Cornerstone's revenue soared 90%, reaching £3.6 million, which is up from £1.9 million in the first half of 2022. This growth was fueled by expanding the company's payment capabilities and a strategic focus on sales. The gross margin remained stable at around 61%, demonstrating effective cost management.

The company also reported its first half-year Adjusted EBITDA of £0.2 million, which is a significant turnaround from the £0.5 million loss in the same period last year. Operating profit stood at £0.1 million, compared to a loss of £3.0 million in H1 2022. Profit before tax was £23,000, and cash generated from operations was reported at £0.1 million.

"It has been an excellent six months for Cornerstone, delivering substantial revenue growth and achieving our first half-year period of profitability and operating cash generation," James Hickman, the CEO of Cornerstone, said. "This has been driven by our enhanced sales efforts and focus on more fully commercializing our platform alongside important action to carefully manage our cost base as we grow."

Cornerstone's shares responded positively to the recent report, surging 14% as the London Stock Exchange opened on Tuesday. The stock price reached 14.9 pence, marking its highest level in over a year.

Cornerstone Shifts Business Strategy and Future Outlook

Cornerstone has made a strategic shift by focusing more on direct clients that now account for 91% of the company's revenue, which is up from 74% in H1 2022. The number of active customers increased to 874, compared to 697 in the previous year. The company has also expanded its global reach by establishing new counterparty partnerships, enabling transactions in over 150 countries and 58 currencies.

Preparations have been completed for the introduction of the Consumer Duty regulation set to take effect in July 2023. This regulatory compliance is expected to solidify Cornerstone's market position further.

The company's performance in the year's first half is expected to continue. With advancements across the business and a clear focus on strategic growth, Cornerstone expects its full-year results for 2023 to be significantly ahead of market expectations. This includes achieving its first full year of positive Adjusted EBITDA.

"When combined with a large and supportive market backdrop, as global digital payment transaction values expand and the on-going shift of payment transactions away from banks to specialist firms continues, the Board has great confidence in the future of the Group," the CEO concluded.