Cornerstone FS Plc (AIM: CSFS), a London-based forex and payments company, has announced an estimated total revenue of £3.6 million for the first six months of 2023. This represents a significant increase of 89% compared to the first half of 2022. Thanks to strong revenue growth and the maintained gross margin, the company is set to report a positive adjusted EBITDA for H1 2023.

Cornerstone Reports Sustained Momentum and Growth

The company ended the first half of the year with strong momentum following high revenue growth in Q1. This momentum continued through the second quarter, contributing to the substantial increase in revenue in H1 2023.

This growth reflects Cornerstone's intensified focus on revenue generation, which was largely attributed to the introduction of a new sales team at the end of last year. Notably, the revenue generated by direct client services grew by approximately 121%. It made up 87% of total revenue compared to 74% in the first half of the previous year.

James Hickman, the CEO of Cornerstone, expressed his satisfaction with the results and described the last six months as 'excellent'.

"I'm delighted that we have achieved our first half-year period of being adjusted EBITDA positive. This has been driven by our enhanced sales efforts as we realise the benefits of the actions that we took at the end of last year to strengthen our team. As a result, we remain on track to deliver significant growth for the full year and look to the future with confidence," Hickman commented.

In 2022, Cornerstone managed to increase revenue by 110%, to £4.8 million compared to £2.3 million in the previous year. In its latest trading update, the company forecasts that it will be able to maintain its growth momentum in the second part of the year as well, and will deliver significant revenue growth throughout 2023. More details on the company's financial health will be published along with the interim report on September 12, 2023.

Sale of Avila and Stake Purchase

Cornerstone recently made the decision to sell its subsidiary Avila House, an electronic money institute, to Aspire Commerce (trading as MulootMoney.com) for £300,000, marking the end of 2022. As part of the acquisition agreement, Aspire obtained a 12-month license for the Cornerstone platform, ensuring a minimum revenue of £290,000 for the London-listed company.

In a more recent development, five directors from Cornerstone successfully acquired a combined total of 1.89% shares in the company through the London Stock Exchange (LSE). This transaction was finalized on 20 January. The five directors involved in this share acquisition consist of Gareth Edwards (Non-Executive Chairman), Judy Happe (Chief Financial Officer), James Hickman (Chief Executive Officer), Simon Bullock (Non-Executive Director) and John Burns (Non-Executive Director).