Cornerstone FS plc (AIM: CSFS) (trading as Finseta), a foreign exchange and payments solutions company offering multi-currency accounts to businesses and individuals through its proprietary technology platform, is pleased to announce its audited final results for the year ended 31 December 2023. In addition, the Company gives notices of its annual general meeting (“AGM”) and the publication of its annual report and accounts

Financial Highlights

·    Revenue increased 100% to £9.6m (2022: £4.8m)

·    Gross margin improved to 63.4% (2022: 60.9%)

·    Adjusted¹ EBITDA of £1.7m (2022: £0.9m loss)

·    Profit before tax of £1.3m (2022: £5.8m loss)

·    Basic earnings per share of 3.77p (2022: 17.26p loss)

·    Cash generated from operations of £2.0m (2022: £1.0m cash used in operations)

·    Strong balance sheet with cash and cash equivalents at 31 December 2023 of £2.3m (31 December 2022: £0.7m)

Strategic & Operational Highlights

·    Growth in active customers² to 906 (2022: 803) and average transaction value increased by 33%

·    Proportion of revenue accounted for by direct clients increased to 95% (2022: 78%) reflecting the strategic decision taken in the year to rationalise the majority of the historic white label business

·    New counterparty partnerships established to broaden the number of currencies and countries where the Group can transact – now able pay out to over 150 countries in 58 currencies

·    Launched Finseta Solutions as a new offering focused on servicing clients with complex requirements, with strong progress made to date 

·    Received regulatory approval, post year end, to provide payment services in Canada

·    Signed agreement with Mastercard, post year end, to launch corporate card scheme

·    Selected Finseta³ as new company name to reflect differentiated offer and as part of strategic growth plan

James Hickman, CEO of Finseta, said:

“This has been an excellent year for our business, resulting in 100% revenue growth and our maiden full year of profitability and positive cashflow. This has been driven by the expansion of our sales team, which achieved an increase in client numbers as well as average transaction value. At the same time, we advanced key strategic initiatives that will be drivers of our future growth in the near term. We continued to expand our global payments network, and are now able to pay out to over 150 countries in 58 currencies, and we were thrilled to receive, post year end, regulatory approval to operate a payments business in Canada. Since the year-end, we also signed an agreement with Mastercard to launch a commercial card scheme, which will enable us to offer an additional payment method to corporate clients. In reflection of this progress, we were delighted to select ‘Finseta’ as our new company name to better align our brand identity with our mission, values and the comprehensive range of services we provide.  

“Looking ahead, the strong trading momentum that was experienced during 2023 has been sustained into the current year and we are on track to report significant growth for full year 2024, in line with the Board’s expectations. With the excellent progress made during the year and to date in executing on our strategic priorities, we have strengthened our operations and established the foundations to deliver long-term, sustainable growth. As a result, the Board continues to look to the future with great confidence.”

Notes

¹ Excluding share-based compensation, transaction costs, depreciation & amortisation charges, profit from the disposal of a subsidiary, other operating income related to interest on client balances and non-cash based accounting adjustments in respect of the Group’s corporate premises

² Defined as customers who traded through Finseta during the 12-month periods to 31 December 2023 and 2022 respectively

³ As announced on 20 March 2024, the Company intends to change its name to Finseta plc and has been operating as Finseta since 18 April 2024 in anticipation of the name change. As at the date of the signing of the financial statements, the Company’s name change had not become effective. The Company expects that the change of name will take place shortly and will make a further announcement when the Company’s name change takes effect