Foreign exchange payments services provider Cornerstone FS (LON:CSFS) says momentum continued in the first quarter of 2023. Revenues of more than £1.95m were more than double the first quarter of 22022. SP Angle has upgraded its forecasts and Cornerstone FS could make a profit in 2024.
Increasing direct revenues mean that gross margins are improving. There was positive EBITDA in the first quarter.
Full year forecast revenues have been increased from £5.7m to £6.5m and a £709,000 loss is expected. A 2024 pre-tax profit of £31,000 is forecast on revenues of £8.6m.
The AIM-quoted company could generate cash this year and cash should build up over the coming years. That could finance additional acquisitions to build the scale of the business.
The disposal of Avila House for £300,000 is still awaiting regulatory approval and it should happen in the second half of 2023. A subsequent platform licence should generate income of £290,000 over 12 months.
The share price dipped 3.33% to 7.25p. The 2022 results should be published before the end of May.
