Cornerstone FS plc (LON:CSFS), a cloud-based provider of international payment, currency risk management and electronic account services to SMEs, today provided an unaudited update on trading for the six months ended 30 June 2022.

The Group achieved its highest ever quarterly revenue for the first three months of the year. Cornerstone FS reports that this momentum was sustained into the second quarter with revenue exceeding that of the first quarter. As a result, the Group expects to report total unaudited revenue for H1 2022 of approximately £1.9 million, representing growth of 129% over the first half of 2021. Accordingly, the Group remains on track for delivering substantial revenue growth for the full year, in line with market expectations.

Revenue generated by clients that the Group serves directly continued to increase during the first half to approximately 75% of total revenue compared with 28% for the first half of the previous year. A key contributor to this was the Group’s Asia team that was brought on board in the second half of 2021. This change to majority direct revenue has had a positive impact on the Group’s gross margin, which is expected to improve to approximately 61% for H1 2022 from 38.1% for H1 2021 and 51.6% for FY 2021.

Cornerstone FS had bank balances of approximately £0.28 million at the date of the approval of the financial statements and convertible loan note facilities of a further £0.45 million that are available to be called on 20-days’ notice (£0.1m of which cannot be called until 13 January 2023).

The Board believes that the Group has sufficient access to funding to continue as a going concern until the end of the current year.