Slide 1: Premium Payment Solutions
Cornerstone > Premium Payment Solutions
Slide 2: Important notice
The information contained in this confidential document and communicated during any delivery of the presentation, including the talks given by the presenters, any question and answer session and any document or material distributed at or in connection with the presentation (the “Presentation”) has b
Slide 3: Our mission: To help businesses trade internationally
Our mission: To help businesses trade internationally
Slide 4: Our journey
Our journey 2023 Q1 EBITDA Positive 2023 Sale of Avila House & software licencing deal 2022 Acquired Pangea FX 2022 pacawas 2021 Acquired Capital Currencies 2021 Established Dubai Team 2021 Full e-money licence granted 2021 Established Asia Team 2020 Admission to AIM 2018 2016 Acquired Avila House e
Slide 5: Experienced Leadership
James Hickman Rob O’Brien Chief Executive Officer Chief Operating Officer Over 25 years in the Financial Services industry with the last 20 years' experience within the FX Rob has significant experience in the foreign exchange industry, much of which has been in and payments industries. Most recentl
Slide 6: Experienced Board
Gareth Edwards Simon Bullock John Burns Non Executive Chairman Non Executive Director Non Executive Director Gareth is a qualified solicitor and was previously a partner at Over 30 years’ experience in CFO and other finance roles in John Burns has over 40 years’ experience in the payments law firm P
Slide 7: 2022 Highlights
2022 Highlights Ø Revenue Increase to £4.8m (2021 £2.3m) Ø Transacted Payments Volume £584m (2021 £363m) up 61% Ø Acquisitions - Capital Currencies & Pangea FX Ø Sale of Avila House and platform licencing agreement Ø Revenue diversification - non reliance on GBP Ø Sales Focus Ø Additional Counterpar
Slide 8: Our growth strategy
Investing in our people Creating best in class service and expertise Actively building our sales capabilities Expanding our sales team both organically and through the acquisition of teams Our growth Development and enhancement of products and services strategy Leveraging our clients to help develop
Slide 9: Our growth strategy: products and services
Development and enhancement of products and services • Lending platform for trade finance • Leveraging our clients to help develop new products and services • Growing our payment capability to add more deliverable currencies • Expanding our payment network to include additional countries with our Ou
Slide 10: Our growth strategy: expanding customer base
Expanding our customer base • Increase our referring partner network via networking and strategic alliances. • Building differentiated processes and procedures to allow us to cater to additional sectors and jurisdictions • Adding additional regulatory licences in other jurisdictions to serve local O
Slide 11: Our target customers
Internationally trading businesses Turnover of in excess of £5m per annum with currency exchange requirements of over £100k per annum High Net Worth Individuals Larger transaction size (over £20k) typically for asset purchases Our target Introducers/Affiliates customers ”Force Multipliers” have a ne
Slide 12: Current & Future platform
Current & Future platform Cornerstone Digital Account
Slide 13: Financial Measures demonstrate ongoing transformation
Continuing revenue Gross margin Strong cost control growth accretion H2 22 growth of £368k 2022 was a 9 percentage point compared to H1 22 (incl. YOY growth of > 100% improvement YOY to 61% acquisition impacts)) leading to Financial Measures demonstrate ongoing Profitability and cash generation tran
Slide 14: Continuing Revenue Growth
Continuing Revenue Growth… • Revenue more than doubled in 2022 compared to 2021 • Supported by tuck-in acquisitions of Capital Currencies (February) and Pangea FX Limited (September) • Additional investments into organic sales team in H2 22 • Q1 23 trading update: unaudited revenue of £1.95m, more t
Slide 15: Transitioned revenue base leading to improved gross margins
Transitioned revenue base leading to improved gross margins • Historically Cornerstone proved the technology of the platform by focussing on distribution via white label partners • Over the past two years we have transitioned our revenue base to majority directly traded • Has lead to a dramatic incr
Slide 16: Stabilising cost base leading to improved profitability
Stabilising cost base leading to improved profitability • Previous investment to scale up the management team, diversify counterparties & the incremental cost base of being a public company • Strong cost control ethos • H2 22 sequential increase of £368k or £262k excluding impact of 2022 acquisition
Slide 17: 2022 cost increases largely acquisition driven
2022 cost increases largely acquisition driven • Staff cost increase mostly reflects H2 21 acquis-hire of Asia team, 2022 acquisitions of Capital Currencies & Pangea and to a lesser extent other staff hires to support growth • Rent and IT costs largely owing to rent discounts realised during the COV
Slide 18: Non-adjusted costs largely acquisition driven
non-adjusted costs largely acquisition driven • Exceptional £4.3m share-based payment costs recognised for 2022 related to acqui-hire of Asia team in H2 21 following agreement of settlement announced in August 2022. Full amount of total value of share incentivisation agreement estimated upon initial
Slide 19: Selected balance sheet metrics
Selected balance sheet metrics • Cash has improved post year-end with realisation sale Reflect focus to put business of underutilised asset of Avila House, for £300k on solid footing • Loan notes at year-end comprised £2m to Robert O’Brien, £225k Mark Horrocks and £172k re Pangea acquisition (subjec
Slide 20: Investment Summary
Investment Summary Ø Revenue Growth Ø Cost Control Ø Experienced Team Ø Fully Regulated Ø Strong Technology Ø Product Expansion Ø EBITDA Positive Q1
Slide 21: Thank you. Any questions?
Thank you Any questions? Cornerstone >