Cornerstone Fs Share Discussion Threads

[chatchat] 08/5/2024 11:09

Thank you Adam.

[adamb1978] 08/5/2024 11:05

Listened to the IMC call. On that and the Vox call earlier, they guided to sequentially higher in H1, though obviously not close to the growth in h2 last year. The CFO also mentioned a 'flattening' of growth, rather than flat. She said that H2 is typically stronger as HNWs are more active then, presumably tax planning etc. She also talked about aims for £50m and then £100m turnover in the coming year, and on the vox call earlier mention mid 30s% EBITDA margin at steady state (ie absent spending for growth).

No investment is a dead cert and always just a risk/reward assessment and in my view that is very favourable here. Strong growth, net cash, unlikely to need to raise any equity, cashflow positive...and could potentially do 3p-4p EPS in 2024.

I increased my position this morning by around 1/3 as a result

[homeboy] 08/5/2024 10:48

no update till half year, sounds like wheels coming of a bit on growth and ramp meister clown zico selling, after all that day in day out non stop bleeding ramping he's selling down

[z1co] 08/5/2024 10:19

With no Q1 trading update i also clipped a few at over 42p at opening.

[eggbaconandbubble] 08/5/2024 09:56

fft - I'm disappointed by the share price reaction but I repeat my message 2380 above - snip from todays results announcement:

"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."

[eigthwonder] 08/5/2024 09:34

Zico doesn't like my comments and i am excluded from his board, but the results commentary and Vox interview suggest m/t hold, s/t profit taking from those inclined to trade - they're up against tough comps H1, there are some external costs (for expansion) and growth to be H2 biased. And probably no further hard numbers until end H1

[fft] 08/5/2024 09:28

Disappointed. The outlook for 2024 is in line with the boards expectations. Which should be the same as the last broker note before today. And that broker note was an easy beat (see Z1co for the last month or so). So, growth would appear to have slowed down. I can't make the IMC meeting today but perhaps someone can ask them for a Q1 comparative vs Q4 last year, or Q1 last year.

[cyberbub] 08/5/2024 08:45

Have there ever been rumours of takeovers? Seems to me that a rapidly growing company with high margins, but still somewhat sub-scale, would be an obvious morsel for a bigger fish?

[brummy_git] 08/5/2024 08:23

In this fascinating interview, CEO James Hickman and CFO Judy Happe of Cornerstone FS (soon to be renamed as Finseta) take me through today's excellent FY23 results - reporting adjusted EBITDA of £1.7m on sales up 100% LFL to £9.6m. Including

00:00 What the company does and its key growth drivers

06:15 Financial highlights

12:00 Commercialisation strategy (re international expansion, rebranding & new services)

20:00 Indicative FY’24 outlook

Disclosure: Cornerstone FS is a Vox Markets client

[dorian12] 08/5/2024 07:58

The loan note isn't an issue at all.


The company already has more cash than the loan notes.


The revised broker note just out shows net cash of £7.7m at the end of 2026 (e.g. after paying off the loan note in 2026 they will still have £7.7m in cash).


The company is making a lot of cash.

[carcosa] 08/5/2024 07:54

I was looking at how CSFS may be able to get rid of the Loan Notes.

The company has issued convertible loan notes and non-convertible interest-bearing loan notes.

The company issued convertible loan notes, where the first tranche was payable in convertible loan notes and the second tranche was payable in ordinary shares. The company has recognised the estimated deferred consideration as a liability payable in cash.

The company has a £2m non-convertible interest-bearing loan note from Robert O'Brien, the company's General Manager APAC and Middle East and largest shareholder. On March 8, 2023, the company and Mr. O'Brien agreed to extend the repayment date of this loan note by one year to July 31, 2026.

There is a potential sale of subsidiary as the company entered into an agreement on September 20, 2023 to sell its subsidiary Capital Currencies Ltd, which is subject to FCA approval. This could potentially help pay down the loan notes.

Based on the information provided in the Finseta Annual Report 2023, the following can be determined about the value of Capital Currencies Ltd:

The parent company's Statement of Financial Position as at 31 December 2023 includes a total investment of £7.35m in 100% of the ordinary share capital of its subsidiaries, including Capital Currencies Ltd.

The subsidaries are, Finseta Payment Solutions Limited (formerly Cornerstone Payment Solutions Ltd), Cornerstone – Middle East FZCO, Capital Currencies Limited, Pangea FX Limited and Finseta Payments Corp

However, the report notes that there were impairment indicators for the investment in Capital Currencies Ltd, and the auditors challenged management on the carrying value.

This suggests the company sees value in selling Capital Currencies Ltd, though the potential sale price is not disclosed.

So in summary, while the parent company has the investment in Capital Currencies Ltd on its books, there were impairment concerns raised by the auditors. The planned sale of the subsidiary indicates the company believes it has value, but the exact worth is not specified in the annual report. Maybe I will ask about this at the forthcoming Presentation.

[z1co] 08/5/2024 07:53

cyber

The company normally issues Q1 update in April , but this year there was no update and most likely time was today.

There next update will most likely be in early July for H1.

[dupont56] 08/5/2024 07:49

Wow! 60p today?

[triktrak] 08/5/2024 07:48

Shore have released their note this morning saying:

Our fair value estimate on CSFS rises to 70p (from 50p) to reflect our forecast revisions, remarking the peer group valuation multiple, and rolling forward our valuation model. We estimate FY24F P/E at c.25x and FCF yield at c.3%, with FY25F at c.13x and c.10% respectively.

[cyberbub] 08/5/2024 07:41

Maybe a double whammy, release the Q1 results on Friday say?

[dorian12] 08/5/2024 07:25

Fantastic results and outlook.


Cash generated from operations of £2.0m in 2023!


New broker note due now.

[z1co] 08/5/2024 07:23

Great results as expected but no Q1 update from the company , that's very strange.

[carcosa] 08/5/2024 07:17

Forget the RNS. Go read the AR for the full story. follow the link from

If you follow Simon Thompson's valuation method then price target from 50p to 56p i.e. 12% increase

[brummy_git] 08/5/2024 07:17

Barnstorming FY23 results today from CSFS.

All the commentary & news here.

[eggbaconandbubble] 08/5/2024 07:12

"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."

[z1co] 07/5/2024 15:51

cyber , referring to your post 2366

Yes a completely different business but could well multibag by 10 fold and more within the next 12 months.

The company is Ondine Biomedical OBI do plenty of research if you do decide to buy.

[dorian12] 07/5/2024 15:51

If the CEO can show a pathway to his £100m aspirational revenue target then I think the share price could go above £1.50 in time.Equals reported revenue of £96m for 2023 and are forecasting £110m for 2024. The Equals market cap is £240m, and there may be a bid at a premium.£240m is equivalent to about £4 a share for CSFS.I think CSFS will be more profitable too, with higher gross margins and lower operating costs. Forecasts show the CSFS EBITDA margin quickly exceeds that of Equals. Obviously a long way to go to get to £100m revenue, but hopefully we'll get more details on the roadmap tomorrow.

[eggbaconandbubble] 07/5/2024 14:11

"The ADVFN 'Trades' columns are totally illogical Mr Spock."

Note: Trade nos. 31 & 48 are in correct time sequence but given later trade numbers ????
It's beyond me!

[cyberbub] 07/5/2024 11:01

Just took 60k, not printed yet. GLA