TIDMTUNG
RNS Number : 1144C
Tungsten Corporation PLC
14 January 2015
TUNGSTEN CORPORATION PLC
For Immediate Release
INTERIM FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2014
Tungsten Corporation plc (LSE: TUNG) ("Tungsten" or collectively
the "Tungsten Group"), a leading provider of automated invoice
processing, supply chain finance and spend analysis, today
announces its results for the six months ended 31 October 2014
("H1-15").
Edmund Truell, Group Chief Executive, said: "The vision for
Tungsten is now being realised. Our significant investment in all
parts of the business means the building blocks are now in place
for future growth, though this took longer than expected."
Financial Highlights for H1-15
-- Completed acquisition and capitalisation of Tungsten Bank
-- Total investment in H1-15 of over GBP47 million in Tungsten
Bank acquisition, operational infrastructure improvements and
capital expenditure to support the expansion of Tungsten Network
and the launch of Tungsten Early Payment
-- Revenue of GBP10.2 million (H1-14: GBP0.8 million)
-- EBITDA loss of GBP13.3 million (H1-14: GBP5.5 million),
including one-off set-up costs of GBP6 million (H1-14: GBP3
million), plus an additional GBP2 million of recurring investment
in the Tungsten Network
-- Loss before tax of GBP14.8 million (H1-14: GBP5.5 million)
including one-off costs and recurring investment costs
-- Raised GBP12 million of new equity at 340p/share in
conjunction with the acquisition of DocuSphere
-- Group resources strengthened and risk reduced through invoice
financing agreement with Insight Investment (after period end) for
Europe and North America
Operational Highlights for H1-15
-- 168 buyers (April 2014: 124) and 171,000 suppliers (April
2014: 168,000) registered to transact over the Tungsten Network
-- Estimated addressable market increased to $2.7 trillion
-- DocuSphere acquisition successfully integrated, bringing
enhanced workflow capability to the Group's offerings
-- Legal and tax compliant e-Invoicing in 47 countries (April 2014: 44 countries)
-- First Tungsten Analytics contract signed, with 27 further
multinationals and public sector agencies in trial
-- Tungsten Bank authorised by the Prudential Regulation
Authority ("PRA") and regulated by the PRA and Financial Conduct
Authority
-- Invoice financing systems fully tested and went live in the UK
-- Tungsten now employs over 330 people (April 2014: 236 people)
Commenting on the results, Edmund Truell, Group Chief Executive,
said:
"Our EBITDA loss for the six months to 31 October 2014 of
GBP13.3 million, including GBP6 million of one-off set-up costs and
GBP2 million of recurring investment in the enhancement of
Tungsten, reflects the significant cash investment of over GBP47
million in the development of Tungsten Early Payment and Tungsten
Analytics services and in the expansion of the Tungsten Network. As
we have now assembled the team and tools to execute our strategy to
build the largest global electronic invoice network, we are now
moving from this set-up phase to start to deliver on our
objectives.
Our recently announced agreement with Insight Investment marks a
significant turning point for the Group's future growth. Launching
Tungsten Early Payment took six months longer than expected, and
financing invoices is now fully operational in the UK. In December,
we began to offer invoice financing to selected suppliers in the
US.
Through the Insight arrangement, concluded after the end of the
half-year period, we have secured the potential to finance the
majority of approved-to-pay invoices on the Tungsten Network and we
are already seeing our volumes through Tungsten Early Payment
growing. We had used all the available capital in the Bank by 28
December 2014 and have been using Group cash resources pending the
Insight transaction going live. This volume is not reflected in the
interim results. We are optimistic about growth, now that we have
the ability to grow our global financing service without requiring
further capital or risk from Tungsten.
Tungsten Analytics, the supply chain analysis service, is now
being piloted by 27 multinationals and government entities. Over
3,000 new suppliers joined Tungsten Network in the reporting
period, with a further 3,000 added by 31 December 2014, and the
Network continues to grow with significant new buyer clients
including Caterpillar, GE and Siemens, and four German government
departments.
Technologically, Tungsten is on the verge of completing the
transformation of Tungsten Network, our global electronic invoicing
platform. We have over 100 new staff to help deliver continuous
improvements across the Tungsten Network and market Tungsten's
products and services. These include solutions that encourage and
make it easier for suppliers to join the Network, grow the number
of buyers on the Network, deliver more services to our current
customers, and so increase the volume and value of invoices
transacted over Tungsten Network as well as the development of
Tungsten Early Payment.
With the Insight funding arrangements in place, our ability to
offer Tungsten Early Payment to suppliers is considerably
strengthened. Our large and growing e-Invoice flow and positive
initial experience with the Bank and with Analytics tests,
supported by the acquisition of DocuSphere during the period for
which we are reporting, underpins our confidence in Tungsten's
ability to deliver our medium-term objectives of having $1,000
billion of invoice flow on the network, $100 billion of financed
invoices and $10 billion in cost savings identified for users.
Over the coming months, we will be working to complete the
required infrastructure to offer Tungsten Early Payment
internationally. Tungsten Bank has received regulatory passports
for Germany, France and Italy as a key step to offering invoice
finance in Continental Europe.
We have completed our systems integration with PNC Bank in the
US to grow our business in this important market, which today
accounts for approximately half of our e-Invoicing business. We are
also working to attract deposits to Tungsten Bank before our
financial year-end.
Since the period end we have signed the first Tungsten Analytics
contract with a US multinational buyer, and we expect to sign up
more, with the potential for meaningful revenues flowing from Q1 of
the next financial year."
Business line review
Tungsten Network
Tungsten Network's e-Invoicing services deliver efficiencies to
customers from touchless, paperless processing. During the period,
the Network secured a number of global mandates from both new and
renewing customers. These multinational and G20 government
customers are in the process of being brought onto the Network,
which is a lengthy and expensive process requiring significant
investment by Tungsten.
Tungsten Network users benefit from a "network effect", in which
both buyers and suppliers can transact on the Network with multiple
counterparties. For example, 10 out of the top 12 global
pharmaceutical companies now transact as buyers or suppliers on
Tungsten Network.
Improvements recently introduced for buyers on the Tungsten
Network include:
-- Focus on increasing the implementation of Invoice Status
Service (ISS) for buyers, which gives suppliers visibility of the
progress of their invoices and payment dates and reduces accounts
payable queries; 37 buyers are now taking ISS; of Tungsten's top 15
buyer customers, 5 already have ISS running today and 9 more have
agreed to take ISS in the coming year
-- Development of the DocuSphere capability for introduction to
current buyers on the Network that will enable ISS tracking of all
invoices, including those that were originally submitted on
paper
-- Integration with JD Edwards ERPs is now possible; Oracle and SAP are in development
-- Quicker and simpler integration to accelerate multinational and divisional rollout
-- Creation of dedicated sales and relationship management teams
for buyers and the largest suppliers
In the US, Tungsten has an arrangement with PNC Bank, N.A., a
member of The PNC Financial Services Group, through which PNC
offers its customers an integrated procure-to-pay service that
incorporates Tungsten Network's e-Invoicing platform. After
extensive system integration work, PNC expects the integrated
offering to go live this month, which could also lead to
incremental invoice financing business in the US.
In July 2014, Tungsten launched a pilot programme in the UK that
simplified invoice transaction fees for suppliers on the Network.
After considerable success with the pilot, the new pricing has now
being rolled out worldwide, which makes it easier for suppliers to
join the Network. The new pricing provides 52 free invoices
annually for small suppliers and 520 free for larger suppliers.
Tungsten expects over 80% of suppliers will now transact for free
on Tungsten Network. The simplified fee structure is already
leading to increased adoption from suppliers, which in turn is
anticipated to result in increased net revenue and improved working
capital for Tungsten, as well as increased volumes across the
Network.
In addition, the Group has focussed on introducing measures to
simplify and accelerate the supplier on-boarding process,
including:
-- Ability to "Click-to-Accept" Network terms and conditions
-- Suppliers will either direct debit or store credit card
details to cover transaction costs, so will "Pay to Play"
-- Buyers are offered ISS enrolment for all invoices, including
paper, to give visibility to suppliers of invoice approval
-- Simplified on-line enrolment for Tungsten Early Payment
Tungsten currently provides Tungsten Early Payment to suppliers
for invoices shown as "approved to pay" by ISS. Were all buyers
currently on the Tungsten Network to be ISS enabled and all their
suppliers on-boarded, Tungsten estimates the annual value of
invoices on the Network would be $2.7 trillion, equivalent to
approximately 12% of the $23.3 trillion of all traded goods and
commercial services, according to data from the World Trade
Organization. This represents Tungsten's potential addressable
market.
The investment required to enrol the hundreds of thousands of
suppliers currently invoicing their customers by paper should not
be underestimated, even if the enrolment is only to offer them
Tungsten Early Payment. We are also making investments to bring tax
and legally compliant e-Invoicing services to additional
geographies such as India, Japan and the Middle East to deliver
increased volume to Tungsten Network.
Tungsten Network highlights
-- 47 new buyers, including 40 DocuSphere buyers; new buyers
include Caterpillar, GE, Siemens and German government
departments
-- 3,000 new suppliers added to Tungsten Network, bringing the
total number of suppliers registered to use Tungsten Network to
171,000 at 31 October 2014; this increased to over 174,000 by 31
December 2014
-- 14.4 million invoices processed over the 12 months to 31
December 2014 (up from 13.4 million over the 12 months to 30 April
2014)
-- GBP117 billion of invoices (net of credit notes processed),
of which GBP94 billion were e-Invoices over the 12 months to 31
December 2014 (up from GBP90 billion over the 12 months to 30 April
2014)
-- Continued transition of buyers away from paper invoice data
capture (IDC), reflected in decline in IDC invoices processed to
GBP17 billion over the 12 months to 31 December 2014 from GBP21
billion over the 12 months to 30 April 2014(1)
(1) FX rates have varied considerably. At constant FX rate to
April 2014 this reflects $189 billion of invoices (net of credit
notes processed), of which $159 billion of e-Invoices processed
over the 12 months to 31 December 2014 (up from $152 billion over
the 12 months to 30 April 2014). Decline in IDC invoices processed
to $29 billion over the 12 months to 31 December 2014 from $35
billion over the 12 months to 30 April 2014
Tungsten Banking operations, including Tungsten Bank
Tungsten Bank is now operational, following the completion of
the acquisition of a UK Bank in June 2014 and the launch of
Tungsten Early Payment in the UK and a soft launch in the US after
the period end. The investment in Tungsten Early Payment includes
the total cash cost of Tungsten Bank of GBP36 million, including
capital and acquisition costs, plus a further investment in
operations of GBP7.5 million.
Whilst it took longer than planned to get the Bank and the Early
Payment service up and running, by end-December 2014 the Group had
advanced over GBP10 million, which substantially absorbed the
available capital in Tungsten Bank at that time. Tungsten
Corporation plc cash resources have been deployed to meet the
requirement to continue to finance suppliers that have used the
Tungsten Early Payment service and ensure suppliers can access
finance. After the period end, Tungsten signed an agreement with
Insight Investment through which Insight will finance eligible
invoices originated by Tungsten in Europe and in North America.
Insight, part of the BNY Mellon group, manages GBP318 billion of
assets under management, including short-term funds.
Tungsten estimates that buyers currently transacting with
Tungsten have hundreds of thousands of suppliers that could
transact over the Network. The Group is working closely with buyers
to bring these suppliers onto the Tungsten Network and register
them for Tungsten Early Payment.
Tungsten Banking operations operational highlights (to 31
December 2014)
-- Starting in November after the period end, Tungsten began to
enrol suppliers for Tungsten Early Payment
-- Tungsten improved the on-boarding process for suppliers
making it easier to sign up for Early Payment by helping them
change their bank account details for payments from their buyer
customers
-- Percentage of targeted suppliers signed up or in the process
of signing up for Tungsten Early Payment: 9.9%
-- Average invoice financing duration: 30 days
Tungsten Analytics
Tungsten Analytics is now fully developed and has been
introduced to selected existing buyer clients on a pilot basis.
These pilots extend to 27 companies and public sector
organisations, and a US-based multinational has now contracted to
take the service.
As Tungsten Analytics is trialled, so the combination of
enormous data sets with real time analytics is proving to be
uniquely powerful for its users. Tungsten Analytics can be used
for:
-- Replacement of procurement catalogues
-- Management of suppliers
-- Monitoring of spend compliance
-- Reviewing and eliminating price variances
-- Potential recovery of identified historical over-spending
The intention is to price Tungsten Analytics as a small
percentage of total invoices analysed. During the pilot phase,
buyers can trial the service and, at the end of the trial, can
choose to retain the service under the pricing model or terminate
the service.
Tungsten Analytics highlights
-- Spend analysed across 27 pilot buyers: $160 billion
-- Average savings identified: 1.7%
People
We have recruited 105 staff since our IPO in October 2013. As
planned from the outset, these employees include: the new team in
Tungsten Banking operations, including Tungsten Bank; the new
dedicated customer relationship and service delivery management
teams for buyers and the largest suppliers; and new employees in
the technical operations and development area. We now have 336
staff, of which nearly 40% of eligible employees joined Tungsten's
share option and matched share purchase plan announced last
year.
As Tungsten is transitioning into an execution and delivery
phase, 22 people have left or are leaving the Group. This has led
to changes in Tungsten's senior management:
Rick Hurwitz, CEO of Tungsten Corporation in the US, joined the
Board as an Executive Director in October 2014. Rick has 30 years
of experience with growth and technology companies, including his
previous role as CEO of Pictometry International.
Frank McKay, former CEO at Travis Perkins and a past senior
executive responsible for repositioning Brakes Group, joined
Tungsten in December 2014 as senior adviser to the CEO.
Following the achievement of the past year in assembling the
building blocks of Tungsten Corporation, notably Tungsten Bank and
agreeing the Insight Investment funding milestone, Jeff Belkin has
stepped down from his role as Chief Financial Officer at Tungsten
and from the Board. David Williams, Deputy CFO, has been appointed
Interim CFO, effective immediately, and Georgina Behrens, Chief
Compliance Officer for Tungsten Bank, has been appointed Company
Secretary. As previously announced, Michael Spencer decided that 31
December was an appropriate time to leave the Board.
Edmund Truell said: "Jeff's unstinting efforts have been key to
the transformation of Tungsten Corporation from vision to reality
over the past three years and our shared background in private
equity investment and debt securitisation was instrumental as we
built up the business. I'm grateful to him for his significant
contribution to Tungsten's success and I wish him all the very best
in the future. I also thank Michael for his service and wise
counsel."
In June 2014 Tungsten welcomed a strong Board to oversee its
fully owned subsidiary, Tungsten Bank plc. Chaired by Edmund
Truell, the Bank Board added Rob Eddowes, Richard Olliver, Nick
Parker and Tim Hall as non-executive Directors. The Bank executive
team has been strengthened with the following individuals: Gordon
Payne, Head of Strategic Solutions; Georgina Behrens; Holger Beyer,
CFO and COO for Tungsten Bank; and Peter Harris, Chief Technology
Officer for Tungsten Bank.
In addition, Juliana Wheeler has recently been appointed as
Global Head of Marketing and Communications of Tungsten
Corporation. Juliana, a former financial journalist at Bloomberg
and the Financial Times, previously held senior marketing and
communications roles at J.P. Morgan, LCH.Clearnet and Apax
Partners.
Chairman's statement
"I am delighted that we continue to show great progress as
Tungsten passes its first year as a publicly listed company. We
purchased a UK regulated bank through the acquisition of FIBI Bank
(UK) Plc and in June Tungsten Bank was granted regulatory approval
to provide banking services in the UK. We intend for Tungsten Bank
to extend the provision of Tungsten Early Payment into key European
jurisdictions under the EU Passporting Directive.
We completed the acquisition of DocuSphere to facilitate the
connection of buyers to the Network, which should give a quicker
payback for buyers and Tungsten alike. DocuSphere also enables the
extraction of information from paper invoices. Over the medium
term, this will provide the Group with further scope to provide
both Tungsten Early Payment supplier financing and Tungsten
Analytics services to buyers on the Network.
I welcome the strengthening of the senior management through the
appointments of Rick Hurwitz and David Williams, and thank Jeff
Belkin and Michael Spencer for their service. With the recruitment
of high-calibre individuals throughout the Group, our business is
well positioned for the next phase of our growth.
Prospects
Two key drivers of our growth are the uptake by suppliers of
Tungsten Early Payment and by buyers of Tungsten Analytics. Early
indications demonstrate that both services are highly valued by our
customers. However, we launched both services later than initially
planned and so the level of revenues from our Tungsten Early
Payment and Tungsten Analytics products will not become clearer
until the second half of this year.
The Group continues to invest heavily in the installation of the
connectors and services required to increase the number of invoices
available to be financed as well as in enrolling suppliers into
Tungsten Early Payment. Similarly, investment continues to be made
in Tungsten Analytics with regards to contractual engagement,
connection and training of new customers. This investment will
include additional one-off costs.
As a consequence of these factors, we expect our net financial
performance for the six months ended 31 October 2014 to be broadly
replicated in the subsequent six months, which will include the
incurrence of additional one-off costs. Thereafter, with the
progress being made in increasing the size of the Tungsten Network,
the financing capability provided by the arrangements with Insight
and the pipeline of opportunities for Tungsten Analytics, we are
confident in the long-term growth prospects of the Group. We look
forward to providing further updates on our progress in July at the
time of our annual results for the year ending 30 April 2015."
Arnold Hoevenaars
Non-executive Chairman
13 January 2015
An analyst and investor webcast presentation will be held at
9.00 a.m. GMT on 14 January 2015. To register, please click
here.
To see a video interview with Tungsten Corporation CEO Edmund
Truell, please visit the Investor Relations section of the Tungsten
Corporation website: www.tungstencorporationplc.com.
Financial Review
Results Summary
The Group's loss before tax was GBP14.8 million for the six
months ended 31 October 2014 (H1-14: GBP5.5 million).
Tungsten Network
Tungsten Network revenue of GBP10.2 million for the six months
ended 31 October 2014 (H1-14 reported: GBP0.8 m; H1-14 pro-forma:
GBP9.5 million) represents an increase of 7% over the prior period
pro-forma revenue. EBITDA loss for the six months ended 31 October
2014 was GBP2.5 million (H1-14 reported: GBP0.1 million; H1-14
pro-forma: GBP1.1 million). This includes GBP1 million of one-off
costs, primarily professional and consultancy fees, and GBP2
million of recurring costs incurred in the enhancement of Tungsten
Network, primarily the costs of software upgrades.
Tungsten Banking operations
The Tungsten Network Finance segment has been renamed Tungsten
Banking operations. Tungsten Banking operations EBITDA loss of
GBP7.1 million, including a loss of GBP1.1 million in Tungsten
Bank, for the six months ended 31 October 2014 (H1-14: GBPnil)
represents the Group's investment in the systems, work force,
processes, policies and procedures to develop the Tungsten Early
Payment service. This included GBP4 million of one-off costs,
primarily professional fees, incurred in respect of the set-up of
the Tungsten Early Payment service.
Corporate
Corporate EBITDA loss totalled GBP3.7 million for the six months
ended 31 October 2014 (H1-14: GBP5.4 million), a decline of GBP1.7
million, primarily attributed to the one-off Tungsten Network
Limited acquisition costs incurred in the prior period. This
included GBP1 million of one-off costs, primarily professional
fees.
Balance sheet and cash flow
The Group balance sheet includes separately identifiable
intangible assets arising on acquisition of GBP2.3 million in
relation to the acquisition of DocuSphere and GBP3.3 million in
relation to the acquisition of Tungsten Bank. These intangibles
have been allocated to the Tungsten Network and Tungsten Banking
operations segments respectively.
Cash utilised in operating activities (excluding GBP3.6 million
outflow in relation to financial services, presented separately in
the statement of cash flows) totalled GBP12.0 million (H1-14:
GBP4.2 million). This reflects the Group's enhancements of the
Tungsten Network, and investment in additional technology and
workforce to support its current and future customer base.
Cash utilised in investing activities of GBP31.2 million (H1-14:
GBP72.3 million) was primarily attributable to the acquisitions of
Tungsten Bank and DocuSphere.
The equity fundraising in September 2014 contributed GBP11.8
million to cash generated from financing activities (H1-14:
GBP148.5 million) and was primarily utilised to fund the
acquisition of DocuSphere.
Going concern
The Directors have made an assessment of going concern, taking
into account both current performance and the Group's outlook,
including consideration of projections for the Group's capital and
funding position, including Tungsten Bank. Further details are
included in the Basis of Preparation on page 14.
As a result of this assessment the Directors consider the Group
to be in a satisfactory financial position and confirm that the
Group has adequate resources to continue in business for the
foreseeable future.
Accordingly, the Directors continue to adopt the going concern
basis in preparing these condensed consolidated interim financial
statements.
Principal Risks and Uncertainties
The Group's principal risks and uncertainties remain the same as
those set out in the Tungsten Corporation plc Annual report and
accounts for the year ending 30 April 2014. In particular, as
outlined in the Prospects on page 6, the demand for and therefore
level of revenues from our Tungsten Early Payment and Tungsten
Analytics products will not become clearer until the second half of
this year.
Condensed consolidated income statement
Six months ended
31 October
2013
31 October
2014 (unaudited) (unaudited)
Note GBP'000 GBP'000
----------------------------- ---- ----------------- ------------
Revenue 2 10,227 829
Administrative expenses (24,683) (6,374)
Operating loss (14,456) (5,545)
----------------------------- ---- ----------------- ------------
Finance costs (489) (8)
Finance income 127 15
----------------------------- ---- ----------------- ------------
Net finance (costs)/income (362) 7
----------------------------- ---- ----------------- ------------
Loss before taxation (14,818) (5,538)
Taxation 153 130
----------------------------- ---- ----------------- ------------
Loss for the period (14,665) (5,408)
----------------------------- ---- ----------------- ------------
Loss per share (expressed in
pence per share):
* Basic 8 (14.52) (28.97)
* Diluted 8 (14.52) (28.97)
----------------------------- ---- ----------------- ------------
Condensed consolidated statement of comprehensive income
Six months ended
31 October 31 October
2014 (unaudited) 2013 (unaudited)
GBP'000 GBP'000
--------------------------------- ----------------- -----------------
Loss for the period (14,665) (5,408)
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss:
Exchange differences arising on
retranslation of the net assets
of foreign subsidiaries 752 -
---------------------------------- ----------------- -----------------
Total comprehensive loss for the
period (13,913) (5,408)
---------------------------------- ----------------- -----------------
Items in the statement above are disclosed net of tax.
Condensed consolidated Balance Sheet
Notes As at 31 October 2014 As at 30 April 2014
(unaudited) (audited)
GBP'000 GBP'000
--------------------------------------------------------------- ------ --------------------- -------------------
Assets
Non-current assets
Intangible assets 4 128,504 114,199
Property, plant and equipment 5 2,282 1,734
Trade and other receivables 621 -
---------------------------------------------------------------- ----- --------------------- -------------------
Total non-current assets 131,407 115,933
---------------------------------------------------------------- ----- --------------------- -------------------
Current assets
Trade and other receivables 6,280 6,025
Loans and advances to banks due to Tungsten Banking operations 16,505 -
Investments - Tungsten Banking operations 9,597 -
Prepayments and other receivables 535 -
Deposit paid for acquisition - 3,990
Cash and cash equivalents 27,668 62,646
Total current assets 60,585 72,661
---------------------------------------------------------------- ----- --------------------- -------------------
Total assets 191,992 188,594
---------------------------------------------------------------- ----- --------------------- -------------------
Capital and reserves attributable to the equity shareholders of the parent
Share capital 454 438
Share premium 171,874 160,127
Shares to be issued 3,760 3,760
Merger reserve 28,035 28,035
Share based payment reserves 5,094 5,040
Other reserves (4,620) (5,372)
Accumulated losses (35,605) (20,940)
------------------------------------------------------------ -------- ---------------------------------
Total equity 168,992 171,088
------------------------------------------------------------ -------- ---------------------------------
Non-current liabilities
Deferred taxation 4,141 2,935
Deferred consideration and acquisition related liabilities 313 -
------------------------------------------------------------ -------- ---------------------------------
Total non-current liabilities 4,454 2,935
------------------------------------------------------------ -------- ---------------------------------
Current liabilities
Trade and other payables 6,687 6,774
Trade and other payables owed by
Tungsten Banking operations 2,989 -
Deferred income 8,870 7,797
------------------------------------------------------------ -------- ---------------------------------
Total current liabilities 18,546 14,571
------------------------------------------------------------ -------- ---------------------------------
Total liabilities 23,000 17,506
------------------------------------------------------------ -------- ---------------------------------
Total equity and liabilities 191,992 188,594
------------------------------------------------------------ -------- ---------------------------------
Condensed consolidated statement of changes in equity
Shares
to Share-based
Share Share Merger be payment Other Accumulated Total
capital premium reserve issued reserve reserves losses equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- --------- --------- -------- ------------ ---------- ------------ ---------
Balance as at
1 May 2014 438 160,127 28,035 3,760 5,040 (5,372) (20,940) 171,088
Currency translation
differences - - - - - 752 - 752
Loss for the
period - - - - - - (14,665) (14,665)
---------------------- --------- --------- --------- -------- ------------ ---------- ------------ ---------
Total comprehensive
income/ (loss) - - - - - 752 (14,665) (13,913)
---------------------- --------- --------- --------- -------- ------------ ---------- ------------ ---------
Transactions
with owners
Proceeds from
shares issued 16 11,984 - - - - - 12,000
Issue cost - (237) - - - - - (237)
Shares-based
payments - - - - 54 - - 54
Transactions
with owners 16 11,747 - - 54 - - 11,817
---------------------- --------- --------- --------- -------- ------------ ---------- ------------ ---------
Balance as at
31 October 2014 454 171,874 28,035 3,760 5,094 (4,620) (35,605) 168,992
---------------------- --------- --------- --------- -------- ------------ ---------- ------------ ---------
Balance as at
1 May 2013 9,610 - - - 5,040 - (9,925) 4,725
Currency translation
differences - - - - - - - -
Loss for the
period - - - - - - (5,408) (5,408)
---------------------- -------- --------- ------- -------- ------ -------- --------- ---------
Total comprehensive
loss - - - - - - (5,408) (5,408)
---------------------- -------- --------- ------- -------- ------ -------- --------- ---------
Transactions
with owners
Reclassification (9,560) - - 9,560 - - - -
Proceeds from
shares issued 312 159,688 - - - - - 160,000
TCGL ordinary
B shares exchanged
into Tungsten
ordinary shares 22 11,228 - (5,800) - (5,450) - -
Shares issued
on acquisition
of subsidiary 54 - 28,035 - - - - 28,089
Issue cost - (10,789) - - - - - (10,789)
---------------------- -------- --------- ------- -------- ------ -------- --------- ---------
Transactions
with owners (9,172) 160,127 28,035 3,760 - (5,450) - 177,300
---------------------- -------- --------- ------- -------- ------ -------- --------- ---------
Balance as at
31 October 2013 438 160,127 28,035 3,760 5,040 (5,450) (15,333) 176,617
---------------------- -------- --------- ------- -------- ------ -------- --------- ---------
Condensed consolidated statement of cash flows
Six months ended
31 October 31 October
2014 (unaudited) 2013 (unaudited)
GBP'000 GBP'000
----------------------------------- ----------------- -----------------
Cash flows used in operating
activities
Loss before taxation (14,818) (5,538)
Adjustments for:
Depreciation and amortisation 1,206 58
Share based payment expense 54 -
Finance costs 489 8
Finance income (127) (15)
------------------------------------ ----------------- -----------------
(13,196) (5,487)
Changes in working capital:
Decrease in trade and other
receivables 803 24
Increase in trade and other
payables 318 1,238
Interest received 67 -
Interest paid - (23)
Tax paid - (1)
Movement in assets and liabilities
in Tungsten banking operations (3,562) -
------------------------------------ ----------------- -----------------
Net cash flows used in operating
activities (15,570) (4,249)
------------------------------------ ----------------- -----------------
Cash flows used in investing
activities
Purchases of property, plant
and equipment (714) (2)
Purchases of intangibles (161) -
Loans to employees (719) -
Deposit paid for acquisition - (360)
Acquisition of subsidiaries,
net of cash acquired (29,577) (71,942)
------------------------------------ ----------------- -----------------
Net cash outflow used in investing
activities (31,171) (72,304)
------------------------------------ ----------------- -----------------
Cash flows from financing
activities
Net proceeds of share issue 11,763 153,365
Repayment of debt acquired - (4,838)
------------------------------------ ----------------- -----------------
Net cash inflow generated
from financing activities 11,763 148,527
------------------------------------ ----------------- -----------------
Net increase in cash and cash
equivalents (34,978) 71,974
Cash and cash equivalents
at start of period 62,646 3,397
------------------------------------ ----------------- -----------------
Cash and cash equivalents
at end of period 27,668 75,371
------------------------------------ ----------------- -----------------
Accounting Policies
1. Basis of preparation
These condensed consolidated interim financial statements of the
Tungsten Corporation plc for the six months ended 31 October 2014
("the interim financial statements") comprise the company and its
subsidiaries (together referred to as the "Group").
The condensed consolidated interim financial statements for the
six months ended 31 October 2014 were approved by the Board for
issue on 13 January 2015.
The condensed consolidated interim financial statements for the
six months ended 31 October 2014 do not constitute the Group's
statutory accounts. Statutory accounts for the year ended 30 April
2014 were approved by the Board of Directors on 7 July 2014 and
delivered to the Registrar of Companies. The report of the auditors
on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under section
498 of the Companies Act 2006.
The condensed consolidated interim financial statements for the
six months ended 31 October 2014 have been prepared in accordance
with International Accounting Standard ('IAS') 34 'Interim
Financial Reporting' as adopted by the European Union ('EU'). These
interim financial statements should be read in conjunction with the
Group's Annual Report and Accounts for the year ended 30 April
2014, which have been prepared in accordance with International
Financial Reporting Standards as adopted by the European Union, the
Companies Act 2006 that applies to companies reporting under IFRS,
and IFRS Interpretations Committee (IFRS IC).
The condensed consolidated financial statements have been
prepared applying the accounting policies, methods of computation
and presentation consistent with those described in the Annual
report and accounts for the year ended 30 April 2014 with the
exception of the following new accounting standards and
interpretations which have been adopted during the year:
-- IFRS 10, 'Consolidated financial statements' (effective 1 January 2014)
-- Amendments to IAS 36, 'Impairment of assets'
-- Amendment to IAS 32, 'Financial instruments: Presentation',
on offsetting financial assets and financial liabilities
The adoption of these standards have not had a significant
impact on the Group's financial reporting.
In preparing this interim consolidated financial information the
Directors have considered the resources required by the Group to
remain in operation for the foreseeable future. This assessment has
been made having considered a number of forecast trading scenarios
for the Group. These scenarios include various strategic options
available to the Group to develop Tungsten's business together with
mitigating actions that could be taken to manage the impact of the
regulatory capital requirements of Tungsten Bank on the liquidity
of the Group.
On the basis of these forecasts, the Directors continue to adopt
the going concern basis in preparing the interim consolidated
financial information. In preparing the interim consolidated
financial information, the Directors have also made other
reasonable and prudent judgements and estimates.
2. Segment information
Management have determined the operating segments based on the
operating reports reviewed by the Board of Directors that are used
to assess both performance and strategic decisions. Management has
identified that the Board of Directors is the chief operating
decision maker (CODM).
The Board of Directors reviews financial information for three
segments: Tungsten Network (which includes the e-Invoicing and
spend analytics business of Tungsten Network (formerly OB10
Limited), Tungsten Banking operations (formerly called Tungsten
Network Finance and which includes the supply chain finance
business and Tungsten Bank plc) and Corporate (which includes
overheads and general corporate costs). Intersegment revenue from
management fees is eliminated below.
Six months ended 31 October 2014
Tungsten Intra
Tungsten Banking Group
Network operations Corporate eliminations Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- -------- ----------- --------- ------------- --------
Revenue 10,205 22 - - 10,227
Inter-segment revenue - - 1,839 (1,839) -
----------------------- -------- ----------- --------- ------------- --------
Segment revenue 10,205 22 1,839 (1,839) 10,227
EBITDA (2,475) (7,117) (3,658) - (13,250)
Depreciation and
amortisation (1,206)
Finance income 127
Finance cost (489)
----------------------- -------- ----------- --------- ------------- --------
Loss before taxation (14,818)
Income tax 153
----------------------- -------- ----------- --------- ------------- --------
Loss for the year (14,665)
----------------------- -------- ----------- --------- ------------- --------
Capital expenditure 5,683 10,271 468 - 16,422
Total assets 125,103 36,906 29,983 - 191,992
Total liabilities 16,402 3,649 2,931 - 23,000
----------------------- -------- ----------- --------- ------------- --------
Six months ended 31 October 2013
Tungsten Intra
Tungsten Banking Group
Network operations Corporate eliminations Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- -------- ----------- --------- ------------- -------
Revenue 829 - - - 829
Inter-segment revenue - - - - -
---------------------- -------- ----------- --------- ------------- -------
Segment revenue 829 - - - 829
EBITDA (76) (5,411) - (5,487)
Depreciation and
amortisation (58)
Finance income 15
Finance cost (8)
----------------------- -------- ----------- --------- ------------- -------
Loss before taxation (5,538)
Income tax expense 130
----------------------- -------- ----------- --------- ------------- -------
Loss for the year (5,408)
----------------------- -------- ----------- --------- ------------- -------
Capital expenditure - - - - -
Total assets 119,531 - 76,136 - 195,667
Total liabilities 13,790 - 5,260 - 19,050
----------------------- -------- ----------- --------- ------------- -------
3. Business combinations
Image Integration System, Inc ('DocuSphere')
On 9 September 2014 the Group acquired, through its wholly owned
subsidiary, Tungsten Network Inc, the entire share capital and
voting equity interests of Image Integration Systems, Inc
('DocuSphere'). This acquisition significantly extends Tungsten's
invoice-automation technologies to help companies streamline their
accounts payable functions, adhere to tax and regulatory
compliance, and have greater transparency of the entire
invoice-to-pay process. Consideration of GBP4,036,000 ($6,500,000)
was settled in cash with deferred consideration of GBP313,000
($500,000) payable after 18 months.
In the period from 9 September 2014 to 31 October 2014,
DocuSphere has contributed GBP457,000 of revenue and a GBP41,000
loss. If the acquisition had occurred on the first day of this
reporting period, being 1 May 2014, the contributions would have
been GBP1,267,000 of revenue and a GBP222,000 loss.
The table below sets out the provisional fair values at the
acquisition date. The goodwill of GBP2,697,000 arising on
acquisition principally relates to skills and know how present
within the assembled workforce, customer service capability and the
future opportunities available, having now acquired a financing
platform. The fair value adjustments consist of the harmonisation
with the Group's IFRS compliant accounting policies and the
recognition of intangible assets (customer relationships and IT
platform).
Transaction costs of GBP372,000 have been expensed and are
included in administrative expenses.
Provisional
fair value
at acquisition
GBP'000
Non-current assets
Goodwill arising on acquisition 2,697
IT platform 2,236
Customer relationships 93
Property, plant and equipment 42
-------------------------------------------- ----------------
Total non-current assets 5,068
Current assets
Trade and other receivables 484
Cash and cash equivalents 4
-------------------------------------------- ----------------
Total current assets 488
Total assets 5,556
-------------------------------------------- ----------------
Current liabilities
Trade and other payables (90)
Deferred revenue (402)
Current taxation payable (17)
-------------------------------------------- ----------------
Total current liabilities (509)
Non-current liabilities
Deferred tax liabilities (698)
-------------------------------------------- ----------------
Total non-current liabilities (698)
Total liabilities (1,207)
-------------------------------------------- ----------------
Net attributable assets including goodwill 4,349
Consideration satisfied by
Cash paid 4,036
Deferred consideration 313
-------------------------------------------- ----------------
Total consideration 4,349
-------------------------------------------- ----------------
3. Business combinations (continued)
Tungsten Bank plc
On 10 June 2014, the Group completed the acquisition of the
entire share capital and voting equity interests of FIBI Bank (UK)
plc (subsequently renamed Tungsten Bank plc). The total
consideration of GBP29,535,000 was paid on or prior to completion
with GBP1,000,000 held in escrow for 18 months in lieu of any
warranty claims. The acquisition of Tungsten Bank provides the
Group a secure financing platform which fully integrates with
Tungsten Network.
In the period from 10 June 2014 to 31 October 2014, Tungsten
Bank plc has contributed GBP22,000 of revenue and a GBP1,080,000
loss. If the acquisition had occurred on the first day of this
reporting period, being 1 May 2014, the contributions would have
been GBP191,000 of revenue and a GBP1,073,000 loss.
The table below sets out the final fair values at the
acquisition date. The bank licence represents the ability to
function as a bank authorised by the PRA and ensures the Group is
able to fulfil its strategy of financing eligible invoices for
early settlement. Goodwill of GBP6,810,000 arising on acquisition
predominantly relates to the skills and know how present within the
assembled workforce, customer service capability and the future
opportunities available to the Group.
Transaction costs of GBP134,000 have been expensed and are
included in administrative expenses.
Provisional
fair value
at acquisition
GBP'000
Non-current assets
Bank licence 3,300
Goodwill arising on acquisition 6,810
Total non-current assets 10,110
Current assets
Loans and advances to banks 13,151
Investments 7,995
Prepayments and other receivables 217
-------------------------------------------- ----------------
Total current assets 21,363
Total assets 31,473
-------------------------------------------- ----------------
Current liabilities
Amounts owed to credit institutions (49)
Customer Deposits (1,049)
Trade and other payables (180)
Total current liabilities (1,278)
Non-current liabilities
Deferred tax liabilities (660)
-------------------------------------------- ----------------
Total non-current liabilities (660)
Total liabilities (1,938)
-------------------------------------------- ----------------
Net attributable assets including goodwill 29,535
-------------------------------------------- ----------------
Consideration satisfied by
Cash paid 25,545
Cash paid in previous periods 3,990
-------------------------------------------- ----------------
Total consideration 29,535
-------------------------------------------- ----------------
4. Intangible assets
Customer Bank Software Software
Goodwill relationships licence IT platform licences development Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- --------------- --------- ------------ ---------- ------------- --------
Cost
Balance at 1
May 2014 98,695 11,000 - 4,300 717 331 115,043
On acquisition
of subsidiaries 9,507 93 3,300 2,236 - - 15,136
Additions - - - - 161 - 161
Exchange differences - - - - 1 - 1
---------------------- --------- --------------- --------- ------------ ---------- ------------- --------
Balance at 31
October 2014 108,202 11,093 3,300 6,536 879 331 130,341
---------------------- --------- --------------- --------- ------------ ---------- ------------- --------
Accumulated
amortisation
Balance at 1
May 2014 - 297 - 330 217 - 844
Amortisation - 280 - 374 8 331 993
---------------------- --------- --------------- --------- ------------ ---------- ------------- --------
Balance at 31
October 2014 - 577 - 704 225 331 1,837
---------------------- --------- --------------- --------- ------------ ---------- ------------- --------
Net asset value
as at 30 April
2014 98,695 10,703 3,970 500 331 114,199
Net asset value
as at 31 October
2014 108,202 10,516 3,300 5,832 654 - 128,504
---------------------- --------- --------------- --------- ------------ ---------- ------------- --------
5. Property, plant and equipment
Fixtures
Leasehold and Computer
improvements fittings equipment Total
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------------- ---------- ----------- --------
Cost
Balance at 1
May 2014 1,867 300 1,625 3,792
On acquisition
of subsidiaries 18 94 299 411
Additions 454 24 236 714
Exchange differences - - 5 5
---------------------------- -------------- ---------- ----------- --------
Balance at 31
October 2014 2,339 418 2,165 4,922
---------------------------- -------------- ---------- ----------- --------
Accumulated depreciation
Balance at 1
May 2014 385 288 1,385 2,058
On acquisition
of subsidiaries 15 86 268 369
Depreciation 87 6 120 213
---------------------------- -------------- ---------- ----------- --------
Balance at 31
October 2014 487 380 1,773 2,640
---------------------------- -------------- ---------- ----------- --------
Net asset value
as at 30 April
2014 1,482 12 240 1,734
Net asset value
as at 31 October
2014 1,852 38 392 2,282
---------------------------- -------------- ---------- ----------- --------
6. Share capital and share premium
Ordinary Share Share
shares Nominal capital premium
Issued and fully paid Number value GBP'000 GBP'000
---------------------------------- ----------- ---------- -------- --------
Tungsten Corporation plc 500,010 GBP0.10 50 -
Ordinary B Class shares TCGL 5,800,000 GBP1.00 5,800 -
Ordinary C Class shares TCGL 3,760,000 GBP1.00 3,760 -
---------------------------------- ----------- ---------- -------- --------
Balance as at 1 May 2013 10,060,010 9,610 -
Share consolidation prior
to initial placement offering
(IPO) (500,010) GBP0.10 (50) -
Reclassification of TCGL Ordinary
B Class and Ordinary C shares (9,560,000) GBP1.00 (9,560)
Reorganised share capital
prior to IPO 11,404,746 GBP0.00438 50 -
Ordinary shares issued on
IPO 71,111,111 GBP0.00438 312 159,688
TCGL Ordinary B shares exchanged
into Ordinary shares 5,000,000 GBP0.00438 22 11,228
Shares issued as consideration
given 12,484,143 GBP0.00438 54 -
Share issue costs - - - (10,789)
---------------------------------- ----------- ---------- -------- --------
Balance as at 1 May 2014 100,000,000 438 160,127
Ordinary shares issued 3,529,412 GBP0.00438 16 11,984
Share issue costs _ _ _ (237)
---------------------------------- ----------- ---------- -------- --------
Balance at 31 October 2014 103,529,412 454 171,874
---------------------------------- ----------- ---------- -------- --------
On 9 September 2014, the Company issued 3,529,412 shares for
total proceeds of GBP12,000,000. Transaction costs of GBP237,000
associated with the raising of the share capital has been
recognised against the share premium account.
For further details on the presentation of share capital and
share premium, refer to the Annual Report and accounts for the year
ended 30 April 2014.
7. Share-based payments
In August 2014, the Group established an Employee Matched Share
Scheme (EMSS) and a Save as You Earn (SAYE) share option scheme for
the employees of the Company.
Employee Matched Share Scheme
The Employee Matched Share scheme is part of Tungsten's plans to
encourage share ownership among its employees, and incentivise and
align their interests with existing shareholders. Rockhopper
Investments Limited ("RIL"), the family vehicle of Edmund Truell,
Group Chief Executive Officer of Tungsten, has offered to make
available to the Tungsten Corporation plc Employee Benefit Trust a
call option over 439,992 ordinary shares of the Company at an
option price of 336p per share. The option is exercisable at any
time between 8 February 2019 and 8 August 2019.
The Tungsten board formally approved these options on 7 August
2014 and the options were granted on 8 August 2014.
7. Share-based payments (continued)
As part of the scheme's terms, any participating employee is
required to acquire Tungsten shares in the market at an arm's
length price and hold them for the same period as the life of the
option. As a result, 412,436 shares have been acquired for
participating employees.
Save as you Earn scheme
The Save as you Earn scheme was offered to eligible employees
participating in the scheme have committed to contribute between
GBP5 and GBP500 per month over a three-year period. At the end of
that contracted period, their accumulated funds can then be
withdrawn from the scheme as cash or used to exercise the options
at the contracted price.
The Tungsten board formally approved these options on 4 August
2014 and the Company has granted 261,244 options at an exercise
price of GBP2.25. The SAYE scheme comprises equity-settled
share-based payment transactions with options vesting on the third
anniversary of the grant date.
Long-term incentive plan
For further details on long term incentive plans, please refer
to the Annual Report and accounts for the year ended 30 April
2014.
The fair value of the EMSS and SAYE awards were determined using
a Black-Scholes option pricing model using the following
assumptions:
Employee
Matched
Share Save as
Scheme you earn
Risk-free interest rate 2.15% 2.15%
Expected dividend yield - -
Expected volatility 43.3% 43.3%
Vesting period 4.5 years 3 years
------------------------ --------- ----------
The risk-free interest rate was based on the UK Gilt rates on
date of grant of each of the share schemes. No dividends were
expected. The expected equity volatility for the EMSS and SAYE
schemes has been based on the historic volatility data since the
Company's admission to AIM in October 2013.
Share-based payment expense of GBP54,000 have been recognised in
the consolidated income statement for the six months ended 31
October 2014 (31 October 2013: GBPnil). The table below sets out
the movement in shares granted under the Company share schemes:
Number Founder Founder Employee Save as you earn Total
shares Securities Matched shares
Shares
----------------- ----------- ----------- -------- ---------------- -----------
As at 2 February - -
2012 - - -
Granted - May
2012 5,800,000 3,760,000 - - 9,560,000
----------------- ----------- ----------- -------- ---------------- -----------
As at 30 April
2013 5,800,000 3,760,000 - 9,560,000
Exercised -
16 October 2013 (5,800,000) - - - (5,800,000)
----------------- ----------- ----------- -------- ---------------- -----------
As at 30 April
2014 - 3,760,000 - - 3,760,000
Granted -August
2014 - - 439,992 261,244 701,236
----------------- ----------- ----------- -------- ---------------- -----------
As at 31 October
2014 - 3,760,000 439,992 261,244 4,461,236
----------------- ----------- ----------- -------- ---------------- -----------
8. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to the ordinary shareholders by the weighted average
number of ordinary shares in issue during the period.
Diluted loss per share amounts are calculated by dividing the
loss attributable to ordinary equity shareholders by the weighted
average number of ordinary shares outstanding during the year, plus
the weighted average number of shares that would be issued on the
conversion of dilutive potential ordinary shares into ordinary
shares.
For the six months ended
31 October 2014 31 October 2013
Loss for the period
attributable to owners
of the Company, in
thousands of GBP (14,665) (5,408)
------------------------------ ---------------- ----------------
Basic weighted average
number of shares 101,015,247 18,666,652
Adjusted for:
Employee share option
plans 24,998 -
Deferred share consideration 29,571 -
Diluted weighted average
number of shares 101,069,816 18,666,652
Loss per share (pence)
Basic (14.52) (28.97)
Diluted (14.52) (28.97)
------------------------------ ---------------- ----------------
9. Related-party transactions
The Group entered into the following transactions with related
parties in the ordinary course of business:
For the six months ended
--------------------- --------------------------
31 October 31 October
2014 2013
GBP'000 GBP'000
--------------------- ------------ ------------
Purchase of services 474 8,048
--------------------- ------------ ------------
The outstanding balances with related parties were as
follows:
As at 31 October
----------------- ------------------
2014 2013
GBP'000 GBP'000
----------------- -------- --------
Loans receivable - 223
----------------- -------- --------
Other payables - 1,440
----------------- -------- --------
9. Related-party transactions (continued)
Canaccord acted as sole book runner, financial adviser and joint
broker to the Group on the additional share placing during
September 2014 and IPO in the prior year. Additionally, Canaccord
has been retained as joint broker to the Group. Peter Kiernan is
the Chairman of European Investment Banking at Canaccord and, as a
consequence of this role, Canaccord is considered a related party
of the Tungsten Group. Mr Kiernan took no part in the negotiation
of the terms of the Canaccord engagement letter or the terms of the
Placing Agreement. The Group received services totalling GBP464,000
from Canaccord during the six months ended 31 October 2014 (31
October 2013: GBP5,430,000). At 31 October 2014, the amount payable
to Canaccord by the Group was GBPnil (31 October 2014:
GBP1,440,000).
Gentoo Fund Services Limited, an entity controlled by the Edmund
Truell, provided administration services for certain Group
companies totalling GBP10,000.
As described in Note 7 Share-based payments, RIL has made
available to the Tungsten Corporation plc Employee Benefit Trust a
call option over 439,992 ordinary shares of the Company. This
represents 2.96% of the ordinary shares held by the interests of
Edmund Truell and 0.4% of the total issued share capital of
Tungsten. Until these options are exercised there are no changes to
the holdings of Edmund Truell.
For further information please contact:
Tungsten Corporation plc
Edmund Truell, Chief Executive Officer +44 20 3435 5680
Juliana Wheeler, Head of Global Communications +44 20 7280 7973
Charles Stanley Securities
(Nominated Adviser and Joint Broker)
Marc Milmo/Dugald Carlean +44 20 7149 6000
Canaccord Genuity Limited
(Joint Broker)
Simon Bridges/Peter Stewart/Cameron Duncan +44 20 7523 8000
Equus Group (Communications)
Piers Hooper / Sam Barton +44 20 7223 1100
About Tungsten Corporation plc
Tungsten Corporation (LSE: TUNG) accelerates global trade by
enabling customers to streamline invoice processing, improve
cash-flow management and make better buying decisions from their
detailed spend data.
Buyer organisations that join Tungsten Network, the world's
largest compliant electronic invoice network, can reduce their
invoice-processing costs by 60%. Suppliers benefit from
efficiencies, greater visibility of their invoice status and peace
of mind. Tungsten offers supply chain financing through Tungsten
Bank; and helps buying organisations profit by applying real-time
spend analytics to its vast repository of line-level invoice
data.
Tungsten serves 56% of the Fortune 500 and 67% of the FTSE 100
by connecting the world's largest companies and government agencies
to their thousands of suppliers around the globe. It enables
suppliers to submit tax compliant e-Invoices in 47 countries, and
last year processed transactions worth over $187bn for
organisations such as Alliance Data, Aviva, Cargill, Deutsche
Lufthansa, General Motors, GlaxoSmithKline, Henkel, IBM, Kellogg's,
and the US Federal Government.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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