Tungsten Corporation PLC Pre-close FY17 Trading Update (0366G)
24 May 2017 - 4:01PM
UK Regulatory
TIDMTUNG
RNS Number : 0366G
Tungsten Corporation PLC
24 May 2017
TUNGSTEN CORPORATION PLC
("Tungsten" or the "Company")
For Immediate Release
24 May 2017
Pre-Close Trading Update
Tungsten Corporation plc (LSE:TUNG), the global e-invoicing,
purchase order services, analytics and financing company, today
announces the following trading update for the financial year ended
30 April 2017 (FY'17).
Unaudited preliminary results
Revenue for the period is expected to be in excess of GBP31
million, representing growth of 20% on the prior year and above our
previous guidance of at least GBP30m for FY'17. The increase in
revenue reflects improved sales momentum, customer contract
harmonisation and the impact of currency exchange rate movements.
On a constant currency basis, revenue is expected to be 12% greater
than the prior year.
Tungsten's EBITDA loss for FY'17 is anticipated to be below
GBP12 million, at least GBP1 million better than prior guidance and
demonstrates continued discipline in our cost containment and
automation measures, even as exchange rate movements negatively
impacted reported costs. The net impact of exchange rate movements
on reported EBITDA is expected to be minimal.
Unaudited cash, including self-funded Tungsten Network Early
Payment invoices, was GBP21.8 million at 30 April 2017. This was
GBP1.8 million higher than guidance and included cash received from
the sale of Tungsten Bank in December 2016. Outstanding Early
Payment invoices totalled GBP4.2 million and were financed by the
Group on a transitional basis prior to the implementation of
additional funding arrangements with our partners. Subsequent to
the year-end, GBP1.2 million of these Early Payment invoices have
been repaid and all are scheduled to be repaid by 31 July 2017.
Tungsten's operational and financial progress in FY'17 means it
is on track to achieve its goal of EBITDA breakeven on a run rate
basis in calendar 2017. Management will provide further detail on
Tungsten's initiatives that underpin its improved position when the
Group announces FY'17 results on 24 July 2017.
Rick Hurwitz, Chief Executive Officer, commented:
"Tungsten made remarkable headway in fiscal '17, reflecting
great work by people across the business. FY'17 was a year of
disciplined reengineering across many functions. We have
strengthened our relationships with existing customers and welcomed
many new members to the Tungsten Network. We have also introduced
innovative products and scalable new technologies. Having
successfully divested Tungsten Bank, we refocused Tungsten Network
Finance and finished the year with a strong balance sheet.
"We continue to progress Tungsten's transformation, while
demonstrating that the steps we are taking are yielding beneficial
results. Of specific note, we attracted highly talented people to
the business, added 10 new Buyers, connected 48,000 new Suppliers,
processed 17.1 million invoices, and ended with GBP17.6 million of
Tungsten Network Early Payment outstanding invoices. We've started
the new financial year with encouraging momentum and a clarity of
purpose that augur brightly for Tungsten's outlook."
Final results
Tungsten will announce its final results for the year ended 30
April 2017 on Monday 24 July 2017 when management will host a
conference call for investors and analysts at 9:00am UK time.
To access the live webcast please click here. For participants
unable to join the webcast, the dial-in number for the conference
call is +44 (0)20 3003 2666 / +1 212 999 6659 with the passcode
4556574# and a presentation will be available on the Tungsten
website at
http://www.tungsten-network.com/uk/about/investor-relations/downloads-reports/.
A replay facility will be available until 7 August 2017. The
dial-in number for the replay facility is +44 (0)20 8196 1480 / +1
866 583 1035 with the above passcode.
Enquiries
Tungsten Corporation plc
Richard Hurwitz, Chief Executive
Officer
David Williams, Chief Financial +44 20 7280
Officer 7713
Panmure Gordon (Nominated
Advisor) +44 20 7886
Dominic Morley/Peter Steel 2500
Canaccord Genuity Limited
(Broker)
Simon Bridges/Andrew Buchanan/Emma +44 20 7523
Gabriel 8000
Neustria Partners
Robert Bailhache/Nick Henderson/Charles +44 20 3021
Gorman [email] 2580
About Tungsten Corporation plc
Tungsten Corporation (LSE: TUNG) aims to be the world's most
trusted business transaction network by using data intelligently to
strengthen the global supply chain.
Tungsten Network is a secure e-invoicing and purchase order
services platform that brings businesses and their Suppliers closer
together with unique technology that revolutionises invoice
processing, maximises efficiency and improves cash flow management.
Delivering trusted connections and streamlined transactions, the
network also provides users with real-time spend analysis and
offers Suppliers access to invoice financing through Tungsten
Network Finance, a form of alternative finance for businesses.
Tungsten Network processes invoices for 70% of the FTSE 100 and
72% of the Fortune 500. It enables Suppliers to submit tax
compliant e-invoices in 47 countries, and last year processed
transactions worth over GBP133bn for organisations such as Alliance
Data, Cargill, Deutsche Lufthansa, General Motors, GlaxoSmithKline,
Henkel, IBM, Kellogg's and the US Federal Government.
Trusted, passionate and proven, Tungsten is making the
digitisation of global commerce between Buyers and Suppliers
faster, easier and smarter.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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