Tungsten Corporation PLC AGM Statement & Trading Update (8254Q)
15 September 2017 - 4:00PM
UK Regulatory
TIDMTUNG
RNS Number : 8254Q
Tungsten Corporation PLC
15 September 2017
TUNGSTEN CORPORATION PLC
("Tungsten", the "Company" or "Group")
AGM Statement / Trading Update
15 September 2017
Tungsten Corporation plc (LSE: TUNG) makes the following trading
update in advance of the Company's Annual General Meeting to be
held today.
Tungsten's focus in the year to 30 April 2018 ("FY18") is
executing against our plan. Unaudited revenue of GBP8.3 million in
the three months to 31 July 2017 ("Q1-FY18") was 12% higher than
the same period in the prior year on a constant currency basis and
in line with the Board's expectations.
In the first quarter we added three new Buyer customers to
Tungsten Network. These included a multi-year global rollout of
e-invoicing services for Carlsberg Group and a further sale of our
new Invoice Data Capture product, which digitises non-electronic
invoices and therefore enables quicker achievement of some of the
benefits of digital automation. We also continued to renew the
contracts of existing Buyers on Tungsten Network to better reflect
the value created by our services, without any notable losses. We
continue to open new sales channels to increase our reach and have
entered into a strategic partnership with Tech Mahindra to push
automation in newer markets and increase our presence globally.
We continue to work closely with Buyer customers to onboard an
increasing number of their Suppliers onto Tungsten Network
including, amongst others in Q1-FY18, those of Mondelēz
International and Sanofi.
In FY17, we expanded the breadth of Tungsten Network Finance
products through an increased range of partners. In Q1-FY18, we
secured three structured receivables financing mandates totalling
approximately $75 million. We expect these to be funded by our
partners in Q2-FY18, at which time we start to generate revenue.
Also in Q1-FY18, the first Tungsten Network customers took
advantage of the flexible lines of credit offered through our
partner BlueVine.
To enable us to accelerate the achievement of our goal of
profitable growth, we are focussed on the execution of technology
improvements that will enhance the scalability, reliability and
security of Tungsten Network. In Q1-FY18, we made strong progress
with the upgrade of our core processing capabilities and transition
to new production infrastructure. We expect these projects to be
fully completed over FY18, delivering enhanced scalability,
security and cost efficiencies.
In July 2016, we set ourselves the challenging goal of achieving
monthly EBITDA breakeven by the end of this calendar year. This
remains our goal and in Q1-FY18 our unaudited EBITDA loss fell by
36% from the same period in the prior year as we made progress on
both revenue growth and cost control.
We have a strong sales pipeline and expect to add more new
Buyers to Tungsten Network this financial year than last. As
always, the timing of contract closure determines the phasing of
monthly revenues. For FY18, our targets remain constant currency
revenue growth in excess of 15% and a gross margin of at least
90%.
Tungsten's operating cost base is now stable and carefully
controlled. In Q1-FY18, we continued to make organisational
adjustments to meet the demands of our customers in a more
efficient manner. We continue to expect to spend less than GBP40
million in operating expenses during the year, excluding one-off
restructuring costs of approximately GBP2 million.
As we look forward to the rest of FY18 and beyond, we recognise
that our markets are supportive of the products and services we
offer and we have put the Company in a position to generate
profitable growth and shareholder value. We remain excited about
the opportunities afforded by our partnerships and corporate
development activities.
Tungsten will announce its Interim Results for the six months
ended 31 October 2017 on 14 December 2017.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Enquiries
Tungsten Corporation plc
Richard Hurwitz, Chief
Executive Officer
David Williams, Chief Financial
Officer +44 20 7280 7713
Panmure Gordon UK Limited
(Nominated Advisor)
Dominic Morley/Peter Steel +44 20 7886 2500
Canaccord Genuity Limited
(Broker)
Simon Bridges/Andrew Buchanan/Emma
Gabriel +44 20 7523 8000
Neustria Partners (Investors,
Analysts and Media)
Robert Bailhache/Nick Henderson/Charles
Gorman +44 20 3021 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, purchase order
services and workflow platform that brings businesses and their
suppliers closer together with unique technology that
revolutionises invoice processing, maximises efficiency and
improves cash flow. 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 percent of the FTSE
100 and 76 percent of the Fortune 500. It enables suppliers to
submit tax compliant e-invoices in 48 countries, and last year
processed transactions worth over GBP133bn for organisations such
as Alliance Data, Cargill, Deutsche Lufthansa, General Motors,
GlaxoSmithKline, Mondelēz International, 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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