19 July 2018
The information
contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 ("MAR")
WALCOM GROUP
LIMITED
(“Walcom” or “the
Company”)
Update re:
Customer payment
Further to the Company’s announcement on 10 July 2018 regarding the default on two
payments owed to the Company of an aggregate RMB 4.26 million (approximately £483,000) by the
Company’s largest customer (the “Customer”), Walcom still has not
received either payment. The Customer has informed the Company that
the payments are being arranged and will be made before the end of
July.
A further RMB 2.4 million
(approximately £270,000) is owed to the Company by the Customer
which will fall due between now and mid-September 2018.
As previously announced, the delay in receipt of the current
payments, in conjunction with the challenging trading conditions
seen in the first half of the financial year, has had a material
adverse effect on the Company’s cash resources. Although neither of
the payments referred to above have been received, the Company has
received other ordinary course trade receivables in the last week.
As such, the Company’s working capital position is significantly
restrained but manageable in the near term.
If the full amount outstanding from the Customer is not
received, the Company might, in the absence of obtaining
alternative funds, be in a position where it is unable to settle
its liabilities as and when they fall due. The Company is
considering alternative financing arrangements, should any be
considered necessary.
The Company continues to reserve all rights against the Customer
and is engaging with lawyers in preparation for the possibility of
having to take formal proceedings to recover the payment.
The Company is closely monitoring its cash position and will
make a further announcement as necessary.
Further enquiries:
Walcom Group Limited
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer) |
+852 2494 0133 |
Allenby Capital Limited
Virginia Bull |
+44 20 3328 5656 |