Walcom Group Ltd Receipt of initial customer payment
03 September 2018 - 8:45PM
UK Regulatory
TIDMWALG
3 September 2018
WALCOM GROUP LIMITED
("Walcom" or "the Company")
Receipt of initial customer payment
Further to the Company's announcements regarding the default on payments by the
Company's largest customer (the "Customer"), Walcom is pleased to announce it
has now received RMB 300,000 (approximately GBP34,120) from the Customer.
A further RMB 5.56 million (approximately GBP632,366) is owed and due for payment
by the Customer. An additional RMB 0.8 million (approximately GBP91,988) will
fall due between now and mid-September 2018.
The Company has begun legal proceedings to recover the contractual monies due
but is negotiating with the Customer for settlement of the outstanding amounts
and hopes to reach agreement outside court.
As previously announced, the Company's working capital position is
significantly restrained but manageable in the near term. The Company has
continued to maintain at least the minimum level of working capital required,
however, this requires receipt of other ordinary course trade receivables on a
timely basis. With the seasonal cyclicality the Group experiences, the Board is
hopeful that trading in the coming months will improve the cash position.
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 is closely monitoring its cash position and will make a further
announcement as necessary.
Further enquiries:
Walcom Group Limited +852 2494 0133
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer)
Allenby Capital Limited +44 20 3328 5656
Virginia Bull
END
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