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 £34,120) from the
Customer.
A further RMB 5.56 million
(approximately £632,366) is owed and due for payment by the
Customer. An additional RMB 0.8
million (approximately £91,988) 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
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer) |
+852 2494 0133 |
Allenby Capital Limited
Virginia Bull |
+44 20 3328 5656 |