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Tungsten Corp (LON:TUNG), whose electronic invoicing platform is gaining traction with a number of the world’s biggest companies, gave an upbeat assessment of trading trends.
In a statement ahead of the annual meeting later Thursday, chief executive Richard Hurwitz revealed revenues were up 20% year on year in the first four months of the financial year.
He also told investors two new buyers had contracted to join the Tungsten Network in the period and six existing buyers agreed contract renewals, at an average expected fee increase of 22%.
Nearly 7,000 net additional e-invoicing suppliers were activated in the four month period, the Tungsten CEO added.
A total of 4.9mln e-invoices were sent over the Tungsten Network in the first four months totalling £35.7bn. These were respectively 9% and 12% higher than the same period in the prior year, investors were told.
They also heard 238 suppliers are now registered to use Tungsten Early Payment with 89 live.
CEO Hurwitz said he was keen to pick up the pace of progress.
“To meet our growth plans we need to increase the pace of bringing suppliers onto the Network, sign-up more new buyers to join the network, secure further buyer renewals at enhanced pricing and new suppliers to Early Payment,” he said.
“We have strong buyer and supplier pipelines and excellent relationships with our buyers who want to work more closely with us.
“We need to ensure each of these are fully leveraged over the remainder of the financial year to meet our targets.”
Financially, the company is in a strong position after raising £17.5mln and has “sufficient cash resources to be able to deliver its current strategy”, Hurwitz said.
“The board remains optimistic about prospects for the current financial year and reiterates the outlook provided at the time of our full year results in July,” he added.
Broker Canaccord repeated a 'buy' but lowered its target price to 84p from 99p on increased risk to the broker's forecasts based on progress so far.
"The outlook for Buyer revenue appears on track while it appears an improvement in the outlook for supplier sign-ups and adoption of Tungsten Early Payment may be required to meet our supplier revenue and Tungsten Early Payment revenue expectations," said analyst Bob Liao.
Canaccord had expected the firm to add 11 new buyers in the four months compared to two, but it remains confident of this target because Tungsten's current pipeline of buyers is much stronger than at the beginning of the year, it said.
Meanwhile, Peter McNally, at Shore Capital, said Tungsten had gone through a cycle of downward estimates revisions over the last year that appeared to have put the company on "more rational" level expectations.
"We have met the new CFO, David Williams who appears to be doing a good job of examining the finer points of Tungsten’s operational finance, however today’s AGM statement is cautious, while optimistic at the same time," he said.
"We think the company has good long term prospects but would err to the side of caution in the near term."
Shares eased 9.47% to stand at 59.75p.