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Tungsten Corp sees better momentum despite big loss

The online invoice group expects to conclude the sale of its bank in October
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Tungsten handles invoices for 70% of the FTSE 100 members

Tungsten Corp PLC (LON:TUNG) ran up another big loss in the year just ended but said recovery momentum is building.

The online invoice group expects to conclude the sale of its bank in October, which it estimates will free up £30mln of cash for the ongoing business.

Revenues in the year to April rose 16% to £26.1mln, while underlying losses (EBITDA) improved to £18.7mln (£25.2mln).

Total pre-tax losses were £28.6mln (£27.9mln).

Going forward, Tungsten expects revenues will rise to £30mln in the current year while underlying losses will reduce to between £12-14mln, which includes £1.3mln from the bank.

By the end of the 2017 financial year, cash will be £20mln in surplus.

Richard Hurwitz, chief executive, said:  "We are building momentum in our business through our strategy of focusing on profitable growth.

“Evidence of our progress is displayed in the talent we have attracted, our improved contract pricing, the value-added new buyers who have joined our network, the resizing of costs to match our tangible opportunities, and our strengthened balance sheet.

“Tungsten Network processes invoices for 70% of the FTSE 100 and 72% of the Fortune 500 and we are committed to helping these and other businesses do business better."

Nick Parker, chairman, added: The results demonstrate the impetus this executive team has brought, with revenue growth, expense control and cash preservation performing broadly in line with prior guidance.”

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Tungsten Corp PLC Timeline

February 18 2016
February 09 2016
September 02 2015

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