Tungsten Corporation PLC Pre-close FY17 Trading Update (0366G)

TIDMTUNG

RNS Number : 0366G

Tungsten Corporation PLC

24 May 2017

TUNGSTEN CORPORATION PLC

("Tungsten" or the "Company")

For Immediate Release

24 May 2017

Pre-Close Trading Update

Tungsten Corporation plc (LSE:TUNG), the global e-invoicing, purchase order services, analytics and financing company, today announces the following trading update for the financial year ended 30 April 2017 (FY'17).

Unaudited preliminary results

Revenue for the period is expected to be in excess of GBP31 million, representing growth of 20% on the prior year and above our previous guidance of at least GBP30m for FY'17. The increase in revenue reflects improved sales momentum, customer contract harmonisation and the impact of currency exchange rate movements. On a constant currency basis, revenue is expected to be 12% greater than the prior year.

Tungsten's EBITDA loss for FY'17 is anticipated to be below GBP12 million, at least GBP1 million better than prior guidance and demonstrates continued discipline in our cost containment and automation measures, even as exchange rate movements negatively impacted reported costs. The net impact of exchange rate movements on reported EBITDA is expected to be minimal.

Unaudited cash, including self-funded Tungsten Network Early Payment invoices, was GBP21.8 million at 30 April 2017. This was GBP1.8 million higher than guidance and included cash received from the sale of Tungsten Bank in December 2016. Outstanding Early Payment invoices totalled GBP4.2 million and were financed by the Group on a transitional basis prior to the implementation of additional funding arrangements with our partners. Subsequent to the year-end, GBP1.2 million of these Early Payment invoices have been repaid and all are scheduled to be repaid by 31 July 2017.

Tungsten's operational and financial progress in FY'17 means it is on track to achieve its goal of EBITDA breakeven on a run rate basis in calendar 2017. Management will provide further detail on Tungsten's initiatives that underpin its improved position when the Group announces FY'17 results on 24 July 2017.

Rick Hurwitz, Chief Executive Officer, commented:

"Tungsten made remarkable headway in fiscal '17, reflecting great work by people across the business. FY'17 was a year of disciplined reengineering across many functions. We have strengthened our relationships with existing customers and welcomed many new members to the Tungsten Network. We have also introduced innovative products and scalable new technologies. Having successfully divested Tungsten Bank, we refocused Tungsten Network Finance and finished the year with a strong balance sheet.

"We continue to progress Tungsten's transformation, while demonstrating that the steps we are taking are yielding beneficial results. Of specific note, we attracted highly talented people to the business, added 10 new Buyers, connected 48,000 new Suppliers, processed 17.1 million invoices, and ended with GBP17.6 million of Tungsten Network Early Payment outstanding invoices. We've started the new financial year with encouraging momentum and a clarity of purpose that augur brightly for Tungsten's outlook."

Final results

Tungsten will announce its final results for the year ended 30 April 2017 on Monday 24 July 2017 when management will host a conference call for investors and analysts at 9:00am UK time.

To access the live webcast please click here. For participants unable to join the webcast, the dial-in number for the conference call is [phone] / [phone] with the passcode 4556574# and a presentation will be available on the Tungsten website at http://www.tungsten-network.com/uk/about/investor-relations/downloads-reports/.

A replay facility will be available until 7 August 2017. The dial-in number for the replay facility is [phone] / [phone] with the above passcode.

Enquiries

 
 Tungsten Corporation plc 
  Richard Hurwitz, Chief Executive 
  Officer 
  David Williams, Chief Financial               [phone] 
  Officer                                       7713 
 Panmure Gordon (Nominated 
  Advisor)                                    [phone] 
  Dominic Morley/Peter Steel                   2500 
 Canaccord Genuity Limited 
  (Broker) 
  Simon Bridges/Andrew Buchanan/Emma          [phone] 
  Gabriel                                      8000 
 Neustria Partners 
  Robert Bailhache/Nick Henderson/Charles     [phone] 
  Gorman [email]                               2580 
 

About Tungsten Corporation plc

Tungsten Corporation (LSE: TUNG) aims to be the world's most trusted business transaction network by using data intelligently to strengthen the global supply chain.

Tungsten Network is a secure e-invoicing and purchase order services platform that brings businesses and their Suppliers closer together with unique technology that revolutionises invoice processing, maximises efficiency and improves cash flow management. Delivering trusted connections and streamlined transactions, the network also provides users with real-time spend analysis and offers Suppliers access to invoice financing through Tungsten Network Finance, a form of alternative finance for businesses.

Tungsten Network processes invoices for 70% of the FTSE 100 and 72% of the Fortune 500. It enables Suppliers to submit tax compliant e-invoices in 47 countries, and last year processed transactions worth over GBP133bn for organisations such as Alliance Data, Cargill, Deutsche Lufthansa, General Motors, GlaxoSmithKline, Henkel, IBM, Kellogg's and the US Federal Government.

Trusted, passionate and proven, Tungsten is making the digitisation of global commerce between Buyers and Suppliers faster, easier and smarter.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 24, 2017 02:01 ET (06:01 GMT)