Tungsten Share Discussion Threads

[blusteradjuster] 25/2/2019 11:51

Excuse the “newbie” question but is seasonality a factor in TUNG’s revenues?

If not, and given those gross margins, the profitability and cash-position should improve rapidly from here - assuming continued revenue growth?

[bs76] 25/2/2019 11:41

First time ever company has reported that it hasn't burnt cash :)

"A net cash inflow of GBP0.5 million over Q3-FY19 represents the first quarterly inflow that Tungsten has ever achieved (excluding where cash grew from the sale of Tungsten Bank). This significant improvement reflects the underlying EBITDA of GBP0.4 million, GBP0.2 million of other operating cash inflows and a working capital inflow of GBP0.5 million, offset by capital expenditure of GBP0.6 million."


EBITDA 0.4m Plus other operating cash inflows 0.2m => 0.6m
Capex => 0.6m

[chemistdude] 25/2/2019 11:32

Yeah, if they do sell a stake it better be for multiples of £10million

[dollarzpounds] 25/2/2019 10:50

What's that about possibly selling off a majority stake in the financing arm? Surely that's the only area where exponential growth ( profit ) will come from ??! Confused.

[manics] 25/2/2019 10:25

I apparently read too much between the lines within Hurwitz rhetoric, or I was just too paranoid regards a cash call.

[chemistdude] 25/2/2019 07:44

Looks good!

[bs76] 25/2/2019 07:41

Yes. First time cash went up and back to double digit growth. Guidance is not bad as well. Cash as of FY19 to be 2m. So no cash raise and not going to 0. :)

[davemac3] 25/2/2019 07:10

Decent update

[dollarzpounds] 24/2/2019 13:48

Anyone expecting much tomorrow ?

[geraldus] 22/2/2019 21:48

What became of Mrs Cupcake?

[dollarzpounds] 22/2/2019 16:28

Yes. As with all plans Tungsten announce it was a waste of words ! I hope whoever comes in gets rid of the dead wood because there is PLENTY !!

[manics] 22/2/2019 11:23

Prabhat Vira -anyone remember the "100 Day Plan" on his appointment?!

[dollarzpounds] 22/2/2019 11:08

Some great posts from ejcj and bs76 and many others , many thanks. If only the Tungsten management had been as switched on as half the posters on here we would be rolling in money.PI takeover anyone ??? ; )

[bs76] 22/2/2019 10:47

I suppose Hurwitz was brought in to stabilize and expand the company. IMO he did well in the first by increasing revenue's from 22m to 36m and could have done better on the cost reduction(45m to 36-37m). He was able to increase revenue from existing customers by standardizing contracts and streamlining support of those contracts but couldn't expand the business.

Either way IMO he has done better than OB10 management and Ed Truell.

IMO The reason for his oust is -
1) failure to get any traction with Finance (I would blame Prabhat Vira as well)
2) no traction with other adjacent services (FX, Analytics)
3) Not able to expand in other geographies (India). Tradeshift has done better globally in the same time
3) and the main reason- his salary was way above his performance


Future as Odey company (or Odey and his mates):)
I suppose they should fire whole of Tung finance team to bring down £2m of cost. I don't think they are adding any value.
Bring in Employees share scheme and reduce cash salaries. That will make this network company cashflow positive.

Share was priced for another cash raise. If they can avoid that then the price would re-rate.

Not sure about Odey's plan for Tung.

First option is to sell(Highly likely). Buyer will be an another company or private equity. I don't think it will be hard to sell positive cashflow network (if we take head office/listing cost out)

Second is take it private and improve the business and then sell to recover his money.

Third let it run as public company and try to expand.

As PI we can only wait and watch :(

[dollarzpounds] 20/2/2019 13:58

A profound and accurate summation I would suggest Sir/Madame.

[dollarzpounds] 20/2/2019 13:51

I can only wonder if Mr Jones did not like my reply to his message implying Hurwitz was brought in specifically to 'expand markets' ? And he said he was 'happy to be corrected' well I meant no malice and cannot see why he would react like this if indeed it is my reply that is to 'blame' but I have lost over £15k on this company and a large reason I invested was because of the reputation and ideas of Edi Truell he came in with many pronouncements, I remember his many early interviews where he virtually scoffed at the OB10 managements history of not making a profit and telling us all what a great prospect this was. I REMEMBER the "trillions, billions and millions" that were mentioned I remember him saying we MUST have a bank I'm sorry if people don't like the facts but I think I have earned my right to a moan and to point out what I think is incorrect in my opinion but it was Edi Truell and his management who made this mess in the first place and Hurwitz was the one left to pick up the pieces? He has done so and his time is over so let's move forward and hope something decent can be salvaged for everyone's sake.

[andrewdbl] 20/2/2019 12:39

"Some could argue Rick was the calming influence needed. I'd argue he was asleep at the wheel."

I would argue that he did very well with the hand he had been dealt.

However it is apparent that ET etc were looking for someone with the capacity to pick up a live chicken, bite its head off and throw the twitching corpse on the table.

At that point you are not playing cards anymore, you are talking about the chicken (and the nutter who bit its head off)

imo that approach may help in the short term, but rarely longterm.

[pkarnezis] 20/2/2019 11:51

Erogenous! Mr Jones! What happened? Sold out of TUNG? And why delete all your comments from the dawn of civilisation hitherto? Were you offered the CEO post?

[manics] 20/2/2019 11:50

EJ: why? What's the matter?

[ejcj] 20/2/2019 10:45

The business sparked interest because of the synergy between invoicing, financing and analytics. OB10, whilst loss making, was a slow growth business with blue chip clients. It had a ageing tech and a heavy reliance on staff but with investment this would be a profit making business in its own right. Employing powerful analytics, with the ability to finance the invoices and run by an experienced team mean this was a slam dunk.
However, Edi was chaotic and wasted vast sums of money. The bank was an unnecessary financial drain. The analytics partnership never worked, meaning the solution had to be built. He never invested in the OB10 area beyond buying a small, Workflow solution. He oversaw a huge turnover of staff including experienced OB10 staff and some of his own hires.
When his time was up, it was well rumoured to be his idea to place his man, Rick, in as CEO. Remember, Edi hired Rick as Head of Sales in the US before he became CEO. I imagine Rick found a note in his draw very similar to the one Liam Byrne left for the conservatives.
Some could argue Rick was the calming influence needed. I'd argue he was asleep at the wheel.
Either way, the reality is the cash pile is small, the financing is pitiful, the analytics non-existence and the invoicing steady yet still heavily reliant on key contracts and in need of investment.
I think the board need to find some shiny wrapping paper for Tungsten. Maybe even add a few bells, whistles and free Tungsten socks.

[dollarzpounds] 20/2/2019 09:44

As I remember it Hurwitz was brought in because it was in a mess of Truells making? How quickly people forget the ' we need a bank ' fiasco ? Let's not re write history here - Truell had his chance chance and he blew it. I bought in at 200p when he was running the show by the time he handed over the reins the share price was a fraction of that. Let's deal in facts not opinions.

[edwardt] 19/2/2019 16:04

she is probably his replacement

[dollarzpounds] 19/2/2019 14:09

I do wonder if the Machlachlan appointment was potentially 'the straw' that led to Mr Hurwitz departure? Not that it matters now?Its been good to see the sharp rises in the share price of the last few days but I do not lose sight of the fact that even after all this the share price remains at a DIRE 32p A lot of damage has been done over the last few years and while it is good to see the back of Hurwitz we should also remember it was Edi Truell & co who staked a large part of their reputations on turning the loss making OB10 business that is the basis of Tungsten into a very profitable concern. If indeed he now has more of a say in things again it is his duty to deliver on those promises, the only reason we needed Hurwitz in the first place are due to the failures of the previous management.We are in 'NO MORE EXCUSES' territory. If the people in charge of Tungsten from here can't make a decent profit then you have to think that nobody can and it was / is a flawed business model in the first place. Edi, Odey and the new CEO it's over to you........