Tungsten Corporation PLC AGM Statement & Trading Update (0027K)

TIDMTUNG

RNS Number : 0027K

Tungsten Corporation PLC

16 September 2016

TUNGSTEN CORPORATION PLC

("Tungsten" or the "Company")

For Immediate Release

This announcement contains inside information for the purposes of Article 7 of regulation (EU) No 596/2014

16 September 2016

AGM Statement / Trading Update

At today's Annual General Meeting of Tungsten Corporation plc (LSE: TUNG), Richard Hurwitz, Chief Executive Officer, will make the following statement:

"Tungsten has made a positive start to its new financial year ending 30 April 2017 (FY17), building on the momentum demonstrated through FY16, its leadership transitions and the realignment of its strategic goals. Trading in the first quarter of FY17 was in line with the Board's expectations.

"In particular, we signed contracts with three new buyer customers and continued to renew contracts of existing buyers on Tungsten Network at higher rates, more fully reflecting the value that Tungsten provides. Suppliers were added to Tungsten Network at an encouraging pace, including adding double the number of Integrated Solution suppliers compared with the same period in the prior year. This reflects strengthened relationships with buyers which want to connect to more of their supply chain, and improved internal processes to sign up these suppliers.

"We are making measurable progress in improving organisational efficiency. These initiatives should start to produce the desired cost savings over the course of FY17.

"The sale of Tungsten Bank is advancing as expected and we continue to expect the sale to complete by 31 October 2016. The restart of our supply chain financing activities is progressing as planned, with two important elements concluded. First, we extended our funding arrangement with Insight Investment, including revisions that allow us to better address the market. Second, we have hired the small number of individuals with the skills and experience that we need, completing the team required to deliver on our financing objectives.

"We have recently launched a partnership offering international payment services to a selection of our supplier customers. While FY17 revenues from this are anticipated to be modest, this represents the first in a programme of product adjacencies and enhancements that will strengthen our relationships with our customers and provide additional revenue opportunities.

"We are confident in our ability to achieve the performance objectives we have set for ourselves for the current financial year, principally revenue of at least GBP30 million, an EBITDA loss of between GBP12 million and GBP14 million, and cash in excess of GBP20 million at 30 April 2017. We continue to expect Early Payment financing levels to double, with material increases in this revenue from FY18."

Tungsten will announce its Interim Results for the six months ended 31 October 2016 on 15 December 2016.

Enquiries

 
 Tungsten Corporation plc 
  Richard Hurwitz, Chief Executive 
  Officer 
  David Williams, Chief Financial               [phone] 
  Officer                                       7713 
 
 Panmure Gordon (Nominated 
  Advisor)                                    [phone] 
  Fred Walsh/Peter Steel                       2500 
 Canaccord Genuity Limited 
  (Broker) 
  Simon Bridges/Cameron Duncan/Emma           [phone] 
  Gabriel                                      8000 
 Neustria Partners 
  Robert Bailhache/Nick Henderson/Charles     [phone] 
  Gorman                                       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, Aviva, 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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September 16, 2016 02:00 ET (06:00 GMT)