Walcom Group Ltd Customer payment

 
TIDMWALG 
 
10 July 2018 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
                           (EU) No. 596/2014 ("MAR") 
 
                             WALCOM GROUP LIMITED 
 
                          ("Walcom" or "the Company") 
 
                               Customer payment 
 
Further to the Company's announcement on 28 June 2018 regarding the default on 
a payment owed to the Company of RMB 2 million (approximately GBP230,000) by the 
Company's largest customer (the "Customer"), Walcom has not received the 
payment which was expected by today. The Customer has informed the Company that 
the payment is being arranged and will be available by the end of next week at 
the latest. 
 
A further RMB 4.66 million (approximately GBP530,000) is owed to the Company by 
the Customer, of which RMB 2.26 million (approximately GBP255,000) is now due for 
payment. This payment has also not been received in accordance with the agreed 
terms of service. The remaining RMB 2.4 million will fall due between now and 
mid-September 2018. 
 
As previously announced, the delay in receipt of the current payments, in 
conjunction with the challenging trading conditions seen in the first half of 
the financial year, has had a material adverse effect on the Company's cash 
resources. If either one or both of the payments owed are not received within 
the next week, the Company's working capital position will be significantly 
restrained. 
 
If the full amount outstanding from the Customer is not received, the Company 
might, in the absence of obtaining alternative funds, be in a position where it 
is unable to settle its liabilities as and when they fall due. The Company is 
considering alternative financing arrangements, should any be considered 
necessary. 
 
The Company continues to reserve all rights against the Customer and is 
considering the possibility of having to take formal proceedings to recover the 
payment if it is not received next week. 
 
The Company is closely monitoring its cash position and will make a further 
announcement as necessary. 
 
Further enquiries: 
 
Walcom Group Limited                         [phone] 
Francis Chi (Chief Executive Officer) 
Albert Wong (Chief Financial Officer) 
 
Allenby Capital Limited                      [phone] 
Virginia Bull 
 
 
 
END 
 

(END) Dow Jones Newswires

July 10, 2018 08:00 ET (12:00 GMT)