Walcom Group Ltd Further re Customer payment

 
TIDMWALG 
 
31 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") 
 
                          Update re: Customer payment 
 
Further to the Company's announcement on 19 July 2018 regarding the default on 
two payments owed to the Company of an aggregate RMB 4.26 million 
(approximately GBP483,000) by the Company's largest customer (the "Customer"), 
Walcom still has not received either payment. 
 
The Company has taken the necessary steps to begin legal proceedings to recover 
the contractual monies due. 
 
As previously announced, the Company's working capital position is 
significantly restrained but manageable in the near term. The Company has 
continued to maintain at least the minimum level of working capital required, 
however, this requires receipt of other ordinary course trade receivables on a 
timely basis. With the seasonal cyclicality the Group experiences, the Board is 
hopeful that trading in the coming months will improve the cash position. 
 
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 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 31, 2018 06:38 ET (10:38 GMT)