Walcom Group Ltd Receipt of initial customer payment

 
TIDMWALG 
 
3 September 2018 
 
                             WALCOM GROUP LIMITED 
 
                          ("Walcom" or "the Company") 
 
                      Receipt of initial customer payment 
 
Further to the Company's announcements regarding the default on payments by the 
Company's largest customer (the "Customer"), Walcom is pleased to announce it 
has now received RMB 300,000 (approximately GBP34,120) from the Customer. 
 
A further RMB 5.56 million (approximately GBP632,366) is owed and due for payment 
by the Customer. An additional RMB 0.8 million (approximately GBP91,988) will 
fall due between now and mid-September 2018. 
 
The Company has begun legal proceedings to recover the contractual monies due 
but is negotiating with the Customer for settlement of the outstanding amounts 
and hopes to reach agreement outside court. 
 
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

September 03, 2018 06:45 ET (10:45 GMT)