TIDMTUNG
RNS Number : 8797M
Tungsten Corporation PLC
19 September 2019
19 September 2019
TUNGSTEN CORPORATION PLC
("Tungsten" or the "Company")
Q1-FY20 UPDATE - FULL YEAR OUTLOOK REITERATED
GBPm (1) Group results Group results
(including TNF) (excluding TNF)
(2)
Unaudited Q1-FY20 Q1-FY19 Q1-FY20 Q1-FY19
--------------------------- --------- -------- --------- --------
Revenue 9.0 8.6 8.8 8.4
Adjusted EBITDA (3) 0.6 (0.5) 1.0 (0.1)
Adjusted EBITDA margin
(4) 7% (6%) 11% (1%)
Operating profit / (loss) 1.8 (0.5) 2.3 (0.1)
Cash - net 2.2 3.9 2.2 3.9
Transaction volumes
(6) 4.7 4.5 4.7 4.5
--------------------------- --------- -------- --------- --------
Financial Highlights (7)
-- Revenue grew 5% in comparison to Q1-FY19 on an actual basis
and 2% on a constant currency basis, due to FY19 new customers and
expanded product sales in Q1-FY20
-- New sales billings (8) increased to GBP0.9 million (Q1-FY19:
GBP0.7 million), in line with expectations
-- Adjusted EBITDA increased to GBP1.0 million from a GBP(0.1)
million adjusted EBITDA loss in Q1-FY19, reflecting revenue growth,
ongoing cost containment and collection of receivables written off
in prior periods of GBP0.2 million
-- Net cash reduced to GBP2.2 million following settlement of
bonus provisions, offset by cash from operations (30 April 2019:
GBP2.8 million). GBP6.2 million total available liquidity (5) (31
July 2019: GBP7.9 million), inclusive of the GBP4 million revolving
credit facility
-- No change to expected full-year FY20 outlook
Operational Highlights
-- Our sales pipeline continues to grow, both by number and value of opportunities
-- Two Total AP customers converted in August 2019 and one sale
of our AP Analytics product, in line with expectations
-- The divestment of Tungsten Network Finance is progressing
well, with interest in a future partnership expected to conclude in
the second quarter of FY20
-- Transaction volume increased by 6%, or 0.2 million
transactions, in Q1-FY20, with the LTM (9) total transaction
volumes of 18.5 million at 31 July 2019
(1) Tungsten's year-end is 30 April
(2) Tungsten announced its intention to divest Tungsten Network
Finance ("TNF") on 30 April 2019. Results presented excluding TNF
to aid future comparability. Group results including and excluding
TNF are presented exclusive of management fees charged by the Group
to TNF
(3) Adjusted EBITDA is calculated as earnings before net finance
cost, tax, depreciation and amortisation, loss on disposal of
assets, foreign exchange gain or loss, share based payment expense
and exceptional items, and is adjusted to include cash rental
expenses and rental income. Management utilises adjusted EBITDA to
monitor performance as it illustrates the underlying performance of
the business by excluding items management consider to be not
reflective of the underlying trading operations of the Group or
adding items which are reflective of the overall trading
operations, as applicable
(4) Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue
(5) Total aviailable liquidity is calculated as net cash plus availability under the HSBC RCF
(6) Transaction volumes are measured as the total number of
invoices and purchase orders delivered between a Supplier and
Buyer
(7) Excluding TNF
(8) New sales billings represents implementation, subscription,
licence, transaction and professional services fees to be billed in
the period from new sales made in that period. Implementation and
subscription fees are recognised to revenue over the 6 months and
12 months respectively from billing month. Subscription licence and
transaction fees are recognised in the month sold. Professional
services fees are recognised on work completion milestones
(9) LTM is defined as the last twelve months to the reporting date
Enquiries
Tungsten Corporation plc
Tony Bromovsky, Executive Chairman
Andrew Lemonofides, Chief Executive
Officer
David Williams, Chief Financial Officer +44 20 7280 7713
Panmure Gordon UK Limited (Nominated
Advisor)
Dominic Morley +44 20 7886 2500
Canaccord Genuity Limited (Broker)
Simon Bridges +44 20 7523 8000
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
About Tungsten Corporation plc
Tungsten Corporation (LSE: TUNG) aims to be the leading global
electronic invoicing and purchase order transactions network.
Digital invoicing processes enable large businesses to reduce
costs and effectively manage their businesses. They can improve
business agility by creating scalable and repeatable growth
processes, managing their cash effectively and making better
decisions based on a comprehensive analysis of their data.
Tungsten Network processes invoices for 74 percent of the FTSE
100 and 71 percent of the Fortune 500. It enables suppliers to
submit tax compliant e-invoices in 50 countries, and last year
processed transactions worth over GBP173bn for organisations such
as Caesars Entertainment, Computacenter, GlaxoSmithKline, Kraft
Foods, Mohawk Industries, Mondelēz International, Procter &
Gamble, Shaw Industries, Unilever and the US Federal
Government.
Forward looking statements
This document contains forward-looking statements that may or
may not prove accurate. For example, statements regarding expected
revenue growth and trading margins, market trends and our product
pipeline are forward-looking statements. Phrases such as "aim",
"plan", "intend", "anticipate", "well-placed", "believe",
"estimate", "expect", "target", "consider" and similar expressions
are generally intended to identify forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause actual
results to differ materially from what is expressed or implied by
the statements. Any forward-looking statement is based on
information available to Tungsten as of the date of this statement.
All written or oral forward-looking statements attributable to
Tungsten are qualified by this caution. Tungsten does not undertake
any obligation to update or revise any forward-looking statement to
reflect any change in circumstances or in Tungsten's
expectations
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END
TSTUWAKRKVAKAAR
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September 19, 2019 02:01 ET (06:01 GMT)
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