Tungsten Corporation hails ‘resilient performance’ in response to COVID-19
said it has delivered “a resilient performance” in response to the COVID-19 global pandemic for the 12-month period to 30 April 2020, sustaining a 5% transaction volume increase over the period.
Group revenue grew 2% to £36.8 million; excluding Tungsten Network Finance1 (TNF), with Adjusted EBITDA for FY20 expected to be broadly in line with market guidance.
93% of revenue was repeatable and recurring, up from 92% in FY19, while new sales billings of £4.0m were flat to prior year, the group said, although the second half run rate accelerated by 35% following its investments to strengthen its sales capabilities.
The digital financial management provider said its focus on sales execution has driven good billing momentum in the second half of the year while the company has also achieved a positive cash generation over the period, positioning the business well for future growth.
A strong working capital management has driven a positive full year cash generation of £0.4m while adjusted EBITDA is expected to be broadly in line with market guidance.
Net cash, including the drawings under the HSBC Revolving Credit Facility, as at 30 April 2020 was £3.2m, compared to £1.0m reported at the half year.
Shares in Tungsten Corporation have been volatile over that three months, seeing lows of 32p during June 2020. Shares opened up 8% higher to 42p following today’s trading update.
The group said it has broadened its range of partnerships over the last 4 months, including signing its largest ever single partnership agreement with a leading US bank earlier this month which the group believes could significantly expand its active AP buyer portfolio.
In June, the company’s run rate recovered closer to the pre-COVID-19 volumes. The company’s expectation now is that invoice volumes will recover to normalised run rates by the end of the first half of the year assuming that this trend continues.
In addition, Tungsten said it remains comfortable with external forecasts for FY21 on the basis that transaction run rates recover in line with its expectations.
"In this year of transformation for Tungsten, we have delivered a resilient performance in response to a challenging business environment,” said CEO, Andrew Lemonofides.
He added, “Trading in the beginning of the new financial year has been positive despite transaction run rates being impacted by COVID-19. We remain confident in the structural, long-term, growth opportunity in the e-invoicing market and in Tungsten's leading position within it.”
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