13th Dec 2021 12:15
Tungsten Corp - London-based electronic invoicing and purchase order platform - Agrees to pay USD1.5 million, plus USD513,00 in legal fees, to settle an employment claim in the US. Denies the allegations made in the claim but thinks settlement is in the best interests of the company and shareholders. Tungsten had GBP1.9 million in net cash as of October 31 and will fund the settlement out of existing cash resources.
Tungsten also on Monday reports interim results, against which it books a GBP1.3 million provision for the settlement. For the six months that ended October 31, Tungsten reports pretax profit of GBP600,000, swung from a GBP30.5 million loss a year before. Revenue stays flat at GBP18.3 million from GBP18.0 million, but a large impairment charge a year before isn't repeated. Adjusted earnings before interest, tax, depreciation and amortisation rises to GBP3.0 million from GBP800,000. Looking ahead, says customer wins in the first half were below its expectations, due to "prolonged customer decisions and changes in the sales team", but Tungsten expects to win more new customers in the second half.
Current stock price: 28.51 pence, down 13% on Monday
Year-to-date change: down 4.5%
By Tom Waite; [email protected]
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