7th Sep 2020 12:49
(Alliance News) - Tungsten Corp PLC on Monday said its annual revenue edged higher but a goodwill impairment led to a widened loss.
Revenue in the financial year to April 30 inched up 2.2% to GBP36.8 million from GBP36.0 million but the digital financial management products provider's pretax loss ballooned to GBP25.9 million from GBP5.3 million.
Tungsten posted a non-cash goodwill impairment of GBP23.0 million. The charge was related to the OB10 acquisition in 2013, the company explained. Adjusted earnings before interest, tax, depreciation and amortisation multiplied to GBP2.7 million from GBP600,000, and adjusted Ebitda margin improved to 7% from 2%.
"Tungsten has undergone significant corporate and operational enhancements this year, delivering improved revenue growth and cash flow generation. Despite the challenges of Covid-19, the business has produced a solid financial performance which reflects the new team in place and the focus on improved sales execution, cost management and the high recurring revenue model," Chief Executive Officer Andrew Lemonofides said.
"Trading performance in the first quarter has been robust despite the impact of Covid-19, and we have secured further new customer wins and a strategic partnership agreement to expand our product offering. Although these are uncertain times, we continue to expect to deliver growth in financial 2021 as we benefit from improved sales performance."
Shares in the company were 1.9% lower at 37.10 pence each in London on Monday afternoon.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
TUNG.L