22nd Jul 2015 07:37
LONDON (Alliance News) - Tungsten Corp PLC Wednesday reported a wider loss in its last financial year, as revenue growth was outweighed by higher operating expenses.
The electronic invoicing, analytics and financing company said it made a GBP27.3 million pretax loss in the year ended April 30, compared with GBP11.1 million in the prior year.
Revenue increased to GBP23.1 million in Tungsten's last financial year. That compared with GBP10.8 million in the prior year, or GBP19.5 million when including Tungsten Network's results for that year and before it was acquired by the company. Operating expenses increased to GBP50.2 million from GBP21.7 million.
"We have been through a period of significant investment in our products and markets, incurring a number of one-off costs, such as professional services fees for Tungsten Bank and the invoice financing business. The majority of these have now been incurred and paid for. Further investment will be made to support growth, particularly in sales and marketing," Chief Executive Rick Hurwitz said in a statement,
Chairman Arnold Hoevenaars said the newer parts of Tungsten's business, Analytics and Early Payment, took longer to take off than the company had hoped. He thinks the businesses will grow, citing the positive way customers responded to their services.
Hoevenaars said the Network, which generates the bulk of Tungsten's revenue, had experienced strong growth.
He said that new buyers and suppliers joined the Network throughout the year, and that more support was given to governments and public sector agencies to help them automate processes and meet tax compliance objectives.
Tungsten shares were down 19% at 71.25 pence on Wednesday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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