12th Dec 2019 12:33
(Alliance News) - Tungsten Corp PLC said Thursday its revenue was "slightly below" expectations in the first half of its financial year, and it expects the same for the year as a whole, while its interim loss widened dramatically.
Tungsten shares were trading flat in London on Thursday at 41.00 pence.
For the six months ended October 31, the analytics and financing company said its pretax loss more than doubled to GBP2.4 million from GBP1.0 million in a comparative period a year ago, with "key component of the increase being the reduction in foreign exchange gains."
Revenue grew 4% to GBP18.2 million from GBP17.6 million a year ago, "slightly below" management expectations due to timings and conversion of new sales, the company said.
The company reported new sales billings of GBP1.7 million, in line with management expectations. The sales pipeline has grown since April with over 200 opportunities for potential new sales billings, Tungsten noted.
Tungsten also announced it has entered into a new partnership agreement with Orbian Corp, a provider of supply chain finance for companies. This replaces the Tungsten Network Finance business, which the company decided to sell in April.
Under the partnership agreement, Tungsten and Orbian will work together on an exclusive basis to offer supply chain finance and other trade finance solutions to Tungsten customers and other agreed targets.
The deal is for an initial term of five years, with a revenue share payable to Tungsten in respect of trade finance advanced by the partnership.
The partnership with Orbian represents the conclusion of the review of the Tungsten Network Finance business, the company said.
Looking ahead, Tungsten said the slower conversion of sales in the first half of the year is expected to result in full-year revenue "slightly below" expectations. It said it expects to achieve low double-digit adjusted margin at the earnings before interest, tax, depreciation and amortisation level in the second half of the year.
Andrew Lemonofides, chief executive officer, said: "Whilst first half of financial year 2020 revenues were slightly below our expectations due to timing of conversion of the sales pipeline, which is expected to reduce our full year revenues, I am confident of an improved sales performance given then changes to the sales team and an stronger sales pipeline."
By Loreta Juodagalvyte; [email protected]
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