4th Jun 2021 13:54
(Alliance News) - Tungsten Corp PLC on Friday said it expects a fall in annual revenue in spite of strong momentum in new sales and recovering transaction volumes towards the end of its financial year.
In a trading update, Tungsten, a provider of digital financial management software, said it expects revenue for the financial year that ended April 30 to fall marginally to GBP36.0 million from GBP36.8 million the year before.
However, earnings before interest, tax, depreciation and amortisation is expected to in line with guidance, following a successful restructure in the first half. Ebitda for Tungsten's 2020 financial year was GBP800,000.
"We have delivered a robust performance in response to a challenging business environment, centred on our strategic investment in our sales team and the building out of our partnership network," commented Chief Executive Andrew Lemonofides.
"Our current sales conversion rate and increasing year-on-year transaction volumes across the business, particularly in Europe and North America, gives us cautious optimism for financial year 2022 delivery."
Looking ahead, Tungsten highlighted a "solid sales pipeline" and an additional GBP1.0 million of investment in technology development, providing it with a "strong platform for future growth". The group called attention to 93% of revenue for the year being repeatable and recurring, providing a clear picture of stable future sales.
Shares in Tungsten were down 7.6% at 33.48 pence in London in afternoon trading.
By Will Paige; [email protected]
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