22nd Jul 2019 11:15
(Alliance News) - Tungsten Corporation PLC said on Monday that it narrowed its pretax losses during its recently ended financial following a slight revenue rise and a cutting of costs.
In its financial year ended April 30, the e-voicing and purchase order services platform recorded a total group revenue of GBP36.0 million up 7% year-on-year from GBP33.7 million.
Excluding its network finance division which the company announced in April that it would sell, Tungsten's annual revenue rose 6% to GBP35.4 million compared with GBP33.3 million in financial 2018.
The group as a whole posted a pretax loss of GBP5.3 million down from GBP12.7 million the year before. Although excluding the network finance division, the group generated a pretax loss of GBP2.7 million narrowed from GBP10.9 million.
The company however generated its maiden profit, of GBP2.5 million, in earnings before interest, taxes, depreciation and amortisation. Last year it made an Ebitda loss of GBP3.3 million.
Tungsten's statutory operating expenses fell 9% year-on-year to GBP41.4 million from GBP45.7 million.
The company made a GBP1.8 million gain on foreign exchange after making a GBP1.4 million loss in financial 2018.
Its new sales billings, which refers to subscription, license, transaction and service costs from new sales, reached GBP4.0 million and the company expects this figure to increase by 100% in financial 2020.
Tungsten says the increase in new sales billings will help its revenue, excluding the network finance division, to grow next year.
The company said its new sales billings increase is weighted towards the second half of financial 2020 with revenue being spread over both the 2020 and 2021 financials.
Chair Tony Bromovsky said: "Since becoming Chairman in October 2018, and Executive Chairman in February 2019, the company has undergone a period of fundamental change and transformation, with the sole purpose of generating sales leads, operational efficiency and future scalability. These changes are already generating positive momentum, with an Ebitda profit in financial 2019, which is a dramatic turnaround from the losses of prior years.
"We launched our operating review in the second half of financial 2019 and following this, we have a clearer understanding of the market we serve, what we bring to it and also how to be the best at what we do. With a redefined strategic vision, new management team including a new chief executive, a major overhaul of our operations and the creation of a re-energised sales and customer service team, the coming year will be about demonstrating the continuation of this momentum.
Shares in the company fell 1.5% at 48.28 pence each in London on Monday morning.
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