Tungsten set to complete Bank sale

Tungsten corporation, an AIM listed global e-invoicing, purchase order services, analytics and financing company, saw revenue rise by 20% to £15.5m for the six months ended 31 October 2016 but earnings before interest tax depreciation and amortisation (EBITDA) decreased by £1.9m to £6.3m.

The group also reiterated it was on track to complete the sale of its Bank division by 21 December 2016 for around £30m.

Statutory loss after tax was £4.5m, a £15.5m improvement over the previous period.

Since the period end, £3.95m in cash was received in part payment for the sale.

Net cash and cash equivalents fell to £2.6m as at 31 October 2016 from £9.3m at 30 April 2016.

In terms of contracts, 17 existing Tungsten Network (TN) Buyers renewed their contracts, with a weighted average price lift of 40%, and four new buyers signed for a contract adding up to a value of £1.1m.

The TN also welcomed 10,000 new Suppliers, bringing the total to 213,000 at 31 October 2016. Tungsten Network invoice volumes increased by 6.3% to 8.4m.

The group has also launched its first adjacent product, a currency conversion partnership with Payoneer.

Looking ahead, the group feels it is on track to deliver a revenue of at least £30m and an EBITDA loss of less than £13m for the full-year 2017 and net cash in excess of £20m at 30 April 2017.

The board remain committed to achieving monthly EBITDA breakeven during 2017, dependent on the phasing of new customer and product sales.

The company also anticipates early payment financing levels to double by the end of the full-year 2017, with material increases in this revenue from 2018, including enhanced revenue share from revised agreement with external funding partner.

Chief executive Richard Hurwitz said: "Completing the sale of Tungsten Bank is an important component in the reshaping of our business. With a stronger customer proposition, improved funding structure and the right leaders, our expectations for developing a successful invoice financing business are high."

The share price rose 4.9%n to 53.50p at 1103 GMT on Wednesday.