Tungsten swings to a profit as margins and revenues improve

Business transaction network Tungsten swung to an EBITDA profit in the third quarter of its trading year following a bump in revenues and an improved gross margin.

Tungsten saw revenues grow 13.9% to £9.3m in the three months ended 31 January, helping it turn in a positive EBITDA of £1m compared with an EBITDA loss of £1.8m it recorded a year earlier.

The AIM-listed outfit was also boosted by a gross margin of 96.2%, a 390 basis point improvement from the 92.3% seen in the third quarter of 2018, and a net cash inflow of £500,000 - a marked turnaround from the £4.2m of outflows seen twelve months prior.

In operational news, Tungsten saw average revenues per share increase to £1.97 from the £1.89 recorded in 2018.

Chairman Tony Bromovsky said: "Today's Q3 results demonstrate a business that is strong, growing and is now consistently generating a monthly EBITDA profit.

"As we finalise the operating review and implement its recommendations, we are confident of successfully closing FY19 and delivering a step-change in performance over FY20."

As of 1100 GMT, Tungsten shares had moved ahead 1.32% to 34.55p.