Tungsten witnesses 'strong momentum' in new sales

Electronic invoicing firm Tungsten Corporation said on Friday that trading had continued to recover following the initial impact of the Covid-19 pandemic on transaction volumes, with the group witnessing a "strong momentum" in new sales and "recovering" transaction volumes.

Tungsten saw new customer wins from "large international corporations" increase from six to eight in the twelve months ended 30 April, delivering a total contract value of £2.0m, with £700,000 expected to be recognised in the 2021 trading year, a total TCV growth of 137% year-on-year.

The AIM-listed firm also secured its largest ever customer win with Nippon Telegraph and Telephone and signed a "significant new partnership" with FIS Worldpay.

Revenue grew 1.4% year-on-year on a reported basis, while new sales billings increased 7% to £3.6m. Adjusted underlying earnings were expected to be in line with guidance.

Chief executive Andrew Lemonofides said: "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.

"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 FY22 delivery. The solid sales pipeline and an additional £1.0m of investment in tech development and compliance functions in FY22 will provide us with a strong platform for future growth."

As of 0955 BST, Tungsten shares were up 3.66% at 34.0p.