Tungsten Corporation drops as revenue growth falls short

A statement from the electronic invoicing firm described its 3% growth in year-on-year revenue to £17.6m for the six months ended 31 October as “disappointing”, but expressed confidence that renewed growth would be achieved in the second half of the year.

However, the AIM traded company’s loss before tax was cut from £9.1m to £1.1m as operating expenses were reduced by 28% to £18.8m following cost savings and proposed changes to the group's remuneration structures.

Tony Bromovsky, non-executive chairman of Tungsten, said: "The revenue growth for H1-FY19 reported today underscores the need for refreshed focus in a business that has unquestionable potential. We have begun a root and branch operating review to deliver increased revenue and profit growth rates, and make the organisational modifications required to support these."

Full year revenue expectations now stand at between £36m to £36.5m, representing full year constant currency growth of 7% to 10% and growth of between 5% and 8% in the second half of the year compared to the first.

Cash and cash equivalents at the end of the period stood at £2m, down from £8m at the same point last year.

Richard Hurwitz, chief executive of Tungsten, said: "Under new leadership, our sales teams are better focused on developing relationships with new and current customers. These factors give us confidence that the revenue growth rate in the second-half of the financial year will surpass the first half and establish momentum for higher growth and EBITDA in the future."

Tungsten Corp’s shares were down 6.25% at 30.00p at 1129 GMT.