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Tungsten losses deepen, expects flat full-year revenue performance
StockMarketWire.com
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Invoicing services group Tungsten swung to a deeper first-half loss after it wrote down the value of a previous acquisition and its revenue edged lower.
Pre-tax losses for the six months through October amounted to £30.5 million, compared to losses of £2.4 million year-on-year.
Revenue slipped 1.1% to £18.0 million, down from £18.2 million.
Tungsten said the losses included a non-cash goodwill impairment of £26.2 million relating to the carrying value of the OB10 acquisition in 2013.
It also reflected increased FX costs of £1.1 million and an increase in exceptional costs of £1.3 million, primarily due to restructuring activities to deliver £4 million cost savings.
Tungsten said it had secured four new customers in the first half.
'However, the company is witnessing longer sales conversion cycle which is conservatively expected to continue for the remainder of the current financial year,' it added.
As a consequence, coupled with a decline in transaction volumes, it now expected revenues to be flat year-on-year.
'Tungsten has faced a challenging and unpredictable market in 2020 due in part as a result of Covid-19,' chief executive Andrew Lemonofides said.
'In spite of this, we have continued to grow the pipeline and win new customer relationships and we expect to deliver broadly similar revenues to the 2020 financial year.'
'We continue to invest in our sales and product capabilities, whilst maintaining financial rigour in relation to our cost base, in order that we continue to improve efficiency and are well placed to convert the sales pipeline.'
At 9:22am: (LON:TUNG) Tungsten Corporation share price was 0p at 31.35p
Story provided by StockMarketWire.com
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