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Wednesday, November 25, 2020

Tungsten’s annual loss climbs to £25.9 million due to COVID-19.

  • Tungsten’s annual loss climbs to £25.9 million due to COVID-19.
  • The British invoicing software group’s revenue comes in 2% higher.
  • Tungsten’s EBITDA also printed higher at £2.7 million.

Tungsten Corp plc (LON: TUNG) said on Monday that it concluded the fiscal year with a broader loss attributed to £23 million of non-cash goodwill impairment on OB10 acquisition that was completed in 2013. In the financial year that ended in April, Tungsten reported £25.9 million of pre-tax loss as compared to a significantly lower £5.3 million of loss in the previous year.

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Tungsten Corp plc opened about 4% down on Monday. In the next hour, however, the stock jumped back 3.5%. Shares of the company are now exchanging hands at 37.10 pence per share versus an 8% higher 40 pence per share at the start of the year. In March, Tungsten had slid to 20 pence per share in the stock market. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.

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Tungsten’s revenue comes in 2% higher

In terms of revenue, the invoicing software group saw a 2% increase in fiscal 2020 to £36.8 million. At £2.7 million, Tungsten’s EBITDA (earnings before interest, tax, depreciation, and amortisation) also printed higher than £0.6 million last year.

In its previous report published in July, Tungsten said it maintained its annual transaction volume at a 5% increase. As of April 30th, the UK-based company had £3.2 million in cash. Tungsten announced its annual positive cash generation at £0.4 million.

In the current fiscal year, the British firm added, transactions saw an 8% decline in the first quarter. On the back of expected new sales performance, however, Tungsten expressed confidence that its financial performance will be in line with external forecasts this year.

CEO Andrew Lemonofides’ comments on Monday

CEO Andrew Lemonofides confirmed on Monday that in fiscal 2021, the company is committed to delivering growth and remarked:

“Tungsten has undergone significant corporate and operational enhancements this year delivering improved revenue growth and cash flow generation. Despite the challenges of COVID-19, the business has produced a solid financial performance which reflects the new team in place and the focus on improved sales execution, cost management and the high recurring revenue model. We have secured further new customer wins and a strategic partnership agreement to expand our product offering.”

Tungsten performed fairly upbeat in the stock market last year with an annual gain of roughly 50%. At the time of writing, the digital financial management provider has a market cap of £46.78 million.

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