LONDON (Alliance News) - Tungsten Corp PLC Monday said it expects to deliver an improved performance during the current financial year after reporting results that showed its loss widened as a rise in revenue was offset by higher costs.
The global e-invoicing, purchase order services, analytics and financing company said its pretax loss in the financial year to the end of April amounted to GBP28.6 million, widening from the GBP27.9 million loss reported a year earlier.
Revenue in the year increased to GBP26.1 million from GBP22.5 million but operating expenses continued to comfortably outstrip that.
The loss before interest, tax, depreciation and amortisation totalled GBP18.7 million compared to the GBP25.2 million loss last year, but the operating loss was wider at GBP28.3 million from GBP27.7 million.
That operating loss was caused by impairments totalling GBP6.8 million, compared to nil the year before, a rise in share-based expenses to GBP478,000 from GBP197,000 and a lift in depreciation and amortisation to GBP3.5 million from GBP2.3 million.
Tungsten Corp, however, is expecting to deliver an improved performance in the current financial year, although the business is still anticipating substantial losses.
Revenue this year will be "at least" GBP30.0 million and could be higher depending on the variability and phasing of new customer sales and successes of new product and service initiatives.
Alongside that, operating costs are expected to "continue to decline" by increasing the amount of automation, lowering the headcount and implementing new procedures to improve efficiency.
Although the company is expecting to start to breakeven at the Ebitda level sometime during this year, it still expects to make an loss of around GBP12.0 to GBP14.0 million in the full year.
Net cash at the end of April stood at GBP9.3 million, falling from GBP13.1 million a year ago, but the company is expecting to complete the sale of Tungsten Bank by the end of October, which will release cash of around GBP30.0 million, it said.
In May, after the financial year ended, Tungsten Corp raised GBP17.5 million in equity funding and agreed a GBP10.0 million revolving credit facility with HSBC in case there is any delay in the sale of Tungsten Bank.
At the end of April 2017, the business is expecting cash to be "in excess" of GBP20.0 million.
Tungsten Corp shares were down 1.7% to 43.23 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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