PYX Resources: Achieving volume and diversification milestones. Watch the video here.
They will have VAT and Employee NI to pay as a minimum
The tax must have been formally due well before then for it to have got all the way to a petition for winding the company up; with the threat of it going to court you would have hoped they would have managed this a little better. The petition date was the 21st September. The biggest issue will be with their credit rating - D&B have given them a risk score of 4 which is, I quote, "Represents significant level of risk" and recommends requiring guarantees before extending credit. These notices take a while to wash through
I am sure there is a sensible explanation, but HMRC have initiated winding up procedures against Tungsten Network. This is published in the courts Gazette and has therefore been picked up by the likes of Dunn & Bradstreet and therefore a number of customers will also be aware. Need a BOD statement of some kind urgently
chemisdude: apologies, yes this could work, its just the cost of the multiple transfers that could be the downside
chemisdude: I think that changes the risk profile quite a lot because the buyer is paying to the Payoneer account and not to Tungsten so the risk is switched to the supplier rather than the buyer
I also wonder if this cripples the invoice financing service for that supplier/buyer pairing - i.e. you can't have both enabled. If Tungsten still requires the bank account to be changed to one of theirs for the invoice financing service, you can't also change the bank account to a be Payoneer one. Hopefully they have a solution for this; but i like the idea of the Payoneer service - be interesting to see what revenue it generates in the half-year results
Good to see Rick buying shares at last - I believe this is is first actual purchase; a good sign I hope
For me the three things that need to change (not sure if the first ha been done or not) are; 1. Stop requiring the change in bank account and collect monies owed from the supplier (shift in risk, but the bank account change process was reported to take weeks and also not necessarily a thing the supplier wanted to do early in the product usage cycle) 2. Fund any invoice that was sent across the network even if the buyer did not confirm it would pay it with a return message 3. Following a suitable period, offer to fund non-network invoices to those suppliers using TEP for network invoices One of the great things in having analytics is being able to predict future events with a measure of confidence and that could be deployed to help with the latter two Just my opinion of course ....
chilt - totally agree that the key is Prabhat in making TEP viable. For me the biggest problem they have to overcome technically; legally; and funding wise is changing TEP to be supplier-centric rather than buyer centric. If you need working capital finance and for it to be attractive, in most cases you have to cover a sufficient level of a supplier's book to make it meaningful. That just cannot happen in a buyer centric model unless the majority of a vertical is on-board and even then for only vertically integrated suppliers. Switching to a supplier centric model, in my view, enables TEP to compete properly in the working capital space and has a distinct advantage in that a proportion of volume is end-to-end visible automatically. If they can nail this, then it should shoot out of the door. As the risk is switching from Buyer to Supplier, new funding lines may be needed unless Insight are willing to accept these changes, but hopefully Prabhat has all the connections he needs to pull this off. If this happens, well, the network £ value (which is already massive) will be dwarfed by the available TEP £ as it will include non-network invoices so for the likes of Tesco suppliers (who also presumably sell to all of the other supermarkets not on the network) there is a massive available value uplift. No pressure Prabhat!!!!
Whilst there was a 9% growth in volumes, this needs to be compared to the market overall to better understand how this stack up; These are good information points http://www.billentis.com/einvoicing_ebilling_market_overview_2016.pdf http://www.prnewswire.com/news-releases/global-e-invoicing-market-2014-2018-257995001.html So it is good that progress has been made, but I am keeping the champagne in the cellar and the ice in the freezer for the moment. I hope that the new TEP guy can do enough for them to see the light of day - I am guessing that's going to take another 6-12 months to deliver on
I assumed everyone knew this, but given K3VMC's comment it may be worth understanding it a bit better. 1. a buyers turnover or indeed their total invoicing volumes is not an indication of the business that Tungsten has won or is available to it 2. buyers normally have a mix of solutions for invoicing and these can dwarf the volumes that are made available to Tungsten 3. typical options are for Tungsten to be used for indirect spend and other solutions used for direct spend - especially for manufacturing; retail etc, 4. Large volumes can go via EDI; ERS (reverse invoicing); and Purchasing Card solutions - its mix and match. Therefore a key question when looking at existing Buyers is how much of total volume is on network (penetration rate) and for new buyers, how much of the volume is available to Tungsten. A key market metric is 50% - if the volume is less than that, then the client is vulnerable 5. The other thing to consider is geographic spread. Buyers tend not to go big bang and roll-out solutions market by market over time. There is therefore a 'take on period' that may mean that large chunks of volume are not available now and may take a long time to come to fruition So, if I don't make the next briefing, questions to answer are: 1. Available invoices for new buyers 2. Penetration levels for existing With all their analytics they should be able to produce some nice graphics for this!
K3VMC Couple of points on your response: TEP - it is a bit confusing as in the 6th month update they reported 108 suppliers were live and 'could take' finance. This implies a low active rate for the low number of ones sold too, but I missed the capital markets day so not sure how they a planning to actually report on this going forward; ones that can v's ones that did and if the utilisation rate is based on the former or the latter Buyers - they had sold 6 in the first half, so only 5 added in the second half of the year. Not an outstanding tally and as we have seen with all the other buyers, the turnover of the business does not reflect what Tungsten actually processes as not very many (any) push all of their invoices across the network. Wish they did!! Analytics - it has been more than 30 months since the inception of Tungsten and the product itself was out with a paying client more than 12 months ago - the absence of mention would suggest that no traction in terms of sales has been made
Not sure I agree with the sentiments expressed so far (but maybe my cup is half empty). Only adding 41 suppliers for TEP in 12 months is disappointing, but hopefully the new man can make a dramatic difference. Secondly, I read it that the bank cash is going to be needed for group working capital rather than investments; thirdly, 11 new buyers in a year is not great and I'd be interested to know how many of those were e-invoicing and not just the scanning and OCR from the old DocuSphere set up; and finally I guess we can conclude that analytics is dead / not making anywhere near the impact expected. The whole market listing was for an origination platform for finance and analytics and neither of these is coming to fruition - sorry for sounding so negative!
Not sure I agree with the sentiments expressed so far (but maybe my cup is half empty). Only adding 41 suppliers for TEP in 12 months is disappointing, but hopefully the new man can make a dramatic difference. Secondly, I read it that the bank cash is going to be needed for group working capital rather than investments; thirdly, 11 new buyers in a year is not great and I'd be interested to know how many of those were e-invoicing and not just the scanning and OCR from the old DocuSphere set up; and finally I guess we can conclude that analytics is dead / not making anywhere near the impact expected. The whole market listing was for an origination platform for finance and analytics and neither of these is coming to fruition - sorry for sounding so negative!
I also hope we will hear about TEP roll out in other countries - they were at least going to go into Germany and a few others, but this relied on the Bank passport and they won't have that soon when it (the bank) is sold
First time post to this board. In the announcement next week (and full year end results) there are a couple of key sign-posts that I am looking for to see if this business stands a chance or is going to be a sink hole; 1. By how much the network $ value has increased over last year 2. How many clients have signed up for TEP and what the current / average AUM is now 3. How many new buyers have signed in the last quarter since the CMD 4. How many clients have purchased the analytic solution and what the revenue is 5. How many suppliers joined the network during the year and how many left We need to see positive numbers for all of these to understand if there is life in this stock or whether the bank sale will just provide some extra cash to keep them limping along