14% up & not a word...23 Mar 2020 18:12
In a sea of red this is almost the only blue. Sadly my holding here is very small. I looked through the RNS update and could barely find a bad sentence.
"Trading remains in line with the guidance outlined in the Q3 Trading Update, issued on 25 February 2020, for the financial year ending April 2020. We continue to progress new client and partner contracts and are in the final stages of a number of such discussions. The board remain confident that as the company nears the completion of this year of transformation, it remains well positioned for future growth next year.
In considering the impact of the ongoing COVID-19 pandemic the Board believes that the company is well placed to navigate through the disruption, due to over 90% of current revenues being recurring and under multi-year contracts through our subscription based model. We continue to manage cashflow and receivables closely. As at 10 March 2020 we had approximately £2.2m net cash. We have significant headroom with a further £3m available under our £4m committed Revolving Credit Facility.
In the last week, we have been contacted by a number of our largest global buyers who are looking to increase their electronic invoice volumes through us as part of their response to the global pandemic. This action is being driven by an urgent concern that office closures mean many paper documents can no longer be effectively distributed and processed by a widely dispersed home based workforce. These buyers include a number of fast moving consumer goods companies who are providing products in high demand right now, and who see Tungsten as having the perfect online digital platform to meet their current needs.
The Board believes this represents a positive and significant development for Tungsten, albeit that certain buyers may in time suffer from a temporary reduction in invoice volumes as a result of supply chain disruption. We continue to closely monitor transaction volume impacts on a client by client basis.
Andrew Lemonofides CEO commented
"I am confident that Tungsten has the resilience to support our customer base globally in this difficult period, and the ability to provide a key solution to the forced shutdown of clerical paper driven offices. We are continuing to operate an uninterrupted service, utilising remote working across our global workforce, and we are currently not seeing any downturn in invoice volumes. We have a strong value proposition and are able to implement our software and solutions remotely, with our cloud based technology and highly skilled workforce."
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