Shore Capital BUY8 Aug 2015 21:30
City broker Shore Capital, in a note, said the financial results were slightly better than the company’s earlier pre-close statement indicated.
“The key long term factor in the company’s results for us is the progress with Tungsten Network Finance which is still very small at this initial stage generating revenue of £120k,” said analyst Peter McNally.
“Despite this taking longer to occur than originally expected, it feels as if the financing side of the business is finally beginning to take shape.
“Considering the opportunity the company has with the with £121 billion of financing that passed through its network last year, execution is key in the years ahead and the company appears to be spending to ensure this happens faster than the slower than expected rate that has been experienced.
“Considering the somewhat captive audience the company has with its supplier network that is available for financing and the tendency for it to be recurring, we think there is good potential for high returns once the company builds this business.”