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14 Jun 2018 07:00
TUNGSTEN CORPORATION PLC
("Tungsten" or the "Company")
14 June 2018
Comment on press speculation
The Company notes the recent press speculation regarding a proposal for the requisition of a general meeting to invoke changes of certain members of the Board of Tungsten.
While no requisition of a general meeting has been received, the Company confirms that Odey Asset Management LLP has indicated that it intends to propose resolutions to seek the removal of certain directors of the Board of the Company, being Nicholas Parker (Chairman), Richard Hurwitz (Chief Executive Officer), Ian Wheeler (Non-Executive Director) and Davide Benello (Non-Executive Director) and the appointment of Tony Bromovsky and Duncan Goldie-Morrison to the Board of Tungsten. The Company is aware that Odey Asset Management LLP has received irrevocable undertakings from certain shareholders of the Company, being Disruptive Capital Investments Limited and other associates of Edi Truell, and Hadron Capital LLP, in support of Odey Asset Management LLP's proposed resolutions.
The Board regrets that this initiative has been taken at the moment that Tungsten has reached an inflection point. As announced on 4 June 2018, the Company narrowed EBITDA losses in FY18 to an expected £4.6m and reported monthly EBITDA breakeven during the first four months of the calendar year. Revenues for FY18 are expected to be £33.7m and adjusted operating expenses are expected to be £36.0m. This compares with revenues of £22.5m, adjusted operating expenses of £45.2m and EBITDA losses of £25.2m for FY15, the year immediately before Richard Hurwitz became Tungsten's CEO.
It is the Board's intention to enter into discussions with its shareholders regarding this matter. The Company will provide a further update in due course.
The information contained within this announcement is considered by Tungsten to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Patrick Clark, Company Secretary .
Enquiries
Tungsten Corporation plc Richard Hurwitz, Chief Executive Officer David Williams, Chief Financial Officer
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+44 20 7280 7713
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Panmure Gordon (Nominated Advisor) Dominic Morley/Peter Steel | +44 20 7886 2500
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Canaccord Genuity Limited (Broker) Simon Bridges/Andrew Buchanan/Emma Gabriel | +44 20 7523 8000
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Neustria Partners Robert Bailhache/Nick Henderson/Charles Gorman | +44 20 3021 2580
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About Tungsten Corporation plc
Tungsten Corporation (LSE: TUNG) aims to be the world's most trusted business transaction network by using data intelligently to strengthen the global supply chain.
Tungsten Network is a secure e-invoicing and purchase order services platform that brings businesses and their supply chain closer together with unique technology that revolutionises invoice processing, maximises efficiency and improves cash flow management. Delivering trusted connections and streamlined transactions, the network also provides users with real-time spend analysis and offers customers access to financing through Tungsten Network Finance.
Tungsten Network processes invoices for 67% of the FTSE 100 and 76% of the Fortune 500. It enables tax compliant e-invoicing in 48 countries, and last year processed transactions worth over £160 billion for organisations such as Alliance Data, Cargill, Deutsche Lufthansa, General Motors, GlaxoSmithKline, Henkel, IBM, Kellogg's and the US Federal Government.
Trusted, passionate and proven, Tungsten is making the digitisation of global commerce faster, easier and smarter.
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