TUNG.L Regulatory News (TUNG)

TUNGSTEN CORPORATION PLC

("Tungsten" or the "Company")

23 March 2020

COVID-19 Update

Tungsten Corporation (AIM: TUNG) aims to be the leading global electronic invoicing and purchase order transactions network, and is now providing an update in light of the rapidly changing situation regarding COVID-19.

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.

We will continue to monitor our outlook very carefully and provide a further update as part of our end of year trading update."

Enquiries

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About Tungsten Corporation plc

Tungsten Corporation (AIM: TUNG) aims to be the leading global electronic invoicing and purchase order transactions network.

Digital invoicing processes enable large businesses to reduce costs and effectively manage their businesses. They can improve business agility by creating scalable and repeatable growth processes, managing their cash effectively and making better decisions based on a comprehensive analysis of their data.

Tungsten Network processes invoices for 74 percent of the FTSE 100 and 71 percent of the Fortune 500. It enables suppliers to submit tax compliant e-invoices in 50 countries, and last year processed transactions worth over £173bn for organisations such as Caesars Entertainment, Computacenter, GlaxoSmithKline, Kraft Foods, Mohawk Industries, Mondelēz International, Procter & Gamble, Shaw Industries, Unilever and the US Federal Government.

Forward looking statements

This document contains forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Tungsten as of the date of this statement. All written or oral forward-looking statements attributable to Tungsten are qualified by this caution. Tungsten does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Tungsten's expectations