23 Mar 2021 14:15
23-March-2021
Tungsten Corporation plc
("Tungsten" or the "Company")
Customer Loss
Tungsten Corporation PLC (AIM:TUNG), a leading provider of digital financial management products and software solutions, has been informed by an existing customer ("Customer") that they will not be renewing their Accounts Payable solution contract. This Customer accounted for 5% of revenues in the twelve months ended 31 October 2020.
It is expected that the transition away from the Tungsten platform will take 12 to 18 months and therefore an extension of the existing contract is being executed with the Customer to initially cover the period to 30 April 2022.
The Company is currently evaluating the impact on revenue and profits for the FY22 period and onwards and will provide a further update in due course.
Andrew Lemonofides, Tungsten's Chief Executive, commented: "We are disappointed to be advised of this decision and to be losing an important customer. However, we have a healthy pipeline of new business opportunities and will concentrate our efforts on replacing the volume relating to this transitioning contract over the coming 12 months."
Enquiries
Tungsten Corporation plc Andrew Lemonofides, Chief Executive Officer Ian Kelly, Interim Chief Financial Officer
| +44 20 7280 6980
|
Canaccord Genuity Limited (Broker and Nominated Adviser) Simon Bridges Andrew Potts
| +44 20 7523 8000
|
Tavistock Communications (Financial PR & IR) Heather Armstrong Jos Simson Katie Hopkins
| +44 20 7920 3150 |
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.
About Tungsten Corporation plc
Tungsten Corporation (AIM: TUNG) is the world's largest, compliant business transaction network. A leading global electronic invoicing and purchase order transactions network; Tungsten's mission is centred on enabling a touchless invoice process allowing businesses around the globe to gain maximum value from their invoice process.
Tungsten processes invoices for 74% of the FTSE 100 and 71% of the Fortune 500. It enables suppliers to submit tax compliant e-invoices in 50 countries, and last year processed transactions worth over £195bn for organisations such as Caesars Entertainment, Computacenter, GlaxoSmithKline, Kraft Foods, Mohawk Industries, Mondelēz International, Nestlé, Procter & Gamble, Shaw Industries, Unilever and the US Federal Government.
Founded in 2000 and headquartered in London, Tungsten has offices in the US, Bulgaria and Malaysia, employing over 300 people.
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.