TUNG.L Regulatory News (TUNG)

19 September 2019

TUNGSTEN CORPORATION PLC

("Tungsten" or the "Company")

Q1-FY20 UPDATE - FULL YEAR OUTLOOK REITERATED

Financial Highlights (7)

·; Revenue grew 5% in comparison to Q1-FY19 on an actual basis and 2% on a constant currency basis, due to FY19 new customers and expanded product sales in Q1-FY20

·; New sales billings (8) increased to £0.9 million (Q1-FY19: £0.7 million), in line with expectations

·; Adjusted EBITDA increased to £1.0 million from a £(0.1) million adjusted EBITDA loss in Q1-FY19, reflecting revenue growth, ongoing cost containment and collection of receivables written off in prior periods of £0.2 million

·; Net cash reduced to £2.2 million following settlement of bonus provisions, offset by cash from operations (30 April 2019: £2.8 million). £6.2 million total available liquidity (5) (31 July 2019: £7.9 million), inclusive of the £4 million revolving credit facility

·; No change to expected full-year FY20 outlook

Operational Highlights

·; Our sales pipeline continues to grow, both by number and value of opportunities

·; Two Total AP customers converted in August 2019 and one sale of our AP Analytics product, in line with expectations

·; The divestment of Tungsten Network Finance is progressing well, with interest in a future partnership expected to conclude in the second quarter of FY20

·; Transaction volume increased by 6%, or 0.2 million transactions, in Q1-FY20, with the LTM (9) total transaction volumes of 18.5 million at 31 July 2019

(1) Tungsten's year-end is 30 April

(2) Tungsten announced its intention to divest Tungsten Network Finance ("TNF") on 30 April 2019. Results presented excluding TNF to aid future comparability. Group results including and excluding TNF are presented exclusive of management fees charged by the Group to TNF

(3) Adjusted EBITDA is calculated as earnings before net finance cost, tax, depreciation and amortisation, loss on disposal of assets, foreign exchange gain or loss, share based payment expense and exceptional items, and is adjusted to include cash rental expenses and rental income. Management utilises adjusted EBITDA to monitor performance as it illustrates the underlying performance of the business by excluding items management consider to be not reflective of the underlying trading operations of the Group or adding items which are reflective of the overall trading operations, as applicable

(4) Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue

(5) Total aviailable liquidity is calculated as net cash plus availability under the HSBC RCF

(6) Transaction volumes are measured as the total number of invoices and purchase orders delivered between a Supplier and Buyer

(7) Excluding TNF

(8) New sales billings represents implementation, subscription, licence, transaction and professional services fees to be billed in the period from new sales made in that period. Implementation and subscription fees are recognised to revenue over the 6 months and 12 months respectively from billing month. Subscription licence and transaction fees are recognised in the month sold. Professional services fees are recognised on work completion milestones

(9) LTM is defined as the last twelve months to the reporting date

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 (LSE: 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