Tungsten Corporation books tenfold increase in earnings as revenues accelerate

Supply Chain enabler Tungsten Corporation (LON:TUNG) booked positive fundamentals and year-on-year progress for the first nine months of the full year.

The company’s revenues rose from £26.9 million to £27.6 million, led by increased transaction volumes, up from 13.5 million to 14.4 million.

The headline figure for Tungsten Corporation, though, was a jump in its adjusted EBITDA, up from £0.2 million to £2.0 million on-year, alongside an increased EBITDA margin, from 1% to 7%.

Conversely, the Group’s operating losses widened from £2.5 million to £3.2 million. Further, its net cash narrowed from £2.5 million to £1.0 million.

Tungsten Corporation reaction

Responding to the Group’s results, CEO Andrew Lemonofides, states:

“In this year of transformation, we are demonstrating our ability to reduce costs and accelerate revenue.  I am pleased to highlight that all of our strategic initiatives are being delivered as mentioned above and forecast last summer.  In addition, I am continuing to restructure the company, drive down costs, re-boot our technology, replace key staff, introduce new products and augment new partnerships – and so build a redefined Tungsten in pole position to deliver accelerating growth.”

“Revenues remain in line with our YTD Q3-FY20 expectations. Whilst we still expect to show year on year growth in new sales billings, the growth will be below the level that we had previously expected and as a result we are a little more cautious about the outturn for the full year.  However, as a result of prudent cost controls, we currently expect to meet EBITDA expectations.”

Investor notes

Following the update, the company’s shares are up 1.70% or 0.40p, to 23.90p per share 10/03/20 14:05 GMT. Tungsten Corporation has a market cap of £29.63 million, at 30 April 2019 its diluted EPS stood at negative 2.66p.