Tungsten Corporation shares (LON: TUNG) plummeted 20% on Friday’s opening after the group posted a trading update amid “challenging market conditions”.
The group posted a decline in transaction volume by 8% and revenues and adjusted EBITDA would be impacted for the remainder of the financial year.
Andrew Lemonofides, Tungsten’s Chief Executive, commented:
“Tungsten has faced a difficult and unpredictable market in 2020. In spite of these challenges and the decline in transaction volumes, we have won new customer relationships and we expect to deliver broadly similar revenues to FY20. This performance is underpinned by the investments that we have continued to make in our sales and product capabilities, coupled with our operational gearing following our cost base reductions in H1.
“It is disappointing that our profitability is going to be materially lower that we expected this year, however, the Company remains focused on improving efficiency and converting its pipeline of opportunities to drive growth in sales.”
Looking forward, the company said in the update that it expects the macro economic environment to remain challenging over the coming months but anticipates that the gradual easing of restrictions, transaction volumes will begin to return to pre-pandemic levels during FY22.