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Tungsten Corporation still confident in meeting earnings expectations
10th Mar 2020 15:48
(Sharecast News) - Tungsten Corporation reported a 3% rise in year-to-date third quarter revenue in an update on Tuesday, to ?27.1m.
The AIM-traded firm said year-to-date adjusted EBITDA at the end of the third quarter, on 31 January, was 56% higher than the prior year at ?2.8m, while its adjusted EBITDA margin was at 10%, up from 7%.
It said its improved adjusted EBITDA performance resulted from increased sales revenue in the period of ?0.7m, the improved collection of overdue receivables, which added a further ?0.5m, and embedded structural cost reductions across a number of departments of ?0.5m.
Those three significant improvements were partially offset by one-off changes to the bonus policy provisions, the board said.
Year-to-date third quarter recurring and repeatable revenue was 6% higher at ?25.4m, representing 94% of total revenues, up from 91% a year earlier.
Tungsten Corporation said one-off for the year-to-date declined by ?0.7m to ?1.7m, which was put down to one-off set up fees in connecting customer invoices to the Italian tax authority, and a reduction in workflow license sales.
Net cash stood at ?1m, which was flat against the half-year level. Although it was expected to increase further by the year-end.
New sales billings for the year-to-date fell to ?2.9m from ?3.4m year-on-year, while revenue in the third quarter alone grew 1% to ?9.3m on the prior year.
"In this year of transformation, we are demonstrating our ability to reduce costs and accelerate revenue," said chief executive officer Andrew Lemonofides.
"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, reboot 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."
Lemonofides said revenues remained in line with its year-to-date 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."
At 1405 GMT, shares in Tungsten Corporation were up 1.7% at 23.9p.
The AIM-traded firm said year-to-date adjusted EBITDA at the end of the third quarter, on 31 January, was 56% higher than the prior year at ?2.8m, while its adjusted EBITDA margin was at 10%, up from 7%.
It said its improved adjusted EBITDA performance resulted from increased sales revenue in the period of ?0.7m, the improved collection of overdue receivables, which added a further ?0.5m, and embedded structural cost reductions across a number of departments of ?0.5m.
Those three significant improvements were partially offset by one-off changes to the bonus policy provisions, the board said.
Year-to-date third quarter recurring and repeatable revenue was 6% higher at ?25.4m, representing 94% of total revenues, up from 91% a year earlier.
Tungsten Corporation said one-off for the year-to-date declined by ?0.7m to ?1.7m, which was put down to one-off set up fees in connecting customer invoices to the Italian tax authority, and a reduction in workflow license sales.
Net cash stood at ?1m, which was flat against the half-year level. Although it was expected to increase further by the year-end.
New sales billings for the year-to-date fell to ?2.9m from ?3.4m year-on-year, while revenue in the third quarter alone grew 1% to ?9.3m on the prior year.
"In this year of transformation, we are demonstrating our ability to reduce costs and accelerate revenue," said chief executive officer Andrew Lemonofides.
"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, reboot 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."
Lemonofides said revenues remained in line with its year-to-date 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."
At 1405 GMT, shares in Tungsten Corporation were up 1.7% at 23.9p.