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Tungsten run rates impacted by Covid-19 lockdowns
20th Jul 2020 09:13
(Sharecast News) - Financial management software group Tungsten said on Monday that it had experienced a reduction in overall run rates over the last three months as a result of coronavirus-related lockdowns.
However, Tungsten highlighted that its run rate had recovered closer to pre-Covid-19 volumes in June and, assuming the trend continues, it anticipates that invoice volumes will recover to normalised run rates by the end of the first half.
Although the AIM-listed group said it remains "comfortable with external forecasts" for 2021, it noted that future impacts stemming from the pandemic remained "highly uncertain".
Group revenues grew 2% to £36.8m in the year ended 30 April, while adjusted underlying earnings were projected to be broadly in line with guidance.
Chief executive Andrew Lemonofides said: "Trading in the beginning of the new financial year has been positive despite transaction run rates being impacted by Covid-19.
"We remain confident in the structural, long-term, growth opportunity in the e-invoicing market and in Tungsten's leading position within it."
Analysts at Canaccord Genuity stood by their 70p target price and 'buy' rating on Tungsten following the update, stating it believes Tungsten "retains the ingredients of a successful transformation story".
As of 0910 BST, Tungsten shares were down 1.39% at 38.95p.
However, Tungsten highlighted that its run rate had recovered closer to pre-Covid-19 volumes in June and, assuming the trend continues, it anticipates that invoice volumes will recover to normalised run rates by the end of the first half.
Although the AIM-listed group said it remains "comfortable with external forecasts" for 2021, it noted that future impacts stemming from the pandemic remained "highly uncertain".
Group revenues grew 2% to £36.8m in the year ended 30 April, while adjusted underlying earnings were projected to be broadly in line with guidance.
Chief executive Andrew Lemonofides said: "Trading in the beginning of the new financial year has been positive despite transaction run rates being impacted by Covid-19.
"We remain confident in the structural, long-term, growth opportunity in the e-invoicing market and in Tungsten's leading position within it."
Analysts at Canaccord Genuity stood by their 70p target price and 'buy' rating on Tungsten following the update, stating it believes Tungsten "retains the ingredients of a successful transformation story".
As of 0910 BST, Tungsten shares were down 1.39% at 38.95p.