Tungsten Corporation


Market Cap£48m

Last Close 37.7p

Tungsten Corporation operates a transaction platform with services including e-invoicing, e-billing and purchase order handling. Spending analysis, invoice data capture and, through a partnership, supply chain finance are also offered, providing additional benefits to customers.

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Investment summary

Tungsten H121 results announced in December showed a COVID-19 affected 6% fall in transaction volume vs H120 but the stability of recurring income meant group revenue (£18m) was down just 1%. Adjusted EBITDA at £0.8m was down £0.2m. A further non-cash goodwill impairment (£26.2m) was taken against the core Tungsten Network business, reflecting the negative effect of the pandemic on trading and the time taken to sign up new customers. As a result the pre-tax loss was £30.5m (vs £2.4m). Period-end net cash stood at £1m (£1m) with £2m available on a rolling credit facility.

Y/E Apr
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 36.0 0.6 (5.3) (3.1) N/A N/A
2020A 36.8 2.7 (26.0) (20.6) N/A 10.3
2021E 36.8 3.3 (30.2) (23.9) N/A 22.6
2022E 40.1 5.7 0.5 0.4 94.3 8.3
Industry outlook

The diversity of Tungsten’s customer mix and presence of over 50% of subscription and software maintenance revenues is supportive. New contracts added in FY21 include the first for a customer using Total AR, AP and Workflow products together. A partnership with a large US bank has been secured and the trade finance partnership with Orbian is generating income. For FY21 management guides to maintained revenues and adjusted EBITDA of at least £3.2m. In March the phased withdrawal of a customer accounting for 5% of revenue was reported but the company is working to replace the lost income. Longer term, the benefits of adopting e-invoicing provide an underlying driver of growth.

Last updated on 26/07/2021
Content on Tungsten Corporation
Tungsten – Foundations for growth in place
Financials | research Outlook | 11 February 2021
Tungsten – Resilience and promising partnerships
Financials | research Update | 20 July 2020
Tungsten – executive interview
Financials | Edison TV | 20 July 2020
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual (1.8) 18.6 (7.7)
Relative* (0.8) 17.3 (22.2)
52-week high/low 41.5p/26.4p
*% relative to local index
Key management
Tony Bromovsky Chairman
Andrew Lemonofides CEO