Tungsten Corporation


£49.8m market cap

39.5p last close

Tungsten Corporation operates a global e-invoicing network. It also provides value-added services such as spend analytics to help buyers on its network save money and invoice financing to enable suppliers to receive early payment on their invoices.

Investment summary

Tungsten’s Q120 trading update in September was reassuring as it reiterated the group’s full year outlook and maintenance of a similar rate of profitability as seen in H219. Key numbers (all ex-Tungsten Network Finance – TNF) included: revenue up 5% or 2% vs Q119 on a constant currency basis reflecting new customers and new products introduced (we look for growth to accelerate through the year); adjusted EBITDA £1m vs loss of £0.1m, and net cash of £2.2m vs £2.8m at year end (some seasonality likely here). Transaction volume increased by 6% in the quarter. The TNF disposal/partnership negotiations were reported to be going well and were expected to conclude in Q220.

Y/E Apr
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 33.7 (3.3) (10.8) (8.0) N/A N/A
2019A 35.4 2.5 (2.7) (0.6) N/A 22.6
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

Looking ahead, the group’s operating review gave a clearer sense of purpose with its identification of differentiating strengths in the business and initiation of partnerships to improve access to market opportunities. New CEO Andrew Lemonofides took up his position in September with a remit to implement the strategy and the group reported a growing sales pipeline. There is a sense that the business is set on the path to sustainable profitability and cash generation. H120 results are due on 12 December.

Last updated on 16/01/2020
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual 6.0 (10.2) 41.1
Relative* 2.5 (15.6) 25.9
52-week high/low 55.0p/22.0p
*% relative to local index
Key management
Tony Bromovsky Chairman
Andrew Lemonofides CEO
David Williams CFO