Tungsten Corporation

LN: TUNG

£51.3m market cap

40.7p last close

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.

Investment summary

Tungsten Corporation’s full-year trading update indicated revenues and EBITDA for FY20 were in line with expectations while net cash has increased since H120. COVID-19 has affected transaction volumes but resilience is provided by recurring revenue. Partnerships to broaden the reach of the network, create new channels to market and provide complementary services should help drive growth. New total accounts receivable (AR) and accounts payable (AP) products are also set to augment revenue and increase the value of the network to customers.

Y/E Apr
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 33.7 (4.6) (12.7) (9.5) N/A N/A
2019A 36.0 0.6 (5.3) (2.7) N/A N/A
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

Tungsten’s strategy, announced in July 2019, has begun to take effect with sales of new products that enhance the value of the network for customers. Strategic partnerships to provide new channels to market and linkages with other networks are being negotiated, both potentially very significant. Tungsten has agreed a partnership to provide supply chain finance and indicated it was on track to wind down the loss-making TNF business by June this year. Year-end update is expected 20 July.

Last updated on 03/08/2020
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 12.4 18.0 (14.7)
Relative* 14.5 12.3 2.9
52-week high/low 51.8p/20.0p
*% relative to local index
Key management
Tony Bromovsky Chairman
Andrew Lemonofides CEO
Chris Allen CFO

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