Tungsten Corporation


£31.5m market cap

25p 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 H120 figures announced in December showed revenue growth of 4% y-o-y while adjusted EBITDA (ex-TNF) was £1.8m vs £0.5m for H119. Transaction volumes on the Tungsten Network were up 7% to 9.6m, a positive indicator following muted growth. New sales billings, at £1.7m, met management targets and the sales pipeline had tripled since end FY19. New Total AR and Total AP product sales have been achieved and the group is looking for H220 new sales billings of £4m. There was a cash outflow in the half but this was seasonal and is expected to reverse in H220. CFO David Williams is to leave in July; an interim CFO is in place and a permanent appointment is expected before end July.

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 14.3
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 new strategy, announced in July 2019, is beginning 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 of which are potentially very significant. Tungsten has agreed a partnership to provide supply chain finance and will wind down the loss-making TNF business by June this year. There is a sense that the business is set on the path to sustainable profitability and cash generation.

Last updated on 31/03/2020
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual (24.6) (41.2) (35.9)
Relative* (10.8) (20.6) (17.9)
52-week high/low 55.0p/20.0p
*% relative to local index
Key management
Tony Bromovsky Chairman
Andrew Lemonofides CEO
David Williams CFO