LONDON (ShareCast) - (Sharecast News) - Walcom announced on Thursday that its largest customer had defaulted on a payment of RMB 2m.
While the unnamed Chinese customer had informed Walcom that it expects to settle the payment by 10 July, the AIM-listed firm remained cautious of the client, which was in the process of refinancing, given the mystery client also owes the group a further RMB 4.66m.

However, Walcom did note there was "no suggestion" that the second payment would be delayed in any way.

Walcom warned that the delay in receipt of the current payment, in conjunction with the "challenging trading conditions" seen in the first half of its financial year, had a "material adverse effect" on the firm's cash resources.

"If the full amount outstanding from the customer is not received, the company might, in the absence of obtaining alternative funds, be in a position where it is unable to settle its liabilities as and when they fall due," Walcom said.

The Virgin Islands-based firm said it was exploring "alternative financing arrangements", should any be considered necessary.

As of 0925 BST, Walcom shares had tumbled 25% to 0.75p.

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