Tungsten turns in Q1 profit on improved revenues
By Iain Gilbert
Date: Thursday 19 Sep 2019
(Sharecast News) - Electronic invoicing specialist Tungsten swung to a profit in the first quarter of its trading year, driven by improved revenues and cost containment.
Revenues grew 5% on an actual basis to £9m, or 2% on a constant currency basis, thanks to new customer wins and expanded product sales. New sales billings increased to £900,000, up from the £700,000 worth of new billings in the same quarter a year earlier and in line with expectations.
Tungsten recorded adjusted underlying earnings of £600,000, a marked turnaround from the £500,000 LBITDA recorded in the same period during the prior year, while operating profits of £1.8m were a significant improvement on the £500,000 loss seen twelve months previous.
EBITDA margins improved to 7% from -6% as a result of the group's ongoing cost containment.
Net cash fell to £2.2m from £3.9m.
The AIM-listed group said no changes were expected in its full-year outlook following the period and stated that its sales pipeline continued to grow, by both number and value.
As of 0830 BST, Tungsten shares had dipped 1.69% to 43.50p.
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