Tungsten Corporation has made a positive start to its new financial year ending 30 April 2017, building on the momentum demonstrated through FY16, said CEO Richard Hurwitz. "Trading in the first quarter of FY17 was in line with the Board's expectations," he said. "In particular, we signed contracts with three new buyer customers and continued to renew contracts of existing buyers on Tungsten Network at higher rates, more fully reflecting the value that Tungsten provides. "Suppliers were added to Tungsten Network at an encouraging pace, including adding double the number of Integrated Solution suppliers compared with the same period in the prior year. "This reflects strengthened relationships with buyers which want to connect to more of their supply chain, and improved internal processes to sign up these suppliers. "We are making measurable progress in improving organisational efficiency. These initiatives should start to produce the desired cost savings over the course of FY17. "The sale of Tungsten Bank is advancing as expected and we continue to expect the sale to complete by 31 October 2016. The restart of our supply chain financing activities is progressing as planned, with two important elements concluded. "First, we extended our funding arrangement with Insight Investment, including revisions that allow us to better address the market. Second, we have hired the small number of individuals with the skills and experience that we need, completing the team required to deliver on our financing objectives. "We have recently launched a partnership offering international payment services to a selection of our supplier customers. While FY17 revenues from this are anticipated to be modest, this represents the first in a programme of product adjacencies and enhancements that will strengthen our relationships with our customers and provide additional revenue opportunities." "We are confident in our ability to achieve the performance objectives we have set for ourselves for the current financial year, principally revenue of at least £30 million, an EBITDA loss of between £12 million and £14 million, and cash in excess of £20 million at 30 April 2017. We continue to expect Early Payment financing levels to double, with material increases in this revenue from FY18."
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