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Tungsten sees record revenue year as new clients signed
E-invoicing specialist Tungsten Corp said it expected annual revenue to rise to a record £33.7m, although growth was behind guidance due mainly to longer sales cycles than expected in the second half of 2018.
In a trading statement, the company said it expected to narrow losses on earnings before interest, tax, depreciation, and amortization to £4.6m from a loss of £11.8m a year earlier.
The company said it added two new multinational customers towards the end of the financial year as part of eight new accounts.
A "significant proportion" of the revenue will be recognised in the 2019 financial year due to the late signings of the new customers, Tungsten said.
Total transaction volumes came in at 17.7m, with revenue per transaction of £1.90, both up 4.0% year-on-year.
A phased completion of technology projects and tight financial controls were expected to contribute to a reduction in adjusted operating expenses to £36m from £40m.
"We have brought Tungsten to an inflection point. We have completed the transition away from legacy infrastructure, enabling us to significantly reduce capital expenditure in the new financial year," said chief executive Richard Hurwitz. "
"Our focus now will be to capitalise on the operating leverage that we have created in order to generate positive cash flow and drive returns for our shareholders."