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Tungsten warns of materially lower profitability into 2021

By BFN News | 08:08 AM | Friday 27 November, 2020


Financial services software provider Tungsten Corporation has warned of a continuation in lower profitability ahead of its interim results release next month. A trend of lower transaction volumes and longer conversion cycles is expected to hit revenue and earnings for the remainder of this financial year, the company said in a trading update this morning. Revenue for this year was expected to be in line with the previous year, approximately £18 million. Underlying adjusted earnings before interest, tax, depreciation and amortisation was expected to be 'not less than' £3.2 million, materially lower than previous guidance. The company was working to reduce its cost base, it said, which was expected to deliver annualised savings from 2022 of approximately £4 million. Tungsten said it expected transaction volumes would begin to return to pre-Covid-19 levels during the 2021-22 financial year. Chief executive Andrew Lemonofides said: 'It is disappointing that our profitability is going to be materially lower that we expected this year, however the company remains focused on improving efficiency and converting its pipeline of opportunities to drive growth in sales.' At 8:08am: (LON:TUNG) Tungsten Corporation share price was 0p at 31.35p Story provided by StockMarketWire.com

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