Tungsten Corporation PLC Delivering against the Strategic Plan (0855D)
March 25 2014 - 2:12AM
UK Regulatory
TIDMTUNG
RNS Number : 0855D
Tungsten Corporation PLC
25 March 2014
TUNGSTEN CORPORATION PLC
("Tungsten" or collectively the "Tungsten Group")
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN
NOR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OF SUCH JURISDICTION
For Immediate Release 25th March, 2014
MARKET UPDATE
Delivering against the Strategic Plan
Tungsten Corporation plc (LSE:TUNG) is pleased to give an update
to the market. Results for the full year to 30th April, 2014 will
be announced in July.
After extensive work, the formal change of control request to
consummate the acquisition of FIBI Bank (UK) Plc (the "Bank") was
submitted yesterday to UK's Prudential Regulation Authority and the
Financial Conduct Authority. The Board is therefore of the view
that PRA approval for the change of control will be forthcoming
within the statutory 60 business day period; and the Board is
hopeful of having the required approval by the end of May 2014.
An experienced and powerful Bank board has been provisionally
elected : Edi Truell chairs a board led by the CEO Phil Ashdown,
Steven Clowes (CFO), Jonathan Mackay (CRO) and independent
non-executives Robert Eddowes, Richard Olliver, Chris Coles and Tim
Hall. In addition, Gordon Payne has joined Tungsten from Sumitomo
to help lead the work on multinational Supply Chain Finance ("SCF")
provision. As well as giving Tungsten Finance very significant
financial firepower, our SCF offers are being carefully constructed
to avoid the regulatory pitfalls ignored by many would-be competing
SCF solution providers; and to enduring best practice standards.
Under Chris Lowrie's stewardship, the necessary systems to connect
our network to the Bank are now fully tested and are ready to be
deployed as soon as the Bank is up and running.
Tungsten Corporation has made strong progress overall in
integrating its financing and analytics capabilities into the
e-invoicing network; and in organising the combined Tungsten group
to be capable of large-scale growth.
We have spent the first five months as a public company
clarifying our offer: Digital Invoicing is at the core of our
Network. Momentum is strong, with the Company continuing to have a
good pipeline of new potential clients and contracts. However, we
have adopted a more conservative accounting policy, spreading
revenues over the life of the contract. While this measure will
modestly constrain the reported network revenues compared to
previous years, the value and volume of invoices processed in the
current financial year is broadly in line with our original
expectations. The emphasis on purely digital invoicing means that
Tungsten can be more certain of tax, regulatory and buyer
compliance, in contrast to other invoice processing networks. Our
compliance culture is a strong differentiator that is becoming more
appreciated in a world of cyber crime. Our focus on a purely
digital approach means that we shall be shutting down the legacy
inter-operability arrangements that benefit our competitors more
than they benefit our customers and which could introduce
non-compliant invoices into the network.
Tungsten is now fully compliant in 44 countries, having
successfully launched in Turkey and Brazil in 2014. As Markus
Homburg drives our rollout still further into major economies, so
we will scale volumes rapidly, with our global multinational buyers
inviting thousands more active suppliers to join the Tungsten
Network. As an example, our long established customer GSK is now
asking its Turkish suppliers to trade via the Tungsten Network,
encouraged by Governmental requirements.
Edmund Truell, Group CEO of Tungsten Corporation plc, commented,
"The opportunity to create a disruptive global player is even
greater than I first thought. We can realistically aim to create
the leading global digital invoicing network, serving the world's
largest corporates and governments. Now that we are on the final
straight to getting the Bank fully compliant and approved, Tungsten
will start to offer suppliers access to trade and working finance
on a transparent and simple to execute basis. At every step we are
doing our utmost to ensure a compliant and secure Network, working
also with highly respected partners across the world. Tungsten
Corporation thus aims to transform the global supply chain."
LONDON, 25th March, 2014
Enquiries:
Tungsten Corporation plc
Edmund Truell, Chief Executive Officer +44 20 3435 5680
Equus Group (Communications)
Piers Hooper / Sam Barton +44 20 7223 1100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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