Walcom Group Ltd Further re Customer payment
July 19 2018 - 6:58AM
UK Regulatory
TIDMWALG
19 July 2018
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR")
WALCOM GROUP LIMITED
("Walcom" or "the Company")
Update re: Customer payment
Further to the Company's announcement on 10 July 2018 regarding the default on
two payments owed to the Company of an aggregate RMB 4.26 million
(approximately GBP483,000) by the Company's largest customer (the "Customer"),
Walcom still has not received either payment. The Customer has informed the
Company that the payments are being arranged and will be made before the end of
July.
A further RMB 2.4 million (approximately GBP270,000) is owed to the Company by
the Customer which will fall due between now and mid-September 2018.
As previously announced, the delay in receipt of the current payments, in
conjunction with the challenging trading conditions seen in the first half of
the financial year, has had a material adverse effect on the Company's cash
resources. Although neither of the payments referred to above have been
received, the Company has received other ordinary course trade receivables in
the last week. As such, the Company's working capital position is significantly
restrained but manageable in the near term.
If the full amount outstanding from the Customer is not received, the Company
might, in the absence of obtaining alternative funds, be in a position where it
is unable to settle its liabilities as and when they fall due. The Company is
considering alternative financing arrangements, should any be considered
necessary.
The Company continues to reserve all rights against the Customer and is
engaging with lawyers in preparation for the possibility of having to take
formal proceedings to recover the payment.
The Company is closely monitoring its cash position and will make a further
announcement as necessary.
Further enquiries:
Walcom Group Limited +852 2494 0133
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer)
Allenby Capital Limited +44 20 3328 5656
Virginia Bull
END
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