Initiation: A new focus on e-invoicing
Tungsten aims to transform its business in the next two years, to achieve EBITDA break-even on a run-rate basis by the end of FY17, from losses of £24.8m in FY15, by turning around its loss-making e-invoicing network business, selling its loss-making bank and reducing one-off costs in its other activities. In the key e-invoicing division it intends to reprice its services to the buyers on the network, increase the number of suppliers and re-engineer its processes to achieve the operational gearing potentially inherent in this activity. It believes that it now has sufficient funding to see the group through to break-even after raising £16.7m (net) in May 2015 and the proposed sale of its bank for c £30m. There is a great deal of uncertainty around forecasting, but if Tungsten can increase buyer prices and supplier numbers as intended and control costs, it could achieve EBITDA break-even by the end of FY17 on a run-rate basis.Tungsten Corp is a global e-invoicing network that provides supply chain financing and spend analytics. Co.'s solutions include: purchase order services, where Tungsten Network facilitates the delivery, acknowledgment, variation and conversion of purchase orders into invoices; and invoicing services, which eliminate paper from the accounts payable process through e-invoicing. Co. has three segments: Tungsten Network, which includes the e-invoicing and spend analytics business of Tungsten Network; Tungsten Network Finance, which includes the supply chain finance business; and Tungsten Corporate, which includes overheads and general corporate activities.
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