It was a year of rebuilding for Tungsten, the digital invoicing platform that announced in 2015 plans to divest Tungsten Bank. On Wednesday (Dec. 14), CEO Rick Hurwitz and CFO David Williams spoke to investors to reveal new growth during its Q2 2017 earnings call, with results pointing towards optimism.
Revenues increased by 20 percent in the quarter, Hurwitz noted, while losses were reduced to £1.9 million ($2.4 million). “This should be viewed in the context of flat performance in each of the prior two periods,” the CEO said, pointing to the new supplier portal launched in Q2, a revamp of Tungsten's interface, and a migration to its own invoice management services.
Reports said pretax losses for the six moths ended Oct. 31 hit $3.9 million, down from $15.2 million during the same period a year prior.
“Tungsten is now eating its own cooking,” Hurwitz said. “So, we made use of our workflow, software; all of our procurement activity is delivered through that capability.”
In a statement, Hurwitz said the company is working towards a repositioning of the company to support expansion.
“We are making good progress towards our strategic goals, repairing operational efficiency, while positioning the business for profitable growth,” he said. “The benefits of the changes we are making are starting to show in our reported results. We have been executing to plan and ensuring cost discipline as we take needed steps on the path to profitability.”
Tungsten reached an agreement to sell Tungsten Bank for about $45 million last year, and last month, reports surfaced that Wyelands Holdings would be the buyer. The sale was a result, the company said, of the company's inability to grow at a pace investors had hoped for.
The sale of Tungsten Bank is expected to close this week, the company said.
“Completing the sale of Tungsten Bank is an important component in the reshaping of our business,” Hurwitz added. “With a stronger customer proposition, improved funding structure and the right leaders, our expectations for developing a successful invoice financing business are high.”
Shares increased 3.9 percent on Wednesday following Tungsten's announcement, according to reports.