Walcom Group Ltd Further re Customer payment

 
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

(END) Dow Jones Newswires

July 19, 2018 07:58 ET (11:58 GMT)

Walcom (LSE:WALG)
Historical Stock Chart
From Apr 2024 to May 2024