Walcom Group Ltd Customer payment
July 10 2018 - 8:00AM
UK Regulatory
TIDMWALG
10 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")
Customer payment
Further to the Company's announcement on 28 June 2018 regarding the default on
a payment owed to the Company of RMB 2 million (approximately GBP230,000) by the
Company's largest customer (the "Customer"), Walcom has not received the
payment which was expected by today. The Customer has informed the Company that
the payment is being arranged and will be available by the end of next week at
the latest.
A further RMB 4.66 million (approximately GBP530,000) is owed to the Company by
the Customer, of which RMB 2.26 million (approximately GBP255,000) is now due for
payment. This payment has also not been received in accordance with the agreed
terms of service. The remaining RMB 2.4 million 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. If either one or both of the payments owed are not received within
the next week, the Company's working capital position will be significantly
restrained.
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
considering the possibility of having to take formal proceedings to recover the
payment if it is not received next week.
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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