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 £230,000) 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 £530,000) is owed to the Company by the Customer, of
which RMB 2.26 million (approximately
£255,000) 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
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer) |
+852 2494 0133 |
Allenby Capital Limited
Virginia Bull |
+44 20 3328 5656 |