Expect more robust growth when e-invoicing specialist Tungsten Corporation (TUNG) reports half-year figures on Wednesday 14 January. That's because the group - which used the proceeds of its flotation in October 2013 to buy the OB10 e-invoicing platform - has been making rapid progress as governments and companies increasingly embrace digital invoicing.
This technology allows suppliers to bill customers through an automated processing platform, and the operator generates revenue from set-up fees, subscription fees and transaction fees. For customers, this saves time and cuts costs, which has been driving a rapid structural shift towards e-invoicing. For the year to 30 April, Tungsten processed e-invoices worth $152bn (£100bn), up a fifth on the previous year. Yet it's estimated that just 3 per cent or so invoices are currently settled electronically, leaving plenty of scope for further growth. The pressure to adopt e-invoicing should build further as governments embrace it. The European Commission, for example, wants to make e-procurement the rule for the public sector by mid-2016.
The invoice financing operation, which involves lending to small businesses against unpaid invoices, also boasts potential. With traditional lenders withdrawing from the market, prospects look robust. Last month Insight Investment Management agreed a facility to fund Tungsten's invoice financing side and, earlier this year, the group also bought its own bank: the UK arm of the First International Bank of Israel.
