Further re Customer payment

31 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 19 July 2018 regarding the default on two payments owed to the Company of an aggregate RMB 4.26 million (approximately £483,000) by the Company’s largest customer (the “Customer”), Walcom still has not received either payment.

The Company has taken the necessary steps to begin legal proceedings to recover the contractual monies due.

As previously announced, the Company’s working capital position is significantly restrained but manageable in the near term. The Company has continued to maintain at least the minimum level of working capital required, however, this requires receipt of other ordinary course trade receivables on a timely basis. With the seasonal cyclicality the Group experiences, the Board is hopeful that trading in the coming months will improve the cash position.

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 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)	[phone]
Allenby Capital Limited Virginia Bull	[phone]