eServGlobal Limited Half Year Results Commentary (3380Z)
31 Agosto 2018 - 8:01AM
UK Regulatory
TIDMESG
RNS Number : 3380Z
eServGlobal Limited
31 August 2018
eServGlobal Limited ("eServGlobal" or the "Company")
Results commentary for the half-year ended June 2018
31 August 2018
eServGlobal (LSE: ESG.L & ASX: ESV.AX), a pioneering digital
transactions technology company, today presents its results for the
six-month period ending 30 June 2018.
As set out in the trading update on 2 August 2018, revenue for
the six months to the end of June 2018 is EUR3.6m ($5.6m). This is
supported by orders received for the period exceeding forecasts at
EUR7.7m ($12.0m). Only EUR1.2M of the EUR7.7M in new orders has
been recognised as revenue in 1H18, with the remaining EUR6.5M to
be recognised in subsequent periods.
There is also clear evidence that the costs of the business are
now under control. Gross margin improved significantly compared to
the six-month period to April 2017, showing a gross profit of
EUR1.0m ($1.6m) compared to a EUR0.9m ($1.4m) gross loss in the
prior year. The adjusted EBITDA loss of EUR0.9m ($1.4mm), after
deducting the share of HomeSend losses of EUR1.6m ($2.6m), foreign
exchange loss of EUR0.7m ($1.1m) share based payments of EUR0.2m
($0.3m) and adding the net provisions* of EUR0.3 ($0.4), is further
evidence of the cost control. This is very much put into context
when compared to the prior year comparable EBITDA loss of EUR4.1m
($5.9m), adjusted on a like-for-like basis.
* Included in the net provision adjustment is a write back of a
provision made against a previously impaired trade receivable
balance totalling EUR0.6m ($0.9m).
The strong orders achieved in the half, strong pipeline for the
second half, together with the costs under control, puts the
Company in a strong position to reach the operational EBITDA
breakeven target for the year. Operating costs for the year are
expected to be in the region of EUR11.0 - EUR11.5m with the
expectation that costs will fall below this range in FY19.
As also set out in the trading update, there remains interest in
the core business from potential acquirers and conversations are
ongoing. The Company will keep shareholders informed as
appropriate.
John Conoley, eServGlobal Executive Chairman, commented: "As we
said in the trading update earlier in August, the Board remains
encouraged by the interim results announced today that clearly
suggest the fortunes of the core business have turned a corner. The
Board is pleased to see indications of success coming through,
particularly when compared to the same period last year. The
continued focus on the cost base and further targeted sales
strategy indicate a return to growth in 2018 and beyond."
Video Interview with the Executive Chairman
The Company has also released today a short video interview with
John Conoley. The interview provides a general overview of the
business and can be found at: http://bit.ly/ESG_8_18
About eServGlobal
eServGlobal (AIM:ESG, ASX:ESV) is a pioneering digital financial
transactions technology company, enabling financial and
telecommunications service providers to create smoother
transactions for their customers through deep technical expertise
and rapid implementation. Built on the latest technology platforms,
eServGlobal offers a range of transaction services including
digital wallets, commerce, remittance, recharge, rapid service
connection and business analytics. eServGlobal combines more than
30 years' experience, with an agile, future-focused mindset, to
align with the requirements of customers and partners around the
globe.
Together with Mastercard, eServGlobal is a joint venture partner
of the HomeSend global payment hub, enabling cross-border transfer
between bank accounts, cards, mobile wallets, or cash outlets from
anywhere in the world.
For further information, please contact:
eServGlobal www.eservglobal.com
Tom Rowe, Company Secretary investors@eservglobal.com
Andrew Hayward, Chief Financial Officer
Alison Cheek, VP Corporate Communications
finnCap Limited (Nomad and Broker) www.finnCap.com
Corporate Finance: Jonny Franklin-Adams / T: +44 (0) 20 7220
Anthony Adams / Hannah Boros 0500
Corporate Broking: Tim Redfern / Richard Chambers
Alma PR (Financial Public Relations) www.almapr.co.uk
John Coles / Helena Bogle T: +44 (0) 208 004
4218
Tulchan Communications LLP www.tulchangroup.com
Jonathan Sibun / James Macey White / Matt T: +44 (0)207 353 4200
Low
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END
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