AGM Statement
01 October 2009 - 4:00PM
UK Regulatory
TIDMESG
RNS Number : 0264A
eServGlobal Limited
01 October 2009
AGM Statement
At the Annual General Meeting to be held at 3.00 p.m. in Sydney on 1st October
2009, David Smart, Chairman, will make the following statement:
"eServGlobal provides solutions for telecommunications carriers across the
globe, with particular focus on emerging markets in the Middle East, Africa,
Asia and Latin America, amongst the fastest growing telecoms markets worldwide.
Since 2005 this global approach has resulted in rapid and profitable growth and
we felt that we were well positioned to endure short-term market changes.
However, we all know now that the recession had an impact globally, with an
unprecedented collapse in first credit then new investment activity. Few of our
customers escaped the difficulties and the result was a 17% decline in revenue,
to $147 million in the year to 30 June 2009.
Management took decisive action in the first half of the year and commenced cost
reduction, through a range of actions including recruitment, travel and
marketing. These measures were extended to include a significant reduction in
headcount, with over 100 people leaving the company (13% of the workforce).
It also became apparent during the course of the first half that business
improvements were needed, to become more responsive to rapidly changing market
and customer requirements, while delivering greater operating efficiency. As a
result we sought and appointed a new senior management team, being Richard
Mathews as Chief Executive and Craig Halliday as Chief Operating Officer.
Richard and Craig also made a substantial investment in the company, which we
believe demonstrated that the significant business potential of the company was
apparent to them and also ensures the alignment of their objectives with all
shareholders.
Following these changes, we reviewed the size and makeup of the board and
concluded that a smaller board was more appropriate. As a result Graham
Libbesson, Jim Pratt and Anthony Gilbert have retired and I would like to take
this opportunity to thank them all for their many years of excellent service.
Our review also agreed that the Chairman should be independent, resulting in my
appointment as Chairman and Ian Buddery moving to a non-executive director role.
I would like to thank Ian for his outstanding contribution dating back to the
founding of the company in 1991. Since taking up the role of Executive
Chairman in 2001, Ian achieved five fold revenue growth, while producing the
product innovation that today underpins our future potential. I am delighted
that he continues to be part of the new board.
We have entered the 2010 year with a lower cost base, a sharply focused sales
team and with a strong and relevant product portfolio. The Telecoms industry
faces many challenges and great opportunities and there has never been a
stronger need for close partnerships between operators and innovative technology
suppliers such as eServGlobal.
Overall global economic conditions continue to be challenging however we
continue to have every confidence in our people, our products and our customers
and believe that we will be well positioned to take advantage of any upturn in
the telecoms markets.
Richard Mathews, Chief Executive Officer, will make the following statement:
"I joined the company after the close of the 2009 financial year, a year which
saw a significant slowdown in the global telecommunications industry. This led
to a disappointing result in 2009 at both a revenue and EBITDA level.
Since joining the company, Craig and I have conducted a thorough review of the
product strategy and the plan for 2010. The new solution plan will focus on
Charging, Payment and Retention, all of which are the core technologies of
eServGlobal.
Our sales, solutions, innovation, channels, marketing and engineering teams will
focus on these three solution families. We will however continue to grow and
support our existing Messaging and Network solutions and customers as part of
these solution families.
Our goal is to achieve consistent, profitable growth through supporting our
customers and achieving new sales. It will be a priority to support both the
sales team and our customers and by doing that we will increase revenues. We
have had some recent successes in this area, including significant new contracts
for our ChargingMax platform in Pakistan and Nepal and installed customer
upgrades in India and Poland.
We believe that we have the solutions to help telecoms operators grow and
prosper. Among them are international remittance, mobile commerce, stimulation
and social networking. These are all characterised by generating value around
the transaction and eServGlobal intends to be the market leader in this new
field.
While we expect the upcoming financial year to be tough, we also expect it to
provide the basis for taking our company forward on behalf of our shareholders.
I would like to thank our staff whose commitment and teamwork has enabled us to
weather the difficult conditions and will allow us to succeed in the future.
I thank our shareholders for their support and I look forward to our continuing
success."
Richard Mathews
Chief Executive Officer
About eServGlobal
eServGlobal (LSE: ESG & ASX: ESV) provides smart communication and payment
services for telecommunications service providers operating on all generation
networks.
Over 80 of the world's leading service providers, with over 500 million mobile
subscribers in more than 50 countries, are taking advantage of eServGlobal's
end-to-end solutions and expertise to quickly deliver revenue-generating
services. With 15 offices around the world and 650 staff, we provide flexible
solutions, based on a deep understanding of our customers' requirements and
challenges.
eServGlobal is listed on the Australian Stock Exchange (ASX: ESV) and the London
Stock Exchange AIM market (LSE: ESG). More information can be found at:
www.eservglobal.com
+----------------------------------------+----------------------------------------+
| Altium | Tel: +44(0)20 7484 4040 |
+----------------------------------------+----------------------------------------+
| Nominated adviser, Mike Fletcher/Paul | |
| Lines | |
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| Corporate Broking, Chloe Ponsonby | |
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Cautionary statements
Statements in this document expressing the beliefs and expectations of
management regarding future performance are "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995. These statements are based on management's expectations as of the date of
this document and are subject to uncertainty and changes in circumstances.
Actual results may differ materially from these expectations due to risks and
uncertainties including, but not limited to, uncertainty in communications
spending, the implementation of the Company's strategic repositioning and market
acceptance of the Company's new solutions strategy, six-monthly fluctuations in
financial results, the Company's ability to exploit fully the value of its
technology and its strategic partnerships and alliances, the availability of
products from product component vendors and other risks. In addition, while
management may elect to update forward-looking statements at some point in the
future, management specifically disclaims any obligation to do so, even if its
estimates change. Any reference to our website in this press release is not
intended to incorporate the contents thereof into this press release or any
other public announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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