eServGlobal Limited Trading Update (4401O)
07 November 2016 - 6:00PM
UK Regulatory
TIDMESG
RNS Number : 4401O
eServGlobal Limited
07 November 2016
Paris: 7 November 2016
eServGlobal Limited (eServGlobal or the "Company")
Trading Update
eServGlobal (LSE: ESG.L & ASX: ESV.AX), the provider of
innovative mobile financial technology, provides the following
update on trading for the financial year ended 31 October 2016.
Revenue is expected to be in the range of EUR14.0m to EUR14.5m,
which is below previous guidance. Encouragingly, the total
contracted bookings of over EUR21.0m was 60 per cent. higher than
in FY15. Contracts were signed at year end where revenue
recognition will fall into future years and the Company did not
manage to close other material contracts in time for year end.
Costs are expected to be in line with expectations at
approximately EUR19.5m, down from EUR23.8m in FY15 due to focussed
management and restructuring. The cash balance at the end of FY16
is approximately EUR6.4m. While the revenue position for the core
business is disappointing and the timing of revenue recognition is
frustrating, the Company has continued to provide strong evidence
of the turnaround of the business and the significant growth in
orders is testament to this progress.
The Company has just signed its first major channel partnership,
evidencing market support for the redesigned software platform,
PayMobile 3. The partner operates in areas of Africa which the
Company has historically struggled to penetrate and we now expect a
significant growth in regional opportunities in these areas over
the next five years as a result.
Looking forward, in FY17 the core business is well positioned to
grow sales significantly following the increased order flow. Costs
will be a further EUR1.0m below FY16 at under EUR18.5m. There is
also scope for further improvement to operational processes in the
year ahead.
The Board is pleased with the continuing progress of the joint
venture with Mastercard. HomeSend has continued to increase its
send and receive footprint globally, handling remittance,
disbursement and bank transfers both directly and through the
Mastercard Send digital platform. The joint venture remains on
track for breakeven in 2017.
At the most recent Mastercard Quarterly Results call, Mastercard
CEO Ajay Banga said,
"HomeSend is a unique asset for cross-border payments and it
expands our reach to billions of bank accounts across more than 70
markets through their phone numbers and systems."
In addition, the Board have moved to strengthen the management
team by appointing Andrew Hayward as CFO. Most recently Andrew held
the role of Head of Finance at Hurricane Energy plc and brings
significant financial leadership to the Company based on his
experience of public markets, M&A and growth companies.
Commenting on the performance John Conoley, Executive Chairman
said,
"I am proud of the achievements of the Company in its core
business in FY16 after its poor start. Although we did not fully
recover from that start by the end of the financial year and reach
our target of cashflow breakeven, we have embarked on FY17 with
justified optimism in the core business. I am delighted that Andrew
Hayward has taken the position of CFO in the business ensuring we
capitalise on the progress we have already made. Our optimism
applies equally to the HomeSend Joint Venture and recent progress
is consistent with HomeSend's ambition to reach the breakeven point
in 2017."
About eServGlobal
eServGlobal (AIM:ESG, ASX:ESV) offers mobile money solutions
which put feature-rich services at the fingertips of users
worldwide, covering the full spectrum of mobile financial services,
mobile wallet, mobile commerce, recharge, promotions and agent
management.
For more than 30 years, eServGlobal has been a source of
innovation for telcos and financial institutions. Using
carrier-grade, next-generation technology, eServGlobal aligns with
the requirements of customers around the globe.
Together with MasterCard and BICS, eServGlobal is a joint
venture partner of the HomeSend global payment hub, enabling
cross-border money transfer between mobile wallets, cards, bank
accounts or cash outlets from anywhere in the world.
For further information, please contact:
eServGlobal www.eservglobal.com
Alison Cheek, VP Corporate Communications T: +33 (0)1 4612
5885
finnCap Limited (Nomad and Broker) www.finnCap.com
Jonny Franklin-Adams / Carl Holmes T: +44 (0) 20 7220
(Corporate Finance) 0500
Tim Redfern / Mia Gardner (Corporate
Broking)
Alma PR (Financial Public Relations) www.almapr.co.uk
Josh Royston / Hilary Buchanan T: +44 (0) 208 004
/ John Coles 4218
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFSWEFMFMSELF
(END) Dow Jones Newswires
November 07, 2016 02:00 ET (07:00 GMT)
Eservglobal (LSE:ESG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eservglobal (LSE:ESG)
Historical Stock Chart
From Jul 2023 to Jul 2024