Trading Update
May 26 2009 - 2:00AM
UK Regulatory
TIDMESG
RNS Number : 7586S
eServGlobal Limited
25 May 2009
25 May, 2009
eServGlobal Limited
("eServGlobal" or "the Company")
Update on Outlook
eServGlobal Limited (LSE: ESG & ASX: ESV), a provider of end-to-end solutions,
enabling smart communication and payment services for service providers on any
generation network, today provides an update on the company's financial outlook
for the current financial year.
Updated guidance for the full year ending 30 June, 2009.
The Company now expects to report full year revenue in the range AUD$150 -
155million, compared to AUD$177.9m in the corresponding period in 2008 and
AUD$153m in 2007, a creditable performance given the challenging conditions in
the global telecoms industry.
The Company has expanded its restructuring program with the aim of increasing
the EBITDA margin in the 2010 fiscal year. Total headcount at 30 June 2009 will
have been reduced by 13% from 31 December 2008, which is expected to result in
an annualised cost saving of approximately AUD$10m. The full cost of the
restructuring will be accrued in FY09 and is expected to be up to AUD$6m.
Combined with the revenue outlook, this is expected to result in a full year
EBITDA of AUD$3million before exceptional restructuring costs (an EBITDA loss of
up to AUD$3million after restructuring costs).
Mr. Ian Buddery, Executive Chairman of eServGlobal, said: "Market conditions
have continued to be difficult and telecoms operators are postponing investment
in network capacity. Therefore, we have increased our focus on new opportunities
for our charging and payment solutions. As a result, securing four new customers
in the second half, compared with two in the first half, a very encouraging
trend which gives us confidence in our carefully considered revenue plan for
FY10.
"Our confidence in the potential of our international mobile remittance
platform, HomeSend, is reinforced by the commercial trials for the service now
under way with significant operators, for both North African and Asian payment
corridors.
"The restructuring and rationalisation of product platforms in FY09 will enable
us to generate more revenue from a reduced cost base in coming years, whilst
reducing the cost of implementation and support.eServGlobal continues to have no
debt, strong cash reserves and a strong pipeline of organic growth
opportunities."
For further information:
+----------------------------------------+---------------------------------------------+
| Ian Buddery | Numis Securities Limited |
| Executive Chairman | Lee Aston (NOMAD) / David Poutney (Broking) |
| eServGlobal Limited | Tel: +44 (0) 20 7260 1000 |
| +61 2 9364 2700 | |
+----------------------------------------+---------------------------------------------+
| www.eservglobal.com | |
+----------------------------------------+---------------------------------------------+
Cautionary Statements
Statements in this announcement 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 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
announcement is not intended to incorporate the contents thereof into this
announcement 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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