eServGlobal Limited Trading Update (0043K)

TIDMESG

RNS Number : 0043K

eServGlobal Limited

10 December 2018

eServGlobal Limited ("eServGlobal" or the "Company")

Trading Update

10 December 2018

eServGlobal (LSE: ESG.L & ASX: ESV.AX), a pioneering digital transactions technology Company, is issuing the following trading update. The 2018 year-end revenue is anticipated to be in the range of EUR7.0 - EUR7.5 million, lower than previously expected. The Company expects to enter the new financial year with up to EUR7.5 million of recurring revenue and revenue deferred from 2018, not including new projects currently in commercial negotiation. The Company entered 2018 with only EUR5.7 million of recurring and deferred revenue from the previous year.

Positively, the breakeven point for 2019 has further reduced and is expected to be around EUR10 million due to the continued progress on right-sizing the cost base; this is in comparison to the previously indicated breakeven point of EUR11.0 - EUR11.5 million for 2018. This will be covered in the most part by the execution of the pipeline, which is also supported by the Company's overall cash position. The pipeline is focused predominantly on existing customers and it is expected that the 2018 order outturn will be significantly ahead of 2017.

John Conoley, eServGlobal Executive Chairman, said, "It is disappointing that some of the orders expected to be closed in December 2018 have slipped into 2019. However, our customers remain committed to eServGlobal and we look forward to updating the market on progress of the business and on its potential sale in 2019. This, coupled with the strong contracted support and order base of up to EUR7.5 million for 2019 gives the Board confidence that the new financial year will show improvements on 2018."

For further information, please contact:

 
 eServGlobal                                          www.eservglobal.com 
 John Conoley, Executive Chairman                     [e-mail] 
  Tom Rowe, Company Secretary 
  Andrew Hayward, Chief Financial Officer 
  Alison Cheek, VP Corporate Communications 
 finnCap Limited (Nomad and Broker)                   www.finnCap.com 
  Corporate Finance: Jonny Franklin-Adams /            T: [phone] 
  Anthony Adams / Hannah Boros                         0500 
  Corporate Broking: Tim Redfern / Richard Chambers 
 Tulchan Communications LLP                           www.tulchangroup.com 
  Jonathan Sibun / Matt Low                            T: [phone] 
 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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December 10, 2018 09:35 ET (14:35 GMT)