eServGlobal Limited
Sydney, Mar 20, 2009 AEST (ABN Newswire) - eServGlobal Limited (LON: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 several key topics.
Updated guidance for the full year ending 30 June, 2009.
The Company now expects to report full year revenue in the range AUD$165 - 170million, compared to AUD$177.9m in the corresponding period in 2008 and AUD$153m in 2007.
This expectation is a reduction of approx AUD$10m from our previous guidance. The change represents additional volatility in customer project schedules and some customers choosing to delay upgrades and expansion orders.
The company has continued and expanded it's restructuring programme, initiated in the first half, with the objective of taking action now that will benefit profitability in the 2010 fiscal year.
Update On Formal Process.
As previously communicated, the Board received a number of preliminary approaches from parties interested in acquiring the Company. These preliminary approaches have now been investigated and considered against the intrinsic valuation of the Company, having regard to its current business activities and management's confidence in the Company's market positioning and the mid to long term prospects.
Consequently, the Board has concluded that pursuing a transaction at this time would not maximise value for shareholders and has therefore discontinued discussions with external parties.
New Director Appointment.
The Company announces that Mr Anthony Eisen has joined the board. Anthony is a chartered accountant and is currently an executive of Guinness Peat Group (LSE:GPG). Prior to joining GPG, Anthony was an investment banker in Australia and the United States, wherein he specialised in the media, technology and telecommunications industries.
Anthony currently represents the interests of the GPG group on the boards of MMC Contrarian Limited, Capral Limited and Tower Limited.
In addition, Mr Michael Jefferies is appointed as an alternate for Mr Eisen. Mr Jefferies is a chartered accountant who has extensive experience in finance and investment. He is currently an executive of Guinness Peat Group, Chairman of TAFMO Limited and a nonexecutive director of MMC Contrarian Limited, Tower Limited, Metals X Limited, Capral Limited and Ozgrowth Limited."
Mr. Ian Buddery, Executive Chairman of eServGlobal, said: "Market conditions have continued to be challenging in the second half of our financial year, however capital expenditure by operators is being delayed, not cancelled and we are confident of the commencement of a recovery during calendar 2009."
"eServGlobal is in the position of having no debt, strong cash reserves and a strong pipeline of organic growth opportunities. The recent selection of Belgacom ICS & eServGlobal's HomeSendtm platform as a preferred Mobile Money Transfer (MMT) platform by the GSM Association, in particular underpins potential significant increases in results in coming years.
In addition, the Company continues to win major new projects, such as the Egypt contract announced recently."
"eServGlobal continues to benefit from subscriber growth in emerging markets, from our rapid technical innovation and from our large customer base. We remain committed to maximising shareholder value and we are confident of the Company's prospects in the coming years."
Contact
Ian Buddery
Executive Chairman
eServGlobal Limited
Numis Securities Limited
Brent Nabbs (NOMAD) / David Poutney (Broking)
Tel: +44-0-20-7260-1000
ICIS (financial PR)
Christian Taylor-Wilkinson / Bob Huxford
Tel: +44-0-20-7651-8688
eServGlobal Limited
Sally Bennett, Communications Manager
sally.bennett@eservglobal.com
T: +33-1-46-12-77-46
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