reports
- Katherine Thompson
eServGlobal - Break-even target reiterated
eServGlobal’s H118 results confirm it has reduced its cost base further and is still targeting EBITDA break-even for FY18. It also noted it is having conversations with interested parties relating to the disposal of its core business. This would leave the company holding its 35.7% stake in the HomeSend joint venture, which we estimate makes up most of the current valuation.
- Katherine Thompson
eServGlobal - FY18 core business outlook maintained
eServGlobal released a positive H118 trading update indicating that core business orders were ahead of internal forecasts and reiterated its target of achieving EBITDA break-even for the full year. With H1 revenue guidance of €3.6m/A$5.7m, the majority of these bookings will be recognised in H2, indicating a heavy H2 weighting for the year (c 70%). HomeSend continues to expand rapidly (59% top-line growth), and remains the key value driver for the stock. We leave our forecasts unchanged at thi...
- Katherine Thompson
eServGlobal - Banking on HomeSend
eServGlobal enters FY18 with a reduced cost base and a fully funded balance sheet; we are forecasting the core business to be close to EBITDA break-even in FY18. With access to Mastercard’s sales force and financial institution customer base, HomeSend has signed up a number of banks to use its cross-border payment platform. As these banks shift volumes onto the platform, this should drive strong growth in volumes and move the joint venture towards profitability.
- Katherine Thompson
- Material progress for HomeSend
eServGlobal has been on a long journey to restructure its core business; we believe it is now nearing the end of this process. The cost base has been resized to match the revenue base case and the recent fund-raising has removed funding concerns. Its HomeSend joint venture has expanded its addressable market to serve the cross-border banking payments market, with joint venture partner Mastercard signing up 10 banks to use the service so far. This has the potential to add material revenues and gr...
- Katherine Thompson
Restructuring ongoing
Slower than expected trading combined with continued restructuring of the business in H117 has resulted in a reduction in our forecasts for FY17. Management is confident that the pipeline has strengthened and should support a pick-up in revenues in H217. The HomeSend joint venture (JV) has extended its application to the cross-border bank payments market, which should support its target to break even in CY17 and drive growth in the value of the JV.
- Katherine Thompson
Core business restructuring starts to pay off
eServGlobal reported FY16 results in line with its recent trading update. The turnaround in the core business is evident with H216 revenues 58% higher than in H116 and adjusted EBITDA losses significantly reducing over H216. Continued contract momentum combined with good cost control puts the company on track to generate positive EBITDA for FY17. At the same time, the HomeSend joint venture expects to see revenue contributions from new partners coming on line and continues to target break-even i...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
- Katherine Thompson
Encouraging FY17 order outlook despite FY16 revenue shortfall
eServGlobal has confirmed that revenues for FY16 fell below its guidance range and, despite a material reduction in costs, EBITDA profitability was not achieved. However, recent order intake and the prospect of winning several material contracts that are currently in negotiation provide a more positive outlook for FY17. Management also confirmed that HomeSend continues to make progress and is on track to break-even in 2017.
Insider bought/subscribed to: Two Directors bought/subscribed to 1,445...
Two Directors at eServGlobal Limited bought/subscribed to 1,445,760 shares at between 2.00p and 5.4p. The significance rating of the trade was 58/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's d...
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