eServGlobal (ESG)

Business description

eServGlobal develops mobile software solutions to support mobile financial services, with a focus on emerging markets. The company also has a share in the HomeSend international remittances hub, alongside Mastercard and BICS.

Stock data

Market cap.£80.5m
Last close8.88p
High / Low (52 weeks)13.2p / 4.9p
Stock market listingLN, AU
Forecast net cash (A$m)9.7
Forecast gearing ratio (%)N/A

Price performance

Relative *(1.8)(14.5)49.5

* % Relative to local index

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Company news

Y/E Oct Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2015A 25.9 (10.4) (17.7) (5.41) N/A N/A
2016A 21.6 (7.0) (17.5) (3.88) N/A N/A
2017E 12.2 (13.1) (25.0) (3.77) N/A N/A
2018E N/A N/A N/A N/A N/A N/A

Last updated on 19/02/2018

Investment summary

Delays in closing contracts in the core business resulted in a revenue shortfall for eServGlobal in FY17, although some of these have now been signed and will contribute from FY18. Continued efforts to reduce the cost base should reduce the break-even revenue level to c €12.5m/A$19m in FY18, which the company is aiming to achieve through focusing on additional sales to its existing customer base. eServGlobal participated in the recent HomeSend funding round, marginally increasing its stake to 35.7%.

Last updated on 02/03/2018

Industry outlook

eServGlobal's core business is focused on developing markets, where there is a higher prevalence of pre-paid contracts and unbanked citizens. Growth drivers include the shift to using the mobile phone for financial services and the increasing popularity of mobile peer-to-peer payments. The international remittances market was worth $575bn in 2016 and is forecast to grow to $616bn by 2018 (source: World Bank). The HomeSend JV has the potential to reduce the cost of sending money cross-border.

Last updated on 02/03/2018

Key management

Andrew Hayward, CFO
John Conoley, Executive Chairman and Member of Audit Commit

Company address

Suite 5
30 Florence Street
+33 1 4612 58 85
View website