eServGlobal

LN: ESG

£87.2m market cap

7.2p last close

eServGlobal develops mobile software solutions to support mobile financial services, with a focus on emerging markets. It also has a 35.7% share in the HomeSend cross-border payments hub, alongside Mastercard and BICS.

Investment summary

eServGlobal has announced that due to order slippage in the core business, it does not expect to reach operational break-even in FY18, with revenues expected of €7-7.5m versus a break-even cost base of €11-11.5m. We have reduced our forecasts to reflect the revised revenue outlook and increased EBITDA loss. We estimate that eServGlobal’s cash balance is more than enough to cover core business working capital requirements as well as expected investment in HomeSend capital raises.

Y/E Dec
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2016A 21.6 (7.0) (17.5) (3.88) N/A N/A
2017A 12.2 (15.2) (27.5) (4.17) N/A N/A
2018E 11.3 (6.2) (14.0) (1.57) N/A N/A
2019E N/A N/A N/A N/A N/A N/A
Last updated on 21/02/2019
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. Use of the HomeSend platform means that banks can bypass their correspondent banking relationships, reducing the cost and increasing the efficiency of cross-border payments.

Last updated on 21/02/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (A$m) 29
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 34.6 23.1 (25.8)
Relative* 31.0 20.8 (24.3)
52-week high/low 10.1p/4.6p
*% relative to local index
Key management
Andrew Hayward CFO
John Conoley Executive Chairman and Member of Audit Commit

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