ESG posted revenue of €3.6m ($5.6m) for the six months ending June 2018. Orders received exceeded forecasts at €7.7m ($12.0m).
While €1.2M of new orders has been recognised in 1H18, the remaining €6.5M will be recognised in subsequent periods. Gross margin improved significantly, with a of €1.0m ($1.6m) profit vs a €0.9m ($1.4m) loss in the prior year. The sharp narrowing of EBITDA loss from €4.1m ($5.9m) after adjusting for LFL basis underscores the gains in cost control achieved.
The strong order book in 1H and strong pipeline in 2H, along with the successful cost control performance, places the company in a position to achieve EBITDA break even in the current year. Operating costs are expected to be between €11.0 and €11.5m.
John Conoley, eServGlobal Executive Chairman, commented: “The Board is pleased to see indications of success coming through, particularly when compared to the same period last year. The continued focus on the cost base and further targeted sales strategy indicate a return to growth in 2018 and beyond.”