For the half year ended 30 June 2018, ESG received orders worth €7.7m (higher than its forecast); with strong pipeline for H2 2018, it expects to reach FY18 breakeven target. Recognisable revenue for 1H18 is estimated at ~€3.6m and operating cost is expected to be ~€2.2m below H1 2017.
Only €1.2m of the €7.7m in new orders is recognised as revenue in H1 2018. The company estimates H1 revenues (including booked and expected to be booked in H2) at €7.7m, which is ~67% of the targeted €11.5m needed to break even at operational EBITDA level (turnaround of core business is on track). The pipeline for the rest of the year is centred on existing customers. Cash at end of H1 was at €1.8m, after increased spend during the period (the company also received one significant payment in July, taking cash balance to expected level). On the other hand, the company remains satisfied by the prospects for HomeSend in the larger banking market.
John Conoley, Executive Chairman, commented: “The board is pleased to see indications of success coming through and expects to return to growth in 2018 on a continually lowering cost base.”