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ESERVGLOBAL LIMITED (ESV)

ESERVGLOBAL LIMITED (ESV)

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General Information
Company Name: Eservglobal Limited
Stock Code: ESV
Website: www.eservglobal.com
GICS Sub-Industry: Application Software
Market Cap ($M): 43
Equiv. Shares (M): 197

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.220 $ 0.220 $ 0.220 $ 0.220 $ 0.220 1,734 0%

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 28th May 2010
12 Month Target Price (average): $0
Brokers Surveyed: 1

Company Overview

Business Description:
eServGlobal Limited specialises in Mobile Money solutions and Value-Added Services (VAS), to help Mobile Service Providers increase their revenue and gain and maintain customer ownership. The company invests heavily in product development, using carrier-grade, next-generation technology and aligning with the requirements of more than 75 customers in over 45 countries.

Strategy Analysis:
ESV is focused on long-term initiatives in order to generate more dependable income streams. Customised development has previously had high associated delivery and support costs which will be reduced with the exploitation of the design flexibility and configurability of company platforms. Investment in R&D will grow, as well as the continued expansion into the Middle East, Asia and Latin America. Key success factors of the business will be developed and include; software product sales, geographical expansion via channel partners, strategic account management and improvement in operational efficiency and leverage. Eservglobal reported NPAT of $39.01m for the year ended 30 June 2011. Revenues from ordinary activities were $42.81m, down 45.1% from last year. Basic and Diluted EPS was 19.8 cents compared to (16.5) cents last year. The net operating cash outflow was $9.57m compared to an outflow of $13.04m in the pcp. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2011  A 39.0 19.8 -- 3.2 0.0 0.0 68.3
2010  A -32.4 -16.5 -- 0.0 0.0 0.0 --
2009  A -6.8 -3.9 -143.3 0.0 0.0 0.0 --
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2009 A 2010 F 2011 F 2009 A 2010 F 2011 F 2009 A 2010 F 2011 F
Eservglobal (ESV) $43 M -- -- -- 1.1100 -- -- 0.0000 -- --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ESV -- 1.11 0.46 -- 1.01
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.76 11.6 1.55 1.53 1.00

Directors
Name Position Start Date
Mr Craig Halliday Chief Executive Officer,Managing Director 18 January 2011
Mr Richard James Mathews Non-Executive Chairman 23 July 2009
Mr James (Jamie) Brooke Non-Executive Director 26 July 2010
Mr Stephen Baldwin Non-Executive Director 25 November 2011
Mr David T Smart Non-Executive Director 31 July 2000
Mr Francois Barrault Non-Executive Director 25 March 2003

Management
Name Position
Stephen Blundell Chief Financial Officer
Tom Rowe Company Secretary
Remi Arame Vice President Sales

Substantial Shareholders
Holding Name
36,363,462 (18.47%) Gartmore Investment Limited
22,949,900 (11.06%) Legal & General Investment Management Ltd
38,316,296 (19.46%) Guinness Peat Group plc & its subsidiaries
16,110,592 (8.18%) MHB Holdings Pty Ltd

Calendar of Events
Date Event
25 February 2013 Report (Annual)
29 January 2013 Report (Annual)
28 December 2012 Report (Prelim)
23 October 2012 Report (Annual)
28 August 2012 Report (Prelim)
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