Statement re FY2010 Trading Update
November 17 2009 - 1:00AM
UK Regulatory
TIDMESG
RNS Number : 6136C
eServGlobal Limited
17 November 2009
eServGlobal: Trading Update
Sydney: 17 November 2009
eServGlobal Limited (ASX: ESV & LSE: ESG) (eSG), a specialised supplier of
large-scale telecoms network software and services to telecoms carriers around
the world, today updates the market on expected outturn for the year ending 30
June 2010. Based on trading so far this year and the board's view on the current
level of orders/demand, the board expects an increased full year EBITDA
(Earnings Before Interest, Taxation, Depreciation and Amortisation and before
exceptional items) result, despite reduced turnover and challenging global
market conditions.
Since its appointment at the commencement of this financial year, the new
management team has conducted a thorough review of the business and is well
advanced in developing the company's strategy and market positioning. The
hallmarks of this strategy relate to a resolute focus on eSG's customers and
their needs, rationalisation and careful management of the company's cost
structure and focused product development to ensure eSG is well positioned to
benefit from a gradual return to past levels of global communication spending,
which is not expected to occur until 2010/2011.
In the course of 2009, management has taken positive action and downsized the
business by more than 100 full time employees. In combination with a significant
reduction in contractors' costs and a continued focus on variable cost
reduction, the company now expects total operational costs for FY2010 of
AUD$103.6m (FY2009: AUD$144.3m), a reduction of AUD$40.7m (28%) from the
previous year.
As a result of this significant reduction in costs, the company expects to
achieve FY2010 EBITDA (before non-recurring restructuring charges) in the range
of AUD$8m to AUD$12m (FY2009: AUD$2.4m).
This operating result is based on achieving turnover of between AUD$110m and
AUD$120m (FY2009: AUD$147.2m). Due to market weakness, revenues for the six
months to 31 December 2009 are expected to be above AUD$40m with the second half
delivering above AUD$70m, demonstrating the returning strength of the business
due to initiatives implemented by the new management team during the current
half year.
Consequently, the company expects a first half FY2010 EBITDA loss (before
non-recurring restructuring charges) of between AUD$7m to AUD$9m (First half
FY2009: EBITDA profit of AUD$7m), while the second half is expected to achieve
positive EBITDA of AUD$17m to AUD$19m (Second half FY2009: EBITDA loss of
AUD$12.3m).
The company expects to incur a restructuring charge of approximately AUD$5m in
FY2010.
The company's Chairman, David Smart said: "The board is very pleased with the
successful restructuring of the business for the current market conditions and
the positive momentum achieved by the new management team in a short period of
time. eServGlobal is very well positioned to meet the challenges of the current
environment and capitalise on opportunities for growth which will be driven by
both continuing subscriber growth and the uptake of new mobile services. "
About eServGlobal
eServGlobal is listed on the Australian Stock Exchange (ASX: ESV) and the London
Stock Exchange AIM market (LSE: ESG). More information can be found at:
www.eservglobal.com
+-------------------------------------------------------------------------------+------+
| eServGlobal Limited Tel: +61 7 3302 0197 | |
| Jason Lilienstein info@eservglobal.com | |
| Company Secretary | |
| | |
+-------------------------------------------------------------------------------+------+
| Altium (AIM) Tel: +44(0)20 7484 4040 | |
| Nominated adviser, Mike Fletcher/Paul | |
| Lines | |
| Corporate Broking, Chloe Ponsonby | |
| | |
+-------------------------------------------------------------------------------+------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFFLSFWSUSEDF
Eservglobal (LSE:ESG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eservglobal (LSE:ESG)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Eservglobal Limited (London Stock Exchange): 0 recent articles
More eServGlobal Limited News Articles