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): 100
Equiv. Shares (M): 249

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.380 $ 0.400 $ 0.400 $ 0.380 $ 0.400 43,753 $ -0.020  -5.000 %

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 (ESV) is a global telecom software vendor specialising in mobile money solutions and value-added services (VAS) for mobile service providers. The company has an investment in product development, aligning with the requirements of more than 80 customers in over 55 countries. The company has two main divisions namely value added services and mobile money services.

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 Oct NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2012  A -15.5 -7.9 -139.9 0.0 0.0 0.0 --
2011  A 39.0 19.8 -- 3.2 29.0 45.2 68.3
2010  A -32.4 -16.5 -- 0.0 0.0 0.0 --
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F
Eservglobal (ESV) $100 M -- -- -- -- -- -- 0.0000 -- --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ESV -- -- 5.26 -- 2.80
Market 0.82 14.6 1.24 1.87 1.73
Sector 0.86 16.4 2.13 1.83 1.26

Directors
Name Position Start Date
Mr Paolo Montessori Chief Executive Officer,Managing Director 30 April 2013
Mr Steve Blundell Chief Financial Officer 30 April 2013
Mr Craig Halliday Managing Director 18 January 2011
Mr Richard James Mathews Non-Executive Chairman 23 July 2009
Mr Stephen Baldwin Non-Executive Director 25 November 2011
Mr Francois Barrault Non-Executive Director 25 March 2003
Mr John Conoley Non-Executive Director 01 May 2013

Management
Name Position
Tom Rowe Company Secretary
Remi Arame Vice President Sales

Substantial Shareholders
Holding Name
35,153,419 (14.12%) Henderson Global Investors
23,590,002 (9.47%) Halliday LLC and Craig Halliday
11,508,068 (4.62%) Hargreave Hale Limited
28,376,000 (11.39%) Acorn Capital Limited
23,590,002 (9.47%) MHB Holdings Pty Ltd
19,047,619 (7.65%) Investec Asset Management (PTY) Limited
44,104,905 (17.71%) Legal & General Investment Management Ltd

Calendar of Events
Date Event
26 February 2014 Report (Annual)
20 December 2013 Report (Prelim)
28 June 2013 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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