eServGlobal exceeds expectations and targets break even for full-year

Fintech outfit eServGlobal on Thursday reported that orders in the first half of the year had exceeded expectations, standing the company in good stead to reach breakeven for the full-year.

The digital transactions technology provider secured €7.7m of orders in the six months leading to 30 June, with €6.5m of this revenue to be recognised in subsequent periods, and reported a strong pipeline in place for the second half of the year.

First half revenue and revenue expected to be recognised in the second half already represents 67% of the targeted €11.5m needed to break even at the operational EBITDA level.

John Conoley, eServGlobal executive chairman and HomeSend board member, said: "The board is encouraged by the improving fortunes of the core business and by the demonstrable progress in the current financial year."

Meanwhile, The AIM traded company's operating costs have been reduced by the tune of €2.2m from the same six-month period in 2017.

"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. The board is further pleased to see the published accounts of HomeSend demonstrating continued traction," said Conoley.

Homesend, a joint venture payment system between MasterCard, eServGlobal and BICS, has signed a major agreement with one large bank while another agreement is expected in the near future.

For the year ended 31 December, the joint venture reported revenues of €6.7m, 59% growth compared to the year before.

eServGlobal’s shares were up 4.76% at 8.80p at 1412 BST.