eServGlobal drops on full-year revenue warning

eServGlobal's shares dived after it warned on Monday that year-end revenue is now expected to fall below expectations but said that its breakeven point for next year has been reduced.

A statement from the digital transactions technology company said revenue for 2018 is now anticipated to lie between €7-€7.5m and that it expects to enter the new year with recurring and deferred revenue of as high as €7.5m, not including projects under negotiation.

This represents an improvement on the beginning of the current year, which the AIM traded outfit entered with €5.7m of recurring and deferred revenue.

The breakeven point for 2019 has been reduced to approximately €10m, down from between €11m-€11.5m for the current year, due to progress on right-sizing the company’s cost base.

eServGlobal stated that the majority of this will be covered by the execution of its pipeline, which is predominantly focussed on existing customers.

John Conoley, executive chairman of eServGlobal, said: "It is disappointing that some of the orders expected to be closed in December 2018 have slipped into 2019. However, our customers remain committed to eServGlobal and we look forward to updating the market on progress of the business and on its potential sale in 2019."

eServGlobal’s shares were down 16.52 at 4.80p at 1634 GMT.