LONDON (Alliance News) - eServGlobal Ltd Thursday said it has noted the "significant decline" its its share price since it held its annual general meeting in March, which saw shareholders reject its remuneration report, and reaffirmed that there has been there has been no change to its operations since the meeting.
The provider of mobile financial services in emerging markets noted "the recent significant decline in the price of its securities since the annual general meeting, confirms that there has been no change to the operations of the core business or HomeSend since the annual general meeting."
On March 24, eServGlobal said shareholders had rejected its renumeration report at the meeting, counting 34.1 million proxy votes in favour and nearly 67 million votes against.
Since that meeting, eServGlobal shares have plummeted 36.7% to its current price of 15.5 pence per share. The shares were untraded on Thursday morning.
The rejection by shareholders came after the company's former Chief Executive and Managing Director Paolo Montessori stepped down with immediate effect on March 2, with Chief Operating Officer Stephen Blundell assuming executive responsibility for the company while the board looks for a successor for the CEO role.
eServGlobal is currently interviewing potential candidates to take over Montessori's role.
eServGlobal withdrew another of the proposed resolutions for the AGM, the adoption of an employee share option plan.
In March, eServGlobal said trading in fiscal 2015 has so far met its own expectations, which is to produce revenue and earnings before interest, tax, depreciation and amortisation that's at least in line with fiscal 2014.
eServGlobal reported revenue of AUD31.3 million in the year to October 31, 2014, flat on the AUD31.0 million it reported a year earlier, while Ebitda rose to AUD28.6 million, from AUD7.3 million, thanks to a AUD31.7 million gain on its disposal of its former Homesend business into a joint venture with MasterCard and BICS last April.
However, it also revealed that it could be set to invest a further EUR3.5 million in the HomeSend venture, as the partners look to spend money on marketing, a new data centre and a banking licence.
The emerging markets mobile financial services provider said approval of the growth initiatives could prompt the partners to invest a maximum of EUR10 million later in 2015. MasterCard's 55% stake makes it the majority owner of HomeSend, while eServGlobal owns 35% and BICS holds 10%.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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