LONDON (Alliance News) - eServGlobal Ltd Friday said it has taken actions to address issues in its business, the benefits of which it hopes to become apparent in its current financial year, as it reported a swing to a significant pretax loss for its most recently ended financial year.
For the year to end-October the company reported a pretax loss of AUD30.2 million, swung from a pretax profit of AUD27.8 million, as a fall in revenue to AUD25.9 million from AUD31.3 million was compounded by higher administrative expenses and exceptional costs.
The mobile financial services company said 2015 had been a poor year for its core business, and that shareholders are "rightly disappointed" by its performance. The concern has been the company's core business, primarily as a result of its cash consumption, but eServGlobal said this business is now improving and it believes it has identified "all the factors that have hindered it."
It has taken steps to reduce its costs and improve its processes around sales execution and cash collection, and now plans for its total overheads in its current financial year to be below AUD14 million, compared to around AUD20 million in the year before.
"A reorganisation of the company's go-to-market strategy of this scale will take time to deliver visible results for our shareholders. We expect to turn the corner on our performance shortly. As we start to evidence that, we will begin to consider the longer term in more detail," eServGlobal said.
Shares in eServGlobal were down 10% at 2.03 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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