Wameja Di Regulatory News (WJA)

Results

A$ '000

Revenue

Down

>100%

to

$7,017

Profit/(Loss) after tax

Down

>100%

to

(9,258)

Profit/(Loss) after tax attributable to members

Down

>100%

to

(9,304)

The above results are in respect of the four month period to 31 October 2011 compared to the previous corresponding reporting period of twelve months to 30 June 2011

Dividends (distributions)

Amount per security

Franked amount per security

Current period

Interim dividend

Final dividend

Nil ¢

Nil ¢

0%

0%

Previous corresponding period

Interim dividend

Final dividend

Nil ¢

0.12146¢

0%

0.083%

Record date for determining entitlements to the dividend.

-

Brief explanation of the figures above

eServGlobal announced on 22 November 2011 that it had changed its financial year end from 30 June to 31 October. The change of year-end is intended to better align the company's reporting period with the budgeting cycles of its customer base given the shift in customers and operations since the divestiture of the USP business and assets to Oracle Corporation.

The consolidated entity achieved sales revenue for the four month period of $7.0M (year to 30 June 2011 $42.8M). The four month period from 1 July to 31 October is traditionally a slow period for eServGlobal, incorporating Ramadan and the Northern hemisphere summer.

The EBITDA loss was $6.2M (year to 30 June 2011 EBITDA profit $52.2M). The net result of the consolidated entity for the four months to 31 October 2011 was a loss after tax and minority interest for the period of $9.3M (year to 30 June 2011 profit after tax and minority interest $39.2M). Loss per share was 4.7 cents (year to 30 June 2011: profit per share: 19.8 cents).

The operating cash flow for the period was a net outflow of $8.8M. Total cash flow for the period was a net outflow of $50.6M as a result of a dividend and capital distribution to shareholders in August 2011 ($57.1M). Cash at 31 October 2011 was $10.1M.

Subsequent Events

On 30 July 2011 eServGlobal received notification from Oracle claiming that it had or anticipated incurring losses in connection with three alleged joint customer billing issues and was entitled to be indemnified by eServGlobal pursuant to the transaction agreements in connection with these losses. Oracle had claimed against the escrow fund in connection with these losses for the amount of $11.5 million.

The claim on the escrow amount was resolved in November 2011. In accordance with the resolution, Oracle released the full $11.5M escrow amount to eServGlobal and eServGlobal paid for services delivered by Oracle.

Note

4 months ended

31 Oct 2011

$'000

12 months ended

30 Jun 2011

$'000

Revenue

7,017

42,808

Cost of sales

(4,234)

(19,452)

Gross profit

2,783

23,356

Gain on disposal of business

6 (c)

-

69,340

Interest income

769

3,975

Research and development expenses

(547)

(5,311)

Sales and marketing expenses

(2,782)

(8,755)

Administration expenses

(6,409)

(30,432)

(6,186)

52,173

Amortisation expense

(1,581)

(5,493)

Depreciation expense

(326)

(1,377)

(8,093)

45,303

Finance costs

(605)

(162)

(Loss)/Profit before tax

(8,698)

45,141

Income tax expense

(560)

(5,982)

(Loss)/Profit for the period

(9,258)

39,159

Other comprehensive (loss) income

Exchange differences arising on the translation of foreign operations

146

(1,070)

Total comprehensive (loss)/income for the period

(9,112)

38,089

(Loss)/Profit attributable to:

Equity holders of the parent

(9,304)

39,011

Non controlling interest

46

148

(9,258)

39,159

Total comprehensive (loss)/income attributable to:

Equity holders of the parent

(9,158)

37,952

Non controlling interest

46

137

(9,112)

38,089

(Loss)/Earnings per share:

Basic (cents per share)

(4.7)

19.8

Diluted (cents per share)

(4.7)

19.8

Note

31 Oct 2011

$'000

30 Jun 2011

$'000

Current Assets

Cash and cash equivalents

10,129

60,820

Trade and other receivables

40,425

33,722

Inventories

170

279

Current tax assets

90

90

Total Current Assets

50,814

94,911

Non-Current Assets

Property, plant and equipment

1,541

1,841

Deferred tax assets

5,359

4,937

Goodwill

6,382

6,499

Other receivables

-

12,208

Other intangible assets

6,808

8,012

Total Non-Current Assets

20,090

33,497

Total Assets

70,904

128,408

Current Liabilities

Trade and other payables

15,247

16,195

Borrowings

14,000

-

Current tax payables

6,904

6,741

Provisions (employee benefits)

2,515

7,024

Other (Deferred revenue)

2,190

2,122

Total Current Liabilities

40,856

32,082

Non-Current Liabilities

Deferred tax liabilities

790

1,068

Provisions (employee benefits)

385

448

Total Non-Current Liabilities

1,175

1,516

Total Liabilities

42,031

33,598

Net Assets

28,873

94,810

Equity

Issued capital

5

90,770

123,946

Reserves

5

(1,983)

(2,390)

Accumulated Losses

(59,984)

(26,770)

Parent entity interest

28,803

94,786

Non controlling interest

70

24

Total Equity

28,873

94,810

Issued Capital $'000

Foreign Currency Translation Reserve

$'000

Employee equity-settled benefits Reserve

$'000

 Accumu-lated Losses $'000

Attributable to owners of the parent

$'000

Non controlling Interest

$'000

Total $'000

Balance at 1 July 2011

123,946

(3,522)

1,132

(26,770)

94,786

24

94,810

(Loss)/Profit for the period

-

-

-

(9,304)

(9,304)

46

(9,258)

Exchange differences arising on translation of foreign operations

-

146

-

-

146

-

146

Total comprehensive (loss)/income for the period

-

146

-

(9,304)

(9,158)

46

(9,112)

Capital distribution

(33,176)

-

-

-

(33,176)

-

(33,176)

Payment of dividends

-

-

-

(23,910)

(23,910)

-

(23,910)

Equity settled payments

-

-

261

-

261

-

261

Balance at 31 October 2011

90,770

(3,376)

1,393

(59,984)

28,803

70

28,873

Balance at 1 July 2010

123,946

(2,463)

897

(65,781)

56,599

165

56,764

Profit/(Loss) for the period

-

-

-

39,011

39,011

148

39,159

Exchange differences arising on translation of foreign operations

-

(1,059)

-

-

(1,059)

(11)

(1,070)

Total comprehensive income for the period

-

(1,059)

-

39,011

37,952

137

38,089

Distribution to non-controlling interest

-

-

-

-

-

(278)

(278)

Equity settled payments

-

-

235

-

235

-

235

Balance at 30 June 2011

123,946

(3,522)

1,132

(26,770)

94,786

24

94,810

4 months ended

31 Oct 2011

$'000

12 months ended

30 Jun 2011

$'000

Receipts from customers

11,007

49,739

Payments to suppliers and employees

(19,067)

(60,164)

Interest and other finance cost paid

(331)

(162)

Income tax (paid)/refunded

(448)

1,022

Net cash used in operating activities

(8,839)

(9,565)

Cash Flows From Investing Activities

Proceeds from disposal of assets, net of transaction cost

-

73,335

Interest received

1,817

2,947

Payment for property, plant and equipment

(29)

(580)

Software development costs

(500)

(1,364)

Net cash provided by (used in) investing activities

1,288

74,338

Cash Flows From Financing Activities

Dividends paid

(23,910)

(278)

Capital distribution

(33,176)

-

Proceeds from borrowings

14,000

-

Net cash (used in) financing activities

(43,086)

(278)

Net (decrease)/increase In Cash and Cash Equivalents

(50,637)

64,495

Cash At The Beginning Of The Period

60,820

(3,569)

Effects of exchange rate changes on the balance of cash held in foreign currencies

(54)

(106)

Cash and Cash Equivalents At The End Of The Period

10,129

60,820

6.1 Notes to the consolidated statement of cash flows

31 Oct 2011$'000

30 Jun 2011$'000

a) Reconciliation of cash

Cash and cash equivalents

10,129

60,820

4 months ended

31 Oct 2011

$'000

12 months ended

30 Jun 2011

$'000

b) Reconciliation of (loss) profit for the period to net cash flows from operating activities

(Loss)/Profit for the period

(9,258)

39,159

Interest received

(1,816)

(3,975)

Depreciation of non-current assets

326

1,377

Amortisation of non-current assets

1,581

5,493

Loss/(profit) on disposal of non-current assets

31

533

Equity settled share-based payments

261

235

Gain on disposal of business

-

(69,340)

Increase/(decrease) in current income tax balances

163

11,013

Increase/(decrease) in deferred tax balances

(701)

(6,045)

Changes in net assets and liabilities, net of effects from acquisition of businesses:

- (Increase)/decrease in assets:

- Receivables

5,505

8,889

- Inventories

109

574

Increase/(decrease) in liabilities:

- Trade and other payables

(537)

2,791

- Provisions

(4,571)

2,914

- Other liabilities

68

(3,183)

(8,839)

(9,565)

4 months ended

31 Oct 2011

$'000

12 months ended

30 Jun 2011

$'000

c) Gain on disposal of business

Consideration received (i)

-

103,055

Net assets disposed

-

(27,620)

Disposal related costs

-

(6,095)

-

69,340

(i) Consideration received

Cash consideration received

-

79,439

Deferred sales proceeds

-

23,616

Total consideration received

-

103,055

31 October 2011

30 June 2011

Net tangible assets per security

8.0 cents

40.8 cents

Amount

Amount per security

Franked amount per security at 30% tax

Amount per security of foreign source dividend

Date paid/ payable

Interim dividend: Current year

Nil

N/A

N/A

N/A

N/A

Previous year

Nil

N/A

N/A

N/A

N/A

Final dividend: Current year

Nil

N/A

N/A

N/A

N/A

Previous year

$23.9m

0.12146c

0.083c

N/A

23 Aug 2011

Name of entity

Percentage of ownership interest held at end of period

Aggregate share of net profit (loss) contributed to the reporting entity

Current

period

Previous corresponding period

Current period

$A'000

Previous corresponding period

$A'000

Total

N/A

N/A

N/A

N/A