31st Aug 2018 11:30
LONDON (Alliance News) - eServGlobal Ltd said Friday it was "encouraged" by its interim results with it reporting a considerably narrowed interim loss despite a fall in revenue.
The Australian financial services provider posted a pretax loss of AUD6.6 million in the six months ended June - about GBP3.7 million - down from AUD14.3 million the year before.
Revenue decreased 5.1% to AUD5.6 million from AUD5.9 million the previous year. Cost of sales decreased to AUD4.0 million from AUD7.2 million.
eServGlobal said its costs are "now under control". The company's decreased administration expenses and reduced costs were the main driver for the narrowed loss.
Administration expenses decreased to AUD1.6 million in the half from AUD6.8 million the year before.
eServGlobal 's earnings before interest, tax, depreciation and amortisation narrowed to AUD1.6 million from AUD5.9 million - which the company explained as "further evidence of the cost control".
eServGlobal also attributed higher than expected orders in the previous period, totalling AUD12.0 million, as supporting its "encouraging" results.
The financial services company said only AUD1.9 million of this went towards revenue in the period - with the remaining to be recognised in subsequent periods.
eServGlobal did not declare an interim dividend, the same as in the first half of 2017.
Executive Chairman John Conoley said: "As we said in the trading update earlier in August, the board remains encouraged by the interim results announced today that clearly suggest the fortunes of the core business have turned a corner. The board is pleased to see indications of success coming through, particularly when compared to the same period last year. The continued focus on the cost base and further targeted sales strategy indicate a return to growth in 2018 and beyond."
Shares in eServGlobal were up 0.1% Friday at 7.90 pence each.
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