eServGlobal Half Yearly Report

eServGlobal Limited (eServGlobal or the "Company")

H1 FY2014 Interim Results

Core business EBITDA profitable

Revenue increase of 24%

EBITDA of A$34.3m, increase of >100%

HomeSend joint venture launched with MasterCard

Paris: 30 June 2014

eServGlobal (AIM:ESG & ASX:ESV), the provider of end-to-end mobile financial services to emerging markets, is pleased to announce results for the six month period ended 30 April 2014 ("H1 FY2014").

Financial Highlights

· H1 FY2014 revenue increased by 24% to A$16.9m (£9.3m1) (H1 FY2013: A$13.6m)

o Solid recurring revenue (45% of total revenue)

o No over reliance on any particular Group or geography

· H1 FY2014 EBITDA reported profit of A$34.3m (£19.0m)

o Core business adjusted EBITDA2 of A$0.9m (£0.5m) showing a significant improvement over H1 FY2013 (loss of A$0.7m)

o Gain on sale of HomeSend business and assets of A$33.9m (£18.7m)

· Total costs in H1 FY2014 of A$16.0m, approximately 6% lower year-on-year in Euro terms

· Profit per share was 8.2 cents (A$) (H1 FY2013: loss per share of 1.1 cents)

· Healthy cash balance of A$11.6m reflecting receipt of proceeds of A$8.2m following the closure of the HomeSend Joint Venture with MasterCard and BICS (the "HomeSend JV") and the issuance of 4,500,000 new ordinary shares raising a total of A$3.4m net of expenses.

Operational Highlights

· Strong organic growth in the core business driven by both new customer wins and expansions within existing customers. Core business solutions now in more than 65 customer sites in over 50 countries.

o Customer footprint includes presence in four Tier-1 operator groups (Zain, Orange, Ooredoo and Vodafone), reducing customer concentration and providing geographic diversification.

o Continued progress within the Zain Group following the framework announcement in 2013.

o New project won with financial institution in West Africa for end-to-end mobile money solution.

o New projects announced in Nepal, Bangladesh and Armenia.

· The HomeSend gobal payment hub joint venture with MasterCard and BICS successfully closed on 3 April 2014, taking the international money transfer platform to its next level of worldwide expansion.

· MoneyGram signed a global agreement with HomeSend for international mobile money transfer.

Current trading and outlook

· Following a number of project wins in FY2013 and H1 FY2014, the Company has a strong pipeline of work with new and existing cutomers, both traditional mobile operators and non-traditional financial institutions, which is expected to convert to revenues in H2 FY2014 and FY2015.

· Revenue backlog of A$4.8m (H1 2013: A$2.5m).

Paolo Montessori, Chief Executive Officer and Managing Director, commented:

"Today's results demonstrate that eServGlobal is a market leader. Our core business is profitable, has a strong pipeline of work and a substantial base of customers worldwide.

"Our technology addresses a clear and current problem, the lack of access to bank accounts for a vast section of the global population. Through our domestic mobile financial services solution, we are working with operators and financial service providers across the globe to bring safe, convenient and cost-effective financial offerings to their users in emerging markets.

"The creation of the HomeSend JV is a significant milestone for eServGlobal, for the HomeSend solution and for the global payments space. Through our participation in the JV, we will play another key role in the shift to digital financial services by providing an open, neutral international money transfer hub.

"The success that we have achieved in H1 FY2014 will ensure the Company is well positioned to continue to lead in this exciting market. "

For further information, please contact:

Introduction

eServGlobal is a leading technology provider, built on innovative solutions which anticipate the needs of a rapidly growing mobile financial services market. The Company is underpinned by a strong balance sheet, ongoing revenue growth and EBITDA profitability.

The first six months of the 2014 financial year saw eServGlobal consolidate its position as a leader in the dynamic and expanding mobile money space. The core business is profitable, has a strong, visible recurring revenue stream (45% of total revenue), an established and growing customer base and a suite of products which are ideally suited to meet the needs of a growing market segment.

The HomeSend JV with MasterCard and BICS was successfully closed on 3 April 2014 and the global payment hub business is now operating independently with the support of all JV partners.

The Company's H1 FY2014 revenues have increased by 24% yoy to A$16.9m (H1 FY2013 A$13.6m), resulting in EBITDA of A$34.3m (£19.0m). A gain on sale of the HomeSend business contributed A$33.4m (£18.7m) to H1 FY2014 EBITDA.  The core business recorded an EBITDA profit of A$0.9m (£0.5m), showing a significant improvement over H1 FY2013 (loss of A$0.7m).

These results demonstrate that the ongoing efforts to build a strong, sustainable business have now come to fruition. eServGlobal is well positioned as a leader in the mobile financial services domain, supported by a suite of sophisticated mobile payments solutions, a solid customer base and a network of blue-chip partners such as MasterCard and Wincor-Nixdorf.

Operational review

eServGlobal core business: domestic mobile money services

eServGlobal's core business consists of an end-to-end suite of mobile money and mobile financial services for emerging markets. In countries where traditional financial services are unable to reach substantial sections of the population, the ubiquity of the mobile phone is enabling the creation of new financial ecosystems.

The global mobile payments space is diverse and evolving. While in developed economies, mobile payment initiatives are competing to find a way to add value to the existing financial infrastructure, in emerging markets there exists a real opportunity, a problem which is in need of a solution. eServGlobal sets itself apart from other players in that it addresses a demand which exists today.

In H1 FY2014, eServGlobal has announced projects in Nepal, Bangladesh and Armenia (the relevant media releases are available on the corporate website). The Company has also won a deal with a financial institution in West Africa which consists of an end-to-end mobile money solution. The financial institution already has a banking licence for the country and wants to launch a fully featured mobile wallet solution including P2P transfers, government disbursements, payments at merchant terminals, companion cards and international money transfers. The service provider was referred to eServGlobal by HomeSend, demonstrating the continuing benefits that HomeSend brings to the core business. The project is expected to launch later in 2014.

Folllowing the new wins throughout FY2013 and already in the new financial year, we have a healthy pipeline of ongoing work within the core business, both with the roll-out of solutions for new customers, upgrades and expansions for existing customers and ongoing support services. We have a solid track record of working with our customers for many years. Our solutions are sticky and our customers regularly need to expand their product offering as their end-users demand additional features, as well as expand the size of their licence as their subscriber base grows. This typical customer cycle allows for a good level of visible recurring revenue within our business (H1 FY2014 - 45% of total revenue).

International remittance: the HomeSend JV

HomeSend is a disruptive mobile to mobile multilateral remittance hub, covering more than 1 billion potential users around the world. HomeSend is now a joint venture of MasterCard, eServGlobal and BICS. The HomeSend Joint Venture creates one of the most comprehensive offerings in the market, and will be an important step in the journey to extending cost-effective and easy-to-use financial services to people worldwide.

By connecting the worldwide community of telecom partners and MTOs to the more than 24,000 financial institutions on the MasterCard network, the HomeSend JV will provide consumers new options and flexibility for sending or receiving funds and enable cross border remittance payments worldwide. HomeSend will enable consumers to send money to and from mobile money accounts, payment cards, bank account or cash outlets - regardless of their location or that of the recipient.

· On 27 March 2014, the Company announced that MoneyGram had joined the HomeSend Hub (the "Hub"). This global agreement means that MoneyGram users in more than 200 countries will be able to remit funds to the mobile accounts of Hub members across the globe. This significant announcement further strengthens the considerable reach of the Hub and demonstrates that traditional MTOs (Money Transfer Organisatons) recognise the value of being able to utilise HomeSend to complete the 'last mile' and directly connect to mobile wallets in emerging markets.

· On 3 April 2014, the HomeSend JV was closed. MasterCard payment solutions expert, Stephen Doyle, was announced as CEO. The 6-person Board consists of high level executives from MasterCard, eServGlobal and BICS. eServGlobal is represented on the Board by eServGlobal CEO and Managing Director, Paolo Montessori and CFO, Stephen Blundell.

· As HomeSend moves into the next phase of global expansion we are seeing continued increases in marketing efforts by Hub members to their end-users. Xpress Money launched a campaign in June to encourage transfers from the UK and UAE to mPesa, Kenya. Similarly in Australia, mHITs Remit is promoting its service for mobile remittance to GLOBE GCASH and SMART Money in the Philippines, MTN Mobile Money in Ghana, mPesa in Kenya and Telesom Zaad in Somaliland.

· Looking forward, HomeSend aims to be the largest processor of digital remittances to mobile money globally by 2018.

· HomeSend will be seamlessly integrated with the MasterCard network, including MoneySend, allowing a consumer to send or receive via card to and from any HomeSend customer end point.

· Increased Hub participation and driving volume are two key focus areas - top performing mobile money deployments will be prioritized to drive Hub participation

Market review

The growth of domestic mobile money in emerging markets:

· Juniper Research is predicting a surge in mobile wallets to 1.5 billion by 2018, meaning 1 in 5 handsets will have mobile wallet functionality (up from 1 in 10 at the end of 2013). The report highlighted that in emerging markets, mobile wallets are enabling first time financial access for unbanked individuals, anticipating strong growth in deployments in coming years.3

· There are now over 200 million registered mobile money accounts in emerging markets worldwide4, however there remains 2.5 billion working-age adults globally (more than half of the total adult population) who have no access to formal financial services.

· The mobile phone remains the obvious method for reaching unbanked people due to its ubiquity, even in emerging economies. The GSMA reports that there are 3.2 billion unique mobile subscribers worldwide.

· The GSMA reports that 70% of existing mobile money service providers are planning to increase their investments in mobile money in 20145.

· In Sub-saharan Africa there are more than twice as many registered mobile money users, than Facebook users6.

The growth in the international remittance market:

· Growth in remittance flows to developing countries, through official channels, is expected to accelerate to an annual average of 8.4% over the next three years, reaching US$436 billion in 2014 and US$516 billion in 2016.7

· Remittance flows through unofficial channels are estimated to be as high as a further 40% of the total market.

· Predicted market growth is attracting additional players to an already fragemented market, interoperability will be crucial.

· Approx 85% of transfers are cash based, in part contributing to the still high retail costs of remittance services.8

· The G8 and the G20 have identified reducing the price of remittances to 5% as a global target, supported by the World Bank Global Remittances Working Group (the "GRWG"). The World Bank states, "Remittances remain a key source of external resource flows for developing countries, far exceeding official development assistance and more stable than private debt and portfolio equity flows."9

· Nearly 1 out of 7 people worldwide is either an international or internal migrant.

Product development

In their State of the Industry Report, the GSMA MMU (Mobile Money for the Unbanked) highlighted two key areas for the product growth of mobile money in emerging markets:

· Mobile Microfinance: Facilitating microfinance through the mobile phone is being seen as the future of financial inclusion and a key area for the growth of mobile money in emerging markets. Our flagship mobile money platform, PayMobile, embeds advanced microfinance capabilities such as micro insurance, micro savings and micro loans to provide a complete solution in this area.

· Interoperablity: There are now at least 52 markets in which two or more mobile money deployments are in operation. Interoperability has been highlighted as a critical step-chenge in the evolution of mobile money and a way of increasing the number of active users. HomeSend is ideally positioned to serve the interoperability needs of mobile money deployments worldwide. The move towards interoperability is now supported by the GSMA through their MMI initiative.10

Through continued investment in product development, eServGlobal has the capability to service these growing markets and capitalise on the opportunities presented.

Financial review

The consolidated entity achieved sales revenue for the period of A$16.937 million (2013: A$13.621 million) - an increase of 24.3% due to new customer wins and existing customers extending their mobile money and Value Added Services footprint. The gross profit realised was A$10.527 million (gross profit margin: 62%) (2013: A$8.349 million (gross profit margin: 61%)). EBITDA for the period was a profit of A$34.349 million (2013: EBITDA loss A$0.327 million).

The net result of the consolidated entity for the half year ended 30 April 2014 was a profit after tax and minority interest for the period of A$20.548 million (2013: A$2.539 million loss). Profit per share was 8.2 cents (2013: loss per share 1.1 cents).

During the period, there was a net cash inflow of A$6.530 million primarily resulting from the receipt of proceeds of $8.241 million following the closure on 3 April 2014 of the HomeSend joint venture with MasterCard and BICS and the issuance of 4,500,000 new ordinary shares at A$0.75 generating net cash receipts of A$3.365 million, offset by a net outflow from operations of A$4.035 million. Cash at 30 April 2014 was A$11.570 million.

Outlook

The Board is pleased to report that the pipeline remains strong and the Company is on solid footing for FY2014. The Board is pleased with revenue growth from H1 FY2013 to H1 FY2014 and that the core business is EBITDA profitable. Given our market leading technology, robust financials and strong customer base, we are confident that we are well positioned to continue to benefit from the growth of the mobile money industry in emerging markets.

The close of the HomeSend JV towards the end of H1 FY2014 was a significant milestone for eServGlobal, HomeSend and the wider global remittance market. We are confident that, with the full support of MasterCard, the HomeSend JV is well positioned to dominate the shift to digital in the remittance space.

About eServGlobal

eServGlobal (AIM:ESG, ASX:ESV) offers mobile money solutions which put feature-rich services at the fingertips of users worldwide, covering the full spectrum of mobile financial services, mobile wallet, mobile commerce, recharge, promotions and agent management features. eServGlobal invests heavily in product development, using carrier-grade, next-generation technology and aligning with the requirements of more than 65 customers in over 50 countries.

Together with MasterCard and BICS, eServGlobal is a joint venture partner of the HomeSend global payment hub, a market leading solution based on eServGlobal technology and enabling cross-border money transfer between mobile money accounts, payment cards, bank accounts or cash outlets from anywhere in the world regardless of the users location.

eServGlobal also builds on its extensive experience in the telco domain to offer a comprehensive suite of sophisticated, revenue generating Value-Added Services to engage subscribers in a dynamic manner.

eServGlobal has been a source of innovative solutions for mobile and financial service providers for 30 years.

To view the full PDF of this announcement including the Independent Auditors Declaration please go to www.eservglobal.com

Appendix 4D

eServGlobal Limited

ABN 59 052 947 743

Half-year report and appendix 4D

for the half-year ended 30 April 2014

The half-year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the 31 October 2013 financial report.

Half-year report and appendix 4D

for the half year ended

30 April 2014

Contents

Results for announcement to the market 1

Directors' Report 2

Auditor's Independence Declaration 4

Independent Review Report 5

Directors' Declaration 7

Condensed consolidated Statement of Profit or Loss and Other Comprehensive Income 8

Condensed consolidated Statement of Financial Position 9

Condensed consolidated Statement of Changes in Equity 10

Condensed consolidated Statement of Cash Flows 11

Notes to the condensed consolidated Financial Statements 12

Results for announcement to the market

Directors' report

The directors of eServGlobal Limited (the Company) submit herewith the financial report of eServGlobal Limited and its controlled entities (the Group) for the half-year ended 30 April 2014. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names of the directors of the company during or since the end of the half year are:

Stephen Baldwin Acting Chairman (since 3 March 2014) and Non-executive Director

Paolo Montessori Chief Executive Officer & Director

Stephen Blundell Chief Finance Officer & Director

François Barrault Non-executive Director

John Conoley Non-executive Director

Thomas Rowe Non-executive Director (appointed 3 March 2014)

Richard Mathews Non-executive Chairman (resigned 3 March 2014)

Craig Halliday Non-executive Director (resigned 30 December 2013)

Review of Operations

This report is to be read in conjunction with other reports issued contemporaneously.

eServGlobal Limited is a public company listed on the Australian Securities Exchange (ASX:ESV) and the London Stock Exchange (AIM) (LSE:ESG). The eServGlobal group has operations worldwide.

eServGlobal offers mobile money solutions which put feature-rich services at the fingertips of users worldwide, covering the full spectrum of mobile financial services, mobile wallet, mobile commerce, recharge, promotions and agent management features. eServGlobal invests heavily in product development, using carrier-grade, next-generation technology and aligning with the requirements of more than 65 customers in over 50 countries.

eServGlobal also builds on its extensive experience in the telco domain to offer a comprehensive suite of sophisticated, revenue generating Value-Added Services to engage subscribers in a dynamic manner.

eServGlobal closed on 3 April 2014 a joint venture with MasterCard and BICS to take the HomeSend global payment hub into its next phase of expansion. The joint venture will enable cross-border remittances and domestic person-to-person transfers between mobile money accounts, payment cards, bank accounts or cash outlets from anywhere in the world regardless of the users location. MasterCard will have a majority share of the joint venture while eServGlobal will hold 35%.

eServGlobal has been a source of innovative solutions for mobile and financial service providers for 30 years.

The consolidated entity achieved sales revenue for the period of $16.937 million (2013: $13.621 million) - an increase of 24.3% due to new customer wins and existing customers extending their mobile money and Value Added Services footprint. The gross profit realised was $10.527 million (gross profit margin: 62%) (2013: $8.349 million (gross profit margin: 61%)). EBITDA for the period was a profit of $34.349 million (2013: EBITDA loss $0.327 million).

The net result of the consolidated entity for the half year ended 30 April 2014 was a profit after tax and minority interest for the period of $20.548 million (2013: $2.539 million loss). Profit per share was 8.2 cents (2013: loss per share 1.1 cents).

During the period, there was a net cash inflow of $6.530 million primarily resulting from the receipt of proceeds of $8.241 million following the closure on 3 April 2014 of the HomeSend joint venture with MasterCard and BICS and the issuance of 4,500,000 new ordinary shares at $0.75 generating net cash receipts of $3.365 million, offset by a net outflow from operations of $4.035 million. Cash at 30 April 2014 was $11.570 million.

Auditor's independence declaration

The auditor's independence declaration is included on page 4 of the half-year financial report.

Rounding off of amounts

The company is a company of the kind referred to in ASIC Class Order 98/100, dated 10 July 1998, and in accordance with that Class Order amounts in the directors' report and the financial report are rounded off to the nearest thousand dollars, unless otherwise indicated.

Signed in accordance with a resolution of the directors, made pursuant to s.306(3) of the Corporations Act 2001.

On behalf of the directors

Stephen Baldwin

Acting Chairman

Sydney, 30 June 2014

Directors' declaration

The directors declare that:

a) in the directors' opinion, there are reasonable grounds to believe the company will be able to pay its debts as and when they become due and payable; and

b) in the directors' opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the directors

Stephen Baldwin

Acting Chairman

Sydney, 30 June 2014

Condensed consolidated statement of profit or loss and other comprehensive income for the half-year ended 30 April 2014

Notes to the Financial Statements are included on pages 12 to 19

Condensed consolidated statement of financial position

as at 30 April 2014

Notes to the Financial Statements are included on pages 12 to 19

Condensed consolidated statement of changes in equity

for the half-year ended 30 April 2014

Notes to the Financial Statements are included on pages 12 to 19Condensed consolidated statement of cash flows

for the half-year ended 30 April 2014

Notes to the Financial Statements are included on pages 12 to 19

Notes to the consolidated financial statements

1. Significant accounting policies

(a) Statement of compliance

The half year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34Interim Financial Reporting. The half year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

(b) Basis of preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The Company is a company of the kind referred to in ASIC Class Order 98/100, dated 10 July 1998, and in accordance with that Class Order amounts in the directors' report and the half year financial report are rounded off to the nearest thousand dollars, unless otherwise indicated.

The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the company's 2013 annual financial report for the financial year ended 31 October 2013, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current reporting period.

New and revised Standards and amendments thereof and Interpretations effective for the current half-year that are relevant to the Group include:

· AASB 10 'Consolidated Financial Statements' and AASB 2011-7 'Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards'

· AASB 11 'Joint Arrangements' and AASB 2011-7 'Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards'

· AASB 12 'Disclosure of Interests in Other Entities' and AASB 2011-7 'Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards'

· AASB 13 'Fair Value Measurement' and AASB 2011-8 'Amendments to Australian Accounting Standards arising from AASB 13'

· AASB 119 'Employee Benefits' (2011) and AASB 2011-10 'Amendments to Australian Accounting Standards arising from AASB 119 (2011)'

· AASB 127 'Separate Financial Statements' (2011) and AASB 2011-7 'Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards'

· AASB 2012-5 'Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle'

· AASB 2012-10 'Amendments to Australian Accounting Standards - Transition Guidance and Other Amendments'

1. Significant accounting policies (continued)

Impact of the application of AASB 10

AASB 10 replaces the parts of AASB 127 'Consolidated and Separate Financial Statements' that deal with consolidated financial statements and Interpretation 112 'Consolidation - Special Purpose Entities'. AASB 10 changes the definition of control such that an investor controls an investee when a) it has power over an investee b) it is exposed, or has rights, to variable returns from its involvement with the investee, and c) has the ability to use its power to affect its returns. All three of these criteria must be met for an investor to have control over an investee. Previously, control was defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Additional guidance has been included in AASB 10 to explain when an investor has control over an investee. Some guidance included in AASB 10 that deals with whether or not an investor that owns less than 50 per cent of the voting rights in an investee has control over the investee is relevant to the Group. The adoption of AASB 10 did not have any impact on the disclosures or on the amounts recognised in the half-year report.

Impact of the application of AASB 11

AASB 11 replaces AASB 131 'Interests in Joint Ventures' and the guidance contained in a related

interpretation, Interpretation 113 'Jointly Controlled Entities - Non-Monetary Contributions by

Venturers', has been incorporated in AASB 128 (as revised in 2011). AASB 11 deals with how a

joint arrangement of which two or more parties have joint control should be classified and

accounted for. Under AASB 11, there are only two types of joint arrangements - joint operations

and joint ventures. The classification of joint arrangements under AASB 11 is determined based

on the rights and obligations of parties to the joint arrangements by considering the structure, the

legal form of the arrangements, the contractual terms agreed by the parties to the arrangement,

and, when relevant, other facts and circumstances. A joint operation is a joint arrangement

whereby the parties that have joint control of the arrangement (i.e. joint operators) have rights to

the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint

arrangement whereby the parties that have joint control of the arrangement (i.e. joint venturers)

have rights to the net assets of the arrangement. Previously, AASB 131 'Interests in Joint

Ventures' contemplated three types of joint arrangements - jointly controlled entities, jointly

controlled operations and jointly controlled assets. The classification of joint arrangements under

AASB 131 was primarily determined based on the legal form of the arrangement (e.g. a joint

arrangement that was established through a separate entity was accounted for as a jointly

controlled entity).

The initial and subsequent accounting of joint ventures and joint operations is different.

Investments in joint ventures are accounted for using the equity method (proportionate

consolidation is no longer allowed). Investments in joint operations are accounted for such that

each joint operator recognises its assets (including its share of any assets jointly held), its

liabilities (including its share of any liabilities incurred jointly), its revenue (including its share of

revenue from the sale of the output by the joint operation) and its expenses (including its share of

any expense incurred jointly). Each joint operation accounts for the assets and, liabilities, as well

as revenue and expenses, relating to its interest in the joint operation in accordance with the

applicable Standards.

The adoption of AASB 11 did not have any impact on the disclosures or on the amounts recognised in the half-year report.

Impact of the application of AASB 12

AASB 12 is a new disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements, associates and/or unconsolidated structured entities. The adoption of AASB 12 did not have any material impact on the disclosures or on the amounts recognised in the half-year report.

1. Significant accounting policies (continued)

Impact of the application of AASB 13

The Group has applied AASB 13 for the first time in the current year. AASB 13 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. The scope of AASB 13 is broad; the fair value measurement requirements of AASB 13 apply to both financial instrument items and non-financial instrument items for which other AASBs require or permit fair value measurements and disclosures about fair value measurements, except for share-based payment transactions that are within the scope of AASB 2 'Share-based Payment', leasing transactions that are within the scope of AASB 117 'Leases', and measurements that have some similarities to fair value but are not fair value (e.g. net realisable value for the purposes of measuring inventories or value in use for impairment assessment purposes).

AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. Fair value under AASB 13 is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. Also, AASB 13 includes extensive disclosure requirements.

AASB 13 requires prospective application from 1 January 2013. In addition, specific transitional provisions were given to entities such that they need not apply the disclosure requirements set out in the Standard in comparative information provided for periods before the initial application of the Standard. In accordance with these transitional provisions, the Group has not made any new disclosures required by AASB 13 for the 2013 comparative period, and the application of AASB 13 has not had any material impact on the amounts recognised in the consolidated financial statements.

Impact of the application of AASB 119

In the current year, the Group has applied AASB 119 (as revised in 2011) 'Employee Benefits' and the related consequential amendments for the first time. The application of AASB 119 has not had any material impact on the amounts recognised in the consolidated financial statements.

Impact of the application of AASB 127, 2012-5 and 2012-10

The Group has applied the above standards and amendments for the first time in the current year. The adoption of these standards and amendments did not have any impact on the disclosures or on the amounts recognised in the half-year report.

The adoption of all the new and revised standards and interpretations has not resulted in any changes to the Group's accounting policies and has no effect on the amounts reported for the current or prior half years.

2. Trade and other receivables

3. Other Current Liabilities

4. Dividends

5. Segment Information

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.

The Group operates in a single segment being the telecommunications software solutions business. Accordingly, all reported information in the financial report relates to this single segment.

6. Issuances, repurchases and repayment of securities

During the current period the company issued a total of 4,500,000 shares (2013: 52,198,291), raising a total of $3.365 million net of expenses (2013: $15.925 million).

The fundraising was by way of a broker managed placement of shares to Australian investors at an issue price of $0.75 per share.

Current borrowings at 30 April 2014 represent a $3 million loan from National Australia Bank which was drawn down in full in June 2013. The bank loan is interest bearing and is secured by way of a fixed and floating charge over the total assets of the Group. The loan facility is due for repayment on 30 June 2014.

8. Issued Capital

9. Reserves

10. Financial Instruments

This note provides information about how the Group determines fair values of various financial assets and financial liabilities.

10.1 Fair value of the Group's financial assets and financial liabilities that are measured at fair value on a recurring basis

The Group does not have any financial assets or financial liabilities that are measured at fair value on a recurring basis.

10.2 Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis (but fair value disclosures are required)

The directors consider that the carrying amounts of the following financial assets and financial liabilities recognised in the consolidated financial statements approximate their fair values:

11. Disposal of HomeSend business

On 19 December 2013 the Group announced the sale of its international mobile money transfer business, HomeSend to a newly formed entity, HomeSend SRCL, which is a joint venture between eServGlobal, MasterCard and BICS.

The transaction was subject to certain conditions precedent and was subsequently completed on 3 April 2014.

The Group recognised an income tax expense of $12.837 million on the disposal of the HomeSend business. The current tax liability in relation to the disposal of business is net of utilisation of deferred tax asset relating to accumulated tax losses of $7.038 million which was recognised during the 31 October 2013 financial year.

12. Investment in associate

Details of the material investment in associate at the end of the reporting period are as follows:

(i) HomeSend SRCL was formed on 3 April 2014. The directors have determined that the Group exercises significant influence over HomeSend SRCL by virtue of its 35% voting power in shareholders meetings and its contractual right to appoint two out of six directors to the board of directors of that company.

The associate is accounted for using the equity method in these condensed consolidated financial statements.

Reconciliation of the carrying amount of the investment in associate:

13. Subsequent events

There has not been any matter or circumstance, other than those referred to in the financial statements or notes thereto, that has arisen since the end of the financial period, that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. 

Other information required to be given to ASX under listing rule 4.2A.3

Dividends