11th Sep 2006 14:25
eServGlobal Limited11 September 2006 eServGlobal annual report 2006 Chairman's Review The 2006 fiscal year has seen the dramatic transformation and success ofeServGlobal. We have moved from a niche supplier of advanced IN (Intelligent Network)technology to a position of leadership in charging and messaging technology. We have grown revenues to $95.463m in FY06, from $38.846m in FY05. We have grown EBITDA to $10.088m, from $4.131m in FY05 (before restatement forA-IFRS). The acquisition of Ferma SA, completed in November 2005, now means that we aredelivering our products and services to over 70 telecoms carriers, with morethan 120 million subscribers utilising those networks. eServGlobal has acustomer reach and a product portfolio that we believe makes us the mostsignificant independent supplier in the global telecommunications softwareindustry. We believe that we will achieve further strong growth in FY07, with steadilyimproving EBITDA margin as the operating efficiencies and synergies from themerger take effect. Our objective is to deliver long-term value growth to shareholders, from abusiness that is better balanced against the impact of localised economiccycles, better equipped with technologies that address current and newgeneration networks and better positioned for the ongoing consolidation of thetelecommunications industry. This consolidation has gathered pace in 2006, we have seen carriers both largeand small divest and acquire for strategic benefit and we have seen majorequipment vendors merging in order to gain efficiencies and market reach. Thisenvironment creates new challenges for all suppliers, but eServGlobal is theonly independent IN supplier with installed customers in all of the world'sfastest growing markets and, we believe, the only supplier with the products anddelivery capability to enable those customers to succeed in the rapidly evolvingtelecommunications environment. Industry consolidation also means that carriers are looking for improved supplychain efficiency and wish to deal with fewer vendors in their networks. Oursuccess in building partner relationships means that we are today an active andstrategic partner to many leading telecommunications equipment and softwarevendors, we are able to leverage these partnerships in the new businessenvironment. We achieved a number of new customer wins in FY06, but perhaps the mostsignificant was our success in the United Arab Emirates. Apart from being oneof our largest contracts to date, this will also be one of the most advancednetworks in the world, eventually delivering fixed and mobile voice, broadbanddata, and IPTV. The eServGlobal convergent charging solution combines productsfrom both sides of the pre-merger catalogue and illustrates the capabilities andopportunities that we now have. Our presence on the London Stock Exchange AIM market has continued to grow, withover 40% of our shares held in London, up from 22% last year. We will continueto focus on AIM, where we see continuing opportunity for share value growth andincreased engagement with the UK investment community. Once again, I am proud to recognise the outstanding efforts of our staffthroughout FY06. Mergers are always challenging, but our people havedemonstrated their commitment and calibre. We have welcomed many new people tothe company and will no doubt welcome more in the year ahead. Patrick McGrory departed the company early in 2006, after six years in a numberof key roles, most recently as CEO and Executive Director. Patrick's enthusiasmand creativity were key drivers in the early development of our business, wethank him for his contribution and wish him every success in his next role. We now look forward to the challenges and rewards of the 2007 year, confidentthat we can demonstrate the strength and capability of our new team. Ian Buddery Executive Chairman Paste the following link into your web browser to download the PDF document: http://www.rns-pdf.londonstockexchange.com/rns/7650i_-2006-9-11.pdf This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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