Money transfer group eServGlobal, whose technology allows mobile phone users in the developing world to use their phone as a sort of cash machine, has warned that its progress towards profits has been delayed by unrest in the Middle East, even though the Arab Spring is now 15 months old.
The group's Australian bosses said they are taking longer than expected to implement contracts as a result of the Middle East's turmoil. Chief executive Craig Halliday points to two $1m (£0.63m) deals with Kuwait and Jordan that have just been secured, three months later than expected, to highlight the difficulty. As a result, breaking into profit will be delayed until 2014. Accordingly, analysts at broker Charles Stanley now expect operating losses of £0.5m in 2012-13, and profits of £0.5m in 2013-14.
Management also says revenues for the current year to end October will be further hampered by the earlier-than-expected transfer of supply contracts to Oracle (which acquired eServGlobal's prepaid software business in May 2010).
