My thoughts

I believe that this company has a very large potential for growth as the world we live in is becoming ever more technologically reliant. 2012 was the worst year for eServGlobal out of the most recent four years as they saw a loss of $15.59m. Fortunately however, 2013 was a much better year for them as the company saw a substantial increase in total assets, total equity and a decrease in liabilities, not to mention a profit of $10.37m (this is the first year that they have seen profitability in the core business since 2009). Liabilities also appear to be relatively low in comparison to their profit, assets and equity. This gives me the impression that the company is heading in the right direction. I would have preferred to have had an Airline company just because that's what i'm into, however its good to have a company that coming up.

Challenges, Concerns and Questions

• One of the biggest challenges that I believe eServeGlobal faces is competition. There are many other companies that do mobile finance such as MobileFinacial, Gemalto and many more.
• A concern about the business that I have is the frequent change in CEO and CFO's. I'm not sure if this indicates a level of instability in the business or if this is common.
• I'm not entirely sure on HomeSend joint venture is and how it affects eServGlobal, however it is evident that it plays a large roll as there is much talk about it.
• The change of financial year end from 30 June in 2011 to 31 October in 2012 has got me wondering what happened from to the financial reports between the changes. Has anybody else had this problem?
• Not entirely sure on what deferred tax assets are. eServGlobal has over $10m of them in 2013. Does anyone else have such a large amount?
• Not sure on what reserves are at this stage and why they are negative. Is it common to have reserves as negatives or does anyone have positive reserves?