Equiniti 2016 interim results

DividendMax Ltd.

Equiniti 2016 interim results

Revenue growth of 5.9%; underpinned by 4.3% organic revenue growth

12% revenue growth from cross-selling and up-selling to top 32 key accounts

Acquisitions of KYCnet and RiskFactor made in Q1 2016 fully integrated and together with the acquisition of Toplevel Computing announced today, will fuel organic growth going forward

EBITDA growth of 7% prior to exceptional items with margin strengthening to 21.5%; strong EBIT growth of 24.4% to £15.3m

Cash flow conversion of 93%; growth of 134% to £18.5m in free cash flow to equity holders

Leverage of 2.9x reduced from proforma 3.0x net debt/EBITDA at 31 December 2015

Interim dividend of 1.64 pence per share, in line with progressive dividend policy driven by strong eps growth

Commenting on the Group's results, Guy Wakeley, Chief Executive, said:

"Equiniti remains focused on its core strategy which has delivered a strong set of results in an uncertain market environment. The breadth and resilience of our propositions, along with our strong customer relationships, has enabled us to deliver strong top line and profit progression whilst reducing leverage.

"Equiniti continues to win business from new and existing clients, positioning the Group well to deliver on its organic growth guidance for the full year. At the same time, the Group is developing new technologies and our recent acquisitions are building out our smart technology solutions. Demand for our technology and compliance-led services has accelerated in the period, which along with our focus on performance improvement, gives the Board confidence on delivering in line with our full year guidance."

Companies mentioned