Equiniti increases its 2017 interim dividend by 6.7%

DividendMax Ltd.

Equiniti increases its 2017 interim dividend by 6.7%

Revenue progression of 1.5% (with a decline in organic growth of 0.6%) despite interest rate headwind and H2 bias

o 100% client retention with new client wins across all divisions

New share registration clients including Arrow Global, Howden Joinery Group and J Sainsbury

New client wins including Aon Hewitt, British Bankers' Association and House of Fraser

New mandates including Alpha FX, Arix Bioscience, Global Ports, Ramsdens and Xafinity

o Renewal or extension of relationships with clients including

DS Smith, Imperial Brands, Lloyds Banking Group and Santander

New capabilities established:

o Credit bureau and credit servicing permissions secured following the acquisitions of Marketing Source and Gateway2Finance

o Increased scale and depth in the credit servicing market with the acquisition of Nostrum

o Planned entry to the US market with the proposed acquisition of Wells Fargo's Shareowner Services business to create a stronger, more diversified Group

EBITDA prior to exceptional items growth of 1.9% with margin of 21.6%; reflecting the impact of acquisitions made in the current and prior period and an improved margin from our core operations

EBIT of £14.1m reflecting the impact of £3.9m of exceptional items, related to the proposed acquisition of the Wells Fargo Shareowner Services business

Strong cash flow conversion of 109%; growth of 9.2% to £20.2m in free cash flow to equity holders driven by strong working capital management

Underlying EPS growth of 6.2% to 6.9 pence per share

Net debt of £258.2m post acquisition-related costs of £14.9m with leverage at 2.8x

Interim dividend growth of 6.7% to 1.75 pence per share, in line with progressive dividend policy

Companies mentioned