Equiniti increases its 2018 interim dividend by 11.6%

DividendMax Ltd.

Equiniti increases its 2018 interim dividend by 11.6%

Equiniti 2018 interim results

Revenue growth of 30.4%, with strong organic growth of 7.7%, supported by:  

o Renewal of all UK registration clients including Carnival, EasyJet, GSK, Prudential and QinetiQ;

o Increased UK market share underpinned by new name business wins including Bodycote, Hiscox, and Low & Bonar;

o 70% of new company listings including Acacia Pharma, Avast, IntegraFin Holdings and KRM 22;

o Major renewals in the US including CVS, General Electric, JP Morgan, 3M and MDU;

o New client wins across all divisions including CNPP, Persimmon and Ulster Bank;

o Strong growth in Intelligent Solutions; and

o Pension Solutions contraction in line with expectations

New capabilities established, including:

o Wells Fargo Shareowner Services (EQ USA) acquisition successfully completed on 1st February with operations transitioned and integration underway;

o Acquisition of Boudicca Proxy completed on 27th April, cross-sold to seven registration clients; and

o Continued traction with estate management including a 'tell us once' pilot for six major UK banks

Underlying EBITDA growth of 31.6% with margin increased to 21.7%, driven by strong performances in Investment Solutions and Intelligent Solutions, and continued operational improvement

Lower reported EBIT of £10.6m with profit after tax of £2.7m reflecting £14.1m of non-operating charges arising from the acquisition of EQ USA

Net debt of £308.3m inclusive of acquisition-related debt and costs of £170.4m with year-on-year leverage maintained at 2.8x

Interim dividend growth of 11.6% to 1.83 pence per share, in line with progressive dividend policy

Companies mentioned