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
