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Annual Results

Equiniti sees good progress in challenging conditions

08 March 2017 08:00

Equiniti Group reports good progress in 2016 as it continued to drive growth in relatively challenging market conditions.

Reported revenue increased by 3.7% to £382.6m (2015: £369.0m) during the year whilst proforma revenue adjusted for acquisitions grew organically by 2.1%.

It said that acquisitions made in the period progressed well, contributing to organic growth and, together with the acquisition made in Q1 2017, would fuel organic growth going forward.

Excluding MyCSP, revenues havd grown organically by 6.8% while MyCSP earnings had now stabilised.

EBITDA prior to exceptional items increased by 7.2% to £92.4m (2015: £86.2m) reflecting the impact of acquisitions made in the current and prior year and the profit element of the organic growth at an improved margin. The group posts a pre-tax profit of £28.5m against a loss of £71.7m last time.

The group said the recommend final dividend of 3.11 pence per share would take the total dividend for the year to 4.75 pence per share, in line with the group's stated policy, with proforma dividend growth of 16.4%, reflecting strong earnings momentum.

Chief executive Guy Wakeley said: "2016 has been another encouraging year of further strategic progress and momentum, with the group delivering margin accretion, cash conversion and leverage reduction all in line with market expectations.

"At its heart, our strategy is simple. We drive growth by providing technology-based services to large UK companies.

"Demand for our technology and compliance-led services remains robust as the majority of our products and services are non-discretionary.

"This means that irrespective of the current levels of economic uncertainty, our clients will continue to buy services from us.

"Our target remains to deliver sustainable earnings growth supplemented by growth from acquisitions each year.

"The dependability of our revenues, our efficiency programme and progressive deleveraging, will enable us to grow profits and earnings ahead of revenue.

"We continue to make progress against the strategy with many opportunities for future growth."

At 8:00am: (LON:EQN) Equiniti Group Plc share price was +0.88p at 187.88p

Story provided by StockMarketWire.com

Related Company: EQN

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