Proactive Investors - Run By Investors For Investors

Equiniti Group bullish over future following Wells Fargo acquisition

The FTSE 250-listed share registrar said underlying EBITDA increased 6.6% to £98.5mln, with the underlying full-year dividend rising 6.3% in line with its progressive dividend policy
Money on stock chart
The company said it had retained 100% of its FTSE clients

Share registrar Equiniti PLC's (LON;EQN) acquisition of Wells Fargo’s mirror business in the US is a major growth opportunity, according to chief executive Guy Wakeley.

Equiniti paid US$227mln for Wells Fargo Shareholder Services through a mixture of cash and shares.The deal, completed last month, marked its first foray into the US registrar and dividend distribution market.  

READ: Equiniti plans rights issue for takeover of Wells Fargo's share registration business

Underlying profit (EBITDA) rose 6.6% to £98.5mln in 2017, which was ahead of expectations. Revenue was up  6% at £406mln, also beating forecasts, while the dividend went up by 6.3%.

All FTSE clients were retained, with new business added across all divisions.

Wakeley added he was confident Equiniti can sustain its growth in the UK, while Wells Fargo offered a significant growth opportunity.

"Equiniti operates in an environment characterised by significant change, driven by regulation, digitisation and cost reduction.

“The relevance of our services and automated technology capabilities has never been greater.”

Shares rose 2p to 288.5p.

View full EQN profile View Profile

Equiniti Timeline

Related Articles

Drilling rig
January 10 2019
Since its first half results in August, the drilling services firm has secured two key contract extensions as well as a new delineation drilling contract in Côte d'Ivoire
Stobart
May 31 2019
"Stobart Group has a clear focus on developing infrastructure assets in the aviation and energy sectors," chief executive Warwick Brady said.
drone
March 29 2019
RMS is taking action to address the issues at Geocurve and looks forward to “renewed growth in sales to new clients” while it remains "excited by the opportunities at GyroMetric"

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use