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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
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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.

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