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

drill rig
June 18 2018
The last few months have seen an increase in demand for exploration rigs, which will benefit Capital Drilling's utilisation rates from this segment of the market - chairman Jamie Boynton
Portfolio
November 05 2018
In early October, the company was presented with the ‘New to Market Award’ at the DIT Business Awards, an accolade that recognises its success in the country
Talent meter
March 07 2018
Underlying profits are up 20% year-on-year and net fee income should be around 17% higher

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

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