Equiniti Group PLC Trading Update (0367X)
21 November 2017 - 6:01PM
UK Regulatory
TIDMEQN
RNS Number : 0367X
Equiniti Group PLC
21 November 2017
21 November 2017
EQUINITI GROUP PLC - TRADING UPDATE
Equiniti Group plc ("Equiniti" or "the Group"), the specialist
technology outsourcer providing non-discretionary payment and
administration services, today issues the following trading update
for the period 1 July 2017 to 21 November 2017.
TRADING
Trading in the period is in line with market expectations for
full year 2017.
Our business is underpinned by the strength of our key client
relationships, and we have continued to retain or extend all
mandates, including those with AstraZeneca, Land Securities Group,
Lloyds Banking Group, Smiths Group and Virgin Money Holdings (UK).
This, coupled with corporate action activity and software sales,
has accelerated momentum in the second half.
New client wins have been pleasing as we have continued to gain
market share, with a record number of share registration clients
choosing to move from our competitors. We are delighted to welcome
Jardine Lloyd Thompson Group and Rentokil Initial as clients of the
Group. We have also successfully migrated J Sainsbury as a new
registration and share plan client during the period. Furthermore,
we have grown our client base through the IPO market securing 75%
of mandates from newly listed companies year to date. Our most
recent wins include Bakkavor, Charter Court Financial Services,
ContourGlobal, TI Fluid Systems, Ultimate Products and Velocity
Composites. We have a strong pipeline of organic opportunities
which will support future growth.
PROPOSED ACQUISITION OF WELLS FARGO SHAREOWNER SERVICES
(WFSS)
On 12 July 2017, the Group announced the proposed acquisition
and carve out of WFSS for a total cash consideration of GBP176m.
The acquisition was approved at a General Meeting held on 28
September 2017 with 99.99% of shareholders voting in favour of the
acquisition and a 97.43% uptake of the associated rights issue. The
acquisition is proceeding as planned with completion expected in Q1
2018.
The joint programme team is making good progress in preparing
for the integration of the business on completion of the
transaction and the subsequent deployment of Equiniti's Sirius
technology into the US market. Our plans for the business have been
received with enthusiasm and support from existing major clients
and transferring staff.
The Group's guidance on one-off transaction costs remains
unchanged at cGBP17m and relates to advisory, debt and equity
issuance costs. We also reaffirm previous guidance on
transaction-related exceptional costs of cGBP20m by full year 2019,
with c60% to be incurred during 2018 and transaction-related
capital expenditure costs of cGBP22m by full year 2019, with c80%
to be incurred during 2018.
IFRS 15 - REVENUE FROM CONTRACTS WITH CUSTOMERS
We have assessed the impact of IFRS 15 and at this stage we do
not believe there will be a material impact on the Group's results.
It is not our intention to early adopt IFRS 15 and our 2017
financial results will be prepared under current financial
standards. However, the Group will provide additional quantitative
disclosure on the impact of IFRS 15 on its income statement and
balance sheet as part of the presentation of the 2017 financial
results.
OUTLOOK
Our objective remains to deliver organic revenue growth
supplemented by growth from capability enhancing acquisitions. The
dependability of our revenues, the platform nature of our
operations and progressive deleveraging will enable us to grow
underlying profits and earnings ahead of revenue.
We continue to make progress against this strategy with multiple
opportunities for future growth and are pleased to reaffirm our
guidance for full year 2017.
FINANCIAL CALENDAR
7 March 2018 Full year results announcement
3 May 2018 AGM and trading update
27 July 2018 Interim results announcement
For further information please contact:
Analyst/Investor enquiries:
Equiniti Group plc Guy Wakeley, Chief Executive +44 (0) 207 469
1811
John Stier, Chief Financial Officer
Frances Gibbons, Head of Investor Relations
Media enquiries:
Temple Bar Advisory Alex Child-Villiers + 44 (0) 7795 425580
Will Barker + 44 (0) 7827 960151
Forward-looking statements
This announcement contains forward-looking statements regarding
Equiniti. These forward-looking statements are based on current
information and expectations, and are subject to risks and
uncertainties, including market conditions and other factors
outside of Equiniti's control. Readers are cautioned not to place
undue reliance on the forward-looking statements contained herein,
which speak only as of the date hereof. Equiniti undertakes no
obligation to publicly update any forward-looking statement
contained in this release, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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