12th Mar 2019 08:08
LONDON (Alliance News) - Equiniti Group PLC on Tuesday reported strong profit growth in a year in which it made a "successful" entry into the US.
Equiniti, which provides share registration and other financial services, reported pretax profit of GBP20.7 million for 2018, 35% higher year-on-year.
The FTSE 250 company's revenue climbed 31% to GBP530.9 million, with organic revenue growth at a record 7.3%.
This revenue growth, Equiniti said, reflects its acquisition of Wells Fargo Shareowner Services, which contributed GBP81.4 million of revenue and GBP19.2 million of underlying earnings before interest, tax, depreciation, and amortisation.
Group underlying Ebitda was up 25% to GBP122.3 million.
Equiniti is paying a 3.49 pence final dividend, taking the total for 2018 to 5.32p, up 22% from the prior year.
Chief Executive Guy Wakeley said: "2018 was a year of pleasing progress against our strategic objectives, with record organic growth, and a successful entry into the attractive United States market.
"Despite the uncertain operating environment, we have continued to grow our revenues ahead of expectations, with more clients than ever before choosing Equiniti to deliver their registration and shareplan services," he continued.
"Our acquisition of Wells Fargo Shareowner Services has created a truly international opportunity both for our core share registration products as well as our broader suite of technology and shareplan solutions, and has shown pleasing revenue and profit momentum during the second half, whilst continuing to make good progress with the separation and integration of the business."
Looking by division, Equiniti's Investment Solutions are increased underlying Ebitda and revenue by 8.7% and 7.7% respectively. Intelligent Solutions underlying Ebitda and revenue were up 22% and 33% respectively.
Investment Solutions had a good year, Equiniti said, with organic growth at 6.9%, while Intelligent Solutions also reported strong organic improvement.
Equniti's Pension Solutions, however, reported a 7.5% fall in revenue and a 20% drop in underlying Ebitda, due to a competitive market and a lost contract, though major clients were retained.
Lastly, the new US business did well, despite revenue falling 2.0%, and underlying Ebitda was 15% higher.
Looking ahead, Equiniti expects further UK organic growth in 2019, while there is great potential in the US.
It is guiding for organic revenue growth of 3% to 7% a year in the medium term, gradual margin improvement of 25 basis points a year, and a dividend policy of 30% of underlying profit attributable to shareholders.
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