Equiniti Share Discussion Threads

[gary1966] 30/10/2015 13:38

Rivaldo,

Many thanks for setting the thread up. Personally surprised that this hasn't traded at a premium to IPO price. Solid company. Would imagine the divi is going to be in the region of 9-10p and so the yield is attractive. Guess it is just the general state of the markets.

ATB

Gary

[rivaldo] 30/10/2015 09:30

EQN had its IPO this week at a 165p flotation price, though now possible to buy at around 155p - here's their intention to float RNS::



"Equiniti provides solutions supported by leading technology platforms to a wide range of organisations, including c.70 of the companies in the FTSE 100. It is the UK's leading provider of share registration and associated investor services, and also has market leading positions in administration of employee share plans, pensions administration and software, and employee benefit schemes. Equiniti supports clients in a wide range of industries and has particular strength with clients in the banking, insurance, other financial services and outsourced government services sectors.

With an adjusted revenue(1) and adjusted EBITDA(1) of £350m and £82m respectively for the twelve months to June 2015, the Group has experienced consistent annual revenue growth across financial years 2012-14. This has been driven by a combination of organic growth and M&A activity. During this period, adjusted EBITDA(1) has grown in line with adjusted revenue(1) at c.10% per annum. There has been strong momentum in H1 2015 with 24% year-on-year adjusted EBITDA(1) growth driven by revenue growth and margin expansion. The Group's organic growth is supported by a track record of cross-selling with a weighted average of 4.4x entry service revenue for FTSE 350 clients in 2014 (total customer revenue as a multiple of core registration revenue) and strong client fidelity (100% retention rate for its FTSE 100 and FTSE 250 clients in 2014 and H1 2015)."

Note the dividend policy:

"Progressive dividend policy targeting initial payout ratio of c.30% of adjusted normalised profit after cash tax"

EDIT - sold my shares for a rare post-IPO decent profit!