Equiniti Share Discussion Threads

[jgoold] 09/3/2016 09:42

When you take the organic growth, significant reduction of debt, good cash flow, room for acquisition and reminder of the "sticky" nature of much of their revenue I believe this is a good story yet to be appreciated more widely. Credit Suisse have a target for 2016 of 210 with EPS of 15.57, a PE of 10,2 at today's price.

I dipped my toe here last week and topped up today based on these results.

[jas0701] 09/3/2016 04:40

How much debt has Equiniti exactly got?

[patrader] 08/3/2016 13:00

Always good to see the CFO and CEO buying shares... @ 162

[chadders] 08/3/2016 10:32

It's a growth story. Highly cash generative and paying down the debt rapidly. Stripping out the exceptionals it is a very attractive proposition with
future revenues already largely secured. This is a strong hold for me.

[salpara111] 08/3/2016 08:58

Hmm,
Not quite sure what to make of these results.
It is always difficult when the IPO costs etc are included.
I guess my view is that they were OK but that the business is probably fairly valued at present.
On balance I think I will not take a stake given the strong rise in the share price over the last few weeks.

[ed 123] 08/3/2016 08:07

Yes, the plan is to pay back the debt and thereby boost the value of the equity.

Unfortunately, the focus on cash comes through clearly to customers. I am a customer, having a Selftrade account. In my view, Equiniti has taken Selftrade down from being a good broker to an inadequate one. When the time is right for me I'll close my Selftrade account, having been with them right back to their ComDirect days.

[visacard] 08/3/2016 07:57

Loss before taxThe Group made a loss for the year from continuing operations of £71.7m compared to £38.6m in 2014, driven by IPO related costs and our previous capital structure.  On a proforma basis, profit before tax was £19.7m (2014: £18.3m).Translate that? I assume this means future years will be a profit without these one offs and restructuring?

[gary1966] 08/3/2016 07:57

I think the market will focus on normalised earnings more. Finance costs for current year will be down to around 3% from over 7% in the year just reported. Debt levels will be lower for the whole year, this year, which will contribute to a greatly reduced interest charge.

I would also think that the market will be looking at the strong growth in revenues, both organic and aquired.

Anyway only a few minutes to go to find out what the market thinks.

ATB

[esther1975] 08/3/2016 07:40

Pre tax loss up from 38 to 72 million not sure how market will take that

[chadders] 07/3/2016 20:26

Yes Gary1966, a nice tick-up today again but still significantly below the IPO price of 165p and analysts target prices which are well into the 200's.

H1 was already locked in at the time of the float so I'm not expecting any unpleasant surprises. If management stick to their dividend policy as stated of 30% of EBITDA this could be re-rated pretty sharpish. Dependent upon an upbeat set of results though.

[gary1966] 07/3/2016 15:31

Nice to see these move up a bit ahead of results tomorrow. Looking forward to getting a better feel for the Co as you say chadders.

[chadders] 03/3/2016 19:25

Maiden results on Tuesday so fingers crossed for an upside surprise. One thing is for sure though, we'll definitely learn a lot more about them and the removal of the unknown will be a big plus looking ahead.

[chadders] 29/2/2016 15:24

I should have gone to specsavers!

[blackrabbit] 28/2/2016 11:43

Interesting to note that NT has bought back into EQN, suggesting that the latest sell off looks overdone, expecting the next report to be rather upbeat.

[salpara111] 26/2/2016 18:19

Been waiting for the results before making a decision to get on board.
New floats get punished viciously if they dont meet their initial targets......I have learnt that one to my cost!

[gary1966] 26/2/2016 11:48

Old news. Transaction date 22/01. Wonder if they have been selling more since though and yet to notify.

Edit: Interestingly they bought £621K of shares between announcements and didn't declare. They seem to be trading these quite a bit and so not concerned.

[chadders] 26/2/2016 09:53

There's our seller then. Newton have disposed of 1.2 million shares.

[chadders] 18/2/2016 08:29

Maiden results due in a couple of weeks should provide a steady platform moving ahead and reduce the volatility. IPO was 165p and brokers targets 200 to 230p so some upside from here methinks. Dividend payout of up to 30% of profits bodes well too.

[gary1966] 18/2/2016 08:16

Interesting large late negotiated trades showing up this morning. Hopefully that is the overhang of stock gone.

[gary1966] 15/2/2016 08:45

Hopefully the bottom is in place now and these can start to recover.

[chadders] 12/2/2016 10:39

Added a few more this morning. I think it's gone too far on low volumes.

[shawzie] 11/2/2016 17:13

Stuart_01204. This is definitely a speculative long term hold and I have not sold my original investment. However, we will need to see if the 2015 results show an improvement on 2014. See posting 25 and ramridge reply post 26. I must say that I did not expect the current share price.

[stuart_01204] 11/2/2016 10:23

Not sure I can take much more of this battering

[simon gordon] 09/2/2016 09:08

Citywire - 9/2/16:

Metcalf sells as Equiniti heads south

Citywire AA-rated dividend seeker Christopher Metcalf has sold off some of his holding in share registrar Equiniti (EQN) as its valuation slips below its 2015 IPO price amid slowing demand for new share purchases.

Metcalf trimmed his investment to 4.8% of the business worth £22.8 million at a price of 158.8p, down almost 13% this year to below the 165p at which they were issued.

The shares are held in his Old Mutual Newton Higher Income fund, and advanced as far as 185p in December before their reversal.

Equiniti already had to manage down hopes of a valuation above 200p ahead of its admission to public trading in November last year, as global markets turned more volatile. A total valuation calculated as high as £700 million in the summer was eventually revised down to £495 million.

Broker outlook on the stock remains unanimously bullish however, with Goldman Sachs, Credit Suisse and Barclays all starting it at ‘buy’ with price targets of 260p, 210p and 230p respectively.

[gary1966] 08/2/2016 15:42

Struggled to buy in quantity on that drop below 150p. Didn't think I would get a chance to re-enter at these prices.

GLA