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EQN Equiniti Group Plc

179.80
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Equiniti Group Plc LSE:EQN London Ordinary Share GB00BYWWHR75 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 179.80 179.80 180.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Equiniti Group PLC EQUINITI RESULTS FOR THE 6 MONTHS TO 30 JUNE 2017 (3645M)

28/07/2017 7:00am

UK Regulatory


Equiniti (LSE:EQN)
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RNS Number : 3645M

Equiniti Group PLC

28 July 2017

28 July 2017

EQUINITI GROUP PLC RESULTS FOR THE 6 MONTHSED 30 JUNE 2017

Equiniti Group plc ("Equiniti" or "the Group"), the specialist technology outsourcer providing non-discretionary payment and administration services, today publishes its interim results for the six months to 30 June 2017.

SOLID INTERIM RESULTS: IN LINE WITH EXPECTATIONS AND FULL YEAR GUIDANCE AFFIRMED

 
 Financial Highlights                      H1 2017   H1 2016    Change 
                                                                     % 
 Revenue (GBPm)                              194.8     191.9       1.5 
 EBITDA(1) prior to exceptional 
  items (GBPm)                                42.0      41.2       1.9 
 EBITDA margin prior to exceptional 
  items (%)                                   21.6      21.5    0.1pts 
 Operating cash flow(2) pre-exceptional 
  items                                       45.8      38.2      19.9 
 Free cash flow(3) to equity 
  holders (GBPm)                              20.2      18.5       9.2 
 Cash flow conversion (%)                      109        93   16.0pts 
 EBIT prior to exceptional 
  items                                       18.0      17.7       1.7 
 EBIT (GBPm)                                  14.1      15.3     (7.8) 
 Earnings per share (EPS) (pence)              1.9       2.0     (5.0) 
 Underlying(4) EPS (pence)                     6.9       6.5       6.2 
 Dividend per share (pence)                   1.75      1.64       6.7 
 Net debt (GBPm)                             258.2     261.7     (1.3) 
 Leverage(5) (x)                               2.8       2.9    (0.1)x 
----------------------------------------  --------  --------  -------- 
 

-- Revenue progression of 1.5% (with a decline in organic growth of 0.6%) despite interest rate headwind and H2 bias

o 100% client retention with new client wins across all divisions

-- New share registration clients including Arrow Global, Howden Joinery Group and J Sainsbury

-- New client wins including Aon Hewitt, British Bankers' Association and House of Fraser

-- New mandates including Alpha FX, Arix Bioscience, Global Ports, Ramsdens and Xafinity

o Renewal or extension of relationships with clients including

-- DS Smith, Imperial Brands, Lloyds Banking Group and Santander

   --      New capabilities established: 

o Credit bureau and credit servicing permissions secured following the acquisitions of Marketing Source and Gateway2Finance

o Increased scale and depth in the credit servicing market with the acquisition of Nostrum

o Planned entry to the US market with the proposed acquisition of Wells Fargo's Shareowner Services business to create a stronger, more diversified Group

-- EBITDA prior to exceptional items growth of 1.9% with margin of 21.6%; reflecting the impact of acquisitions made in the current and prior period and an improved margin from our core operations

-- EBIT of GBP14.1m reflecting the impact of GBP3.9m of exceptional items, related to the proposed acquisition of the Wells Fargo Shareowner Services business

-- Strong cash flow conversion of 109%; growth of 9.2% to GBP20.2m in free cash flow to equity holders driven by strong working capital management

   --      Underlying EPS growth of 6.2% to 6.9 pence per share 
   --      Net debt of GBP258.2m post acquisition-related costs of GBP14.9m with leverage at 2.8x 

-- Interim dividend growth of 6.7% to 1.75 pence per share, in line with progressive dividend policy

Commenting on the Group's results, Guy Wakeley, Chief Executive, said:

"We are pleased that Equiniti's strategy of deep specialisms in regulated markets continues to generate underlying earnings growth and shareholder value. Our market leading positions are a foundation for further defensive revenue growth, whilst the quality of our people and platforms provide continuing margin progression.

"The proposed acquisition of Wells Fargo Shareowner Services, announced on 12 July, provides an exciting opportunity to springboard our products and capabilities into the largest global equity market, allowing us to diversify our revenues with multi-national clients.

"As we enter the second half of the year, we affirm our full year guidance."

(1) EBITDA is earnings before interest, tax, depreciation and amortisation.

(2) Operating cash flow is EBITDA plus the change in working capital prior to exceptional items (page 7).

(3) Free cash flow to equity holders represents cash flow prior to any acquisitions, refinancing or share capital cash flows and is post exceptional items (page 7).

(4) Underlying EPS excludes the impact of exceptional items and amortisation of acquisition related intangible assets plus cash tax (note 6).

(5) Leverage is calculated as net debt/EBITDA on a rolling 12 month basis (page 9).

Analyst and Investor presentation

Equiniti's management will host an analyst and investor presentation at 9.15am UK time today. There will be a conference call and live webcast of the event. This will be broadcast live on Equiniti's website, www.equiniti.com and an archive version of the presentation will be available on the website later that day.

Conference call details:

Please dial into the call in time to allow for registration.

   Participant dial-in           : +44 (0) 20 3003 2666 
   Password                      : Equiniti 

For further information please contact:

Analyst/Investor enquiries:

Equiniti Group plc Guy Wakeley, Chief Executive +44 (0) 207 469 1800

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.

GROUP RESULTS

 
 
                                                                   Organic 
                               H1 2017     H1 2016*     Change      Change 
                                                             %           % 
------------------------    ----------  -----------  ---------  ---------- 
 
   Revenue (GBPm) 
  Investment Solutions            64.2         62.5        2.7         2.7 
  Intelligent Solutions           55.4         54.7        1.3       (5.8) 
  Pension Solutions               70.5         68.9        2.3         2.3 
  Interest Income                  4.7          5.8     (19.0)      (19.0) 
-------------------------   ----------  -----------  ---------  ---------- 
  Equiniti Group                 194.8        191.9        1.5       (0.6) 
-------------------------   ----------  -----------  ---------  ---------- 
 
 EBITDA prior to exceptional items (GBPm) 
  Investment Solutions            20.2         17.8       13.5 
  Intelligent Solutions           13.4         12.1       10.7 
  Pension Solutions               10.5         12.5     (16.0) 
  Interest Income                  4.7          5.8     (19.0) 
  Central Costs                  (6.8)        (7.0)        2.9 
-------------------------   ----------  -----------  --------- 
  Equiniti Group                  42.0         41.2        1.9 
-------------------------   ----------  -----------  --------- 
 
 EBITDA margin prior to exceptional items (%) 
  Investment Solutions            31.5         28.5        3.0 
  Intelligent Solutions           24.2         22.1        2.1 
  Pension Solutions               14.9         18.1      (3.2) 
-------------------------  -----------  -----------  --------- 
  Equiniti Group                  21.6         21.5        0.1 
-------------------------  -----------  -----------  --------- 
 
 

* See Appendix 1 on page 26 for detail of restated numbers

OVERVIEW

Equiniti has delivered a solid set of results as we continued to make progress on our strategic objectives during the period. The strength and longevity of our client relationships is a key asset of the Group and we continue to retain 100% of our client relationships, whilst extending and expanding a number of major contracts. The Group continued to gain market share, winning a number of clients from our competitors and securing new clients across all divisions. The Group has delivered revenue, profit and margin in line with expectations, continued to cross-sell to our strategic clients and has increased our offshoring capability with 784 people in our centre in Chennai as at 30 June 2017.

Reported revenue increased by 1.5% to GBP194.8m (H1 2016: GBP191.9m) during the period (with a slight decline in organic growth) despite the interest rate headwind and second half bias of the Group's trading. The acquisitions of Marketing Source and Gateway2Finance have been fully integrated and add to the Group's capabilities, having now secured credit bureau and credit servicing permissions. The acquisition of Nostrum strengthens our scale and depth in the credit servicing market. The proposed acquisition of Wells Fargo's Shareowner Services business creates a stronger, more diversified multi-national Group combining our local expertise with global reach.

Investment Solutions delivered good revenue growth driven by new client wins, higher share dealing volumes and growth in employee share plans, offset by the timing of corporate action income, with EBITDA and margin expansion driven by revenue growth, project work and continued focus on operating leverage. Intelligent Solutions revenue was impacted by the timing of project work in our specialist resourcing business, with strong profit progression driven by growth in higher margin work and a continuing drive for efficiency. Pension Solutions revenue growth was driven by an increase in project work, new client wins and MyCSP revenues stabilising, offset with a decline in profit due to lower margin project work and cost pressure for specialist projects.

Revenue from interest was 19.0% lower than the prior period due to the impact of lower interest on average client cash balances of GBP1.7bn (H1 2016: GBP1.7bn). Two thirds of the rate is fixed with instruments secured to August 2018 (GBP650m) and July 2020 (GBP380m).

EBITDA prior to exceptional items increased by 1.9% to GBP42.0m (H1 2016: GBP41.2m) reflecting the impact of acquisitions made in the current and prior period and an improved margin from our core operations.

Free cash flow to equity holders was GBP20.2m (H1 2016 GBP18.5m), an increase of 9.2%. Net debt of GBP258.2m (30 June 2016: GBP261.7m) represents a ratio of 2.8x net debt/EBITDA (30 June 2016: 2.9x), showing a reduction in leverage despite acquisition-related costs of GBP14.9m.

The Board has declared an interim dividend of 1.75 pence per share. The interim dividend is to be paid on 26 October 2017 to shareholders on the register of members at close of business on 15 September 2017. Any shareholder wishing to participate in the Equiniti Dividend Reinvestment Plan ("DRIP") needs to have submitted their election to do so by 5 October 2017. We maintain our progressive dividend policy which will see us distribute around 30% of our normalised profit attributable to ordinary shareholders each year.

Board changes

As announced on 3 July 2017, Philip Yea joined the Board as a non-executive director and will succeed Kevin Beeston as Chairman in September 2017. Philip has considerable executive experience in both the quoted and private equity sectors and his experience will prove invaluable to the Board.

OPERATIONAL REVIEW

We serve our clients through three divisions: Investment Solutions, Intelligent Solutions and Pension Solutions. The integrated nature of our client base and strong client relationships results in shared clients across the Group. This enables us to continually enhance our performance through cross-selling and up-selling to existing clients. Our entry point is often providing share registration services, with clients taking further services from us over time.

In addition to our three divisions, we earn interest income on balances we administer on our clients' behalf.

Investment Solutions

Investment Solutions offers a broad range of services, including share registration for around half the FTSE 100, and the administration of SAYE schemes and share incentive plans for 1.2 million employees. The division also provides share dealing, wealth management and international payments to corporate clients and their employees, as well as direct to retail customers.

 
 
                                H1 2017   H1 2016*   Change % 
-----------------------------  --------  ---------  --------- 
 Revenue (GBPm)                    64.2       62.5        2.7 
 EBITDA prior to exceptional 
  items (GBPm)                     20.2       17.8       13.5 
 EBITDA margin prior to 
  exceptional items (%)            31.5       28.5        3.0 
-----------------------------  --------  ---------  --------- 
 

* See Appendix 1 on page 25 for detail of restated numbers

Revenue in Investment Solutions increased by 2.7% to GBP64.2m (H1 2016: GBP62.5m) driven by new client wins, higher share dealing volumes and growth in employee share plans, offset by the timing of corporate action income. Corporate action revenue was GBP4.7m (2016: GBP5.6m) with a strong pipeline of corporate activity to support H2 2017.

EBITDA prior to exceptional items grew by 13.5%, with margin progression of 3.0% as a result of revenue growth, an increase in project work and continued focus on operating leverage.

Registration Services continued to win market share and was appointed share registrar to Arrow Global, Howden Joinery Group and J Sainsbury, replacing existing service providers. The bereavement services contract secured with Lloyds Banking Group in the second half of 2016 has now gone live and the division secured a further pilot project for six banks through the British Bankers' Association. The division won a number of mandates from newly listed companies including Alpha FX, Arix Bioscience, Global Ports, Ramsdens and Xafinity, and renewed or extended relationships with clients such as DS Smith, Lloyds Banking Group, Imperial Brands, JPM Investment Trusts, Metro Bank, National Express, Santander and TalkTalk.

Intelligent Solutions

Intelligent Solutions targets complex or regulated activities to help organisations manage their interactions with customers, citizens and employees. The division offers enterprise workflow for case and complaints management, credit services, on-boarding new clients and specialist resource for rectification and remediation.

 
 
                                 H1 2017   H1 2016*   Change % 
------------------------------  --------  ---------  --------- 
 Revenue (GBPm)                     55.4       54.7        1.3 
 EBITDA prior to exceptional 
 items (GBPm)                       13.4       12.1       10.7 
 EBITDA margin prior to 
  exceptional items (%)             24.2       22.1        2.1 
------------------------------  --------  ---------  --------- 
 
 

* See Appendix 1 on page 26 for detail of restated numbers

Revenue in Intelligent Solutions increased by 1.3% to GBP55.4m (H1 2016: GBP54.7m) with a decline in organic revenue growth of 5.8%, reflecting good progress across the division offset by the delay of a major remediation contract with a retail bank which has now commenced.

The acquisitions of Marketing Source and Gateway2Finance have been fully integrated and add to the Group's capabilities having secured credit bureau and credit servicing permissions. The acquisition of Nostrum strengthens our scale and depth in the credit servicing market.

EBITDA prior to exceptional items increased by 10.7% to GBP13.4m as a result of growth in higher margin work and a continuing drive on efficiency. We continue to see a mix shift in this division, selling proportionally fewer resourcing services with more software sales and high margin project work.

The division won a broad range of work during the period including asset reunification on behalf of RBS and Royal Dutch Shell, and new sales in complaints management to a number of existing clients including a number of utilities companies.

Pension Solutions

Pension Solutions offers administration and payment services to pension schemes, as well as pension software, data solutions, and life and pensions administration. The division is a scale provider of pension technology and operates some of the largest pension schemes in the UK. These include the National Health Service scheme, which has more than 2.6 million members, and the Armed Forces Veterans which we have served continuously since 1836.

 
 
                                 H1 2017   H1 2016*   Change % 
------------------------------  --------  ---------  --------- 
 Revenue (GBPm)                     70.5       68.9        2.3 
 EBITDA prior to exceptional 
 items (GBPm)                       10.5       12.5     (16.0) 
 EBITDA margin prior to 
  exceptional items (%)             14.9       18.1      (3.2) 
------------------------------  --------  ---------  --------- 
 
 

* See Appendix 1 on page 26 for detail of restated numbers

Revenue in Pension Solutions increased by 2.3% to GBP70.5m (H1 2016: GBP68.9m) driven by an increase in project work, new client wins and revenue from MYCSP stabilising.

EBITDA prior to exceptional items decreased by 16.0% to GBP10.5m with a decrease in margins of 3.2%. This was due to lower margin project work with cost pressure for specialist work. Action taken to adjust the cost base at the end of the second quarter will underpin full year profit and margin.

The division continues to win new clients including House of Fraser, Magnox, Shawbrook, and a partnership with Aon Hewitt, and has renewed or extended long-term relationships with Hackney, the NHS and the Metropolitan Police. The division has also been awarded contracts to manage GMP reconciliation and rectification for Tayside, Clwyd Pension Fund and SSE plc, and our early-mover advantage in local authority GMP rectification will drive revenue for H2.

OUTLOOK

Our objective remains to deliver organic revenue growth supplemented by growth from capability enhancing acquisitions each year. 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. As we enter the second half of the year, we affirm our full year guidance.

FINANCIAL REVIEW

Group Income Statement

 
 GBPm                                   H1 2017   H1 2016 
-------------------------------------  --------  -------- 
 Revenue                                  194.8     191.9 
 
 EBITDA prior to exceptional 
  items                                    42.0      41.2 
 Depreciation                             (3.0)     (2.5) 
 Amortisation - software                  (7.7)     (8.3) 
 Amortisation - acquired intangibles     (13.3)    (12.7) 
-------------------------------------  --------  -------- 
 EBIT prior to exceptional items           18.0      17.7 
 Exceptional items                        (3.9)     (2.4) 
-------------------------------------  --------  -------- 
 Reported EBIT                             14.1      15.3 
 Net finance costs                        (5.4)     (6.5) 
 Profit before tax                          8.7       8.8 
 Taxation                                 (1.5)     (2.0) 
-------------------------------------  --------  -------- 
 Profit from continuing operations          7.2       6.8 
 Non-controlling interest                 (1.6)     (0.9) 
-------------------------------------  --------  -------- 
 Profit attributable to ordinary 
  shareholders                              5.6       5.9 
-------------------------------------  --------  -------- 
 Earnings per share (pence) 
 Basic                                      1.9       2.0 
 Underlying                                 6.9       6.5 
-------------------------------------  --------  -------- 
 

Revenue

Reported revenue increased by 1.5% to GBP194.8m (H1 2016: GBP191.9m) during the year whilst proforma revenue adjusted for acquisitions decreased organically by 0.6%.

Organic revenue growth is reported revenue growth adjusted for acquisitions on a like-for like basis. Here we restate 2016 for the prior period acquisitions had they been owned in 2017 to create a like-for-like comparison of year-on-year progress. This is calculated as follows:

 
                            H1 2016       H1 2016     H1 2016 
   Revenue (GBPm)          Reported    Adjustment    Proforma 
-----------------------  ----------  ------------  ---------- 
 Investment Solutions          62.5             -        62.5 
 Intelligent Solutions         54.7        4.1(1)        58.8 
 Pension Solutions             68.9             -        68.9 
 Interest Income                5.8             -         5.8 
-----------------------  ----------  ------------  ---------- 
 Total Group                  191.9             -       196.0 
-----------------------  ----------  ------------  ---------- 
 

(1) Acquisition of Risk Factor, Top Level, Marketing Source and Nostrum.

EBITDA prior to exceptional items

EBITDA prior to exceptional items increased by 1.9% to GBP42.0m (H1 2016: GBP41.2m) reflecting the impact of acquisitions made in the current and prior year and overall improved margins across the Group.

EBIT prior to exceptional items

EBIT remains an important measure of the Group's performance, reflecting profit before finance costs and taxation. In 2017, EBIT prior to exceptional items increased 1.7% to GBP18.0m (H1 2016: GBP17.7m).

Exceptional items

Exceptional items of GBP3.9m incurred in the period (H1 2016: GBP2.4m) relate to the proposed acquisition of the Wells Fargo Shareowner & Services Business. Further costs will be incurred as the transaction progresses to completion with total costs estimated at GBP17.0m, of which GBP13.0m will be charged to exceptional costs in FY 2017.

Net finance costs

Group net finance costs before exceptional items fell by GBP1.1m to GBP5.4m (H1 2016: GBP6.5m).

Profit before income tax

The Group made a profit for the period from continuing operations of GBP7.2m (H1 2016: GBP6.8m).

Earnings per share (EPS)

Basic EPS of 1.9 pence (H1 2016: 2.0 pence) is based on a weighted average number of shares of 300m (H1 2016: 300m). Excluding the impact of exceptional items, there was strong growth in underlying EPS of 6.2% to 6.9 pence (H1 2016: 6.5 pence).

Dividend per share

The Board has declared an interim dividend of 1.75 pence per share. The interim dividend is to be paid on 26 October 2017 to shareholders on the register of members at close of business on 15 September 2017. Any shareholder wishing to participate in the Equiniti Dividend Reinvestment Plan ("DRIP") needs to have submitted their election to do so by 5 October 2017. We maintain our progressive dividend policy which will see us distribute around 30% of our normalised profit attributable to ordinary shareholders each year.

Capital structure

The Group's Consolidated Balance Sheet at 30 June 2017 is summarised as follows:

 
 GBPm                              As at      As at 
                                 30 June    30 June 
                                    2017       2016 
----------------------------  ----------  --------- 
 Assets 
  Non-current assets               726.9      695.7 
  Current assets                   181.0      197.2 
----------------------------  ----------  --------- 
 Total assets                      907.9      892.9 
----------------------------  ----------  --------- 
 Liabilities 
  Non-current liabilities          372.9      340.7 
  Current liabilities              137.6      162.4 
----------------------------  ----------  --------- 
 Total liabilities                 510.5      503.1 
----------------------------  ----------  --------- 
 Net assets / (liabilities)        397.4      389.8 
----------------------------  ----------  --------- 
 Total equity                      397.4      389.8 
----------------------------  ----------  --------- 
 

Cash flow

The Group generated a free cash flow to equity holders of GBP20.2m (H1 2016: GBP18.5m) representing a free cash flow conversion of 109% (H1 2016: 93%). The main movements in cash flow are summarised below.

 
 
   GBPm                                   H1 2017     H1 2016 
-------------------------------------  ----------  ---------- 
 EBITDA prior to exceptional 
  items                                      42.0        41.2 
 Non-exceptional working capital 
  movement                                    3.8       (3.0) 
-------------------------------------  ----------  ---------- 
 Operating cash flow pre-exceptional 
  items                                      45.8        38.2 
 Cash flow conversion (%)                     109          93 
 Exceptional Items                          (1.9)       (2.8) 
 Capital expenditure                       (16.4)      (10.5) 
 Net interest costs                         (4.5)       (5.0) 
 Taxes paid                                 (2.5)       (1.2) 
 Other                                      (0.3)       (0.2) 
-------------------------------------  ----------  ---------- 
 Free cash flow to equity holders            20.2        18.5 
 
 Net change in borrowings                    20.0       (6.0) 
 IPO related costs                              -      (18.3) 
 Investment in prior and current 
  year acquisitions                        (14.9)      (12.1) 
 Payment of deferred consideration              -       (0.4) 
 Dividends paid (including payment 
  to non-controlling interest)             (12.4)       (5.3) 
 Net cash movement                           12.9      (23.6) 
-------------------------------------  ----------  ---------- 
 

Reconciliation of EBITDA to total cash generated from operations (statutory cash flow statement)

 
 
   GBPm                                    H1 2017     H1 2016 
--------------------------------------  ----------  ---------- 
 EBITDA prior to exceptional 
  items                                       42.0        41.2 
 Non-exceptional working capital 
  movement                                     3.8       (3.0) 
 Exceptional Items                           (1.9)       (2.8) 
 IPO related costs                               -      (18.3) 
 Other                                       (0.4)       (0.3) 
--------------------------------------  ----------  ---------- 
 Total cash generated from operations         43.5        16.8 
--------------------------------------  ----------  ---------- 
 

Capital expenditure

Net expenditure on tangible and intangible assets was GBP16.4m (H1 2016: GBP10.5m). This represents 8.4% of revenue (H1 2016: 5.5%) and is driven by timing of major regulatory projects such as MiFID II and the launch of a new portal for our Selftrade business. Full year 2017 guidance remains at 7% of revenue, falling to 6% thereafter following completion of MiFID II requirements.

Net interest costs

Net interest costs in the period was GBP4.5m (H1 2016: GBP5.0m). Total interest bearing loans increased from GBP306.0m to GBP326.0m.

Investment in current and prior year acquisitions

Net cash outflow on prior and current year acquisitions was GBP14.9m (H1 2016: GBP12.1m) and relates to Marketing Source, Gateway2Finance and Nostrum.

Free cash flow to equity holders

Free cash flow to equity holders represents our cash flow prior to any acquisition, refinancing or share capital cash flows. It is a key measure of cash earned for the shareholders of the Group. Free cash flow to equity holders increased by 9.2% to GBP20.2m in the period and is pre acquisition-related costs of GBP14.9m.

Tax paid

Taxes paid are primarily due to MyCSP Limited (UK) and the Group's operations in India (Equiniti India Pvt Limited). The Group has the following tax attributes that reduce the cash tax effective rate compared to the profit and loss account effective tax rate:

   --      Future tax deductions on tax trading losses                                GBP232m 
   --      Future tax deductions on intangible assets                                 GBP369m 
   --      Future tax deductions on tangible assets                                     GBP34m 

The tax impact of these attributes is recognised as deferred tax assets.

The forecast cash tax rate over the next few years is estimated to be around 14%.

We consider the cash tax rate to be an appropriate measure to use as it best reflects the economic flows from the business, taking into account our assessment of how our tax attributes, noted above, will unwind and reduce our overall tax liabilities.

 
 Bank borrowings and financial 
  covenants 
                                    H1 2017     H1 2016     FY 2016 
  GBPm 
-------------------------------  ----------  ----------  ---------- 
 Cash and cash equivalents           (69.6)      (52.9)      (56.7) 
 Senior debt                          250.0       250.0       250.0 
 Revolving credit facility             76.0        64.0        56.0 
 Other                                  1.8         0.6         1.9 
-------------------------------  ----------  ----------  ---------- 
 Net debt                             258.2       261.7       251.2 
-------------------------------  ----------  ----------  ---------- 
 Net debt/EBITDA prior to 
  exceptional items (times)             2.8         2.9         2.7 
-------------------------------  ----------  ----------  ---------- 
 

At 30 June 2017, net debt was lower at GBP258.2m (30 June 2016: GBP261.7m) due to strong cash flow offset by investment in the business and payment of dividends. The slight increase in leverage from 31 December 2016 was due to acquisition costs paid in H1 2017 and the seasonality of our cash flow. In H1 we pay annual bonus payments of cGBP5m and GBP12.4m of dividends (including the annual dividend of MyCSP). We also tend to generate more profit in the second half of the year which naturally leads to more operating cash flow in this period.

The term debt facility does not include scheduled debt repayments and together with the revolving credit facility is available for a five-year term to October 2020. GBP74.0m of the GBP150.0m revolving credit facility was not drawn at the period end. The Group has substantial liquidity to support its growth ambitions and ongoing working capital requirements.

Acquisitions

On 6 January 2017, the Group acquired Gateway2Finance for a total consideration of GBP200k with a further earn-out of up to GBP1.0m payable in 2020, dependent on growth. Gateway2Finance is an FCA authorised entity acting as a consumer finance intermediary, securing loans for clients referred by financial services companies and price comparison websites.

On 26 May 2017, the Group took control of Nostrum Group Limited and icenet Limited ("Nostrum") for a total consideration of up to GBP12.5m, comprising GBP7.0m contingent consideration, with GBP2.0m payable in September 2018 and GBP4.5m payable in September 2020, cash on legal completion of GBP3.9m and a total of GBP2.1m payable in monthly instalments to December 2018.

Nostrum is a provider of end-to-end loan management technology that helps banks, finance companies and retail brands provide innovative credit solutions to their customers. The acquisition strengthens our position in the lending sector and consolidates our strategy of providing technology-enabled loan and mortgage solutions to meet the requirements of this fast-moving market place, building on the technology platforms of Pancredit and the loan, mortgage and insurance servicing permissions of Gateway2Finance.

Events occurring post reporting period

On 12 July 2017, the Group announced the proposed acquisition and carve out of the Wells Fargo Share Registration & Services ("WFSS") business for a total cash consideration of $227.0m (cGBP176.0m) subject to certain customary closing adjustments and conditions.

The acquisition combines the #1 UK and #3 US share registrars to create a multi-national share registration and services business spanning the world's deepest capital markets, which will create a more diversified, multi-national Group. The business combination is expected to generate GBP8m of cost synergies by 2020 through introducing our Sirius platform and using this to automate processes.

Founded in 1929, WFSS provides share registration, corporate actions and investment plan services to c1,200 public and private US companies and other global companies and c9.2 million shareholder records processed in the US.

WFSS occupies a leading US market position and is growing market share driven by strong organic revenue growth (c6% 2014-16 revenue CAGR) from recent client wins and high profile corporate actions business. In 2016 WFSS delivered revenues of $104.0m (cGBP81.0m) and had adjusted profits to be acquired ("EBITDA") of $18.0m (cGBP14.0m).

WFSS has a strong track record of organic growth and market share capture with c650 clients including J.P.Morgan, Wells Fargo, General Electric and Berkshire Hathaway.

The cash consideration and Equiniti's transaction expenses are expected to be financed from a planned GBP122.0m (c$160.0m) fully underwritten rights issue and GBP120.0m (c$155.0m) fully underwritten new debt facilities.

The rights issue is expected to be launched in September 2017, subject to the approval of the acquisition by shareholders and other customary conditions, such as the availability of new debt facilities. The rights issue will be used to pay deal fees of GBP17m plus part fund the acquisition. The balance of the purchase price (GBP70m) will be settled by the raising of the debt. The remaining GBP50m of debt facilities will be used to fund transformation costs and provide working capital to support WFSS.

Transaction costs are expected to be GBP17m, of which GBP9m will be charged as exceptional costs. These exceptional costs are expected to be charged to the income statement in 2017 as the transaction completes. The balance of GBP8m will be charged to the share premium account or charged to interest payable over the term of the new debt facility.

In addition to the above transaction costs a further GBP4m of exceptional charges will be incurred in 2017 reflecting the initial stages of the integration programme. Therefore the total exceptional spend for 2017 is estimated to be GBP13m.

Total integration costs, which will be incurred by 2019 will be around GBP42m, with exceptional costs in the region of GBP20m and capital expenditure of GBP22m. These costs reflect the programme to separate WFSS from the Wells Fargo Group and to introduce our own technology to the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors have considered the principal risks and uncertainties affecting the Group's financial position and prospects in 2017. As described on pages 44 to 47 of the Group's Annual Report for 2016, the Group continues to be exposed to a number of risks and has well established systems and procedures in place to identify, assess and mitigate those risks. The principal risks include those arising from change in client demand; reduction in Bank of England rates; information security breach; loss of key clients; regulatory risk; attracting and retaining high calibre employees; change, transformation and mobilistion; adverse legislative and environmental changes; and disruption to client servicing.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that, to the best of their knowledge

-- the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting;

-- the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and a description of principal risks and undertainties for the remaining six months of the year); and

-- the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board

   Guy Wakeley                            John Stier 
   Chief Executive                          Chief Financial Officer 

28 July 2017

 
 CONDENSED CONSOLIDATED INCOME STATEMENT 
 FOR THE SIX MONTHSED 30 JUNE 
  2017 
 
 
                                              6 months   6 months        Year 
                                                 ended      ended       ended 
                                                  June       June    December 
                                                  2017       2016        2016 
                                       Note       GBPm       GBPm        GBPm 
====================================  =====  =========  =========  ========== 
 
 Revenue                                4        194.8      191.9       382.6 
 
 
 Operating costs before 
  exceptional items, depreciation 
  and amortisation                      5      (152.8)    (150.7)     (290.2) 
====================================  =====  =========  =========  ========== 
 EBITDA(1) prior to exceptional 
  items                                 4         42.0       41.2        92.4 
 Operating costs - exceptional 
  items                                 6        (3.9)      (2.4)       (5.0) 
====================================  =====  =========  =========  ========== 
 EBITDA(1)                                        38.1       38.8        87.4 
 Depreciation of property, 
  plant and equipment                            (3.0)      (2.5)       (5.4) 
 Amortisation of software                        (7.7)      (8.3)      (16.0) 
 Amortisation of acquisition 
  related intangible assets                     (13.3)     (12.7)      (25.3) 
 
 
 Total operating costs                  5      (180.7)    (176.6)     (341.9) 
------------------------------------  -----  ---------  ---------  ---------- 
 Earnings before interest 
  and tax (EBIT)                                  14.1       15.3        40.7 
 
 Finance income                                    0.5        0.1         0.2 
 Finance costs                                   (5.9)      (6.6)      (12.4) 
 Net finance costs                      10       (5.4)      (6.5)      (12.2) 
 
 Profit before income tax                          8.7        8.8        28.5 
 
 Income tax (charge)/credit             12       (1.5)      (2.0)         4.9 
 Profit for the period                             7.2        6.8        33.4 
------------------------------------  -----  ---------  ---------  ---------- 
 
 Profit for the period attributable 
  to: 
  - Owners of the parent                           5.6        5.9        30.5 
  - Non-controlling interests                      1.6        0.9         2.9 
------------------------------------  -----  ---------  ---------  ---------- 
 Profit for the period                             7.2        6.8        33.4 
------------------------------------  -----  ---------  ---------  ---------- 
 
 
 Earnings per share attributable to 
  owners of the parent: 
------------------------------------------------------  ---------  ---------- 
 Basic earnings per share 
  (pence)                               7          1.9        2.0        10.2 
 Diluted earnings per share 
  (pence)                               7          1.9        2.0        10.1 
------------------------------------  -----  ---------  ---------  ---------- 
 
 
 Underlying earnings per share(2) attributable 
  to owners of the parent: 
---------------------------------------------------  ----  ----- 
 Basic earnings per share 
  (pence)                                 7     6.9   6.5   15.9 
 Diluted earnings per share 
  (pence)                                 7     6.9   6.5   15.8 
---------------------------------------  ---  -----  ----  ----- 
 

(1) Earnings before interest, tax, depreciation and amortisation

(2) Underlying earnings per share excludes the impact of exceptional items and amortisation of acquisition related intangible assets plus cash tax

 
 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE 
  INCOME 
 FOR THE SIX MONTHSED 
  30 JUNE 2017 
 
 
                                          6 months   6 months        Year 
                                             ended      ended       ended 
                                              June       June    December 
                                              2017       2016        2016 
                                              GBPm       GBPm        GBPm 
======================================   =========  =========  ========== 
 
 Profit for the period                         7.2        6.8        33.4 
 
 Other comprehensive (expense)/income 
 
 Items that may be subsequently 
  reclassified to profit or loss 
 Fair value movement through 
  hedging reserve                            (2.8)        5.8         3.1 
 Net exchange (loss)/gain on 
  translation of foreign operations          (0.3)        0.1         3.1 
                                             (3.1)        5.9         6.2 
 Items that will not be reclassified 
  to profit or loss 
 Defined benefit plan actuarial 
  loss                                           -          -      (11.3) 
 Deferred tax credit on 
  defined benefit plan                           -          -         1.9 
---------------------------------------  ---------  ---------  ---------- 
                                                 -          -       (9.4) 
 
 Other comprehensive (expense)/income 
  for the period                             (3.1)        5.9       (3.2) 
 
 Total comprehensive income 
  for the period                               4.1       12.7        30.2 
---------------------------------------  ---------  ---------  ---------- 
 
 Total comprehensive income 
  attributable to: 
  - Owners of the parent                       2.5       11.8        28.0 
  - Non-controlling interests                  1.6        0.9         2.2 
---------------------------------------  ---------  ---------  ---------- 
 Total comprehensive income 
  for the period                               4.1       12.7        30.2 
---------------------------------------  ---------  ---------  ---------- 
 
 
 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL 
  POSITION 
 AS AT 30 JUNE 2017 
 
 
 
                                      As at   As at       As at 
                                       June    June    December 
                                       2017    2016        2016 
                                       GBPm    GBPm        GBPm 
==================================   ======  ======  ========== 
 Assets 
 Non-current assets 
 Property, plant and equipment         16.4    13.4        17.1 
 Intangible assets                    677.9   653.5       670.1 
 Other financial assets                 4.5    12.0         7.8 
 Deferred income tax assets            28.1    16.8        29.1 
                                      726.9   695.7       724.1 
 Current assets 
 Trade and other receivables           74.8    76.8        75.4 
 Agency broker receivables             36.5    67.5        15.9 
 Other financial assets                 0.1       -         0.2 
 Cash and cash equivalents             69.6    52.9        56.7 
                                      181.0   197.2       148.2 
 
 Total assets                         907.9   892.9       872.3 
-----------------------------------  ------  ------  ---------- 
 
 Liabilities 
 Non-current liabilities 
 External loans and borrowings        322.1   308.9       301.5 
 Post-employment benefits              23.9    13.5        23.9 
 Provisions for other liabilities 
  and charges                          23.2    13.5        16.2 
 Other financial liabilities            3.7     4.8         4.5 
                                      372.9   340.7       346.1 
 Current liabilities 
 Trade and other payables              99.6    90.2       105.4 
 Agency broker payables                36.5    67.5        15.9 
 Income tax payable                     1.0     1.0         2.2 
 Provisions for other liabilities         -     3.5           - 
  and charges 
 Other financial liabilities            0.5     0.2         0.5 
                                      137.6   162.4       124.0 
 
 Total liabilities                    510.5   503.1       470.1 
-----------------------------------  ------  ------  ---------- 
 
 Net assets                           397.4   389.8       402.2 
-----------------------------------  ------  ------  ---------- 
 
 Equity 
 Equity attributable to 
  owners of the parent 
 Share capital                          0.3     0.3         0.3 
 Share premium                          0.1       -           - 
 Capital contribution reserve         181.5   181.5       181.5 
 Hedging reserve                        2.1     7.6         4.9 
 Share-based payments reserve           3.9     1.1         2.1 
 Translation reserve                    2.8     0.1         3.1 
 Retained earnings                    187.8   180.6       191.5 
-----------------------------------  ------  ------  ---------- 
                                      378.5   371.2       383.4 
 Non-controlling interest              18.9    18.6        18.8 
-----------------------------------  ------  ------  ---------- 
 Total equity                         397.4   389.8       402.2 
-----------------------------------  ------  ------  ---------- 
 
 
 CONDENSED CONSOLIDATED STATEMENT OF CHANGES 
  IN EQUITY 
 FOR THE SIX MONTHSED 
  30 JUNE 2017 
 
 
 
                                              Capital            Share-based    Trans-                Non-con 
                       Share     Share   contribution   Hedging     payments    lation   Retained   -trolling    Total 
                     capital   premium        reserve   reserve      reserve   reserve   earnings    interest   equity 
                        GBPm      GBPm           GBPm      GBPm         GBPm      GBPm       GBPm        GBPm     GBPm 
==================  ========  ========  =============  ========  ===========  ========  =========  ==========  ======= 
 
Balance at 
 1 January 
 2016                    0.3         -          181.5       1.8          0.2         -      176.7        20.0    380.5 
 
Comprehensive 
 income 
Profit for 
 the year per 
 the income 
 statement                 -         -              -         -            -         -       30.5         2.9     33.4 
Other comprehensive 
 income 
 /(expense) 
Changes in 
 fair value 
 through hedging 
 reserve                   -         -              -       3.1            -         -          -           -      3.1 
Net exchange 
 gain on 
 translation 
 of foreign 
 operations                -         -              -         -            -       3.1          -           -      3.1 
Actuarial 
 losses on 
 defined benefit 
 pension plans             -         -              -         -            -         -     (10.4)       (0.9)   (11.3) 
Deferred tax 
 on defined 
 benefit pension 
 plans                     -         -              -         -            -         -        1.7         0.2      1.9 
------------------  --------  --------  -------------  --------  -----------  --------  ---------  ----------  ------- 
Total other 
 comprehensive 
 income/(expense)          -         -              -       3.1            -       3.1      (8.7)       (0.7)    (3.2) 
Total 
 comprehensive 
 income                    -         -              -       3.1            -       3.1       21.8         2.2     30.2 
 
Dividends                  -         -              -         -            -         -      (7.0)       (1.6)    (8.6) 
Transactions 
 with 
 non-controlling 
 interests                 -         -              -         -            -         -          -       (1.8)    (1.8) 
Share-based 
 payments expense          -         -              -         -          1.7         -          -           -      1.7 
Deferred tax 
 relating to 
 share option 
 schemes                   -         -              -         -          0.2         -          -           -      0.2 
Transactions 
 with owners 
 recognised 
 directly in 
 equity                    -         -              -         -          1.9         -      (7.0)       (3.4)    (8.5) 
 
Balance at 
 31 December 
 2016                    0.3         -          181.5       4.9          2.1       3.1      191.5        18.8    402.2 
------------------  --------  --------  -------------  --------  -----------  --------  ---------  ----------  ------- 
 
 
                                            Capital            Share-based    Trans-                Non-con 
                     Share     Share   contribution   Hedging     payments    lation   Retained   -trolling    Total 
                   capital   premium        reserve   reserve      reserve   reserve   earnings    interest   equity 
                      GBPm      GBPm           GBPm      GBPm         GBPm      GBPm       GBPm        GBPm     GBPm 
================  ========  ========  =============  ========  ===========  ========  =========  ==========  ======= 
 
Balance at 
 1 January 
 2016                  0.3         -          181.5       1.8          0.2         -      176.7        20.0    380.5 
 
Comprehensive 
 income 
Profit for 
 the period 
 per the income 
 statement               -         -              -         -            -         -        5.9         0.9      6.8 
Other comprehensive 
 income 
Changes in 
 fair value 
 through hedging 
 reserve                 -         -              -       5.8            -         -          -           -      5.8 
Net exchange 
 gain on 
 translation 
 of foreign 
 operations              -         -              -         -            -       0.1          -           -      0.1 
Total other 
 comprehensive 
 income                  -         -              -       5.8            -       0.1          -           -      5.9 
Total 
 comprehensive 
 income                  -         -              -       5.8            -       0.1        5.9         0.9     12.7 
 
Dividends                -         -              -         -            -         -      (2.0)       (1.6)    (3.6) 
Transactions 
 with 
 non-controlling 
 interests               -         -              -         -            -         -          -       (0.7)    (0.7) 
Share-based 
 payments 
 expense                 -         -              -         -          0.9         -          -           -      0.9 
================  ========  ========  =============  ========  ===========  ========  =========  ==========  ======= 
Transaction 
 with owners 
 recognised 
 directly in 
 equity                  -         -              -         -          0.9         -      (2.0)       (2.3)    (3.4) 
 
Balance at 
 30 June 2016          0.3         -          181.5       7.6          1.1       0.1      180.6        18.6    389.8 
----------------  --------  --------  -------------  --------  -----------  --------  ---------  ----------  ------- 
 
 
  CONDENSED CONSOLIDATED STATEMENT OF CHANGES 
  IN EQUITY 
FOR THE SIX MONTHSED 
 30 JUNE 2017 
 
 
                                            Capital            Share-based    Trans-                Non-con 
                      Share     Share  contribution   Hedging     payments    lation   Retained   -trolling    Total 
                    capital   premium       reserve   reserve      reserve   reserve   earnings    interest   equity 
                       GBPm      GBPm          GBPm      GBPm         GBPm      GBPm       GBPm        GBPm     GBPm 
=================  ========  ========  ============  ========  ===========  ========  =========  ==========  ======= 
 
Balance at 
 1 January 
 2017                   0.3         -         181.5       4.9          2.1       3.1      191.5        18.8      402.2 
 
Comprehensive 
 income 
Profit for 
 the period 
 per the income 
 statement                -         -             -         -            -         -        5.6         1.6        7.2 
Other 
comprehensive 
expense 
Changes in 
 fair value 
 through hedging 
 reserve                  -         -             -     (2.8)            -         -          -           -      (2.8) 
Net exchange 
 loss on 
 translation 
 of foreign 
 operations               -         -             -         -            -     (0.3)          -           -      (0.3) 
Total other 
 comprehensive 
 expense                  -         -             -     (2.8)            -     (0.3)          -           -      (3.1) 
-----------------  --------  --------  ------------  --------  -----------  --------  ---------  ----------  --------- 
Total 
 comprehensive 
 (expense)/income         -         -             -     (2.8)            -     (0.3)        5.6         1.6        4.1 
 
Issue of share 
 capital                  -       0.1             -         -            -         -          -           -        0.1 
Dividends                 -         -             -         -            -         -      (9.3)       (1.5)     (10.8) 
Share-based 
 payments expense         -         -             -         -          1.5         -          -           -        1.5 
Deferred tax 
 relating to 
 share option 
 schemes                  -         -             -         -          0.3         -          -           -        0.3 
Transactions 
 with owners 
 recognised 
 directly in 
 equity                   -       0.1             -         -          1.8         -      (9.3)       (1.5)      (8.9) 
 
Balance at 
 30 June 2017           0.3       0.1         181.5       2.1          3.9       2.8      187.8        18.9      397.4 
-----------------  --------  --------  ------------  --------  -----------  --------  ---------  ----------  --------- 
 
 
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
 FOR THE SIX MONTHSED 30 JUNE 
  2017 
 
 
                                              6 months   6 months        Year 
                                                 ended      ended       ended 
                                                  June       June    December 
                                                  2017       2016        2016 
                                      Note        GBPm       GBPm        GBPm 
===================================  =====  ==========  =========  ========== 
 
 Cash flows from operating 
  activities 
 Cash generated from operations        18         43.5       16.8        64.0 
 Interest paid                                   (4.7)      (4.8)       (9.7) 
 Income tax paid                                 (2.5)      (1.2)       (2.2) 
===================================  =====  ==========  =========  ========== 
 Net cash inflow from operating 
  activities                                      36.3       10.8        52.1 
===================================  =====  ==========  =========  ========== 
 
 Cash flows from investing 
  activities 
 Interest received                                 0.5        0.1         0.2 
 Business acquisitions net 
  of cash acquired                     9           0.7     (12.1)      (12.0) 
 Payment relating to prior 
  year acquisitions                             (15.6)      (0.4)       (7.3) 
 Acquisition of property, 
  plant and equipment                            (1.3)      (2.1)       (8.3) 
 Acquisition of intangible 
  assets                                        (15.1)      (8.4)      (19.9) 
 Net cash outflow from investing 
  activities                                    (30.8)     (22.9)      (47.3) 
===================================  =====  ==========  =========  ========== 
 
 Cash flows from financing 
  activities 
 Proceeds from issue of 
  share capital                        13          0.1          -           - 
 Increase/(decrease) in 
  revolving credit facility                       20.0      (6.0)      (14.0) 
 Payment of finance lease 
  liabilities                                    (0.3)      (0.3)       (0.4) 
 Dividends paid                                  (9.3)      (2.0)       (7.0) 
 Dividends paid to non-controlling 
  interests                                      (1.5)      (1.6)       (1.6) 
 Transactions with non-controlling 
  interests                                      (1.6)      (1.7)       (1.7) 
 Net cash inflow/(outflow) from 
  financing activities                             7.4     (11.6)      (24.7) 
==========================================  ==========  =========  ========== 
 
 Net increase/(decrease) in 
  cash and cash equivalents                       12.9     (23.7)      (19.9) 
 Foreign exchange gains on cash 
  and cash equivalents                               -        0.1         0.1 
 Cash and cash equivalents 
  at 1 January                                    56.7       76.5        76.5 
 Cash and cash equivalents at 
  30 June/31 December                             69.6       52.9        56.7 
------------------------------------------  ----------  ---------  ---------- 
 

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHSED 30 JUNE 2017

   1)   General information 

Equiniti Group plc is a public limited company which is listed on the London Stock Exchange and incorporated and domiciled in the United Kingdom. The company and its subsidiaries (collectively, the "Group") provide complex administration and payments services, supported by technology platforms, to a wide range of organisations. The

registered office address is Sutherland House, Russell Way, Crawley, West Sussex,   RH10 1UH. 

The financial information in these condensed interim financial statements has been reviewed but not audited by the company's auditor, PricewaterhouseCoopers LLP.

The condensed interim financial information set out herein does not constitute the Group's statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2016 have been delivered to the Registrar of Companies. The external auditor has reported on the 2016 accounts and its reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

   2)   Basis of preparation 

These condensed interim financial statements for the six months ended 30 June 2017 have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and with IAS 34, 'Interim financial reporting', as adopted by the European Union. These interim financial statements have been prepared on the basis of the accounting policies as set out in the previous Annual Report and Accounts for the year ended 31 December 2016 which are available at www.equiniti.com, except for taxes on income in interim periods which are accrued using tax rates that are expected to be applicable for the full accounting year.

Estimates

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that effect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2016. In addition, a judgement has been made that there were no significant changes to the pension assumptions used to calculate the net defined benefit pension obligation and as a result, there were no material changes to the obligation as at 30 June 2017.

Going concern

The Directors, after making enquiries and on the basis of current financial projections and the facilities available at the reporting date, believe that the Group has adequate financial resources to continue in operation for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the condensed consolidated interim financial statements.

   3)   Seasonality 

Whilst the business is not highly seasonal, there is some margin bias towards the second half of the year. The business delivers more contracted, lower margin activities such as running of AGMs, dividend payments and pension statements in the first six months and there tends to be more discretionary, higher margin project work in the second half of the year.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHSED 30 JUNE 2017

   4)   Operating segments 

The Group's chief operating decision maker is the Board of Directors. The Board of Directors have identified the Group's operating segments as Investment Solutions, Intelligent Solutions, Pension Solutions and Interest, in line with how the Group runs and structures its business.

 
                             6 months   6 months        Year 
                                ended      ended       ended 
                                 June       June    December 
                                 2017       2016        2016 
 Reported revenue                GBPm       GBPm        GBPm 
========================    =========  =========  ========== 
 Investment Solutions            64.2       62.5       124.0 
 Intelligent 
  Solutions                      55.4       54.7       109.3 
 Pension Solutions               70.5       68.9       138.1 
 Interest                         4.7        5.8        11.2 
 Total revenue                  194.8      191.9       382.6 
--------------------------  ---------  ---------  ---------- 
 
 
                                          6 months   6 months        Year 
                                             ended      ended       ended 
                                              June       June    December 
                                              2017       2016        2016 
 EBITDA prior to exceptional items            GBPm       GBPm        GBPm 
======================================   =========  =========  ========== 
 Investment Solutions                         20.2       17.8        37.5 
 Intelligent Solutions                        13.4       12.1        28.3 
 Pension Solutions                            10.5       12.5        27.7 
 Interest                                      4.7        5.8        11.2 
---------------------------------------  ---------  ---------  ---------- 
 Total segments                               48.8       48.2       104.7 
 Central costs                               (6.8)      (7.0)      (12.3) 
                                                    ---------  ---------- 
 EBITDA prior to exceptional items            42.0       41.2        92.4 
-------------------------------------    ---------  ---------  ---------- 
 

Central costs principally include corporate overheads. The EBITDA prior to exceptional items of each segment is reported after charging certain central costs based on the business segments' usage of central facilities and services.

 
                                        6 months   6 months        Year 
                                           ended      ended       ended 
                                            June       June    December 
                                            2017       2016        2016 
 Reconciliation to profit before            GBPm       GBPm        GBPm 
  income tax 
=====================================  =========  =========  ========== 
 EBITDA prior to exceptional 
 items                                      42.0       41.2        92.4 
 Operating costs - 
  exceptional items                        (3.9)      (2.4)       (5.0) 
-----------------------------------    ---------  ---------  ---------- 
 EBITDA                                     38.1       38.8        87.4 
 Depreciation of property, 
  plant and equipment                      (3.0)      (2.5)       (5.4) 
 Amortisation of software                  (7.7)      (8.3)      (16.0) 
 Amortisation of acquisition 
  related intangible assets               (13.3)     (12.7)      (25.3) 
 Net finance costs                         (5.4)      (6.5)      (12.2) 
 Profit before income 
  tax                                        8.7        8.8        28.5 
-----------------------------------    ---------  ---------  ---------- 
 

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHSED 30 JUNE 2017

   5)   Operating costs 
 
                                               6 months   6 months          Year 
                                                  ended      ended         ended 
                                                   June       June      December 
                                                   2017       2016          2016 
 Expenses by nature                                GBPm       GBPm        GBPm 
============================================  =========  =========  ========== 
 Employee benefit expense                          84.2       81.2       160.1 
 Direct costs                                      37.4       35.6        69.4 
 Bought in services                                 9.6        8.9        15.8 
 Premises costs                                     3.5        3.2         6.6 
 Operating lease costs                              3.4        3.7         7.2 
 Government grants for research 
  and development                                 (0.9)          -       (1.9) 
 Other general business 
  costs                                            15.6       18.1        33.0 
-------------------------------------------   ---------  ---------  ---------- 
 Operating costs before exceptional 
  items, depreciation and amortisation            152.8      150.7       290.2 
 Exceptional 
  items                                             3.9        2.4         5.0 
 Depreciation of property, plant 
  and equipment                                     3.0        2.5         5.4 
 Amortisation of software                           7.7        8.3        16.0 
 Amortisation of acquisition 
  related intangible 
  assets                                           13.3       12.7        25.3 
 Total operating costs                            180.7      176.6       341.9 
--------------------------------------------  ---------  ---------  ---------- 
 
   6)   Operating costs - Exceptional items 
 
                                    6 months   6 months        Year 
                                       ended      ended       ended 
                                        June       June    December 
                                        2017       2016        2016 
 Included in the profit for             GBPm       GBPm        GBPm 
  the period are the following: 
================================  ==========  =========  ========== 
 Acquisition, restructuring 
  and other costs                        3.9        2.4         5.0 
 Total exceptional items                 3.9        2.4         5.0 
--------------------------------  ----------  ---------  ---------- 
 

Acquisition related expenses represent fees paid to third party advisors and transaction fees in respect of acquisitions completed in the period, as well as costs incurred on further potential acquisitions and disposals not yet completed, including costs incurred in relation to the proposed acquisition of the share registration division of Wells Fargo & Company (note 19). It also includes exceptional income in relation to the reversal of the contingent consideration provision on historic acquisitions as a result of a change in post-acquisition performance expectations or other earn-out criteria.

   7)   Earnings per share 
 
                                           6 months   6 months        Year 
                                              ended      ended       ended 
                                               June       June    December 
                                               2017       2016        2016 
 Basic and diluted earnings                    GBPm       GBPm        GBPm 
  per share 
=======================================  ==========  =========  ========== 
 Profit from continuing operations 
  attributable to owners of the 
  parent                                        5.6        5.9        30.5 
 
 Weighted average number of 
  ordinary shares in issue (thousands)      300,044    300,000     300,002 
 Employee share options (thousands)           1,077        399       1,063 
---------------------------------------  ----------  ---------  ---------- 
 Weighted average number of 
  ordinary shares in issue adjusted 
  for the effect of dilution 
  (thousands)                               301,121    300,399     301,065 
 
 Basic earnings per share (pence)               1.9        2.0        10.2 
 Diluted earnings per share 
  (pence)                                       1.9        2.0        10.1 
---------------------------------------  ----------  ---------  ---------- 
 

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHSED 30 JUNE 2017

   7)   Earnings per share (continued) 
 
                                        6 months   6 months        Year 
                                           ended      ended       ended 
                                            June       June    December 
                                            2017       2016        2016 
 Underlying earnings per share              GBPm       GBPm        GBPm 
====================================  ==========  =========  ========== 
 EBITDA prior to exceptional 
  items                                     42.0       41.2        92.4 
 Depreciation of property, plant 
  and equipment                            (3.0)      (2.5)       (5.4) 
 Amortisation of software                  (7.7)      (8.3)      (16.0) 
 Net finance costs                         (5.4)      (6.5)      (12.2) 
 Underlying profit before income 
  tax                                       25.9       23.9        58.8 
 Cash tax at 14%/15%(1)                    (3.6)      (3.6)       (8.2) 
 Underlying profit after tax                22.3       20.3        50.6 
 Non-controlling interests                 (1.6)      (0.9)       (2.9) 
 Underlying profit attributable 
  to ordinary shareholders                  20.7       19.4        47.7 
------------------------------------  ----------  ---------  ---------- 
 
 Number of shares in issue at 
  period end (thousands)                 300,081    300,000     300,013 
 Employee share options (thousands)        1,077        399       1,063 
====================================  ==========  =========  ========== 
 Number of ordinary shares in 
  issue adjusted for the effect 
  of dilution (thousands)                301,158    300,399     301,076 
 
 Basic underlying earnings per 
  share (pence)                              6.9        6.5        15.9 
 Diluted underlying earnings 
  per share (pence)                          6.9        6.5        15.8 
====================================  ==========  =========  ========== 
 

We consider underlying earnings to be an appropriate measure to use to assess progress in the Group as it best reflects the economic flows from the business.

(1) Cash tax rate reflects the cash tax payable on the underlying profit after tax. It is calculated based on the Group's estimated forecast cash tax rate of around 14% which is lower than the profit and loss account effective tax rate due to the benefit of future tax deductions on trading losses, intangible assets and tangible assets.

   8)   Dividends 
 
                                         6 months   6 months        Year 
                                            ended      ended       ended 
                                             June       June    December 
                                             2017       2016        2016 
===================================== 
 Amounts recognised as distributions 
  to equity holders of the parent 
  in the period                              GBPm       GBPm        GBPm 
=====================================  ==========  =========  ========== 
 Final dividend for year ended                9.3          -           - 
  31 December 2016 (3.11p per 
  share) 
 Interim dividend for year ended 
  31 December 2016 (1.64p per 
  share)                                        -          -         5.0 
 Final dividend for year ended 
  31 December 2015 (0.68p per 
  share)                                        -        2.0         2.0 
                                              9.3        2.0         7.0 
-------------------------------------  ----------  ---------  ---------- 
 

The recommended interim dividend payable in respect of the period ended 30 June 2017 is GBP5.3m or 1.75p per share (30 June 2016: GBP5.0m). This is in line with the Group's stated policy of a pay-out ratio of around 30% of adjusted underlying profit after cash tax. The proposed dividend has not been accrued as a liability as at 30 June 2017.

The dividend of GBP9.3m paid in the period ended 30 June 2017 and disclosed in the Statement of Changes in Equity represents the final ordinary dividend for the year ended 31 December 2016 of 3.11p per share.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHSED 30 JUNE 2017

   9)   Acquisitions of businesses 

Gateway2Finance

On 6 January 2017, the Group purchased the entire issued share capital of Gateway 2 Finance Limited and Refresh Personal Finance Limited ("Gateway2Finance") for GBP0.2m plus contingent consideration of up to GBP1.0m payable in 2020. Gateway2Finance is an FCA authorised entity acting as a consumer finance intermediary, securing loans for clients referred by financial services companies and price comparison websites.

The Group took control of Gateway2Finance on 6 January 2017. On this date the business had net assets of GBP0.3m. The results of the business have been consolidated since the date of control and Gateway2Finance has contributed GBP0.2m of revenue and GBP0.1m of net loss to the Group results in 2017.

On acquisition, intangible assets relating to software and to customer contracts and related relationships have been re-evaluated, resulting in a combined upward adjustment of GBP0.3m to the book value. The amounts relating to the intangible assets and goodwill are provisional and subject to further evaluation and adjustment, in accordance with accounting standards. The value of goodwill reflects amounts in relation to the expected benefit of the ability to generate new streams of revenue and expected synergies of combining the operations of Gateway2Finance and the Group.

 
 Recognised amounts of identifiable assets          GBPm 
  acquired and liabilities assumed 
===============================================   ====== 
 Intangible assets                                   0.3 
------------------------------------------------  ------ 
 Net identifiable assets and liabilities             0.3 
 Goodwill on acquisition                             0.8 
--------------------------------------------      ------ 
 Total consideration                                 1.1 
 Deferred consideration                            (0.1) 
 Contingent consideration                          (0.9) 
 Net cash outflow in the period                      0.1 
--------------------------------------------      ------ 
 

As at 30 June 2017, the minimum amount of contingent consideration payable is GBPnil and the maximum amount is GBP1.0m. The final amount to be paid will be determined based on the acquiree's financial performance over the qualifying period and is only payable if the business grows in line with its business plan.

Nostrum

On 3 July 2017, the Group purchased the entire issued share capital of The Nostrum Group Limited and icenet Limited ("Nostrum") for GBP12.5m. Nostrum is a provider of end-to-end loan management technology that assists banks, finance companies and retail brands provide credit solutions to their customers, delivering services that support the whole lifecycle of lenders' operations from front-end lead generation and application processing through to customer servicing.

The purchase consideration of GBP12.5m consists of up to GBP7.0m contingent consideration, discounted to GBP2.0m payable in September 2018 and GBP4.5m payable in September 2020, cash on legal completion of GBP3.9m and GBP2.1m payable in monthly instalments to December 2018.

The Group took control of Nostrum on 26 May 2017. On this date the business had net assets of GBP3.4m, including a cash balance of GBP0.8m. The results of the business have been consolidated since the date of control and Nostrum contributed GBP0.8m of revenue and GBP0.2m of net profit to the Group results in 2017. If the business had been acquired on 1 January 2017 it would have contributed an additional GBP2.8m of revenue and GBP0.3m net loss to the Group's results in 2017.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHSED 30 JUNE 2017

   9)   Acquisitions of businesses (continued) 

On acquisition, intangible assets relating to software and to customer contracts and related relationships have been re-evaluated, resulting in a combined upward adjustment of GBP3.8m to the book value. The amounts relating to the intangible assets and goodwill are provisional and subject to further evaluation and adjustment, in accordance with accounting standards. The value of goodwill reflects amounts in relation to the expected benefit of the ability to generate new streams of revenue and expected synergies of combining the operations of Nostrum and the Group.

 
 Recognised amounts of identifiable assets      GBPm 
  acquired and liabilities assumed 
===========================================   ====== 
 Intangible assets                               4.7 
 Trade and other receivables                     1.4 
 Cash and cash equivalents                       0.8 
 Trade and other payables                      (2.7) 
 Deferred income tax liabilities               (0.8) 
--------------------------------------------  ------ 
 Net identifiable assets and liabilities         3.4 
 Goodwill on acquisition                         9.1 
--------------------------------------------  ------ 
 Total consideration                            12.5 
 Cash acquired                                 (0.8) 
 Accrued consideration                         (6.0) 
 Contingent consideration                      (6.5) 
 Net cash inflow in the period                 (0.8) 
--------------------------------------------  ------ 
 

As at 30 June 2017, the minimum amount of contingent consideration payable is GBPnil and the maximum amount is GBP7.0m. The final amount to be paid will be determined based on the acquiree's financial performance over the qualifying period and is only payable if the business grows in line with its business plan.

Costs of acquiring and integrating the above businesses amounted to GBP0.3m in the six months ended 30 June 2017 and these are reflected within exceptional items in the income statement.

10) Finance income and costs

 
                                                      6 months   6 months        Year 
                                                         ended      ended       ended 
                                                          June       June    December 
                                                          2017       2016        2016 
 Finance income                                           GBPm       GBPm        GBPm 
==============================================      ==========  =========  ========== 
 Interest income                                           0.1        0.1         0.2 
 Net foreign exchange gains                                0.4          -           - 
  from forward contracts 
 Total finance income                                      0.5        0.1         0.2 
-------------------------------------------------   ----------  ---------  ---------- 
 
                                                      6 months   6 months        Year 
                                                         ended      ended       ended 
                                                          June       June    December 
                                                          2017       2016        2016 
 Finance costs                                            GBPm       GBPm        GBPm 
==============================================      ==========  =========  ========== 
 Interest cost on senior secured borrowings                2.9        3.1         6.3 
 Interest cost on revolving credit facility                0.9        1.3         2.2 
 Amortised fees                                            0.6        0.6         1.2 
 Net finance cost relating to pension scheme               0.2        0.3         0.6 
 Unwinding of discounted amount in provisions              0.3        0.4         0.7 
 Cost of interest rate swap 
  against financial liabilities                            0.8        0.8         1.4 
 Foreign exchange losses                                   0.1          -           - 
 Other fees and interest                                   0.1        0.1           - 
 Total finance costs                                       5.9        6.6        12.4 
-------------------------------------------------   ----------  ---------  ---------- 
 

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHSED 30 JUNE 2017

11) Net debt

 
                               As at    As at       As at 
                                June     June    December 
                                2017     2016        2016 
                                GBPm     GBPm        GBPm 
===========================  =======  =======  ========== 
 Term loan                     250.0    250.0       250.0 
 Revolving credit facility      76.0     64.0        56.0 
 Other                           1.8      0.6         1.9 
 Cash and cash equivalents    (69.6)   (52.9)      (56.7) 
 Total net debt                258.2    261.7       251.2 
---------------------------  -------  -------  ---------- 
 

12) Income tax charge/(credit)

 
                                      6 months   6 months        Year 
                                         ended      ended       ended 
                                          June       June    December 
                                          2017       2016        2016 
 Recognised in the statement              GBPm       GBPm        GBPm 
  of comprehensive income: 
==================================  ==========  =========  ========== 
 Current tax charge                        1.0        0.4         4.7 
 Deferred tax charge/(credit)              0.5        1.6       (9.6) 
==================================  ==========  =========  ========== 
 Total income tax charge/(credit)          1.5        2.0       (4.9) 
==================================  ==========  =========  ========== 
 

The standard rate of corporation tax in the UK is 19% with effect from 1 April 2017 (2016: 20%) and accordingly the profits for the half year ended 30 June 2017 are taxed at 19%. The taxation charge for the six months ended 30 June 2017 is based on an estimated full year underlying effective tax rate of 17% (2016: 22%).

13) Share capital

 
                                  As at   As at       As at 
                                   June    June    December 
                                   2017    2016        2016 
 Allotted, called up and fully     GBPm    GBPm        GBPm 
  paid 
===============================  ======  ======  ========== 
 Ordinary shares of GBP0.001 
  each                              0.3     0.3         0.3 
 Total share capital                0.3     0.3         0.3 
===============================  ======  ======  ========== 
 
 
                                     As at     As at       As at 
                                      June      June    December 
                                      2017      2016        2016 
 Ordinary shares of GBP0.001        Number    Number      Number 
  each - in thousands of shares 
================================  ========  ========  ========== 
 On issue - fully paid             300,081   300,000     300,013 
================================  ========  ========  ========== 
 

The Group issued 68,001 ordinary shares on exercise of employee share options during the six months ended 30 June 2017. The shares were issued at an exercise price of GBP1.27 per share. Proceeds of GBP0.1m were received resulting in an increase to the share premium account.

14) Employee benefits

Defined benefit pension plans

The Group operates three funded defined benefit pension plans in the UK; Equiniti ICS Limited, Paymaster (1836) Limited and MyCSP Limited. The defined benefit obligation as at 30 June 2017 is calculated on a year-to-date basis using the latest actuarial valuation as at 31 December 2016 and has not been updated for the half year statement in line with Group policy. This will be updated as part of our normal year end processes on 31 December 2017.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHSED 30 JUNE 2017

15) Financial risk management

The Group's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate risk, foreign exchange rate risk and equity price risk). The condensed financial statements do not include all the financial risk management information and disclosures required in the annual financial statements and they should be read in conjunction with the Annual Report and Accounts 2016. There have been no changes in the risk management department or in any risk management policies since the year end.

16) Financial instruments fair value disclosures

There are no material differences between the carrying value of assets and liabilities and their fair value. The only financial instruments measured at fair value are interest rate swaps and foreign exchange forward contracts.

The following table presents the Group's financial assets and liabilities that are measured at fair value:

 
                                             As at   As at       As at 
                                              June    June    December 
                                              2017    2016        2016 
                                     Level    GBPm    GBPm        GBPm 
==================================  ======  ======  ======  ========== 
 Financial assets 
 Derivative financial instruments      2       4.6    12.0         8.0 
 Financial liabilities 
 Derivative financial instruments      2       2.4     4.4         3.1 
----------------------------------  ------  ------  ------  ---------- 
 

There were no transfers between levels during the period. Valuation techniques used to value these financial instruments are consistent with those used for the year ended 31 December 2016 as disclosed in note 6.10 of the Annual Report and Accounts 2016.

17) Related party transactions

Transactions with key management personnel

The compensation of key management personnel (including the Directors) is as follows:

 
                                        6 months   6 months 
                                           ended      ended   Year ended 
                                            June       June     December 
                                            2017       2016         2016 
                                            GBPm       GBPm         GBPm 
====================================  ==========  =========  =========== 
 Key management emoluments                   1.3        1.1          3.1 
 Company contributions to money 
  purchase pension plans                       -          -          0.1 
 Share based payments                        0.7        0.3          0.7 
 Total                                       2.0        1.4          3.9 
-----------------------------------   ----------  ---------  ----------- 
 

Key management are the Directors of the Group (includes non-executives), as well as the senior non-statutory Director of each of the major subsidiaries, who have authority and responsibility to control, direct or plan the major activities within the Group.

As part of the IPO process in October 2015, shares were issued to certain employees of the Group as a result of an incentive agreement with the then controlling shareholder, Advent. The shares were treated as an income tax event for the receiving individuals and are subject to lock up arrangements, as disclosed in the prospectus. As a consequence, the Group lent those individuals who received the shares monies to cover their income tax and National Insurance liabilities. These loans were all subject to relevant approvals through the IPO process and are treated as a benefit in kind to the receiving individuals. All benefiting individuals have entered into a loan agreement with the Group. These loans must be repaid no later than October 2018. The total value of loans made to key management personnel outstanding at 30 June 2017 was GBP1.0m (31 December 2016: GBP1.0m).

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHS ENDED 30 JUNE 2017

18) Reconciliation of profit to cash generated from operations

 
                                           6 months   6 months        Year 
                                              ended      ended       ended 
                                               June       June    December 
                                               2017       2016        2016 
                                               GBPm       GBPm        GBPm 
===  =================================   ==========  =========  ========== 
 Profit before income tax                       8.7        8.8        28.5 
 
 Adjustments for: 
 Depreciation of property, plant 
  and equipment                                 3.0        2.5         5.4 
 Amortisation of software                       7.7        8.3        16.0 
 Amortisation of acquisition 
  related intangibles                          13.3       12.7        25.3 
 Finance income                               (0.5)      (0.1)       (0.2) 
 Finance costs                                  5.9        6.6        12.4 
 Share-based payments expense                   1.5        0.9         1.7 
 
 Changes in working capital: 
 (Increase)/decrease in trade 
  and other receivables                       (0.9)      (4.9)         0.3 
 Increase/(decrease) in trade 
  and other payables                            4.8     (17.0)      (23.0) 
 Decrease in provisions                           -      (1.0)       (2.4) 
---------------------------------------  ----------  ---------  ---------- 
 Total cash generated 
 from operations                               43.5       16.8        64.0 
--------------------------------------   ----------  ---------  ---------- 
 

19) Events after the reporting period

On 12 July 2017, the Group announced the proposed acquisition and carve out of the Wells Fargo Share Registration & Services ("WFSS") business for a total cash consideration of $227.0m (cGBP176.0m) subject to certain customary closing adjustments and conditions.

The cash consideration and Equiniti's transaction expenses are expected to be financed from a planned GBP122.0m (c$160.0m) fully underwritten rights issue and GBP120.0m (c$155.0m) fully underwritten new debt facilities.

The rights issue is expected to be launched in September 2017, subject to the approval of the acquisition by shareholders and other customary conditions, such as the availability of new debt facilities.

The anticipated exceptional charge for the year ended 31 December 2017 is GBP13.0m, with GBP3.9m recognised in the six months ended 30 June 2017, mainly from advisory related activities. The remaining expected exceptional charge will relate to the completion costs of the deal and integration of the business, including the provision of Equiniti's state-of-the-art Sirius platform to the US share registry market.

APPENDIX 1

RESTATED SEGMENTAL ANALYSIS

 
 
                         H1       Re-org      H1          H2       Re-org      H2 
                         2016                 2016        2016                 2016 
                       Reported             Restated    Reported             Restated 
                     ----------  -------  ----------  ----------  -------  ---------- 
 REVENUE (GBPm) 
 Investment 
  Solutions             62.1       0.4       62.5        61.5        -        61.5 
 Intelligent 
  Solutions             58.4      (3.7)      54.7        58.0      (3.4)      54.6 
 Pension Solutions      65.6       3.3       68.9        65.8       3.4       69.2 
 Interest 
  Income                 5.8        -         5.8         5.4        -         5.4 
 Central Costs            -         -          -           -         -          - 
------------------- 
 Total Group            191.9       -        191.9       190.7       -        190.7 
-------------------  ----------  -------  ----------  ----------  -------  ---------- 
 
 EBITDA prior to exceptional 
  items (GBPm) 
 Investment 
  Solutions             18.1      (0.3)      17.8        20.5      (0.8)      19.7 
 Intelligent 
  Solutions             12.8      (0.7)      12.1        16.7      (0.5)      16.2 
 Pension Solutions      11.0       1.5       12.5        13.3       1.9       15.2 
 Interest 
  Income                 5.8        -         5.8         5.4        -         5.4 
 Central Costs          (6.5)     (0.5)      (7.0)       (4.7)     (0.6)      (5.3) 
------------------- 
 Total Group            41.2        -        41.2        51.2        -        51.2 
-------------------  ----------  -------  ----------  ----------  -------  ---------- 
 
 EBITDA margin prior to exceptional 
  items (%) 
 Investment 
  Solutions             29.1%                28.5%       33.3%                32.0% 
 Intelligent 
  Solutions             21.9%                22.1%       28.8%                29.7% 
 Pension Solutions      16.8%                18.1%       20.2%                22.0% 
------------------- 
 Total Group            21.5%                21.5%       26.8%                26.8% 
-------------------  ----------  -------  ----------  ----------  -------  ---------- 
 
 
 Figures have been restated to take 
  account of the following re-organisation: 
 Company Secretariat - moved from Intelligent 
  Solutions to Investment Solutions. 
 HR Payroll - moved from Intelligent 
  Solutions to Pension Solutions. 
 Flexible Benefits - moved from Investment 
  Solutions to Pension Solutions. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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