MENU

Our Investment Proposition

Equiniti has a clear investment proposition, based on the following key strengths.

Leadership positions in large and growing markets, giving us significant growth opportunities and strong momentum

Long-term contracts with high-fidelity, blue-chip clients, contributing to high revenue visibility and organic growth

The opportunity to enhance our offerings to clients, increasing our revenue with them over time

Well-invested and scalable proprietary technology, which gives us a competitive advantage and supports our growth

A strong M&A track record, adding capabilities to boost our growth

Increasing profitability, through operational leverage and cost improvement

Robust cash generation, providing the funds to invest whilst reducing debt and growing our dividend

We believe that together, these strengths will enable us to deliver long-term sustainable growth and increasing investor returns.

DELIVERING THE GROUP STRATEGY

1

GROW SALES TO EXISTING CLIENTS

2

WIN NEW B2B CLIENTS

3

DEVELOP AND ACQUIRE NEW CAPABILITIES

4

OPERATING LEVERAGE

5

REINVEST STRONG CASH FLOWS

ORGANIC GROWTH

ACQUISITIVE GROWTH

25 BPS PER ANNUM

C.5% REVENUE REINVESTED IN CAPEX

REGULATED SERVICES FOR UK BASED FTSE 350 AND GOVERNMENT

DELIVERING THE GROUP STRATEGY

1

GROW SALES TO EXISTING CLIENTS

2

WIN NEW B2B CLIENTS

3

DEVELOP AND ACQUIRE NEW CAPABILITIES

4

OPERATING LEVERAGE

5

REINVEST STRONG CASH FLOWS

ORGANIC GROWTH

ACQUISITIVE GROWTH

25 BPS PER ANNUM

C.5% REVENUE REINVESTED IN CAPEX

REGULATED SERVICES FOR UK BASED FTSE 350 AND GOVERNMENT

Strategy

Our strategy is designed primarily to drive organic growth, by leveraging our technology platforms to broaden the range of services we provide to our clients. The key components of our strategy are set out below

GROW SALES TO EXISTING CLIENTS

Progress in 2016:

WE DELIVERED 13.5% REVENUE GROWTH THROUGH CROSS-SELLING AND UP-SELLING TO OUR STRATEGIC CLIENTS.

Among many examples of cross-selling and up-selling this year were:

  • Sales of complaints management software to HSBC and TSB.
  • Asset reunification projects for Santander and Royal Dutch Shell.
  • Bereavement services provided to Lloyds Banking Group and a pilot programme with Prudential
WIN NEW B2B CLIENTS

PROGRESS IN 2016:

KEY NEW ACCOUNT WINS INCLUDED:

  • Share registration clients, including AA, Abcam, Ascential, Biffa, Domino’s Pizza, Draper Esprit, GoCompare, Joules, Metro Bank and Time Out.
  • A life and pensions outsourcing contract with Retirement Advantage.
  • Software sales to new clients, including Admiral Insurance Group.
DEVELOP AND ACQUIRE NEW CAPABILITIES

PROGRESS IN 2016:

DURING THE YEAR, WE ACQUIRED:

  • KYCnet, which provides cutting-edge workflow technology for on-boarding and monitoring commercial nd retail clients.
  • RiskFactor, which offers credit decisioning and risk profiling software for commercial lending.
  • Toplevel Computing, which provides large-scale digital case management solutions.
  • Marketing Source, which helps clients mitigate risk and improve customer targeting through data analytics, identity checking and cyber security products.

We also continued to invest in enhancing our capabilities, with successes in the year including:

  • The UK’s first fully digital AGM for Jimmy Choo.
  • The first augmented reality employee engagement programme for DS Smith.
OPERATING LEVERAGE

PROGRESS IN 2016:

  • We continued to expand our centre in Chennai, which employed 760 people at the year end. The centre provides IT, BPO, sales and marketing, finance, HR and payroll support. In addition we secured access to additional facilities in Bangalore which will facilitate our business continuity requirement in the event of an emergency in Chennai.
  • We maintained our focus on procurement efficiencies and property rationalisation.
REINVEST STRONG CASH FLOWS

PROGRESS IN 2016:

  • We delivered free cash flow of £92.6m and invested £28.2m in capital expenditure, equivalent to 7.3% of revenue for the year.
  • At the year end, we had net debt of £251.2m and net debt to EBITDA of 2.7 times. We aim to reduce our leverage to 2-2.5 times over the medium term.
Delivered by Investis – link to website (opens in a new window)