(Alliance News) - Equiniti Group PLC on Thursday reported a double-digit rise in profit for 2019, due to a sharp drop in non-operating charges, and steady growth in revenue.
Also on Thursday, the share registration and financial services provider announced the acquisition on employee share plans firm Monidee for an undisclosed .
Amsterdam-based Monidee owns the tOption technology product. The acquisition will allow Equiniti to offer its clients global share purchase plan products.
"We are delighted to welcome Monidee to the Equiniti group. This acquisition will allow us to answer current client demand and provides us with a leading proprietary platform to attract new international clients. The global employee share plans market is growing quickly, and we are in great shape to take advantage of this opportunity," said Chief Executive Guy Wakeley.
Turning to results, Equiniti reported a 64% rise in pretax profit to GBP39.8 million from GBP24.3 million the year before, as non-operating costs dropped to GBP5.5 million from GBP20.8 million.
This was due to transaction costs recorded in 2018 for the acquisition of Wells Fargo Shareowner Services business in February of that year. These were not repeated in 2019.
Revenue for the year increased by 4.7% year-on-year to GBP555.7 million from GBP530.9 million, despite several factors holding back growth, including slower corporate activity and a reduction in US interest rates.
Equiniti proposed a final dividend of 3.54 pence per share, bringing the total payout to 5.49p, up 3.2% from 5.32p the prior year.
Looking ahead, the company said it remains positive about future prospects, even as interest income will be crimped by reductions in central bank rates.
In addition, the unpredictable spread of Covid-19 has introduced further uncertainty in 2020, from delays in corporate decision making and financial market volatility.
Equiniti has kept its medium-term guidance, with organic revenue growth of 3% to 7% per annum and a progressive dividend policy, with 30% of underlying profit attributable to shareholders.
"2019 has been a year of solid progress where we have surmounted the challenges of separating and integrating our North American business whilst sustaining progress in the uncertain operating environment in the UK. Equiniti continues to be distinguished by our commitment to client relationships and technology investment, with the singular purpose of improving service for the 30 million people who use our platforms," said Chief Executive Guy Wakeley.
Shares in Equiniti were down 6.9% at 155.50 pence on Thursday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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