LONDON (Alliance News) - Equiniti Group PLC said Friday that its profit for first half more than halved despite a sharp increase in revenue.
Equiniti shares were trading up 8.2% at 225.50p each early Friday morning.
For the half-year to June-end, the FTSE 250-listed technology outsourcer posted pretax profit of GBP3.7 million, down from GBP8.5 million recorded a year ago, dented by acquisition costs. The company acquired US-based Wells Fargo Shareowner Services and London-based Boudicca Proxy Ltd during the period.
Revenue for the interim period jumped 30% to GBP254.0 million from GBP194.8 million. Adjusted earnings before interest, taxes, depreciation and amortisation reached GBP55.0 million from GBP41.8 million a year ago.
Chief Executive Officer Guy Wakeley said: "The first half of 2018 has been our strongest reporting period yet, with accelerating organic growth supplemented by the successful completion of the high quality Shareowner Services business from Wells Fargo Bank."
The company lifted its interim dividend by 12% to 1.83 pence per share from 1.64p paid a year ago.
"We maintain our progressive dividend policy which targets the distribution of around 30% of our normalised profit attributable to ordinary shareholders each year," Equiniti said.
The company said it was "pleased with performance in the first half", and expects full-year earnings to be towards the top end of market expectations which see Ebitda between GBP116 million and GBP122.9 million.
The market also expects Equiniti to deliver annual revenue between GBP475 million and GBP499 million.
