(Sharecast News) - Payments firm Equiniti posted a sharp rise in full-year pre-tax profits on Thursday but warned "the unpredictable spread" of the coronavirus pandemic introduced "uncertainty" to current year trading.
Equiniti said pre-tax profits were up 63.8% to ?39.8m, while revenue was 4.7% higher at ?555.7m and underlying earnings improved 5% to ?136m.
Diluted earnings per share shot up 82.6% to 8.4p and Equiniti declared a full-year dividend of 5.49p per share - up 3.2% year-on-year.
The FTSE 250-listed group also posted a 2.4% reduction in net debt to ?343.6m.
Equiniti highlighted that the strong performance came despite a global slowdown in corporate activity, US interest rate cuts, a reduction in trading volumes in the group's execution-only brokerage service and delays in commissioning new projects over the UK election period.
Chief executive Guy Wakeley said: "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 United Kingdom."
However, Equiniti warned that interest income in its current year would be affected by recent reductions in central bank rates and the coronavirus outbreak, due to delays in corporate decision-making and financial market volatility.
Equiniti added the recurring nature of much of its revenues and diversity of its client base provided "valuable stability".
In a separate announcement, Equiniti announced it had acquired Monidee, an employee share plans technology business based in Amsterdam.
While financial terms weren't disclosed, Equiniti said that transaction offered the group "significant cross-sell opportunities" and other revenue synergies.
As of 0830 GMT, Equiniti shares were down 9.34% at 151.39p.
2 Aug 2016 07:25