Equiniti Group, the specialist technology outsourcer providing non-discretionary payment and administration services, is holding its Annual General Meeting today and is issuing the following trading update covering progress to date in 2016.
We have made a positive start to the year with trading in line with management’s expectations. The Group continues to grow organically both through business won from existing and new clients and the effective cross selling of technology-led propositions across the Group’s broad and stable customer base. Organic growth, margin progression and cash conversion are continuing in line with expectations. New business wins are ahead of the prior year and include a first generation life and pensions outsourcing contract with Retirement Advantage, valued at approximately £40m over 10 years. The integration of the KYCnet and RiskFactor acquisitions, announced in March, is progressing to plan, with the early adoption of these innovative services by our existing client base. The breadth and longevity of our strategic client relationships is a core strength of the Group and we are pleased to have renewed or extended our cornerstone relationships with Barclays, Tesco, MBNA, Lloyds, Royal Dutch Shell and Cemex.
Management’s expectations for 2016 remain unchanged. We will remain focused on our core markets in the UK, providing specialist technology and services for clients facing the challenges of tightening compliance and regulation. We are confident of delivering organic revenue growth of 5%, supplemented by acquisitions, whilst expanding our margins through our efficiency programme and de-leveraging the Group.
Commenting on the Group’s results, Guy Wakeley, Chief Executive, said:
“The year has started well, with trading and business performance in line with expectations. New business wins are ahead of last year, increasing revenue visibility and giving confidence both in the Group’s strategy and the outlook for 2016 and beyond.”