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Trading remains mixed at Equiniti
26th May 2021 10:40
(Sharecast News) - Trading remains mixed at Equiniti Group, the financial services firm said on Wednesday, as the pandemic continued to impact clients.
Updating on trading ahead of its annual general meeting, the outsourcer said trends seen in the first quarter had continued into the second, "with some divisions gaining positive momentum while others continue to be impacted by lockdown restrictions".
There had had been "signs of improvement" in activity levels in its boardroom and US divisions during the period, primarily because of the growing number of IPOs and other corporate actions, a return to dividend payments and higher share dealing volumes.
Equiniti - which is the subject of a £661m takeover approach - said it was on track to win a record number of new clients arising from IPOs this year.
However, it conceded that the external environment remained "very challenging" for its digital arm, with a number of client offices still closed.
Overall, Equiniti said: "The outlook remains dependent on the pace and shape of the economy recovery and the timing of the return of market-paid activities.
"As a result of these continuing uncertainties, the group remains unable to provide formal guidance regarding the expected financial outturn for the current financial year."
As at 1030 BST, shares in the London-listed firm were largely flat at 169.4p.
Earlier this month, US private equity investor Siris Capital upped its 170p a share offer for Equiniti to 180p. It is currently carrying out due diligence and has until Friday to make a firm offer or walk away.
Updating on trading ahead of its annual general meeting, the outsourcer said trends seen in the first quarter had continued into the second, "with some divisions gaining positive momentum while others continue to be impacted by lockdown restrictions".
There had had been "signs of improvement" in activity levels in its boardroom and US divisions during the period, primarily because of the growing number of IPOs and other corporate actions, a return to dividend payments and higher share dealing volumes.
Equiniti - which is the subject of a £661m takeover approach - said it was on track to win a record number of new clients arising from IPOs this year.
However, it conceded that the external environment remained "very challenging" for its digital arm, with a number of client offices still closed.
Overall, Equiniti said: "The outlook remains dependent on the pace and shape of the economy recovery and the timing of the return of market-paid activities.
"As a result of these continuing uncertainties, the group remains unable to provide formal guidance regarding the expected financial outturn for the current financial year."
As at 1030 BST, shares in the London-listed firm were largely flat at 169.4p.
Earlier this month, US private equity investor Siris Capital upped its 170p a share offer for Equiniti to 180p. It is currently carrying out due diligence and has until Friday to make a firm offer or walk away.