EQS Group

DB: EQS

€100.5m market cap

€73.5 last close

EQS Group is a leading technology provider for digital IR, corporate communications and compliance. It has over 8,000 clients worldwide using its products and services to securely, efficiently and simultaneously fulfil complex national and international information obligations to the global investment community.

Investment summary

FY18 will have been the year of peak investment in the €9m programme to build a global regulatory tech platform business. Full year guidance was tightened with the Q318 figures to the lower end of the range and we reined in our FY19e and FY20e revenue and EBITDA forecasts. Results are scheduled for 12 April and will show the balance sheet strengthened by the sale of the stake in Issuer Direct for €3.6m. FY20e still shows a strong increase in return on sales, with EBITDA margin rising to 12%. EQS is building an attractive recurring revenue base (81% of total sales in Q318). It has its eyes firmly on the prize of being an integral part of companies’ corporate compliance and investor relations functions across the globe.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2016A 26.1 4.2 2.4 96.1 76.5 22.9
2017A 30.4 2.3 0.8 16.4 448.2 52.0
2018E 36.0 0.5 (0.1) (92.7) N/A 125.1
2019E 42.0 2.1 0.1 3.9 1884.6 42.0
Last updated on 19/03/2019
Industry outlook

Gartner estimates the governance, risk and compliance segment at over US$5bn, growing at a CAGR of over 13%. 2018 sees a number of tightened corporate compliance and disclosure requirements, including EU PRIIP regulations for Key Information Documents, an updated German corporate compliance code and the French SAPIN II anti-corruption regulation, as well as MiFID II. These all increase corporate administrative loads and carry heavy penalties for non-compliance, providing a positive backdrop for sales.

Last updated on 19/03/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 14.7
Forecast gearing ratio (%) 62
Price performance
%
1m
3m
12m
Actual 0.7 0.0 5.3
Relative* (3.4) (8.7) 9.1
52-week high/low €83.0/€67.0
*% relative to local index
Key management
Achim Weick CEO
André Marques CFO

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