EQS Group

DB: EQS

€236.3m market cap

€31.4 last close

EQS is a leading international provider of regulatory technology in the fields of corporate compliance and investor relations. Its products enable corporate clients to fulfil complex national and international disclosure obligations, minimise risks and communicate transparently with stakeholders.

Investment summary

Following the recent announcement of the purchase of Got Ethics (see our recent update note), EQS has now raised €9.1m gross through a placing of 350k new shares, being c 5% of the issued share capital, at €26 per share. The upfront payment of €10m for Got Ethics was funded via a commercial loan. This additional funding gives further flexibility to extend the group’s activities within the corporate compliance sphere, where investment is being made to bolster sales and marketing ahead of the implementation of the EU whistle-blowing directive.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 36.2 0.2 0.7 6.12 513.1 N/A
2019A 35.4 2.5 (0.3) (6.26) N/A N/A
2020E 38.0 4.9 1.4 13.67 229.7 N/A
2021A 47.0 6.1 2.2 20.31 154.6 N/A
Industry outlook

The EU directive on whistle-blowing needs to be incorporated into member state legislation by end 2021, giving a good opportunity to win new clients, who can then be cross- and up-sold to. The pandemic has provided fertile territory for selling online communications solutions, with virtual general meetings being used broadly across the DACH area, where voting is normally at the meeting, with questions also submitted ahead of time. Against this, the number of IPOs in European markets has unsurprisingly dwindled.

Last updated on 14/01/2021
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Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 0.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 18.0 29.8 125.9
Relative* 11.6 20.8 117.3
52-week high/low €31.8/€10.0
*% relative to local index
Key management
Achim Weick CEO
André Marques CFO

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