Buying spree: Guy Wakeley
Equiniti provides essential services to most of Britain’s biggest companies, helping them pay wages and pensions, create employee share schemes, raise money on the stock market and distribute dividends.
Equiniti also owns the share-dealing platform Selftrade, and helps firms deal with financial grievances from customers, such as mis-sold Payment Protection Insurance.
Midas recommended the shares in July 2016, when they were 171¾p. Since then, they have risen by 80 per cent to 310p and should continue to deliver strong growth.
The firm traces its heritage back to the 1830s, when it was the Government’s paymaster, and it has been a UK-focused business ever since.
Last summer, however, chief executive Guy Wakeley bought America-based Wells Fargo Shareowner Services for $227 million (£160 million).
The deal opens up the vast US market to Equiniti and means it can offer more services to UK-listed clients, such as Barclays, BT and Prudential, which have US listings too.
Wells Fargo’s customers already include prestigious names such as General Electric and Procter & Gamble, and Equiniti recently added MasterCard to the list.
Annual results for 2017 showed a 6 per cent rise in turnover to £406 million and a 6.3 per cent increase in the dividend to just over 5p.
Profits fell slightly as Equiniti invested in its business and incurred costs related to the Wells Fargo deal.Bit analysts expect turnover to top £500 million this year with profits bouncing back as well.
Midas verdict: Equiniti shares have delivered a strong performance and investors may be inclined to take some profits. But they should hold on to most of their shares. Equiniti is doing well in the UK, while the US acquisition provides added momentum to the group.
Traded on: Main Market Ticker: EQN Contact: equiniti.com or 020 7469 1811