Equiniti makes pre-tax loss of £6.6m
Equiniti (LON:EQN) said 2020 had been a challenging year as the firm announced a fall in revenue, EBITDA and profit.
The payments and technology company saw its turnover fall by 15% in 2020 to £471.8m, while its underlying EBITDA was down 32.6% to £91.7m.
Equiniti announced a pre-tax loss of £6.6m, a swing from a profit of £40m in 2020.
The FTSE All-Share company also confirmed it would not be offering a dividend during 2020, having done the same in 2019.
Cheryl Millington, chief executive of Equiniti, outlined the impact of the pandemic on the business:
“Our financial results for 2020 have been significantly impacted by the challenging macro environment. However, the fundamental strengths of our business model remain and EQ is well positioned for an improvement in market conditions and economic and capital market recovery,” said Millington.
“While uncertainty continues, the outlook for capital market activity in 2021 is encouraging and we have started the year well with a number of important new business wins. Our focus is on driving performance and market share, while reducing the Group’s debt and delivering on our cost initiatives to offset reduced interest income in a low interest rate environment.”
“We look forward to welcoming Paul Lynam as CEO from 1 April. I would also like to thank all of my colleagues for their ongoing commitment in continuing to deliver a seamless service to our clients throughout the COVID-19 crisis. As CEO I have witnessed the consistency and quality of the service that EQ delivers, which has been so critical in these challenging times. The depth of our client relationships provides me with confidence as we look to the future.”