EQS Group Pushing Ahead
Edison | Dec 04, 2015 12:40AM ET
Pushing ahead in Asia
Equus Total Return Closed Fund (N:EQS)’s Q315 numbers show that is making good progress in building its Asian business, albeit at a cost to margin in the current year. The strong growth in revenues for both Websites & Platforms (buoyed by Asia) and for Reports & Webcasts more than made up for the weakness in Distribution & Media as the SME bond market ground to a halt. Regulatory Information & News performance continues to be constrained by de- and down-listings in the German market. The group’s valuation should expand as management demonstrates successful delivery on its overseas expansion plans.
Expectations updated
We have adjusted our FY15 expectations on the back of the Q3 performance, tax and in the light of movements in exchange rates, which have been broadly favourable. For FY16 and FY17, we have trimmed numbers a little on lower global GDP forecasts. Russia remains difficult, unlikely to recover short term, but the group has opened a new front in the Arab states via a marketing co-operation agreement in Dubai, commenced in September. We expect to see a strong uplift in operating margin in FY16 and FY17 as the first benefits of the push into Asia start producing returns. Success in Asia, leveraging 2014’s acquisition of TodayIR, would be transformative both for the scale of the group and for its financial performance.
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