When financial services group Equiniti (EQN) floated in October 2015 it received a tepid response. Volatile equity markets and concerns over its large debt pile were cited by investors. Equity markets may still be volatile, but these results suggest debt worries are easing.
IC TIP:
Buy
at
181p
Equiniti churned out £18.5m of free cash flow after exceptionals, capital expenditure, interest costs and taxes - more than double last year's amount. That and the IPO refinancing meant net debt at the end of the period was 44 per cent lower year on year. That leaves net debt to cash profits (a measure of a company's leverage) looking a little more comfortable at 2.9 times, down from 5.5 times a year earlier.