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November 27th, 2019 | 14:50 CET

EQS Group AG - Delays send share price down to two-year low

  • RegTech
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The RegTech company, EQS Group, was founded in Munich in 2000 and has since developed into an international provider of regulatory technologies in the areas of corporate compliance and investor relations. Several thousand companies worldwide use the EQS Group's solutions to meet complex compliance requirements, minimize risks and communicate transparently with stakeholders. The products of the EQS Group are bundled in the cloud-based software EQS COCKPIT. This allows compliance workflows in the areas of whistleblower protection and case management, policy management, insider list management and reporting obligations to be professionally controlled. Listed companies also use a global newswire, investor targeting and contact management, IR websites, digital reports and webcasts for investor communication.

time to read: 1 minutes | Author: Mario Hose
ISIN: DE0005494165

Table of contents:

    Only one third of expected IPOs

    The EQS Group achieved sales growth of 2.7% to EUR 26.58 million in the first nine months compared to EUR 25.90 million in the same period of the previous year. However, the sold ARIVA.DE AG was deconsolidated as of July 1, 2019. Adjusted for the subsidiary sold, sales rose by 11.8% to EUR 23.09 million from EUR 20.64 million in the previous year. Nevertheless, this development was below management expectations.

    The reason for this low growth was longer development times for the new modules for CRM, Mailing, Policy Manager, which consequently led to shifts in the migration of existing customers and also postponed the acquisition of new customers. In addition, five IPOs resulted in significantly fewer IPOs than the company had previously expected at 15.

    Disposal reduces net loss

    EBITDA increased from EUR -0.67 million to EUR 0.65 million, although special effects must be taken into account in this development. According to the pro forma consolidated income statement excluding ARIVA.DE AG, EBITDA amounted to EUR 0.39 million compared to EUR -0.63 million, with IFRS 16 effects also having a significant positive impact on EBITDA.

    The sale of ARIVA.DE AG generated financial income of EUR 2.23 million, which significantly reduced the net loss for the period. Accordingly, the net result amounted to EUR -0.72 million compared to EUR -2.29 million in the previous year.

    Guidance and price target adjustments

    The EBITDA guidance was reduced from EUR 2.8 - 3.8 million to EUR 2.3 - 3.3 million. In the course of adjusting the forecast, the analysts of GBC Research now expect EBITDA of EUR 3.30 million in the current financial year 2019, EUR 3.86 million in 2020 and EUR 7.93 million in 2021.

    Due to the adjustment of the forecasts, GBC's experts have reduced the price target from EUR 94.00 per share to EUR 90.00 per share, but remain with the Buy rating.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author