Equals Group processes a large forex deal for a large corporate

Paul Hill
Analyst Comment
08:15, 28th October 2021

As another marvellous endorsement of   Equals Group's (EQLS FOLLOW) strategic pivot to B2B 2 years' ago, the company said today that it had processed a 'monster' forex deal for a large corporate.

Generating one-off sales of £1.5m in Q4'21, & underlining once again its status as a credible counterparty in such international payment transactions.

CEO Ian Strafford-taylor saying: "It represents the largest single transaction ever completed by the Group and is a clear demonstration of our credibility among large corporates, the quality of our service proposition, and the level of commitment of our people."

Wrt the numbers, I have accordingly upgraded FY21 forecasts (but held 2022 unchanged), underpinning the 100p/share valuation. Plus at 69p, the shares trade on 2.8x 2021 EV/revenues, falling to 2.5x next vs >6x for the broader epayments space (see comments for charts).

EQLS price chart

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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