EQS Group - Emerging from investment phase

Management reiterated FY19 guidance at the half year, despite revenue growth at the interim stage being a little below its own expectations. H219 should provide better revenue and profit growth as new modules will stimulate growth and the internal investment reduces. Our underlying forecasts were unchanged, but we reduced revenue and EBITDA forecasts for FY19 and FY20 to take account of the ARIVA disposal. EQS continues to trade at a significant discount to its peers and the current share price is discounting growth well below management’s expectations.