EQS Group - Making progress

EQS Group delivered FY19 revenue and EBITDA in line with market expectations and is making good progress in its transformation to a cloud-based provider of corporate compliance and investor relations solutions. There are some effects of the COVID-19 pandemic that play to EQS’s strengths, such as hosting webcasts and virtual AGMs. However, the current dearth of IPOs and longer-term likely increase in corporate insolvencies reduce the potential client pool. We currently maintain our revenue and profit forecasts for FY20 except for some small adjustments post FY19, mindful that we may need to review forecasts as the economic situation clarifies. The valuation remains well below peers and DCF.