EQS Group - New customer growth momentum

EQS Group has updated on FY21 revenues, at €50.4m against our forecast of €49.4m. There is no update on FY21 EBITDA, but our numbers imply a very modest margin in Q4, given the extent of additional spend on driving sales. This effort is delivering results, with 425 new customers recruited in Q421 alone. Delays in Europe enacting whistleblowing regulation into national legislation have not had the impact feared in the short term and progress on this front should provide a healthy backdrop for the current year. Guidance for FY22 is unchanged, for revenue in the €65–75m bracket, delivering EBITDA of €6–10m. The scale of the opportunity remains considerable.