Equiniti warns on profits

Payments specialist Equiniti warned that full-year underlying earnings would be at the lower end of market expectations as a result of weaker high margin UK corporate activity.

Although Equiniti expected uncertainties in the macro environment to continue, it told investors on Tuesday that it was still "well-positioned" and expected further organic growth in the UK as the firm builds on its relationships with its client base.

The FTSE 250-listed company said the US offered it a platform for accelerated growth based on market opportunity, the potential to take market share and the opportunity to cross-sell digitised services into its blue-chip client base.

Revenues were projected to be at the upper end of expectations.

"Our operations are scaleable with platform characteristics, and actions undertaken in the first half will serve to increase efficiency and reduce marginal costs," said Equiniti.

"This, along with progressive deleveraging and further operational improvements, will allow us to grow underlying profits and earnings ahead of revenue."

As of 0850 GMT, Equiniti shares had crashed 21.37% to 178.80p.