Interview with Equals CEO & CFO following today's upgraded outlook & Oonex deal

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27th Mar '23 by Paul Hill

13 comments 752 reads

CEO Ian Strafford-Taylor & CFO Richard Cooper take me through today's strong 2022 results & upgraded outlook from Equals Money, alongside its potentially transformational acquisition of Oonex.

Equals Money’s key USPs & what’s been driving the 54% QTD’23 growth. 00:00
Key financial highlights. 03:40
M&A activity such as the transformational £4.1m OONEX acquisition. 05:55
Progress on integrating Roqqett. 10:35
Hamer and Hamer Ltd deal. 14:15
Future planned investments & compliance. 15:05
Negligible impact from recent banking concerns. 18:50
Distribution channel strategy. 21:18
2023 outlook & my #EQLS valuation. 24:18

Disclosure: I own shares in Equals

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About the Author

Paul Hill

Premium Member

13 comments

Paul Hill

27th Mar '23

Brief investor commentary here on LinkedIn.

https://www.linkedin.com/posts...

Paul Hill

27th Mar '23

Canaccord have just upgraded their forecasts with a 164p/share Price Target & BUY rating

Paul Hill

27th Mar '23

Simon Thompson at Investors Chronicle reiterates his BUY rating on Equals with a 144p/share price target.

https://www.investorschronicle...

davidjhill

27th Mar '23

Excellent results - better than I was expecting to be fair. Oonex acquisition looks decent too. I also hold so pleased with direction of travel.

Oddly I would have though these results would have had a strong read across to Argentex (LON:AGFX) yet they have gone down for some reason. Don't operate in exactly the same space but enough overlap to suggest they should be continuing to trade strongly as well. Slightly weird dynamic.

Paul Hill

27th Mar '23

I own #AGFX too & believe they're also performing well. Prelims in April. Patience = Profits.

davidjhill

28th Mar '23

Paul - off topic question but in your rounds with the fund mgmt community do you get any sense of when some liquidity might return to the UK market? I'm not sure I've ever seen it so bad (outside of a short window in 2008), at least in the last 30 or so years.

Doesn't really matter what a company does positively there is just no liquidity so very small sales post news are having a disproportionate effect on share prices. Valuations are in the gutter - PE is prepared to pay 1.5 to 2* an equivalent listed vehicle valuation and they are seeking bargains so the dislocation is massive. Just can't see what changes the liquidity profile - is there a wall of cash waiting to invest or has it all gone into MM funds not to be seen again........any thoughts or common commentary from your interviews?

Paul Hill

28th Mar '23

Great question. Basically until interest rates fall (ie cost of capital), there is going to be a headwind for small cap liquidity.

Most small cap fund managers have been experiencing redemptions, not in flows into there coffers

davidjhill

28th Mar '23

Thanks - so an expected continuation of the bleak environment for liquidity then alas.

Paul Hill

29th Mar '23

The strong will get stronger

Helvellyn

29th Mar '23

Hi Paul,

I watch a number of your video interviews and mainly find them very useful for a number of reasons.

One point I would make is that for companies that i am trying to understand what they do in more detail I sometimes struggle to interpret the acronyms that company CEOs and CFOs use, obviously they are of everyday use for them but not necessarily for us potential investors and i find it interrupts the flow when i constantly have to Google their meaning. Is there something you could do to fix this, perhaps ask your interviewees to explain the less obvious, industry specific ones or even add some sort of glossary to your presentation.

TIA

Paul Hill

29th Mar '23

Great idea Helvellyn - albeit that's probably not going to be too practical & will definitely disrupt the flow. Which acronyms need explaining mate?

Helvellyn

29th Mar '23

Hi Paul,

None ATM cos I looked them up . But I thought if during any future interviews you didnt know what an acronym meant you could ask, which might then in turn get the company rep to explain in more detail which would help . You could perhaps prewarn them that you might do this which might then in turn get them to not use an acronym or as a last resort you could list any that have been used and explain them in some text above the vid, for us thickos !!

Thanks for your time and keep up the great work.

Paul Hill

30th Mar '23

Likewise Helvellyn - really appreciate the feedback & ideas.

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Interview with Equals CEO & CFO following today's upgraded outlook & Oonex deal

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About the Author

Paul Hill

13 comments

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