Link Shares Climb 6% With Positive Full Year Results

At time of writing, Link Administration Holdings Ltd [ASX:LNK] are trading up 6% from yesterday.

The Link Group is a tech-enabled provider of administration services for corporate markets, superannuation funds and other data management analytics and digital communications.

This spike appears to have resulted from the release of their 2018 full-year results on the ASX this morning.

Positive figures galore

There were a number of highlights addressed in the report.

Most impressive is Link’s NPAT of $143.2 million, which is a massive increase of 68% compared to the 2017 results.

Also, revenue is up 54% in this round of results, coming it at just shy of $1.2 billion.

There’s a similar increase on Link’s operating EBITDA, which sits at $335.5 million.

Link are offering a final dividend of 13.5 cents per share, fully franked. This means the full-year dividend is brought to 20.5 cents, which is 46% higher than the previous year.

Link Group Chair, Michael Carapiet is understandably very proud of these figures. He states in the report:

FY2018 was a transformational year for Link Group and we are pleased to report another good full year financial and operating result.

So what exactly has contributed to these impressive climbs?

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Link Group and LAS combine

A most notable change in the structure of Link Group has been the acquisition of Link Asset Services (LAS), a UK Process Agent for English documents.

The LAS transaction occurred in November 2017. This means there have been eight months’ worth of contributions from this business towards Link Group.

Judging by all the upward-climbing figures, it’s clear that these contributions have been beneficial. In fact, LAS revenue alone for those eight months totalled at $404.9 million, with an EBITDA of $93.8 million.

Since becoming a part of Link Group, LAS has expanded its debt servicing business into the Netherlands and Italy, and they’ve also grown their Fund Solutions business.

Carapiet says of this acquisition:

LAS materially expands  our footprint in Europe and has had a strong positive impact on Link Group

The LAS team has delivered a very good performance during what could have been a distracting time for the business.

The road ahead for Link

Such astoundingly positive figures only point towards a company capable of further growth and innovative investments.

Link Group Managing Director, John McMurtrie comments on the future of Link:

We are pleased with the progress of our business and look forward to the opportunities that will involve in the coming years. We are carrying good earnings momentum into FY2019.

Of course, nothing is for certain, but there doesn’t seem to be any looming threat to the Group’s success at the moment.

Time will tell.


Ryan Clarkson-Ledward

For Markets and Money

PS: Financial expert Vern Gowdie explores why a credit collapse could occur in 2018, and how you can protect your assets. Click here for the free action plan ‘Global Financial Crisis 2018’.

Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:

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