The annual general meeting of Computershare Limited (ASX: CPU) was held on 14 November 2018. In the AGM the chairman Simon Jones addresses about the company, its aspects, its performance as well as its outlook.
He highlights the solid results of the company for the FY2018. The company generated revenue of US$2,247.7 million. The revenue got increased by 6.3% and the EBITDA has also gone up by 12.7%. There was also an increase in the EPS by 14.1% which is equivalent to 62.10 cents. The increase in the EPS was due to the good progress made in the mortgage services. There were other factors as well which lead to the increase of EPS. Those were increased event activity in Stakeholder Relationship Management, improved margin income, cost management in a disciplined way and the recurring recovery in Corporate Actions. The company has maintained a consistent dividend track record. As compared to the previous corresponding period, the full year dividend got increased by 11.1%. Since the IPO of the company in the year 1994, the company has generated a sustained return for its shareholders.
In terms of corporate responsibility, the company has actively participated in the corporate social responsibility in order to alleviate poverty through its community giving scheme. The company was able to raise A$8.4 million for its program “Change a Life”. Another A$334,603 donation was made through the projects in FY2018. For the past 15 years, Computershare has supported its program “Come-share Education project” in Sri Lanka. In the FY2019, the company is targeting to run a successful Nepal Trek for its employees and raise £140,000 in this process. They will continue to work with their selected local charities in order to implement engagement programs. Also, they will continuously try to increase the participation of employees for its program “Change a Life”.
The CEO of the company Stuart Irving also highlighted the company’s growth in the mortgage services. In FY 2018, the company generated US $306.1 million from its mortgage services (USA revenue) and US$254.1 million from mortgage services (UK revenue). The company focuses that by FY2023 its UK revenues and EBITDA will reach approximately $306.1 million. The company also acquired Equatex which they consider as a foundation for its future growth as it will enhance their capabilities, will help them to work together and have a strong high-quality customer base.
The net cash inflow from the operational activities was $514.051 million. The major cash outflow under operational activities was due to the payment made to the suppliers and employees. There were other sources of cash outflow in the form of interest and finance cost as well as the income tax paid. The net cash outflow from the investing activities was $168.615 million. Under investing activities, the company made payment to purchase of controlled entities and businesses as well as intangible assets. Another source of cash outflow was payments which were made for property, plant, and equipment. The company made repayment of borrowings, paid dividends, purchased ordinary shares which were the major cash outflow from the financing activities. As a result, the net cash outflow from its financing activities was $316.586 million.
Today the market price of the share is A$19.72 (AEST: 12:58 pm) with the market capitalization of 10.76 billion and PE ratio 26.54x.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.