Yesterday, on 13th May 2019, Link Administration Holdings Limited (ASX: LNK) announced the appointment of Emma Lawler as the Company Secretary of Link Group effective from 13 may 2019. Janine Rolfe had been managing the position of General Counsel and Company Secretary of the Group, following the resignation of Cassandra Hamlin as the Company Secretary.
In a previous update, Challenger Limited ceased to be the substantial holder of the company effective from 15th April 2019.
In its half-yearly report (H1FY19), the company reported continued progress in its growth strategy, with the international expansion of the track and domestic business enhanced. Its revenue increased by 42% to $714.4 million as compared to the previous corresponding period, majorly due to continued execution of the group’s growth strategy and earnings diversification in the domestic and international markets. LNK's 49% of the revenue is generated outside New Zealand and Australia. Its recurring revenue represented 80% of total revenue at $570.5 million. When compared apples-to-apples, the company’s statutory net profit after tax (NPAT) saw an increase of 187% to $186.8 million. Its operating EBITDA (Earnings before interest, tax, depreciation and amortization) increased 25% to $185.4 million as compared to the previous corresponding period. Its operating NPATA (Net profit after tax and amortization) increased 17% to $107.8 million as compared to the previous corresponding period. Both Operating EBITDA and NPATA benefited from a full half-year inclusion of Link Asset Services (LAS) as well as the continued progress made with efficiencies in the UK and Europe and with the realisation of integration benefits in Australia.
The company’s net operating cash flow decreased by 6% to $138.0 million as compared to the previous corresponding period. The Board of Directors declared a fully franked (100%) interim dividend of 8.0 cents per share with a record date on 25th February 2019, and payment date on 9th April 2019. The interim dividend is 14% higher compared to the previous corresponding period. The dividend reinvestment plan (DRP) was available for interested and eligible shareholders at a 1.5% discount.
The Link Group is well represented at many European jurisdictions, including over 700 people in Dublin. It is expected that Brexit will render both opportunities and challenges to the group at the same time. The property exchange of Australia provides the group with a strong operational presence in the adjacent property industry. The sale of the majority stake in Corporate and Private Client Solutions business will encourage the group to focus on its existing businesses and core competencies.
On the stock information front, LNK shares are trading at $7.590 (as at AEST: 12:02 PM, 14 May 2019), down 0.914% with a market capitalisation of $4.09 billion. Its current PE multiple stands at 15.330x, and its last EPS was noted at $0.504. Its annual dividend yield has been noted at 2.78%. Today, it touched day’s high at $7.610 and day’s low at $7.440, with a daily volume of 599,759. Its 52 weeks high and low price stands at $8.330 and $6.500. Its absolute returns for the past one year, six months and three months are 12.81%, -0.26%, and 6.54%, respectively.
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