Computershare Limited (ASX: CPU), the share market registry company, released its half year report to the ASX today.
Computershare is a leading share registry business, doing everything from sending documents to shareholders, paying dividends and collecting proxy votes. Founded in Melbourne in 1978 Computershare now manages over 125 million customer records across all major financial markets.
Here are the key news stories from Computershare’s half-year report:
- Revenue at $1.1 billion, up 12% on the prior corresponding period
- Profit up 14% to $171 million
- A dividend of 19 cents per share (unfranked)
- Management profit per share of 30.22 cents, up 17%
“1H18 was a busy and productive period at Computershare. We delivered 20% EBITDA growth and strong free cash flow,” CEO Stuart Irving said. (see: What does EBITDA mean?)
Computershare said the US region was its main driver of growth as it benefited from increases in large events and shareholder communications like class actions and corporate action.
Computershare’s Mortgage Services business reported a 72% jump in EBITDA thanks to a near 9% rise in revenue and margin expansion.
“Our Mortgage Services growth engine is performing well and now makes a meaningful contribution to group profits,” Irving added.
Computershare updated its guidance for profit per share over its 2018 financial year. Previously, management expected to report profit per share up 10% on 2017’s result.
However, Computershare now expect to report 12.5% growth, “with a positive bias”.
“Having purposefully designed these strategies to sustain multi year earnings growth, it is pleasing to deliver these results and upgrade our full year Management EPS guidance,” Irving said.
Computershare shares were trading 5.8% higher at $17.45, according to Google Finance.
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