Computershare Limited (ASX: CPU), the share registry business, released its 2018 financial results to the market today revealing a 6.3% increase in revenue.
Computershare is a multinational business that offers investor services, business services, share plan services, communication services and stakeholder relationship management services. If you own shares it is likely that Computershare is the share registry for at least one of your holdings.
Here are some of the highlights from its report:
- Revenue increased by 6.3% to $2.25 million
- EBITDA went up 12.7% to $609.7 million (click here to learn what EBITDA means)
- Free cash flow increased by 4.7% to $379.2 million
- Reported profit increased by 12.6% to $300 million
- Reported profit per share went up by 13.1% to 55.17 cents
- Final dividend per share increased by 10.5% to 21 cents
According to Bloomberg, analysts were expecting Computershare to report a profit of $330 million. A dividend of 31.9 cents was also expected, Computershare has delivered a total dividend of 40 cents for the year. The statutory result appears to be under expectations, however, the ‘management profit’ was $344.7 million.
During the year Computershare acquired Equatex for €354.5 million to enhance its scale, capabilities and earnings in the employee share plans segment.
The CEO of Computershare, Stuart Irving said: “We continue to make good progress in executing our growth, profitability and capital management strategies. Importantly, we are doing what we’d said we would do “
Outlook
In FY19 the company expects to continue on its path and achieve around 10% growth in management’s earnings per share (EPS).
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