Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Link Administration (ASX:LNK) share price sinks on messy FY20 report

The Link Administration Holdings Ltd (ASX: LNK) share price is tumbling today after the company handed in its full-year results. In early afternoon trade, Link shares are down more than 8%.

What did Link report?

Link Administration delivered another messy result following the loss of a number of contracts in 2019.

Revenue finished down 3.1% to $1.23 billion, with a 42% contribution from Europe and the Non-Performing Loans business.

Recurring revenue fell just 1% as management was able to extend the company’s contract with HESTA, boding well for other major administration contract wins from the industry super sector.

Link was able to create technology to support unexpected early super release payments in just four weeks and processed $16 billion in payments thus far. It also supported 147 ASX-listed capital raisings totalling $17.8 billion in new equity.

Despite this, operating earnings fell 17% to $294 million and net profit to $114 million due to an impairment related to the Corporate Markets division. This resulted in a lower than expected dividend, 3.5 cents per share, as the company seeks to avoid a discounted capital raising.

PEXA booming

The PEXA property settlement platform was the biggest highlight, with transaction volumes increasing 37% and 75% of all Australian property transactions occurring online.

This supported revenue growth of 50% to $156 million and a tenfold increase in operating profit to $53 million; a trend not expected to slow anytime with millions restricted from travel for the foreseeable future.

My take: Messy result, dividend disappoints but PEXA remains a key growth engine.

The Rask analyst team has launched its most ambitious investing mission of all time...

Find (and buy) Australia's 10 best small-cap shares.

Our analysts have identified 10 ASX shares that could potentially return multiples of the initial investment over the next 10 years. But make no mistake, this mission isn't for the feint of heart. It's a high-risk mission for serious investors only.

The Rask Rockets program is our most advanced, most highly valued ASX investor research service.

And guess what, we've given away 1 free Rask Rocket Beyond share idea, plus one of our best Rask Rockets Apollo mission companies and another one of our top stock ideas from Rask Invest -- all FREE! You can get the stock ideas by listening to a recent episode of Australian Investors Podcast, as part of our Beyond re-opening sale.

Just click here to get the names and ASX stock ticker codes of 3 of our team's best stock ideas.
Disclosure: At the time of publishing, Drew owns shares of Link in his super fund.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading: