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Link Group looks offshore for revenue

Christian Edwards  |  18 Aug 2017Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Link Group (ASX: LNK) is seeking offshore expansion after the financial data administrator's revenue plateaued and its share of the Australian superannuation market remained flat over its first full year on the ASX.

The $3.9 billion company, a major provider of back-end data administration and solutions to superannuation funds and corporations, more than doubled full-year profit to $84.6 million for the year to 30 June 2017.

However, revenue from ordinary activities was only fractionally up--0.5 per cent at $780 million--as Link worked to integrate acquired businesses focusing on Europe and the UK.

Link Group managing director, John McMurtrie said Link realised a "disciplined execution" of its growth strategy, integrating its funds administration business and acquiring the UK-based data company Capita Asset Services (CAS).

Link Group chairman Michael Carapiet said in 2016/17, just 8.3 per cent of the revenues came from outside Australia/New Zealand.

"Based on the calendar '16 numbers for CAS, that will rise to 45 per cent," Mr Carapiet said.

"(CAS) provides a wider geographic footprint and a great platform for further growth within Europe and the UK" Mr Carapiet said.

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Link's Australian superannuation business--providing administrative services to fund for 10 million superannuation account holders--was "relatively stable," Mr McMurtie said.

"Our clients are probably $300 billion out of Australia's $2 trillion total," he said.

Mr McMurtie said the group does expect to find growth opportunities in Australia as there develops "a greater propensity over time" for outsourcing of data administration currently done in-house.

The statutory net profit figure was lifted by significant items relating to Link's initial public offer and improved post-listing costs, with the company's operating profit of $123.8 million up 21 per cent on the previous year.

Link has declared a final dividend of eight cents per share, fully franked.

At 1400 AEST, shares in Link Group were down 18 cents or 2.3 per cent, at $7.71.


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