AI assistant
COMPUTERSHARE LIMITED. — Earnings Release 2024
Aug 12, 2024
64696_rns_2024-08-12_3d5ed097-9b18-4f28-b6e3-6410d300f4a9.pdf
Earnings Release
Open in viewerOpens in your device viewer
==> picture [596 x 79] intentionally omitted <==
----- Start of picture text ----- FY24 Financial Results13 August 2024----- End of picture text -----
Strong Results. Reduced Complexity. Increased Returns.
==> picture [524 x 225] intentionally omitted <==
Stuart Irving, CEO noted,
“Computershare has delivered another strong result. FY24 Management EPS was 117.6 cps, an increase of 8.9% compared to the year before and slightly ahead of earnings guidance.
Management Revenue was up 2.1% to $3.3bn. Management EBIT ex. MI was up 20.9% and MI was 7.3% higher at $832.1m.
As the year progressed, we benefitted from the start of recovery in some of our more cyclical event and transactional revenues and ongoing growth in high-quality recurring fee revenues. With improving client balances, and delays to anticipated interest rate cuts, we also generated more Margin Income. 2H Management EPS was 14.7% up on 1H.
Importantly, we have delivered on the strategy to build a simpler Computershare with higher returns. The sale of US Mortgage Services in May marked a significant milestone in our strategy to focus on our capital light, core businesses with scale and global growth opportunities.
Across the core business lines, Employee Share Plans was impressive, driven by higher transaction volumes, growth in core fees and the continued roll out of our market leading EquatePlus technology. Issuer Services reported double digit revenue growth with further scope for recovery in Corporate Actions.
Corporate Trust’s performance was impacted by subdued levels of new debt issuance. In the US, we maintained market share and encouragingly, began to see activity levels recover in 2H. We are well placed for growth in trust fees and client balances.
This year we recycled capital into strengthening our core businesses with selective acquisitions in Employee Share Plans and an announced transaction in Corporate Trust. With a strengthening balance sheet, we will patiently pursue further acquisitions, invest in technologies to enhance value to customers and deliver additional efficiency gains.
Group margins expanded to around 35% up 270 bps, although cost growth was elevated in the period partly due to inflation and the timing of projects. Group wide efficiency programs and synergy benefits from recent acquisitions will continue to help us manage costs. We also launched a new cost out program with benefits beginning in FY25.
Our capital strategy seeks to balance growth investments with returns to shareholders. The previously announced AUD$750m share buy-back program is approximately halfway through. We intend to continue with the buy-back
NOTE: All figures (including comparatives) are presented in US Dollars (unless otherwise stated).
1
==> picture [596 x 79] intentionally omitted <==
----- Start of picture text ----- FY24 Financial Results13 August 2024----- End of picture text -----
program in FY25. Today we also announce an increase in our Final Dividend to AUD 42 cents per share (unfranked), an increase of 5%.
We enter FY25 with confidence and we have a positive outlook. We have planned for lower interest rates in FY25 which will impact Margin Income. However, with momentum in our core businesses, further recovery potential in our events businesses, the benefits of our hedging strategy, lower debt costs and cost savings, we expect further growth in earnings.
With reduced complexity and multiple earnings drivers, Management EPS in FY25 is expected to be around 126 cps, an increase of 7.5%”
Final dividend
42 cents per share (AUD) unfranked. Up 5% on pcp.
Record date: 21 August 2024 Payment date: 16 September 2024
The Results Presentation is available for download at https://www.computershare.com/corporate/investor- relations/financial information/results
FOR FURTHER INFORMATION
Michael Brown - Investor Relations Mobile: + 61 400 248 080 Email: [email protected]
Please refer to the FY24 Results Presentation for guidance assumptions, detailed financial data and the important notice on slide 58 regarding forward looking statements.
The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards.
This announcement was authorised to be given to the ASX by the Board.
NOTE: All figures (including comparatives) are presented in US Dollars (unless otherwise stated).
2