The Motley Fool

Link Administration share price rockets higher after AGM

The Link Administration Holdings Ltd (ASX: LNK) share price was a top performer on the ASX 200 on Friday.

Link shares rocketed 4.49% higher after the company provided an update in its annual general meeting (AGM).

What moved the Link share price last week?

Link Chairman Michael Carapiet reported that 40% of Link’s revenues are now coming from outside Australia.

The Aussie platform increased its PEXA shareholding to 44.2% and divested its South African business during the year.

In FY 2019, Link grew revenue by 17% on the previous year to $1.4 billion. The company’s statutory net profit also rocketed 123% higher on the prior corresponding period (pcp) to $320 million last year. 

Despite weaker underlying earnings, the Link share price has been climbing higher since the August result.

The company sold its Corporate and Private Client Services (CPCS) business for $434 million in late June. The bulk of the proceeds went towards strengthening the group’s balance sheet with significant debt reduction.

Managing Director John McMurtrie was similarly bullish on the company’s ongoing growth.

Link expects to see long-term cost reductions of $50 million per annum by integrating the Link Asset Services (LAS) business.

The Link share price has been on watch amid an on-market share buyback scheme for up to 10% of issued capital and has purchased one million shares to date.

Link’s entry into the UK pension market earlier this week is the latest strategic move from the group. The UK market represents a US$2.9 trillion asset pool for Link to capture market in.

What about the outlook for Link?

Link’s underlying member growth in its RSS business has remained strong while its PEXA business is ahead of expectations.

The company’s Corporate Markets and European-based businesses are seeing continued margin pressure from domestic competition and Brexit, respectively.

Foolish takeaway

Link’s executive team appear confident that the group is on a strong growth trajectory in FY20.

Shareholders agreed with that view last Friday, as the Link share price rocketed 4.49% higher to $6.05 per share.

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.