New Risk • May 01
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.6x net interest cover). Earnings are forecast to decline by an average of 10% per year for the foreseeable future. High level of non-cash earnings (28% accrual ratio). Minor Risk Shareholders have been diluted in the past year (3.0% increase in shares outstanding). Upcoming Dividend • Apr 29
Upcoming dividend of AU$0.16 per share Eligible shareholders must have bought the stock before 06 May 2024. Payment date: 13 May 2024. The company last paid an ordinary dividend in August 2016. The average dividend yield among industry peers is 3.6%. New Risk • Feb 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 14% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.6x net interest cover). Earnings are forecast to decline by an average of 14% per year for the foreseeable future. High level of non-cash earnings (25% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Announcement • Jan 09
Link Administration Holdings Limited to Report Q2, 2024 Results on Feb 20, 2024 Link Administration Holdings Limited announced that they will report Q2, 2024 results on Feb 20, 2024 Announcement • Dec 12
Link Administration Holdings Limited Announces Board Appointment Effective 8 January 2024 Link Administration Holdings Limited announced the appointment of Gail Pemberton AO as an Independent Non-Executive Director effective 8 January 2024. Gail has more than 35 years' experience in bank and wealth management and is a specialist in technology and operations. Prior to taking up a Non-Executive Director career, Gail was COO, UK at BNP Paribas and CEO and Managing Director, BNP Paribas, Australia and New Zealand. She was previously Group Chief Information Officer and Financial Services Group COO at Macquarie Bank. Gail is currently Chair of FleetPartners Group and Prospa Group Ltd. and Non-Executive Director of HSBC Bank Australia and Symbio Holding Ltd. Gail was awarded the Order of Australia (AO) in the Australia Day Honours list 2018 for distinguished service to the finance and banking industry through a range of roles, as an advocate for technology, and as a mentor to women. She was recognised by the Federal Government with the award of a Centenary Medal in 2002 for outstanding services to Australian business. She was also voted CIO of the Year in 1999 and CIO of the Decade in 2000. Board Change • Dec 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 4 highly experienced directors. Independent Non-Executive Director Mark Lennon was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. New Risk • Oct 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.0% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.1x net interest cover). Earnings are forecast to decline by an average of 4.0% per year for the foreseeable future. Minor Risk Paying a dividend despite being loss-making. Announcement • Oct 13
Link Administration Holdings Limited Announces Board Changes Link Administration Holdings Limited announced plans for board renewal and rightsizing following the recent divestments of the Fund Solutions (FS) and Banking & Credit Management (BCM) businesses, and the demerger and in-specie distribution of PEXA earlier in the year 2023. Independent Non-Executive Directors, Dr. Sally Pitkin AO, Mr. Peeyush Gupta AM and Mr. Glen Boreham AM will retire at this year's Annual General Meeting (AGM) on 28 November 2023. The company announced the appointment of Mr. Mark Lennon as an Independent Non- Executive Director effective 13 October 2023. In accordance with the Company's constitution, Mr. Lennon will stand for election at the upcoming Annual General Meeting (AGM) on 28 November2023. Mr. Lennon's proposed election will be detailed as a resolution for shareholder consideration in Link Group's Notice of Meeting. Mark is a seasoned professional in the superannuation sector, with over 30 years of experience in the industry. He has served on the boards of several superannuation funds including Energy Industries Superannuation Scheme (EISS) from October 2021 until its merger with Cbus Super in May 2023, First State Super (now Aware Super) from 2010 to 2019 and ASSET Super from 1993 to 2010. Mark has extensive knowledge and expertise in the superannuation and financial services industry and is presently a director of Aware Financial Services and the Sydney Financial Forum. He is also a director of the McKell Institute, a research organisation that focuses on social and economic issues, and APHEDA, the overseas aid agency of the Australian union movement. Mark is a former Secretary of Unions NSW and past President of the ALP NSW branch. During his time at Unions NSW, he dealt with many superannuation and financial services matters on behalf of both accumulation and defined benefit fund members. At the fiscal year 2023 AGM, the size of the board will reduce from 8 to 6. Announcement • Sep 28
Link Administration Holdings Limited Provides Earnings Guidance for the Fiscal Year 2024 Link Administration Holdings Limited provided earnings guidance for the fiscal year 2024. For the year, the company expects revenue to be at least 5% growth, Operating EBIT to be at least 6% growth. New Risk • Sep 03
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.1x net interest cover). Minor Risk Paying a dividend despite being loss-making. Announcement • Aug 29
Link Administration Holdings Limited Provides Earnings Guidance for Fiscal Year 2023 and Fiscal Year 2024 Link Administration Holdings Limited provided earnings guidance for Fiscal Year 2023 and Fiscal Year 2024. Link Group continues to deliver on guidance and the results show the resilient nature of continuing operations. Continuing operations3 delivered revenue growth of 8.2% in FY23.For FY2024, Group revenue (on a continuing operations basis) expected to be up at least 5% (FY23: $955.6 million). Operating EBIT (on a continuing operations basis) expected to be up at least 6% (FY23: $171.0 million). Reported Earnings • Aug 29
Full year 2023 earnings released: AU$0.82 loss per share (vs AU$0.13 loss in FY 2022) Full year 2023 results: AU$0.82 loss per share (further deteriorated from AU$0.13 loss in FY 2022). Revenue: AU$1.23b (up 4.5% from FY 2022). Net loss: AU$417.7m (loss widened AU$349.8m from FY 2022). Revenue is expected to decline by 3.2% p.a. on average during the next 3 years, while revenues in the Professional Services industry in Australia are expected to grow by 4.3%. Announcement • Aug 28
Link Administration Holdings Limited Declares Final Dividend, Payable on 20 September 2023 A final dividend of $20.5 million (60% franked), which equates to 4.0 cents per share, in respect of the financial ended 30 June 2023 was declared by the Directors of Link Administration Holdings Limited on 28 August 2023 (Final Dividend). The record date for determining entitlements to the dividend is 4 September 2023. Payment of the Final Dividend will occur on 20 September 2023. Announcement • Aug 24
Altum Trustees Limited agreed to acquire Link Fund Solutions (Luxembourg) S.A. from Link Administration Holdings Limited (ASX:LNK). Altum Trustees Limited agreed to acquire Link Fund Solutions (Luxembourg) S.A. from Link Administration Holdings Limited (ASX:LNK) on August 22, 2023. Completion of transaction is subject to regulatory approval from the CSSF. Announcement • Jun 30
Link Administration Holdings Limited Announces Executive Changes Link Administration Holdings Limited (Link Group) announced that Sarah Turner has resigned as General Counsel & Company Secretary, Link Group, effective 30 June 2023. Reema Ramswarup has been appointed as Company Secretary of Link Group. Link Group further announced, in accordance with Listing Rule 12.6, that Reema Ramswarup is now the person responsible for communication with the ASX in relation to ASX Listing Rule matters. Reported Earnings • Feb 25
First half 2023 earnings released: AU$0.80 loss per share (vs AU$0.16 loss in 1H 2022) First half 2023 results: AU$0.80 loss per share (further deteriorated from AU$0.16 loss in 1H 2022). Revenue: AU$592.5m (flat on 1H 2022). Net loss: AU$409.9m (loss widened 402% from 1H 2022). Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the IT industry in Australia. Buying Opportunity • Feb 08
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 41%. The fair value is estimated to be AU$2.53, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.2% over the last 3 years. Meanwhile, the company became loss making. Buying Opportunity • Jan 19
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 42%. The fair value is estimated to be AU$2.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.2% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jan 12
Link Administration Holdings Limited (ASX:LNK) completed the Spin-Off of 38.49% stake in PEXA Group Limited (ASX:PXA). Link Administration Holdings Limited (ASX:LNK) announced the spin-off of 38.49% stake in PEXA Group Limited (ASX:PXA) for approximately AUD 940 million on November 22, 2022. As per the distribution, eligible shareholders will be entitled to receive one PEXA share for every 7.52 Link Administration shares held at the Record Date being January 3, 2023. Link Administration will convene an extraordinary general meeting of shareholders to consider and vote on the distribution. The Link Board unanimously recommends that Link Group shareholders vote in favor of the distribution. Link Administration shareholders approved the deal on December 23, 2022. The date of implementation of distribution shall be January 10, 2023. Deloitte Corporate Finance Pty Limited acted as independent expert for Link Administration. Link Market Services Limited acted as registrar, Macquarie Capital (Australia) Limited and UBS Securities Australia Limited acted as financial advisor, Herbert Smith Freehills acted as legal advisor, KPMG Financial Advisory Services (Australia) Pty Ltd acted as accountant and PricewaterhouseCoopers acted as tax advisor for Link Administration. Deloitte Corporate Finance Pty Limited charged a fee of AUD 0.2 million.
Link Administration Holdings Limited (ASX:LNK) completed the spin-off of 38.49% stake in PEXA Group Limited (ASX:PXA) on January 10, 2023. Board Change • Dec 23
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. MD, CEO & Director Vivek Bhatia was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Sep 02
Upcoming dividend of AU$0.08 per share Eligible shareholders must have bought the stock before 09 September 2022. Payment date: 19 September 2022. The company last paid an ordinary dividend in August 2016. The average dividend yield among industry peers is 2.5%. Reported Earnings • Aug 31
Full year 2022 earnings released: AU$0.13 loss per share (vs AU$0.31 loss in FY 2021) Full year 2022 results: AU$0.13 loss per share (up from AU$0.31 loss in FY 2021). Revenue: AU$1.18b (up 1.3% from FY 2021). Net loss: AU$67.9m (loss narrowed 58% from FY 2021). Over the next year, revenue is forecast to grow 3.6%, compared to a 19% growth forecast for the IT industry in Australia. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. MD, CEO & Director Vivek Bhatia was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 27
First half 2022 earnings: EPS in line with analyst expectations despite revenue beat First half 2022 results: AU$0.16 loss per share (down from AU$0.055 profit in 1H 2021). Revenue: AU$593.7m (flat on 1H 2021). Net loss: AU$81.6m (down 382% from profit in 1H 2021). Revenue exceeded analyst estimates by 1.7%. Over the next year, revenue is forecast to grow 4.1%, compared to a 46% growth forecast for the industry in Australia. Board Change • Sep 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. MD, CEO & Director Vivek Bhatia was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Sep 14
Joint Company Secretary Emma Lawler has left the company On the 10th of September, Emma Lawler's tenure as Joint Company Secretary ended after 2.3 years in the role. We don't have any record of a personal shareholding under Emma's name. Emma is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 2.25 years. Recent Insider Transactions • Aug 31
Independent Chairman recently bought AU$556k worth of stock On the 27th of August, Michael Carapiet bought around 125k shares on-market at roughly AU$4.45 per share. This was the largest purchase by an insider in the last 3 months. This was Michael's only on-market trade for the last 12 months. Reported Earnings • Aug 27
Full year 2021 earnings released: AU$0.31 loss per share (vs AU$0.22 loss in FY 2020) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2021 results: Revenue: AU$1.16b (down 5.7% from FY 2020). Net loss: AU$163.4m (loss widened 41% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 76 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Dec 24
New 90-day high: AU$5.64 The company is up 52% from its price of AU$3.72 on 25 September 2020. The Australian market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 27% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$8.58 per share. Is New 90 Day High Low • Dec 09
New 90-day high: AU$5.63 The company is up 46% from its price of AU$3.85 on 10 September 2020. The Australian market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$7.48 per share. Is New 90 Day High Low • Oct 13
New 90-day high: AU$4.99 The company is up 21% from its price of AU$4.14 on 15 July 2020. The Australian market is up 5.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the IT industry, which is up 23% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$7.63 per share. 
