Computershare Limited reported a 72% surge in net profit for FY25, driven by strong fee revenue growth and disciplined cost management despite a 5.6% revenue decline due to a major business disposal. The company also announced a higher final dividend and ongoing strategic acquisitions.
- Net profit after tax rises 72.1% to $607 million
- Revenue down 5.6% to $3.11 billion due to US Mortgage Services disposal
- Continuing operations revenue up 4.8%, led by Issuer Services and Corporate Trust
- Final unfranked dividend increased to AU 48 cents per share
- Key acquisitions include Computershare Advantage Trust of Canada and ingage IR Limited
Strong Profit Growth Despite Revenue Headwinds
Computershare Limited has delivered a remarkable financial performance for the year ended 30 June 2025, with net profit after tax attributable to members soaring 72.1% to $607 million. This impressive profit growth comes despite a 5.6% decline in total revenue to $3.11 billion, largely reflecting the prior year’s disposal of the US Mortgage Services business, which contributed $325 million in revenue in FY24.
Excluding the impact of this disposal, revenue from continuing operations actually increased by 4.8%, driven by robust growth across the company’s core business lines. Issuer Services, Corporate Trust, and Employee Share Plans all posted solid revenue gains, underscoring the resilience and diversification of Computershare’s business model.
Business Segment Highlights and Revenue Drivers
Issuer Services revenue rose 6.0%, benefiting from improvements in registry maintenance, stakeholder relationship management, and corporate governance services. Corporate Trust revenue grew 8.5%, supported by stronger market activity and higher client balances, particularly in Money Market Funds. Employee Share Plans saw a 14.1% revenue increase, reflecting new client wins and heightened participant trading activity.
Margin income, however, declined by 2.5%, impacted by lower interest rates despite higher average balances. Foreign exchange movements also played a role, with a stronger British pound boosting USD revenue from the UK, while weaker Canadian and Australian dollars tempered contributions from those regions.
Cost Management and Strategic Investments
Total expenses from continuing operations increased modestly by 1.9%, reflecting higher business volumes, inflationary pressures, and the full-year impact of recent acquisitions such as Solium Capital UK, ingage IR Limited, CMi2i Limited, and BNY Trust Company of Canada. The company also incurred elevated restructuring costs related to a multi-year digitisation and efficiency program aimed at streamlining operations and reducing stranded costs from recent disposals.
Borrowing costs declined due to lower debt levels and reduced interest rates, contributing positively to the bottom line. The effective tax rate fell to 23.4%, aided by changes in US state tax sourcing and capitalisation of prior year costs, further enhancing net profit.
Capital Management and Shareholder Returns
Reflecting confidence in its financial position, Computershare declared a final unfranked dividend of AU 48 cents per share, up from AU 42 cents in the prior year. The company also completed an on-market share buy-back program, repurchasing over 12 million shares during the year, signaling a commitment to returning capital to shareholders.
Looking ahead, Computershare has classified its German Communication Services business as held for sale, with the transaction expected to complete in the first half of FY26. This move aligns with the company’s focus on core growth areas and operational efficiency.
Outlook and Strategic Positioning
Computershare’s FY25 results highlight a successful transition following the US Mortgage Services disposal, with strong organic growth in key segments and disciplined cost control. The company’s ongoing investments in technology, digitisation, and targeted acquisitions position it well to capture future market opportunities and enhance shareholder value.
While the financial statements remain preliminary and subject to audit, the robust profit growth and strategic initiatives provide a positive signal to investors navigating a complex global financial services landscape.
Bottom Line?
Computershare’s FY25 performance sets a strong foundation, but investors will watch closely how digitisation and acquisitions translate into sustained growth.
Questions in the middle?
- How will the ongoing digitisation program impact future cost structures and margins?
- What are the expected financial contributions from recent acquisitions in the coming years?
- How might interest rate fluctuations and foreign exchange volatility affect margin income and revenue?