Computershare Limited reported a 5.4% increase in revenue to $1.58 billion for the half-year ended December 2025, driven by growth across its core businesses. However, profit after tax slipped 2.6%, weighed down by disposal costs and rising expenses related to the UK Mortgage Services sale.
- Revenue up 5.4% to $1,579.4 million
- Profit after tax down 2.6% to $280.4 million
- Interim dividend increased to AU 55 cents, 30% franked
- Expenses rose 5.8%, including $37.3 million disposal costs for UK Mortgage Services
- UK Mortgage Services business sold post-reporting period on 1 February 2026
Revenue Growth Amid Strategic Refocus
Computershare Limited has delivered a solid revenue performance for the half-year ended 31 December 2025, with total revenue rising 5.4% to $1.58 billion. This growth was underpinned by stronger contributions from its Issuer Services, Corporate Trust, and Employee Share Plans divisions. Notably, Issuer Services revenue increased by 9.5%, while Corporate Trust and Employee Share Plans grew by 12.2% and 11.3% respectively.
The company’s strategic focus on its core business lines appears to be paying off, even as it prepares to exit the UK Mortgage Services segment. The disposal of this business, completed shortly after the reporting period on 1 February 2026, aligns with Computershare’s intent to streamline operations and concentrate on higher-quality revenue streams.
Profitability Pressured by Disposal and Rising Costs
Despite the revenue uplift, Computershare’s profit after tax declined by 2.6% to $280.4 million. The dip reflects a combination of increased expenses and one-off costs associated with the UK Mortgage Services disposal. The company recognised $37.3 million in disposal-related expenses and a $6.6 million impairment charge during the half-year. Additionally, general inflationary pressures, higher technology headcount, and increased computer costs contributed to a 5.8% rise in total expenses.
Operating cash flows also saw a modest decline, falling $17.3 million to $336.9 million, primarily due to timing differences and working capital movements. Meanwhile, margin income decreased by $19 million, impacted by lower interest rates despite higher balances.
Dividend Policy Signals Confidence
In a positive signal to shareholders, Computershare announced an interim dividend of AU 55 cents per share, up from the prior year’s 48 cents, franked to 30%. The dividend reflects management’s confidence in the company’s ongoing cash flow generation and underlying business strength despite the transitional costs related to the UK Mortgage Services exit.
The company continues to integrate recent acquisitions, including BNY Trust Company of Canada, which contributed $7.9 million in revenue during the period. Meanwhile, the disposal of the German Communication Services business in August 2025 had a minor negative impact on revenues.
Looking Ahead
Computershare’s half-year results highlight a company in transition, balancing growth in its core segments with the costs and strategic implications of divesting non-core assets. The completion of the UK Mortgage Services sale marks a significant milestone in this journey. Investors will be watching closely to see how the company manages integration costs, inflationary pressures, and margin income trends in the coming periods.
Bottom Line?
Computershare’s pivot to core businesses is clear, but rising costs and disposal impacts suggest cautious optimism ahead.
Questions in the middle?
- How will Computershare offset margin pressure from lower interest rates going forward?
- What are the expected financial impacts and strategic benefits post UK Mortgage Services disposal?
- How sustainable is the recent dividend increase amid transitional costs and inflation?