Link Group’s property settlement platform PEXA could be set to go public after it almost doubled its earnings in the six months to December.
Link Administration Holdings flagged the development as it released its results for the first half of the 2021 financial year on Thursday.
The company, which owns a 44.18 per cent interest in PEXA holding company Torrens Group Holdings, has decided to look at listing the property platform after it pulled strong results in the half-year.
PEXA recorded a revenue of $99.3 million during the six months, a 28 per cent rise from the prior corresponding period (pcp). Operating earnings before interest, tax, depreciation and amortisation (EBITDA) came to $51.5 million, almost doubling from $27.1 million in 1H20.
Transaction volumes rose by 28 per cent to $1.5 million.
In light of further expected growth in PEXA, all of its shareholders (Link, Morgan Stanley Infrastructure Partners and CBA) have agreed to explore the IPO.
Meanwhile Link revealed it had generated a $597 million revenue for the half-year, which slipped by 5 per cent from the previous corresponding period (pcp).
The group’s operating net profit after tax (NPAT) came to $65 million, down by a fifth. But statutory NPAT had risen by 6 per cent to $29 million.
Operating EBITDA came to $137 million, compared to $163 million in the pcp.
The board declared a 4.5 cent dividend, which was lower than its 6.5 cent payout in 1H20.
The company presented an optimistic outlook, stating it is “well placed” to support clients and further industry consolidation in an evolving superannuation market.
“Our core businesses have strong market positions and clear strategic ambitions,” Link Group chief executive and managing director Vivek Bhatia commented.
“Trading to date has been in line with expectations, with European activity remaining subdued due to the extended COVID-19 related lockdowns in key jurisdictions.”
Link also completed the sale of its South African market services business during the half.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].