Link plunges to $418m loss on British woes
Key Points
- Why it matters: Link operates the registries of more than a third of ASX groups
- An major acquisition in the UK in 2017 has proved to be a disaster for Link
- Despite the impairments, there is “significant headroom” under lending covenants
Link Group will plummet to a bottom-line loss of $418 million in the 12 months to June 30 because of heavy one-offs and provisions stemming mainly from the messy exit from its troubled United Kingdom business.
The superannuation administrator and share registry company released its preliminary unaudited results on Thursday, outlining the financial effects of extricating itself from a disastrous UK acquisition made six years ago, along with other one-offs including a $35 million impairment as it cuts the amount of office space it is using across the company.
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