Computershare is the largest share registry business in the world and the only provider with a global footprint. The company has a narrow competitive advantage underpinned by customer switching costs and cost advantages. Computershare operates a capital-light business model with a high proportion of defensive and recurring earnings. We expect this to enable regular dividends and the elimination of net debt within a decade.

We expect rising interest rates, cost-cutting, and an expansion of the mortgage servicing business to drive underlying earnings at a Compound Annual Growth Rate (CAGR) of around 8% for Computershare over the next decade. The core issuer services division, which constitute around 40% of group EBITDA (Earnings Before Tax Interest Depreciation and Amortisation), is reasonably mature, and we expect a revenue CAGR of 3% over the next decade, supported by rising interest rates and margin income. In contrast, we expect mortgage services growth to drive a revenue CAGR of around 4%, underpinning a group revenue CAGR of 3%. We expect an increase in interest rates and margin income, which has a near-100% EBIT margin, to drive group EBIT margin expansion over the next decade.