The Link Administration Holdings Ltd (ASX: LNK) share price has gained almost 25 per cent in the past year and looks set to continue providing returns in 2018.
Link, with a market value of $4.23 billion, offers administrative services for superannuation funds and corporate markets and is the biggest such provider in Australia, claiming more than 3,000 clients globally including large funds and major corporations.
This year Link's Corporate Markets division signed up another 240 clients including Woolworths Limited (ASX: WOW), Cochlear Limited (ASX: COH), and Myer Holdings Ltd (ASX: MYR).
The company also develops technology through its Information, Digital and Data Services division which complements its core businesses of fund administration and securities registration.
And business has been going well for Link which can boast 15 years of uninterrupted EBITDA growth.
Since financial year (FY) 2002, when linked reported EBITDA of $9 million, the company has been increasing EBITDA at a compound annual growth rate exceeding 20 per cent.
For FY 2017 Link reported EBITDA of $219 million, up 15 per cent on the previous year.
Link also announced a profit of $85 million for FY 2017, up 100 per cent on the previous year.
The company also reported revenue of $780 million for FY 2017, up 1 per cent on FY 2016's figure.
While revenue was flat for the company's Fund Administration and Corporate Services divisions, Link saw 5 per cent growth in its Information, Digital and Data Services division.
As part of Link's growth strategy, the company increased its investment in the online property exchange network PEXA to 19.7 per cent and entered into a binding agreement to acquire Capita Asset Services (UK) Limited, a deal due for completion by the end of this year.
Link Group stated that both investments will translate into growth opportunities going forward.
Link managing director John McMurtrie said the company is "carrying good earnings momentum" into FY 2018.
"Link Group enjoys leadership positions in each of the markets in which it operates," Mr McMurtrie said.
"We will continue to reinvest in our existing businesses to expand our pipeline of opportunities as well as retaining a disciplined approach to cost management."
Analysts are also backing Link to perform well in 2018 with UBS and Morgans recently applying buy ratings to the stock.
Link's history of growth coupled with a positive outlook for 2018 indicate Link could have a solid year ahead.
