REPORTING SEASON: Computershare (CPU)
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Figure 1: Computershare 12 month chart
Computershare’s (CPU) headline profit of US$251.4Million was on the money
· Global share registry firm Computershare posted a strong management NPAT of US$335Million up 9.9% after CPU’s revenue lifting only by 0.1%.
· CPU already warned the market of an approximate US$40 million after tax write down of its assets as part of its strategic review and also re-affirmed its guidance of a 5%-10% rise in FY14 earnings. This removed the chance of nasty surprises today.
· Revenue was flat due to low global trading volumes reducing activity at registries, and the strengthening US dollar.
· Management EBITDA (earnings) grew 6% to US$540.6Million while earnings margins lifted over the year. Expenses fell over the year with total expenses down 7.1% and with new management now in place the market is anticipating more changes to come.
· Today Computershare told the market it expects to see “a modest improvement in revenue in FY15” with expected growth in management earnings per share (EPS) of 5% in FY15
· CPU will pay a 2 of $0.15 a share on the 16th of September 2014.