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Computershare full year profit falls 10.4%

Computershare cautious due to current market volatility

Computershare Ltd's full year profit declined by 10.4 per cent as the share registry services provider said it was cautious because of the current market volatility.

Net profit fell to $264.09 million for the 12 months to June 30 from $294.76 million a year earlier, Melbourne-based Computershare said in a statement on Wednesday.

Revenue was flat from a year earlier at $1.604 billion.

The company declared a final dividend of 14 cents per share, 60 per cent franked, unchanged from a year earlier.

The company said it was even more cautious about guidance than usual because it was hard to know how long the current market volatility would last, and what sort of an effect it would have.

"A week ago, we would have said that we do not expect management eps (earnings per share) results from Computershare's current portfolio of businesses in FY12 [financial 2012] to be significantly different from those achieved in FY11," the company said.

"That guidance would have assumed that equity, interest rate and FX (foreign exchange) market conditions remain broadly consistent with then current levels for the rest of the financial year, an assumption that is no longer valid."

Earnings per share in 2010/11 declined 10.4 per cent to $0.4753 and management earnings per share declined 3.7 per cent to $0.5567.

Computershare said that in the past, high levels of volatility and uncertainty had been followed by quite strong activity levels in a range of the company's businesses, as equity raisings and chapter 11 bankruptcy administration replaced dealing, public offer and merger activity.

"Of course, it is by no means certain that will be the case this time," the company said.

The company would update the market on its view of the outlook at the Annual General Meeting in November.

Computershare chief executive Stuart Crosby said that generally subdued and market activity levels reflected a difficult environment.

"Despite these headwinds the company still managed a satisfactory result, just shy of the record earnings delivered last year," he said.

"Strong performances from businesses that are not exposed to equity market cycles, such as voucher services and the deposit protection scheme in the UK, and corporate trust in Canada, evidence our success in moving into new verticals."

Crosby said takeovers by Computershare during 2010/11 returned to more typical levels, with the proposed purchase of BNY Mellon's shareowner services business the largest ever by the company.

Shares in Computershare added $0.05, or 0.71 per cent, to $7.14 by 1011 AEST, as the broader market gained 2.6 per cent.

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More about: Computershare, Mellon

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