Computershare bottom-line profit down 5pc to $65.8m09:42,...

Computershare bottom-line profit down 5pc to $65.8m
09:42, Wednesday, 15 February 2006

Sydney - Wednesday - Feb 15: (RWE Australian Business News) -
Computershare Ltd (ASX code: CPU) net profit fell 5.1 per cent to $65.78
million in the half-year to December 31.
Directors said the decrease was primarily due to the nature of
individually material items.
In the latest half-year, this item was an expense relating to
the UK redundancy provision being raised, which reduced net profit.
In the six months to December 31 2004, the nature of the
individually material items was to increase net profit.
These related to profits recognised on the sale of shares and
premises, and a credit to income tax expense related to the use of
grandfathered acquisition tax losses.
Normalised net profit was $69.84 million, up 35 per cent from
$51.7 million.
Revenue rose 56.8 per cent to $781.43 million, driven by the
inclusion of Computershare Shareholder Services Inc (formerly Equiserve)
for the six months and an increase in mutual funds proxy work in the US.
Normalised basic earnings per share rose 28 per cent to 11.72c
from 9.14c.
Interim dividend has been increased from 5c to an unfranked 6c,
payable on March 24 to shareholders registered March 6.
Assuming market conditions in key regions, particularly the US,
remain healthy, Computershare expects revenues of at least $1.5 billion
and normalised EPS of at least 29c for the full year ending June 30.

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CEO Mr Chris Morris said, "To call ourselves truly global we had
to break into the biggest market of all, the US.
"I can now proudly say that Computershare has become a leading
player in the North American market, evidenced by the US contribution to
the result this half."
The Asia-Pacific region continued to deliver strong results,
with growth in the level of IPO and corporate actions in Hong Kong and
India offsetting a return to normal activity levels for the Australian
business after several years of buoyant conditions.
The Australian Plans business reported a significant increase in
profitability, an example of the success of Computershare's focus of
growing this business segment globally.
Performance by the new Japanese joint venture exceeded
expectations.
The EMEA region (Europe, Middle East and Africa) remained "very
competitive", particularly in the UK where conditions "continued to
challenge".
Businesses outside the UK continue to improve, however, with
Russia, Ireland and Germany performing well.
Improving the UK business is a key goal for management, with a
number of changes having already been made, resulting in shared services
savings of $3m and annualised personnel savings of at least $7m.
The North American region surpassed expectations in the first
half, with organic growth and the Computershare Shareholder Services
acquisition resulting in the region contributing 68% of total EBITDA.
A significant contribution from Mutual Fund Proxy work and
earnings growth in US Plans and Registry businesses were the highlights.
Shares in Computershare rose 18c to $7.01 yesterday.
ENDS

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