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Business Description: Computershare Limited (CPU) is a provider of services in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications with operations in 20 countries. The Company also provides corporate trust services, tax voucher solutions, bankruptcy administration and a range of other diversified financial and governance services.
Strategy Analysis: CPU leverages IT expertise and financial strength to capture share of an increasing number of markets in existing and new geographies. This includes continued participation in consolidation of the US market, building on the UK business, and expanding presence in the developing markets of Europe and Asia. There will be ongoing investment to sustain IT capability and advantage. There is continued focus on operational quality and efficiency via improved measurement, benchmarking and technology. There is also emphasis on improving front-office skills to protect and drive revenue through more effective account management, new business generation and exploitation of cross-selling opportunities. In addition to services to sharemarket participants, the company increasingly utilises core record management skills to provide services in other sectors. An example is a contract to deliver a custodial tenancy Deposit Protection Service on behalf of the UK government. Such initiatives provide an offset to cyclicality in the core business. We like the Shareowner Services deal, but there is some way to go before ranking it a clear winner. The complex integration will take two to three years, with competitors attempting to poach existing BNYM customers. But CPU¬īs core competency is its ability to successfully integrate and convert acquired businesses to its proprietary registry management system and reduce costs.
Computershare reported NPAT down 15.2% to US$94.59m for the half-year ended 31 December 2012. Revenues from ordinary activities were US$976.86m, up 26.1% from the same period last year. The Specialized Loan Servicing LLC (US), Serviceworks Group (Australia) and Shareowner Services LLC (US) acquisitions during the half-year ended 31 December 2011 drove the material uplift in revenue. Diluted EPS was 16.95 US cents compared to 20.00 US cents last year. Net operating cash flow was US$133.28m compared to US$146.38m last year. The interim dividend declared was 14.0 US cents, in line with 14.0 US cents last year.
The Age 18/05/2013 |
As Australia's major retailers increase their online sales channels, pouring millions into their websites, they could face new competition from China's booming e-commerce industry.
The Age 18/05/2013 |
Most of those who take a political approach to the budget assume that if it's in deficit, the way you get it back to surplus is to cut government spending or, if you're a really bad person, increase taxes. They forget it's the budget itself that's supposed to do the heavy lifting.
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