Registry Registers A Good Result
The Age
Thursday August 29, 2002
Computershare chief executive Chris Morris yesterday unveiled an improved full-year profit result but admitted that the company took its eye off the Australian market, harming the share price.
The share registry booked a net profit to $71.29 million, up 84 per cent from the previous result, which was hit by a $21 million writedown of an investment in online broker E*Trade.
Normalised net profit came in at $57.9 million, an increase of 5.5 per cent, while revenue rose 4 per cent to $781 million.
The company also announced its intention to buy back up to 10 per cent of its shares on market. The news sent the scrip more than 11 per cent higher to $2.16, a far cry from the $1.50 at which it closed three weeks ago.
``We have made a few decisions, rightly or wrongly, over the last six months just to back off and not talk to the media too much, (and) cancelled an analysts' briefing, which went down wonderfully," Mr Morris said.
``This is a defining moment in Computershare's history. We really, really thought the only way to prove to everyone the real strength of Computershare is to deliver the results, and I think that is what we have done this year in a very difficult marketplace."
Mr Morris said he was pleased the company had met the forecasts it outlined in February, particularly given recent market conditions, which he said continued to be hampered by low interest rates and slow corporate activity.
He added that Computershare's falling share price had taught the company ``some very good lessons" and admitted that the management had taken its eye off the market and competitor ASX Perpetual Registrars.
``I can assure you we are totally focused on it at the moment. We are going to maintain our market share in Australia and we are actually going to win more market share."
He said the share registry's financial position remained healthy, with total assets of $959.7 million, and was focused on joint venture opportunities or acquisitions in the United States.
The company also announced it had granted Citigroup about 12 million options over unissued shares, as part of a two-year strategic alliance aimed at pursuing opportunities in North America.
The options, representing 2 per cent of Computershare's capital once converted, have an exercise price of $1.83 and potentially give Citigroup a 5 per cent shareholding.
Computershare announced a final dividend of 2.5 cents a share, fully franked, to be paid on September 26. The shares closed 22 cents firmer at $2.16.
© 2002 The Age