Computershare Limited Share Price Grows

Shares of Computershare Limited [ASX:CPU] have been consistently growing for well over a year. Their shares are now trading, at the time of writing, at $17.53.

Today the share price rose by 0.92%.

Computershare Limited started off in 1978 and is based in Abbotsford, Australia. They specialise in technological services with regards to back-end share registries as well as various other financial services administration tasks.

They have a market cap valued at $9.529 billion and operate globally.

Market updates and current financial situation

CEO Stuart Irving said that 2017 was a positive year for Computershare. They have delivered growth in earnings as well as strong cash flow from operations.

These consistent and positive results were achieved through business decisions that countered a depressed corporate actions revenue that has been ongoing since 2005.

On Computershare’s market announcement, CEO Stuart Irving stated:

Our growth engines of mortgage services and share plans are performing to plan and our cost management strategies are improving our profitability. As we continue to simplify CPU and recycle capital, the balance sheet continues to deleverage, creating additional capacity to enhance shareholder returns.

Their capital management strategies are producing earnings which have driven continued business growth. In the future, CPU wish to transform to a much more simple and transparent platform that will bring them further profit.

Profitability and earnings

CPU reported a strong free cash flow and rise in net profits. Their net debt excluding non-recourse fell by $260.8 million, now standing at $867.7 million.

This year, Computershare expects that the equity market will remain stagnant, while interest rate markets will follow along with their current market expectations.

They have gone through a slight revenue decline with Hong Kong and Canada, which was offset by the US, UK and Australia.

Employee share plans have benefited from client wins and has resulted in an increased transactional activity while offsetting a lower margin income.

Free cash flow was also reported to be up by 7.9% while funds and capital management have also grown.

Regards,

Ryan Dinse,
Editor, Markets & Money

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Ryan Dinse is an analyst at Markets and Money. He has two decades of experience in financial planning, equity analysis and credit markets. Ryan combines fundamental, technical and economic analysis to identify and invest in good ideas at the appropriate stage of the economic cycle. He has a strong interest in technology, economic history and disruptive business models. His focus at the moment is as lead analyst on two of our most recent and innovative investor services, Crash Market Investor and Sam Volkering’s Secret Crypto Network. He will write about the exciting opportunities for investors to benefit from significant changes in world markets. He is a member of Fintech Australia, a former member of the Digital Currency Council, and is a fully accredited financial adviser.


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