Business Description:
Computershare Limited (CPU, formerly Halifax Computershare Pty Ltd) is the world's largest global share registry. It is the leading provider of financial market services and technology to the global securities industry operating in 20 countries. Services and solutions are provided to listed companies, investors, employees, exchanges and other financial institutions.

Strategy Analysis:
CPU leverages its 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 areas. 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 Bank of New York Mellon (BNYM) deal, but there is some way to go before ranking it a clear winner. Following US regulatory approval, the complex integration will take two to three years, with competitors attempting to aggressively poach existing BNYM customers. But CPU´s core competency is its ability to successfully integrate and convert acquired businesses on to its proprietary registry management system and reduce costs. Computershare reported NPAT down 10.4% to US$264.09m for the year ended 30 June 2011. The decrease in earnings was primarily driven by weaker corporate action activity globally, a lack of large transactions in the US mutual fund proxy solicitation business and reduced filings in the US bankruptcy administration business. Revenues from ordinary activities were US$1.60bn which remained flat against the last corresponding period. Diluted EPS was 47.30 US cents compared to 52.67 US cents last year. Net operating cash flow was US$319.64m compared to US$414.56m last year. The final dividend declared was 14 AU cents, taking the full year dividend to 28 AU cents in line with 28 AU cents last year.