Computershare shares are tanking

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Investors sold down Computershare as the share registry group reported a 38.9% fall in statutory profit to $153.6 million on the back of weaker sales and currency movements.

Revenue in the share registry company fell 2.3% to $1.976 billion and was hit by a strengthening US dollar. Costs were also down by 4.1% to $1.419 billion.

Underlying profit was 0.7% weaker at $332.7 million but analysts had expected a positive result. The company wrote down $109.5 million against its voucher business.

CEO Stuart Irving says business performance in 2016 should to be broadly similar to 2015 but he expects underlying earnings will be 7.5% lower.

The impact of a stronger US dollar and expected lower yields on client balances are expected to be significant earnings headwinds.

And the business is also anticipating increased costs associated with product development and efficiency initiatives.

The company announced a dividend of 16 cents a share, 25% franked.

A short time ago, Computershare was trading more than 10% lower at $10.48.

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