Computershare's stock price dropped a third of its value yesterday following a profit warning.
The share price dropped dramatically after the company announced it was unlikely to deliver the expected 20 per cent EBITDA growth, announced 2 months ago. Computershare's share price dropped $1.87, from the opening of the market Wednesday at $5.62, to the close at $3.75 yesterday.
Despite recently implemented cost reduction initiatives, the company said it appears unlikely the full 20 percent increase will be delivered this year, unless market condition improve significantly in the short term.
Computershare blamed weaker than expected trading conditions for the months of November and December for the results. These weaker conditions are particularly evident with corporate action and initial public offering work being deferred in the US, UK and South African markets, Computershare said in an announcement to the ASX.
The company directors will implement cost reduction initiatives, which, they hope will bring an improved performance in first half of this year.