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Countplus Ltd share price plunges 13%

The Countplus Ltd (ASX: CUP) share price has certainly had a disappointing end to the week.

In afternoon trade the accounting company’s shares are down 13% to 51 cents.

What happened?

This morning the company provided the market with an update in relation to its strategic review and made changes to its dividend policy.

According to today’s release, management has conducted an extensive strategic review of each of the 19 member firms within the Countplus network.

Following a review, the company has decided to sell three and merge two member firms that were acting as a drag on its performance.

The three member firms that have been sold generated an aggregate operating loss for the 2017 financial year of around $160,000.

Furthermore, investors appear disappointed that it has revised its dividend policy to move from quarterly to half-yearly dividend payments. Management will aim to pay out between 40% to 70% of maintainable net profit after tax and minority interests.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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