Computacenter plc
Incorporated in England
Registration number:
03110569
LEI: 549300XSXUZ1I19DB105
ISIN: GB00BV9FP302
Computacenter
plc
Trading Update and Return of
Value - 26 July 2024
Computacenter plc ("Computacenter"
or the "Group"), a leading independent technology and services
provider, today provides a trading update for the half year ended
30 June 2024 ("the half"), based on preliminary unaudited financial
information, ahead of announcing and commencing a return of value
by way of a share buyback.
Trading update
As anticipated, Technology Sourcing
volumes normalised during the first half versus an exceptionally
strong H1 2023. We delivered a solid underlying performance in
Germany and North America whereas in the UK, demand for hardware
has been weaker than expected, with customers exercising greater
caution and purchasing decisions taking longer to conclude.
Encouragingly, our committed product order backlog has grown
significantly since the start of the year driven by notable
Technology Sourcing wins in North America.
As previously guided, given the
exceptionally strong comparatives, H1 2024 is lower than the prior
year equivalent and we now expect H1 2024 adjusted profit before
tax1 to be approximately £87m (H1 2023: £121.8m)
including c.£2m of negative currency translation. This result has
been impacted by the timing of fulfilment of certain large orders
in North America which have now moved into H2, as well as the
phasing of our strategic initiatives investments where we spent an
additional c.£6m versus the same period in 2023, with our
expectation for full year investment unchanged at £28m to
£30m.
Looking to the full year, we expect
stronger momentum in the second half underpinned by
the size of our committed product order backlog
and wider pipeline of opportunities. While we are mindful of the
backdrop of continuing geopolitical and macro uncertainty across
our markets we continue to expect to make progress in FY 2024 as a
whole at constant currency. At current exchange rates we expect a
negative c.£7m translation impact on adjusted profit before tax in
the full year.
We will publish our half year
results for the year ended 30 June 2024 on Monday 9 September
2024.
Share buyback programme
Given the Group's strong positive
adjusted net funds position and currently anticipated capital
needs, Computacenter also announces that it will return up to £200m
to shareholders via a share buyback programme, details of which
will be released today in a separate announcement. This is in line
with our capital allocation policy to invest organically, make
targeted acquisitions and distribute surplus capital while
retaining a strong balance sheet. Following the completion of the
buyback we expect to maintain a strong balance sheet with positive
adjusted net funds.
Footnotes:
1 Adjusted profit before tax
is stated before exceptional and other adjusting items, including
gains or losses on business acquisitions and disposals and
amortisation of acquired intangibles as Management does not
consider these items when reviewing the underlying performance of
the Segment or the Group as a whole.
Enquiries:
Computacenter plc
|
|
Mike Norris, CEO
|
+44 (0) 1707 631 601
|
Chris Jehle, CFO
|
+44 (0) 1707 631 346
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Christian Cowley, Investor
Relations
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+44 (0) 1707 631 132
|
|
|
Teneo
|
|
James Macey White / Matt
Low
|
+44 (0) 207 353 4200
|
About Computacenter:
Computacenter is a leading
independent technology and services provider, trusted by large
corporate and public sector organisations. We are a responsible
business that believes in winning together for our people and our
planet. We help our customers to Source, Transform and Manage their
technology infrastructure to deliver digital transformation,
enabling people and their business. Computacenter is a public
company quoted on the London FTSE 250 (CCC.L) and employs over
20,000 people worldwide.
More information can be found at
www.computacenter.com
DISCLAIMER - FORWARD LOOKING
STATEMENTS
This trading update includes statements that are, or may be
deemed to be, 'forward-looking statements'. These forward-looking
statements can be identified by the use of forward-looking
terminology, including without limitation the terms 'anticipates',
'believes', 'estimates', 'expects', 'intends', 'may', 'plans',
'projects', 'should' or 'will', or, in each case, their negative or
other variations or comparable terminology, or by discussions of
strategy, plans, objectives, goals, future events or intentions.
These forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout this
trading update and include, but are not limited to, statements
regarding the Group's intentions, beliefs or current expectations
concerning, amongst other things, results of operations, prospects,
growth, strategies and expectations of its respective
businesses.
By
their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance
and the actual results of the Group's operations and the
development of the markets and the industry in which they operate
or are likely to operate and their respective operations may differ
materially from those described in, or suggested by, the
forward-looking statements contained in this trading update. In
addition, even if the results of operations and the development of
the markets and the industry in which the Group operates either as
set out in Computacenter plc's 2023 Annual Report and Accounts or
generally are consistent with the forward-looking statements
contained in this trading update, those results or developments may
not be indicative of results or developments in subsequent periods.
A number of factors could cause results and developments to differ
materially from those expressed or implied by the forward-looking
statements, including, without limitation, those risks subsequently
set out in the risk factor section of the Computacenter plc 2023
Annual Report and Accounts, as well as general economic and
business conditions, industry trends, competition, changes in
regulation, currency fluctuations or advancements in research and
development.
Forward-looking statements speak only as of the date of this
trading update and may, and often do, differ materially from actual
results. Any forward-looking statements in this trading update
reflect the Group's current view with respect to future events and
are subject to risks relating to future events and other risks,
uncertainties and assumptions relating to the Group's operations,
results of operations and growth strategy.
Neither Computacenter plc nor any of its subsidiaries
undertakes any obligation to update the forward-looking statements
to reflect actual results or any change in events, conditions or
assumptions or other factors save where and to the extent otherwise
required by applicable law or regulation.