TIDMCCC
RNS Number : 6834A
Computacenter PLC
24 January 2024
Computacenter plc
Incorporated in England
Registration number: 03110569
LEI: 549300XSXUZ1I19DB105
ISIN: GB00BV9FP302
Computacenter plc
Pre-Close Trading Update - 24 January 2024
Computacenter plc ("Computacenter" or the "Group"), a leading
independent technology and services provider, today publishes a
trading update, based on preliminary unaudited financial
information, for the year ended 31 December 2023 ("the year").
Record adjusted(1) profit before tax, with cash generation ahead
of expectations, while continuing to invest for future growth
We expect FY 2023 to be another record year of adjusted(1)
profit before tax. This result has been delivered against the
backdrop of uncertain macroeconomic conditions throughout the year
while, as planned, increasing the level of investment in strategic
initiatives. It reflects the strength of our integrated Technology
Sourcing and Services model as well as our geographic
diversity.
Total revenue, on a Gross Invoiced Income basis, increased by
12% on both a reported and constant currency basis driven by strong
growth in Technology Sourcing and solid growth in Services. In
Technology Sourcing, after a very strong performance in the first
half of 2023, the second half of the year saw an anticipated
normalisation of activity as certain projects were completed.
Services revenue growth for the year was solid. Inflation remained
a headwind, however we managed our margin recovery effectively as
the year progressed.
By geography for the year, the strength of Germany and North
America outweighed the impact of a weaker performance in the UK
where, as previously highlighted, we have made changes to improve
our performance.
Financial Position
As industry supply chains normalised across the year, following
disruption during the pandemic, we have managed our inventory
position very effectively and generated strong levels of cash. The
Group's adjusted net funds(2) , excluding IFRS16 lease liabilities,
finished the year extremely strongly at around GBP450m, ahead of
our expectations. December is the peak month in our annual cash
cycle with net outflows expected to occur through to the end of
March 2024.
Given the strength of our balance sheet, we are evaluating our
options. Historically, Computacenter has a track record of
returning surplus capital to shareholders when suitable
acquisitions are not available.
Group Outlook
Looking ahead to 2024, in the context of a continuing uncertain
macroeconomic backdrop, the Group is well positioned to continue to
compete and gain further market share.
As anticipated, we expect to see Technology Sourcing volumes
normalise in 2024 as some of the high volume, low margin projects
we delivered, especially in the first half of 2023, were completed.
In Services we expect continued growth while inflationary pressures
are expected to moderate further.
We will continue to invest in strategic initiatives to enhance
our systems and improve our competitive position to sustain our
long-term performance. At the same time, we are increasingly
focused on delivering productivity benefits across the Group.
Overall, we expect to make further progress in FY 2024 with a
more challenging comparison in the first half of the year than in
the second half.
Looking further ahead, we are excited by the pace of innovation
and growth in demand for technology. With our strength in
Technology Sourcing, Professional Services and Managed Services,
and focus on retaining and maximising customer relationships over
the long term, we believe that we are well placed to deliver
profitable growth and sustained cash generation.
We look forward to publishing our final results for the year
ended 31 December 2023 on Wednesday 20 March 2024.
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.
(2) Adjusted net funds or adjusted net debt includes cash and
cash equivalents, other short- or long-term borrowings and current
asset investments. Following the adoption of IFRS 16, this measure
excludes all lease liabilities.
Enquiries:
Computacenter plc
+44 (0) 1707
Mike Norris, CEO 631 601
+44 (0) 1707
Chris Jehle, CFO 631 515
Christian Cowley, Investor +44 (0) 1707
Relations 631 132
Teneo
James Macey White / +44 (0) 2073
Matt Low 534 200
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 finally published 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.
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END
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