Computacenter - Trading Update and Return of Value – 26 July 2024
26/07/2024 07:00
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RNS Number : 9265X Computacenter PLC 26 July 2024
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 tax(1) 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
Christian Cowley, Investor Relations +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.
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