REG - Computacenter - Half Yearly Report <Origin Href="QuoteRef">CCC.L</Origin> - Part 3

ComputacenterAnnouncement

29/10/2014 16:09

- Part 3: For the preceding part double click  ID:nRSc2966Qb 

           
 
 
 Current June 2014          3,791    3,044    3,607    10,442  
 Non-current June 2014      3,086    5,725    2,680    11,491  
                                                               
 Current June 2013          6,282    -        1,921    8,203   
 Non-current June 2013      6,691    -        5,693    12,384  
                                                               
 Current December 2013      4,268    -        1,737    6,005   
 Non-current December 2013  5,283    -        5,166    10,449  
 
 
Customer contract provisions are based on the Directors' best estimate of the
amount of future losses to completion on certain contractual services
contracts in Germany. 
 
Management have a detailed formal plan for the French restructuring that is
sufficiently well advanced and which has been comprehensively communicated to
the affected parties and appropriate authorities such that a constructive
obligation on the Group has been created.  At 30 June 2014 costs related to
the restructuring to satisfy the obligation in France for £9,000,000 have been
provided for. 
 
Initial operational changes have been implemented which, along with the
communication noted above, have raised a valid expectation within all affected
parties that the Group will carry out the notified action, as programmed, in
the second half of the year.  Management have used the detailed plan itself to
reliably estimate the total cost of the obligation, and the outflow of
resources from the Group which will result, given the information currently
available. 
 
Only those costs directly related to the restructuring, and specifically the
termination costs and benefits accruing to the affected employees, have been
provided for. 
 
Further details of the treatment of the restructuring costs are disclosed in
note 6. 
 
Assumptions used to calculate the property provisions are based on the market
value of the rental charges plus any contractual dilapidation expenses on
empty properties and the Directors' best estimates of the likely time before
the relevant leases can be reassigned or sublet, which ranges between one and
nine years. The provision in relation to the UK properties are discounted at a
rate based upon the Bank of England base rate. Those in respect of the
European operations are discounted at a rate based on Euribor. 
 
12 Fair value measurements recognised in the consolidated balance sheet 
 
Financial instruments which are recognised at fair value subsequent to initial
recognition are grouped into Levels 1 to 3 based on the degree to which the
fair value is observable. The three levels are defined as follows: 
 
1.  Level 1 fair value measurements are those derived from quoted prices
(unadjusted) in active markets for identical assets or liabilities; 
 
2.  Level 2 fair value measurements are those derived from inputs other than
quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices); and 
 
3.  Level 3 fair value measurements are those derived from valuation
techniques that include inputs for the asset or liability that are not based
on observable market data (unobservable inputs). 
 
At 30 June 2014 the Group had a current asset investment, which was measured
at Level 2 fair value subsequent to initial recognition, to the value of £nil
million (30 June 2013: £10.0 million and 31 December 2013: £nil). 
 
At 30 June 2014 the Group had forward currency contracts, which were measured
at Level 2 fair value subsequent to initial recognition, to the value of a net
liability of £536,000 (30 June 2013: £465,000, 31 December 2013: £2,360,000). 
 
The realised gains from forward currency contracts in the period to 30 June
2014 of £1,824,000 (30 June 2013: £89,000 gain, 31 December 2013: £1,806,000
loss), are offset by broadly equivalent realised losses/gains on the related
underlying transactions. 
 
The foreign currency forward contracts are measured based on observable spot
exchange rates, the yield
curves of the respective currencies as well as the currency basis spreads
between the respective currencies. All
contracts are fully cash collateralised, thereby eliminating both counterparty
and the Group's own credit risk. 
 
The carrying value of the Group's short-term receivables and payables is a
reasonable approximation of their fair values. The fair value of all other
financial instruments carried within the Group's financial statements is not
materially different from their carrying amount. 
 
 13 Analysis of net funds                                             
                               Unaudited    Unaudited    Audited    
                               H1 2014      H1 2013      Year 2013  
                               £'000        £'000        £'000      
 Cash and short term deposits  70,982       76,336       91,098     
 Bank overdraft                (1,418)      (4,087)      (764)      
 Cash and cash equivalents     69,564       72,249       90,334     
 Current asset investment      -            10,000       -          
 Bank loans                    (146)        (107)        (63)       
 Net funds excluding CSF       69,418       82,142       90,271     
 Finance leases                (8,134)      (16,329)     (11,577)   
 Other loans                   (7,266)      (53)         (7,280)    
 Total CSF                     (15,400)     (16,382)     (18,857)   
 Net funds                     54,018       65,760       71,414     
                                                                                
 
 
14 Publication of non-statutory accounts 
 
The financial information contained in the interim statement does not
constitute statutory accounts as defined in section 435 of the Companies Act
2006. The auditors have issued an unqualified opinion on the Group's statutory
financial statements under International Accounting Standards for the year
ended 31 December 2013 and did not include a statement under section 498(2) or
(3) of the Companies Act 2006. Those accounts have been delivered to the
Registrar of Companies. 
 
Appendix 
 
Revenue growth summary by segment for H1 2014 vs H1 2013 
 
                                                                          
   Change vs H1 2013         H1 Change     H1 Change Constant Currency    
                             As Reported                                  
                             
                             
                                                                          
   Supply Chain Revenue                                                   
   UK                        17.6%         17.6%                          
   Germany                   (18.3%)       (15.4%)                        
   France                    13.3%         17.4%                          
                                                                          
   Group                     1.7%          3.9%                           
                                                                          
   Services Revenue                                                       
   UK                        8.2%          8.2%                           
   Germany                   (1.8%)        1.7%                           
   France                    1.2%          4.8%                           
                                                                          
   Group                     3.3%          5.3%                           
                                                                          
   Total Revenue                                                          
   UK                        14.1%         14.1%                          
   Germany                   (12.7%)       (9.6%)                         
   France                    11.1%         15.1%                          
                                                                          
   Group                     2.2%          4.3%                           
                                                                          
 
 
This information is provided by RNS
The company news service from the London Stock Exchange