REG - Computacenter - Pre-Close Trading Statement

ComputacenterAnnouncement

24/01/2022 07:05

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RNS Number : 3047Z  Computacenter PLC  24 January 2022

Computacenter plc

Incorporated in England

Registration number: 03110569

LEI: 549300XSXUZ1I19DB105

ISIN: GB00BV9FP302

FOR IMMEDIATE RELEASE

Computacenter plc

Pre-Close Trading Update - 24 January 2022

Computacenter plc ("Computacenter" or the "Group"), a leading independent
technology partner trusted by large corporate and public sector organisations,
today publishes a trading update, based on preliminary unaudited financial
information, for the year ended 31 December 2021 ("the year").

Overview

Computacenter finished the year with a strong fourth quarter, ahead of our
expectations. We now believe adjusted profit before tax(1) for the year will
be slightly in excess of £250 million and the Group will deliver its
seventeenth year of uninterrupted earnings per share growth in spite of head
winds from a strong pound and product supply shortages.

Financial Performance

Total revenue for the Group grew by 23 per cent including the effects of
acquisitions made since the beginning of 2020, and by 27 per cent in constant
currency(2).

During the year we experienced the highest growth in Services revenue for the
last 20 years, coupled with continued strength from Technology Sourcing
product sales which was more broadly based in 2021 than the previous year.

Financial Position

The Group's adjusted(3) net funds, excluding IFRS16 lease liabilities,
finished extremely strongly at around £241 million. The Group is currently
carrying a higher level of inventory than it would normally as we have used
the strength of our balance sheet to support our customers during times of
product shortages. We expect inventory to return to normal levels as supply
constraints alleviate.

Group Outlook

The robustness of the business throughout 2021 and particularly the strength
of the fourth quarter gives us encouragement as we enter 2022. Our product
order backlog is at an all-time high and considerably larger than a year ago.
This is due to two factors, product supply constraint meaning customers are
ordering earlier but there is also a significant underlying strength to the
market. We are pleased that the stronger Services pipeline we saw a year ago
delivered increased revenue and we are hopeful of repeating this performance
in 2022.

While as always there is much to do, we enter 2022 growing in multiple
geographies, across product and services, which means we feel the business is
well placed for another year of progress.

We look forward to publishing our final results for the year ended 31 December
2021 on Wednesday 16 March 2022.

Enquiries:

 Computacenter plc
 Mike Norris, Chief Executive    01707 631601
 Tony Conophy, Finance Director  01707 631515
 Tulchan Communications
 James Macey White / Matt Low    020 7353 4200

(1) Adjusted profit before tax is stated before: exceptional and other
adjusting items including gain or losses on business acquisitions and
disposals, and amortisation of acquired intangibles, as Management do not
consider these items when reviewing the underlying performance of the Group.
Further detail on the impact of exceptional and other adjusted items when
compared to the non-Generally Accepted Accounting Practice financial measures,
in addition to those reported in accordance with IFRS, is provided within our
2020 Annual Report and Accounts.

(2) We calculate constant currency percentages by converting our prior year
local currency financial results using the current year average exchange rates
and comparing these recalculated amounts to our current year results or by
presenting the results in the equivalent local currency amounts. Further
information on this measure is included within our 2020 Annual Report and
Accounts.

 (3) Adjusted net funds includes cash and cash equivalents, other short or
other long-term borrowings and current asset investments. Following the
adoption of IFRS 16 this measure excludes all finance lease liabilities. A
table reconciling this measure, including the impact of finance lease
liabilities, is provided within our 2020 Annual Report and Accounts.

 

 

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