REG - Computacenter - Pre-Close Trading Statement

ComputacenterAnnouncement

24/01/2024 07:15

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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 £450m, 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
 Mike Norris, CEO                      +44 (0) 1707 631 601
 Chris Jehle, CFO                      +44 (0) 1707 631 515
 Christian Cowley, Investor Relations  +44 (0) 1707 631 132

 Teneo
 James Macey White / Matt Low          +44 (0) 2073 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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