REG - Computacenter - Pre-Close Trading Update

ComputacenterAnnouncement

28/01/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250128:nRSb8609Ua&default-theme=true

RNS Number : 8609U  Computacenter PLC  28 January 2025

Computacenter plc

Pre-Close Trading Update - 28 January 2025

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
2024 ("the year").

FY 2024 - record H2 performance and number of major customers; continuing
strong cash generation

In the context of a more challenging market backdrop in 2024 and against a
strong comparative in 2023, total revenue in 2024 for the Group, on a gross
invoiced income basis, increased by 0.5% in constant currency and decreased by
2% on a reported basis. In constant currency, Technology Sourcing gross
invoiced income was marginally ahead and Services revenue increased by 2%.
This reflected a stronger performance in the second half of the year with
Technology Sourcing gross invoiced income increasing by 13% and Services
revenue up 5%. In Services for 2024 as a whole, Professional Services
delivered strong revenue growth which was partly offset by a softer
performance in Managed Services.

While we are pleased with overall execution towards the end of the year, with
Germany and North America delivering strong performances, parts of our larger
current Technology Sourcing projects in the US and the UK have slipped into
the early part of 2025. For the second half of 2024 adjusted operating profit
is expected to be ahead of the equivalent period in 2023 in both constant
currency and on a reported basis. This represents Computacenter's most
profitable half year in its history and we ended the year with a record number
of customers generating over £1m of gross profit per annum.

For the full year in 2024, also taking into account our ongoing group-wide
strategic investments, lower interest income receipts following the earlier
completion of the share buyback, and a £7m adverse translation impact from
stronger sterling, we now expect adjusted(1) profit before tax for 2024 to be
at the low end of the range of analysts' forecasts(2).

Financial Position

The £200m share buyback programme announced on 26 July 2024, was completed
earlier than expected on 30 October 2024. The Group's adjusted net funds(3),
excluding IFRS 16 lease liabilities, finished the year extremely strongly at
around £480m benefiting from strong collections and some material early
customer payments. December is the peak month in our annual cash cycle with
net outflows expected to occur through to the end of March 2025.

Group Outlook

Order intake during the second half, notably in North America, has been strong
and we exited 2024 in a robust position with a committed product order backlog
at the end of December which is significantly ahead of our position in
December 2023, as well as at the end of June 2024. The size of the projects we
are currently delivering gives us good momentum as we enter 2025.

Looking to 2025 as a whole, we are mindful of the uncertain macroeconomic and
political environments in some of the European countries in which we operate.
In the UK, rises in employer taxes (National Insurance) from April are
expected to have an adverse impact of c.£5m in 2025. In North America,
following a strong performance in 2024, we continue to be excited by the
growth opportunities we see ahead. Overall, we expect to make progress in FY
2025 with earnings per share benefiting further from the impact of the share
buyback.

We will publish our final results for the year ended 31 December 2024 on
Tuesday 18 March 2025.

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) Company compiled consensus for 2024 adjusted PBT is £261.3m with a range
of £253.6m to £266.5m

(3) 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
 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 2024 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 2024 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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEANFXAEKSEFA