REG - Computacenter - Trading Statement 1st Quarter 2017 <Origin Href="QuoteRef">CCC.L</Origin>

ComputacenterAnnouncement

24/04/2017 07:06

RNS Number : 0577D
Computacenter PLC
24 April 2017
Computacenter plc
Incorporated in England
Registration number: 03110569
LEI: 549300XSXUZ1I19DB105
ISIN: GB00BV9FP302
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSE OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) No. 596/2014.
FOR IMMEDIATE RELEASE
Computacenter plc
Trading Update - 24 April 2017
Computacenter plc (the "Group"), the independent provider of IT infrastructure services that enables users, is today providing a trading update for the first quarter to 31 March 2017. This trading update is being made earlier than the date previously published due to the Group's performance in the first quarter and the improved outlook for the full year. 
Overview
While much remains to be done to complete the year, we believe that the Group's performance for 2017 as a whole will exceed current market expectations1 due to buoyant market conditions for new investments in technology, particularly seen by our German business, backed up by steady progress in France and UK and favourable currency movements. 
Group Financial Performance 
Group revenue for the first quarter has increased by 16 per cent on an as reported basis and by nineper cent in constant currency. 
Group Services revenue increased by 14 per cent on an as reported basis and by seven per cent in constant currency. 
Group Supply Chain revenue increased by 17 per cent on an as reported basis and by 11 per cent in constant currency. 
UK revenue reduced by one per cent for the first quarter with Services revenue increasing by fourper cent and Supply Chain revenue decreasing by four per cent.
German revenue increased by 23 per cent for the first quarter with Services revenue increasing by eight per cent and Supply Chain revenue increasing by 31 per cent, all in constant currency.
In France, our revenue increased by six per cent for the first quarter with an increase of 22 per cent in Services revenue and two per cent in Supply Chain revenue, all in constant currency. 
Group Financial Position
At the end of the quarter, Group net funds were in line with the Board's expectations.
Group Outlook
We are clearly encouraged by the Group's performance in the first quarter in all our major geographies but particularly in Germany. Our performance in 2016, while reasonable in the year as a whole, was weaker in the first half which does create a less-difficult half-on-half comparison. This will mean higher profit growth in the first half of 2017 than the second half and will return Computacenter to a more historical norm in the balance of our profits between the first and second half of the year. 
Our customers drive to digitalise their operations is creating significant demand particularly for our Professional Services and Supply Chain businesses. This is currently more than compensating for the pressure exerted by customers to reduce long term support costs that has a potential negative effect on our Managed Services business. However, this pressure is felt across the industry and those companies who deal with it best will gain market share. 
1 Market expectations are Bloomberg 90.1m and Reuters 90.6m 
Enquiries:
Computacenter plc
Mike Norris, Chief Executive
Tony Conophy, Finance Director

01707 631601
01707 631515
Tulchan Communications
James Macey White

020 7353 4200
Change vs 2016
Q1 Change
As Reported2
Q1 Change Constant Currency3
Supply Chain Revenue
UK
(4%)
(4%)
Germany
46%
31%
France
14%
2%
Group
17%
11%
Services Revenue 
UK
4%
4%
Germany
21%
8%
France
36%
22%
Group
14%
7%
Total Revenue 
UK
(1%)
(1%)
Germany
37%
23%
France
18%
6%
Group
16%
9%
2
Change vs 2016 Q1 revenues reported at 2016 exchange rates
3
Change vs 2016 Q1 revenues reported at 2017 exchange rates

This information is provided by RNS
The company news service from the London Stock Exchange
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