REG - Computacenter - Half-year Report
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RNS Number : 4973Y Computacenter PLC 09 September 2025
Computacenter plc
2025 Half Year results
Computacenter plc ('Computacenter' or the 'Group'), a leading independent
technology and services provider, today announces unaudited half year results
for the six months ended 30 June 2025.
Financial highlights H1 2025 H1 2024 Change Change in constant currency(1)
Technology Sourcing gross invoiced income (£m) 4,856.5 3,740.1 29.8% 32.2%
Services revenue (£m) 808.8 796.5 1.5% 2.8%
Gross invoiced income(1) (£m) 5,665.3 4,536.6 24.9% 27.0%
Technology Sourcing revenue (£m) 3,180.0 2,307.3 37.8% 40.6%
Services revenue (£m) 808.8 796.5 1.5% 2.8%
Revenue (£m) 3,988.8 3,103.8 28.5% 30.8%
Gross profit (£m) 504.2 472.2 6.8% 8.6%
Gross margin (%) 12.6% 15.2% -257bps
Adjusted(1) operating profit (£m) 82.1 81.1 1.2% 4.2%
Adjusted(1) profit before tax (£m) 81.5 87.2 -6.5% -3.8%
Adjusted(1) diluted earnings per share (p) 52.5 55.0 -4.5%
Dividend per share (p) 23.6 23.3 1.3%
Net cash (outflow) / inflow from operating activities (£m) (165.8) 1.4 nm
Adjusted(1) net funds (£m) 278.0 401.9 -30.8%
Statutory measures H1 2025 H1 2024 Change
Operating profit (£m) 73.8 78.4 -5.9%
Profit before tax (£m) 73.2 84.0 -12.9%
Diluted earnings per share (p) 46.5 52.9 -12.1%
Net funds (£m) 115.4 287.8 -59.9%
( )
(1)Alternative performance measures (APMs) and other terms are used throughout
this announcement. These are defined in full in the Appendix to this
announcement.
Mike Norris, Chief Executive Officer, commented:
"We executed well during the first half delivering growth in both Technology
Sourcing and Services against a backdrop of significant macroeconomic and
political uncertainty. Furthermore, we have significantly expanded our base of
major customers over the past year, reinforcing our resilience and positioning
ourselves for sustainable growth.
"Building on the strong momentum seen during the second half of 2024, North
America delivered another record performance, with growth across all areas. We
remain excited about both the short and long-term growth opportunity in this
market. We are also pleased to see the UK return to growth following a renewed
focus on our target customers. While public sector activity in Germany has
been subdued we are confident in both the strength of our team and our
customer relationships and we anticipate some recovery in public sector
activity in Germany in the second half.
"Looking to the full year, we have a healthy order backlog position and have
made a strong start to our third quarter, especially in North America. As a
result, we continue to expect growth in adjusted operating profit for the full
year."
Financial highlights
· Strong Group gross invoiced income and revenue performance with
growth in Technology Sourcing and Services
· Gross profit increased by 8.6% and adjusted operating profit by
4.2% in constant currency, driven by excellent growth in North America, good
growth in the UK, partly offset by softer performances in Germany and
particularly France, as well as increased Group-wide investment to secure
future growth
· Strong balance sheet position with adjusted net funds of £278.0m
following completion of the £200m share buyback in H2 2024
Strategic and operational highlights
· Continued to deliver our strategic priorities of growing our
target market customers, scaling our activities and empowering our people
· Good progress in growing the number of customers generating over
£1m of gross profit p.a., with a net 14 added across the Group since 30 June
2024 and net five added since 31 December 2024, with major customers now
totalling 197 (FY 2024: 192; H1 2024: 183)
· Another record performance in North America driven by growth in
hyperscale and enterprise customers, as we continued to take market share,
with operating profits nearly doubling year on year; North America accounted
for 44% of adjusted operating profit (before central costs) (H1 2024: 24%; FY
2024: 24%)
· UK returned to growth while Germany and France were impacted by
temporary lower levels of public sector activity
· Good Professional Services revenue growth of 6.5% in constant
currency, with UK and North America growing strongly and Germany stable
· Slight decline in Managed Services revenue with improved pipeline
of opportunities
· Product order backlog as at 30 June 2025 up 23.7% year on year in
constant currency driven by continued strong Technology Sourcing order intake
in North America and the UK
· £21.9m of spend on strategic initiatives (H1 2024: £17.6m) to
improve our capabilities, enhance productivity and secure future growth
Shareholder returns
· Interim dividend increased by 1.3% to 23.6p, in line with our
dividend policy
· Over £1bn of capital distributed to shareholders since 2013
Outlook
· We have a healthy committed product order backlog comfortably
ahead of the equivalent period last year and have made a strong start to Q3,
especially in North America. While the broader geopolitical and macro
uncertainty is expected to persist, we anticipate some recovery in public
sector activity in Germany in the second half while France is expected to
remain challenging.
· Overall, we continue to expect full year adjusted(1) operating
profit in FY 2025 to be ahead of the prior year, including an adverse c.£4m
currency translation impact.
Enquiries:
Computacenter plc
Mike Norris, CEO +44 (0) 1707 631 601
Keith Mortimer, CFO +44 (0) 1707 639 888
Christian Cowley, Investor Relations +44 (0) 1707 631 132
Teneo
James Macey White / Matt Low +44 (0) 207 353 4200
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 plc is a public company quoted on the London Stock
Exchange (CCC.L) and a member of FTSE 250. Computacenter employs over 20,000
people worldwide.
DISCLAIMER - FORWARD LOOKING STATEMENTS
This announcement 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 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 announcement 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 announcement. In addition, even
if the results of operations and the development of the markets and the
industry in which the Group operates are consistent with the forward-looking
statements contained in this announcement, 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 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 announcement and
may, and often do, differ materially from actual results. Any forward-looking
statements in this announcement 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 unless otherwise required by applicable law or
regulation.
Chief Executive Officer's review
Summary of H1 2025 performance
In the context of considerable macroeconomic and political uncertainties
across our regions - which have led to fluctuating IT demand among customers -
we executed well during the half, as we continue to pursue our strategic
priorities of growing our target market customers, scaling our activities and
empowering our people.
During the half the Group delivered 30.8% revenue growth in constant currency,
driven largely by an excellent performance in North America Technology
Sourcing. This converted into 8.6% growth in gross profit and 4.2% growth in
operating profit in constant currency, as we increased the level of investment
in Group-wide initiatives.
Our balance sheet remains strong ending the half with £278.0m of adjusted
net funds, after completing a £200m share buyback programme in the second
half of the 2024. Since 2013, Computacenter has distributed over £1bn in
capital to shareholders via dividends and special returns, while continuing to
invest organically for the long term and creating value through targeted
acquisitions, which have increased our geographic diversity and long-term
growth opportunity.
Delivering on the North America growth opportunity and returning to growth in
the UK
In North America, we delivered a record first half performance with operating
profit nearly doubling against an easier comparative. This was achieved
through a combination of buoyant hyperscale customer demand as well as growth
in volumes with enterprise customers across a variety of sectors. Since our
first acquisition in late 2018, North America has grown to become a material
profit contributor, accounting for 44% of Group operating profit (before
central costs) during the half. We remain excited about both the scale of the
market opportunity in North America and our momentum as we seek growth both
organically and via acquisition. While North America was the standout
performance of the half we are also pleased to see the UK return to growth
after a more challenging period. We are now starting to see the benefits of a
more targeted approach and greater proximity to customers.
Navigating Public Sector softness in Germany and France
Political change in Germany and France led to a reduction in public sector
activity, which is an important driver for our business in both geographies.
After many years of public sector growth in Germany, our first half
performance was impacted by temporarily lower volumes. We navigated this
dynamic well in the first quarter but the second quarter was more challenging.
Encouragingly, we believe we performed well versus our competition and we
remain well positioned with our customer base in this important market
segment; moreover we anticipate some recovery in public sector activity in
Germany in the second half. Although the market was weak in France our
performance was disappointing and we recognise the need for a sharper and more
focused approach, especially if the IT market and the economy remain subdued.
Growth in major customers
When market demand is variable, it is even more critical to deliver a
high-quality service for existing customers. We were pleased to see customer
satisfaction scores across the Group improve further, reflecting our ongoing
commitment to listening, learning, and improving through structured
engagement. We were also pleased to end the half with a total of 197 major
customers on a trailing twelve-month basis, an increase of 14 on last year and
five since the year end. Growing the number of major customers in our target
market of large corporate and public sector customers ensures greater
resilience and underpins our long-term growth. We see significant growth
opportunities in this target market across all of our geographies.
Technology Sourcing - buoyant demand for AI-related infrastructure and
applications
Technology Sourcing revenue growth of 40.6% in constant currency was largely
fuelled by high-volume, lower-margin business in North America, against a
somewhat weaker comparative.
The AI landscape continues to change quickly, and organisations in all sectors
face the same challenge of how best to realise AI's potential in line with
their business imperatives. We are uniquely positioned to enable AI advantage
from end to end. Our services span the whole infrastructure estate and the
entire technology lifecycle, from advisory and solution design to
implementation, optimisation and support.
As is evident in our first half performance in both North America and the UK,
technology customers are investing more than ever in AI-centric
infrastructure. We deliver a high-quality service for customers investing in
data centers based on our expertise in the areas of high-performance
computing, networking, low-latency storage, data center infrastructure and
software components.
Typically, large organisations run hybrid IT structures that combine cloud and
on-premises infrastructure. More recently, we have seen some customers moving
part of their workloads back from public cloud to on-premises environments, as
they look to secure predictability of supply, manage costs, and address
increasing demand for data sovereignty, control, and compliance. We are
extremely well-suited to help them design, deploy and integrate their evolving
IT estates.
In Europe, networking volumes were more muted during the half. While workplace
has been more positive, ahead of the end of free support for Windows 10
in October 2025, it has not yet resulted in a material uplift in volume
across the Group.
Services growth driven by Professional Services
Total Services revenue grew by 2.8% in constant currency driven by 6.5% growth
in Professional Services and broadly flat revenue in Managed Services. We
managed our Services gross margin effectively during the period, which
increased by 80 basis points.
Professional Services was particularly strong in the UK, increasing by 29.0%,
while Germany, our largest source of revenue, was slightly down due to lower
public sector activity. We made a commitment from the start of 2024 to grow
and enhance Professional Services by having a broader and more scalable
portfolio across all countries, based on a common operating framework and a
stronger sales approach. We are starting to see the benefits of this
initiative, with Germany well positioned for a public sector recovery, the
UK growing strongly, and another strong performance in North America,
leveraging our expertise in hyperscale data center deployment. Professional
Services has been a strong driver of growth for Services in recent years, and
we see it as an important future source of profitable growth for the Group.
Our Managed Services portfolio performed largely as expected. Revenue declined
only slightly which represented a significant improvement on 2024. Following
investment in sales development, we have grown our Managed Services pipeline
substantially, with notable opportunities for our Device Lifecycle Management
proposition, where we are responsible for the complete lifecycle of devices,
from procurement to disposal. We won some good contracts during the first half
in the defence, retail and professional services sectors, and continue to
focus on converting the pipeline and improving our win rate to underpin growth
further out, while continuing to improve our efficiency by leveraging our
systems investments. Of the two underperforming contracts we noted in 2024,
one has now been stabilised and is expected to be profitable going forward,
while we remain focused on improving the performance of the other.
Investing to secure future growth
We continue at pace with the rollout of our strategic initiatives which will
improve our capabilities and productivity, enable us to further leverage AI
solutions, underpin our systems for the future and create competitive
advantage. This investment increased operating costs by £4.3m year on year to
£21.9m (H1 2024: £17.6m).
We have made good progress moving our Service Desks onto a common platform,
migrating from our legacy service management tool to a new platform and
building new functionality within it for our modern workplace solutions such
as Device Lifecycle Management. We are upgrading all our Integration Centers
across the world to a new standard. This includes the latest warehouse
management software, a Group standard for configuration, new scanning
functionality and a more sophisticated capability for courier integration. We
have finished the rollout of our CRM system and are in the process of
completing the implementation of a new configuration and pricing tool, and
ultimately an upgrade of our current ERP system to a new cloud-based version.
At the same time, we continue to invest significantly in our cybersecurity
framework.
Outlook - healthy order backlog and a strong start to Q3
Our committed product order backlog remains healthy and comfortably ahead of
the equivalent period last year in all our geographies, positioning us well
for the second half. The product order backlog measures the total value of
committed outstanding purchase orders placed with our technology vendors
against non-cancellable sales orders for delivery within 12 months. As at 30
June 2025, the backlog was £2,195.9m on a gross invoiced income basis, a
23.7% increase since 30 June 2024 (£1,775.0m) in constant currency.
We have made a strong start to Q3, especially in North America. While the
broader geopolitical and macro uncertainty is expected to persist, we
anticipate some recovery in public sector activity in Germany while France is
expected to remain challenging. Overall, we continue to expect full year
adjusted(1) operating profit in FY 2025 to be ahead of the prior year,
including an adverse c.£4m currency translation impact.
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, our market-leading international coverage and
our 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.
Technical guidance for FY 2025:
· At current exchange rates a negative c.£4m translation impact
expected on adjusted operating profit in the full year
· Central costs (including Group-wide investments) expected to be
£55-60m
· Adjusted effective tax rate expected to be 29.5%-31.5%
· Capex expected to be c.£35m
· Dividend cover of 2-2.5x adjusted diluted EPS
Trading reviews by geography
United Kingdom
Results H1 2025 H1 2024 Change
£m £m
Technology Sourcing gross invoiced income 1,074.6 864.6 24.3%
Services revenue 229.0 220.1 4.0%
Total gross invoiced income 1,303.6 1,084.7 20.2%
Technology Sourcing revenue 411.0 322.1 27.6%
Services revenue 229.0 220.1 4.0%
Professional Services revenue 91.6 71.0 29.0%
Managed Services revenue 137.4 149.1 -7.8%
Total revenue 640.0 542.2 18.0%
Gross profit 121.9 107.8 13.1%
Adjusted administrative expenses (104.6) (94.4) 10.8%
Adjusted operating profit 17.3 13.4 29.1%
The UK delivered an improved result in a market that remains relatively
subdued. Total gross invoiced income increased by 20.2% driven by strong
growth in Technology Sourcing and solid growth in Services revenue. Total
revenue increased by 18.0%, reflecting faster growth in hardware. Gross profit
increased strongly by 13.1% with gross margin on a revenue basis decreasing by
84 basis points reflecting change in product mix. Administrative expenses
increased by 10.8% driven by higher commissions and ongoing investment in
training, resulting in adjusted operating profit increasing by 29.1%.
In 2023, we implemented new leadership and made significant changes to enhance
our focus on our target market of large corporate and public sector
organisations. We are starting to see the benefits of a more targeted
approach, with our greater proximity to customers delivering growth in
Technology Sourcing and Professional Services with an encouraging Managed
Services pipeline. We increased the number of major customers by 10 to 58
since 30 June 2024.
We also were pleased to deliver more high-performance AI-related
infrastructure projects. We continue to win business based on our ability to
deliver complex logistics and deployment solutions at pace, and we are excited
by the pipeline of near-term opportunities in this area.
Technology Sourcing
Technology Sourcing gross invoiced income increased strongly by 24.3%
reflecting a higher mix of AI data center product, with gross margin
decreasing by 137 basis points. During the period we completed a large data
center project in Norway for a leading European AI infrastructure company and
expect to complete further projects in the second half. Demand for workplace
hardware improved during the period ahead of the end of free support for
Windows 10 in October 2025 although this has not resulted in a material
uplift in volume. The committed product order backlog at 30 June 2025 was
£449.0m, representing a 24.7% increase since 30 June 2024 (£360.0m).
Services
Services revenue increased by 4.0%, driven by accelerated growth in
Professional Services, up 29.0%, partly offset by a 7.8% decline in Managed
Services. Gross margin increased 25 basis points.
Professional Services delivered another excellent performance driven by good
demand in workplace, cyber, cloud and apps including significant
transformation projects with a large public sector customer. The pipeline for
Professional Services remains healthy.
In Managed Services, a large public sector contract which was secured at the
end of 2023 successfully went live towards the end of the half. While the
transition period was longer than originally expected we have won additional
Professional Service and Technology Sourcing business from the customer. We
were also pleased to win new contracts in defence, retail and professional
services. The underperforming contract, highlighted last year, continued to
have a negative impact, and we remain focused on improving performance. Our
pipeline has grown significantly with our Device Lifecycle Management
proposition continuing to generate strong interest with existing and new
customers.
Germany
Results H1 2025 H1 2024 Change Change in constant currency
£m £m
Technology Sourcing gross invoiced income 840.4 812.9 3.4% 4.9%
Services revenue 369.4 376.4 -1.9% -0.4%
Total gross invoiced income 1,209.8 1,189.3 1.7% 3.2%
Technology Sourcing revenue 509.3 525.6 -3.1% -1.6%
Services revenue 369.4 376.4 -1.9% -0.4%
Professional Services revenue 197.5 201.5 -2.0% -0.6%
Managed Services revenue 171.9 174.9 -1.7% -0.2%
Total revenue 878.7 902.0 -2.6% -1.1%
Gross profit 162.0 167.3 -3.2% -1.7%
Adjusted administrative expenses (113.9) (107.8) 5.7% 7.4%
Adjusted operating profit 48.1 59.5 -19.2% -18.1%
Germany's performance was softer, largely as anticipated, reflecting lower
public sector activity following recent political changes. Total gross
invoiced income increased by 3.2% in constant currency, driven by growth in
Technology Sourcing, and broadly stable Services revenue. Gross profit
decreased by 1.7% in constant currency with gross margin on a revenue basis
decreasing by 11 basis points, reflecting a decrease in Technology Sourcing
and a slight improvement in Services margin. Administrative expenses increased
by 7.4% in constant currency largely reflecting higher staff costs, resulting
in a decline in adjusted operating profit of 18.1% in constant currency.
In the context of a challenging economic backdrop and this temporarily weaker
public sector activity, we have performed well versus our competition. The
breadth and depth of our portfolio and capabilities combined with the strength
of our relationships with both public and corporate sector customers mean we
are well placed to take advantage of the anticipated increase in activity in
the second half and beyond. The number of major customers was up two year on
year at 65 accompanied by an improvement in customer satisfaction scores.
Technology Sourcing
Technology Sourcing gross invoiced income increased by 4.9% in constant
currency against a backdrop of weaker public sector activity with software
growing faster than hardware. We delivered good growth in data center and
workplace while networking was more subdued. Technology Sourcing gross margin
decreased by 24 basis points reflecting change in product mix.
We continue to see a trend towards bundling procurements in bigger framework
contracts, especially for global requirements of large international customers
and infrastructure demand from our major public sector clients. For example,
we were awarded a significant multi-year workplace project with a large
technology business, as well as several new multi-year public sector
frameworks, which will start in the second half of 2025.
We anticipate federal budget approval in September, leading to increased IT
infrastructure and service procurement through our framework agreements with
federal authorities through the end of the year and beyond.
The committed product order backlog at 30 June 2025 was £235.5m, a 34.8%
increase in constant currency since 30 June 2024 (£174.6m).
Services
Services revenue was 0.4% lower in constant currency with Professional
Services and Managed Services 0.6% and 0.2% lower respectively. Services gross
margin increased slightly by 7 basis points.
Professional Services performance was solid, considering the importance of
public sector and the lower levels of activity experienced during the period
that led to lower utilisation of our consultants and engineers. We continued
to see demand for project support and skills from our corporate customers,
especially in networking and security, data center consolidation and cloud
management, as well as for expanding modern workplace infrastructures. In
addition, we are increasingly seeing a need for comprehensive advice on the
use of AI in general and AI-related infrastructure.
Managed Services revenue growth improved to broadly stable, with the portfolio
of contracts performing as anticipated. During the half we secured a
significant managed service contract to provide IT services and logistics
within the defence sector. The underperforming contract highlighted last year,
has now been stabilised following remedial action and is expected to make a
positive contribution in subsequent periods. Looking further ahead, we have a
strong pipeline, particularly in workplace, networking and security, where we
are very well positioned.
Western Europe
Results H1 2025 H1 2024 Change Change in constant currency
£m £m
Technology Sourcing gross invoiced income 476.6 480.1 -0.7% 0.7%
Services revenue 115.7 114.1 1.4% 2.8%
Total gross invoiced income 592.3 594.2 -0.3% 1.1%
Technology Sourcing revenue 242.6 299.2 -18.9% -17.8%
Services revenue 115.7 114.1 1.4% 2.8%
Professional Services revenue 28.3 32.0 -11.6% -10.2%
Managed Services revenue 87.4 82.1 6.5% 7.9%
Total revenue 358.3 413.3 -13.3% -12.1%
Gross profit 45.2 51.7 -12.6% -11.5%
Adjusted administrative expenses (54.1) (49.6) 9.1% 10.6%
Adjusted operating (loss) / profit (8.9) 2.1 nm nm
Western Europe consists of France, Belgium, Netherlands and Switzerland.
Western Europe delivered a disappointing performance mainly driven by a weak
result in France. Total gross invoiced income increased by 1.1% in constant
currency, with slight growth in Technology Sourcing accompanied by modest
growth in Services revenue. Total revenue decreased by 17.8% reflecting lower
demand for hardware. Gross profit decreased by 11.5% in constant currency,
with gross margin on a revenue basis up 11 basis points. Technology Sourcing
gross margin decreased by 43 basis points offset by a strong improvement in
Services gross margin, up 232 basis points. Administrative expenses increased
by 10.6% in constant currency, resulting in an adjusted operating loss of
£8.9m. Across Western Europe the number of major customers was down one year
on year at 22.
France was significantly weaker, reflecting softer than expected public sector
activity following political change and a difficult economic backdrop,
resulting in poor demand for hardware. Gross invoiced income increased
modestly driven by growth in Technology Sourcing and a slight decline in
Services revenue. Technology Sourcing growth was driven by an increase in
sales of lower margin workplace software, following awards of public sector
software frameworks. Managed Services revenue was stable and Professional
Services weaker, meaning overall Services revenue growth has not been
sufficient to significantly improve overall resource utilisation. While we
anticipate some improvement in performance in France during the second half,
we expect market conditions to remain challenging. Encouragingly, customer
satisfaction continues to increase and our pipeline of corporate and public
sector opportunities is substantial. We also recognise the need to further
reduce legacy costs associated with the acquisition of BT Services.
As of the beginning of 2025, Belgium and the Netherlands have been
operating as a single structure, fully integrated into
the Computacenter operating model. We see benefits from creating a larger
entity to engage with our vendor partners more effectively and to provide
customers with better access to Computacenter's Group capabilities.
Belgium's performance was below the prior year against a strong comparative,
largely reflecting a change in vendor terms. Technology Sourcing was slightly
down while Services grew driven by strong growth in Managed Services
underpinned by a global customer in the financial settlement services industry
that was onboarded last year, as well a recent win of a multinational
materials and composites company. We remain optimistic about public sector
opportunities following multi-year technology framework wins last year and a
number of tenders to which we have responded during the period.
The Netherlands was below the prior year largely driven by weaker Technology
Sourcing. We have invested in sales capability to target both public sector
and enterprise opportunities. While the market remains competitive, we are
optimistic that the new operating structure and investment in sales will lead
to improved performance.
Switzerland performed well driven by a strong performance in Managed Services
as volumes continue to increase for our key contracts, outweighing a softer
performance in Technology Sourcing. Following the recent integration with our
German operations, we are focused on acquiring target customers headquartered
in Switzerland and deepening relationships with vendor partners.
The combined committed product order backlog at 30 June 2025 was £154.7m, an
11.7% increase in constant currency since 30 June 2024 (£138.4m).
North America
Results H1 2025 H1 2024 Change Change in constant currency
£m £m
Technology Sourcing gross invoiced income 2,450.3 1,579.6 55.1% 60.0%
Services revenue 82.8 74.2 11.6% 14.5%
Total gross invoiced income 2,533.1 1,653.8 53.2% 57.9%
Technology Sourcing revenue 2,002.8 1,157.5 73.0% 78.2%
Services revenue 82.8 74.2 11.6% 14.5%
Professional Services revenue 66.4 61.2 8.5% 11.4%
Managed Services revenue 16.4 13.0 26.2% 29.1%
Total revenue 2,085.6 1,231.7 69.3% 74.3%
Gross profit 156.8 127.8 22.7% 26.6%
Adjusted administrative expenses (107.7) (101.7) 5.9% 8.8%
Adjusted operating profit 49.1 26.1 88.1% 97.2%
North America delivered a record first half with an excellent performance
across all areas. Gross invoiced income increased by 57.9% in constant
currency driven by outstanding growth in Technology Sourcing. Gross profit
increased by 26.6% in constant currency, with gross margin on a revenue basis
decreasing by 286 basis points, reflecting a higher proportion of hyperscale
and AI volume during the period. Administrative expenses increased by 8.8% in
constant currency largely reflecting higher variable compensation, resulting
in adjusted operating profit increasing by 97.2% in constant currency.
Pleasingly our growth and market share gains were driven by a combination of
customer AI infrastructure investments as well as more traditional enterprise
and state government projects. We increased the number of major customers by
three to 54 since 30 June 2024. We continue to add targeted sales capacity
externally and invest in long-term success through our sales training program,
which has recently welcomed a third annual class. These investments help us
capitalise on the significant market opportunity we see for both the short and
long term. We remain on track to the complete the migration of our final
tranche of customers onto our Group-wide ERP system this year, which will
bring all historical acquisitions on board.
Technology Sourcing
Technology Sourcing gross invoiced income increased by 60.0% in constant
currency and gross margin decreased by 324 basis points, due to the increased
mix of hyperscale customer volume during the period. Alongside significant AI
infrastructure volume for hyperscale customers we also grew our volumes with
the majority of our top existing customers across a variety of sectors
including healthcare, financial services, retail, business services and state
government. In addition, our strategic new logo programme helped add
new customers.
Our ability to design, procure, integrate and deploy IT infrastructure at
scale and at speed means we are extremely well placed to meet the needs of
hyperscale and enterprise customers. We expect continued good demand for
Technology Sourcing in the second half against a tougher comparative. Selling
more to existing customers, acquiring new customers and developing sales
capacity remain a focus.
The committed product order backlog at 30 June 2025 was £1,356.8m, a 23.1%
increase in constant currency since 30 June 2024 (£1,101.9m). We are
encouraged that the backlog remains healthy, even after high levels of project
completions during the period, reflecting ongoing demand and strong sales
execution. We continue to invest in the business, including a new Integration
Center in Atlanta to support our growth.
Services
Services revenue increased by 14.5% in constant currency, reflecting an 11.4%
increase in Professional Services and a 29.1% increase in Managed Services.
Services gross margin increased by 601 basis points, reflecting increased
volumes across a variety of sectors. We continue to focus on leveraging
Group-wide tools, expertise and systems to deliver long-term Services growth.
Professional Services revenue grew strongly reflecting higher workloads in
retail, financial and technology sectors. Our backlog continues to benefit
from a very large data center project for a hyperscale customer where we are
helping to build the world's largest AI cluster.
Managed Services revenue grew strongly following new customer wins last year.
More recent wins during the period include a leading video gaming company on
the West Coast and a financial services company on the East Coast.
Chief Financial Officer's review
Results H1 2025 H1 2024 Change Change in constant currency
£m £m
Technology Sourcing gross invoiced income 4,856.5 3,740.1 29.8% 32.2%
Services revenue 808.8 796.5 1.5% 2.8%
Total gross invoiced income 5,665.3 4,536.6 24.9% 27.0%
Technology Sourcing revenue 3,180.0 2,307.3 37.8% 40.6%
Services revenue 808.8 796.5 1.5% 2.8%
Professional Services revenue 384.0 365.7 5.0% 6.5%
Managed Services revenue 424.8 430.8 -1.4% -0.4%
Total revenue 3,988.8 3,103.8 28.5% 30.8%
Gross profit 504.2 472.2 6.8% 8.6%
Adjusted administrative expenses (422.1) (391.1) 7.9% 9.5%
Adjusted operating profit 82.1 81.1 1.2% 4.2%
Net adjusted finance (costs) / income (0.6) 6.1 nm nm
Adjusted profit before tax 81.5 87.2 -6.5% -3.8%
Adjusted diluted earnings per share (p) 52.5 55.0 -4.5%
Gross profit 504.2 472.2 6.8% 8.6%
Administrative expenses (427.2) (396.3) 8.6%
(Costs) / gain related to acquisitions (3.2) 2.5
Operating profit 73.8 78.4 -5.9%
Net finance (costs) / income (0.6) 5.6 nm
Profit before tax 73.2 84.0 -12.9%
Diluted earnings per share (p) 46.5 52.9 -12.1%
Gross invoiced income and revenue
Total gross invoiced income increased by 24.9% and by 27.0% in constant
currency and total revenue increased by 28.5% and by 30.8% in constant
currency, largely driven by strong growth in Technology Sourcing in North
America.
Group Technology Sourcing gross invoiced income increased by 32.2% in constant
currency driven by an excellent performance in North America and against a
softer comparison. Group Services revenue increased by 2.8% in constant
currency.
Professional Services revenue grew by 6.5% in constant currency and accounted
for 47% of total Services revenue. The UK accounted for the majority of the
growth increasing by 29.0%, with North America also growing by 11.4%, while
Germany, our largest source of Professional Services revenue, declined by 0.6%
in constant currency due to lower public sector activity.
Managed Services revenue declined by 0.4% in constant currency and accounted
for 53% of total Services revenue. The 7.8% decline in the UK was broadly
offset by growth in Western Europe and North America.
Gross profit
Gross profit increased by 6.8% and by 8.6% in constant currency in the period
following the increase in gross invoiced income and revenue. Group gross
margin on a revenue basis decreased by 257 basis points to 12.6%, reflecting a
317 basis points decrease in Technology Sourcing, mainly due to the growth in
high-volume, lower-margin Technology Sourcing business in North America, and
an 80 basis points increase in Services.
Operating profit
Operating profit fell by 5.9% to £73.8m (H1 2024: £78.4m). Adjusted
operating profit increased by 1.2% to £82.1m (H1 2024: £81.1m). This
included £2.4m of adverse foreign exchange movement on translating foreign
currency results into sterling. In constant currency, adjusted operating
profit increased by 4.2%. This was driven by the increase in gross profit
noted above, combined with an 7.9% increase in administrative expenses, a 9.5%
increase in constant currency, reflecting higher commission payments, rises in
employee-related costs and increased Group-wide investment. During the period,
we increased our spend on strategic corporate initiatives by 24.4% to £21.9m
(H1 2024: £17.6m), as detailed below.
By geography, adjusted operating profit more than doubled in North America and
increased in the UK, while Germany and Western Europe declined, largely in
line with lower public sector activity.
Central corporate costs
Central corporate costs primarily consist of the cost of centrally-funded
investments that benefit the whole Group, Board and related public company
costs and Group Executive members not aligned to a specific geographic trading
entity. See note 5 to the summary financial information within this
announcement.
Total central corporate costs have increased by 15.1% to £29.7m (H1 2024:
£25.8m).
Within this:
· Board expenses, related public company costs and costs associated
with Group Executive members not aligned to a specific geographic trading
entity, increased to £7.1m (H1 2024: £6.6m);
· Share-based payment charges associated with Group Executive members
as identified above, including the Group Executive Directors, decreased from
£1.6m in H1 2024 to £0.7m in H1 2025; and
· Group-wide investments as we continue to upgrade our systems,
toolsets and cyber resilience. During the period this spend was £21.9m, up
24.4% over H1 2024 (£17.6m).
Net finance cost
Net finance cost in the period amounted to £0.6m (H1 2024: £5.6m income)
which included £4.4m of interest charged on lease liabilities recognised
under IFRS 16 (H1 2024: £2.6m).
Exceptional interest cost relating to the unwinding of the discount on the
contingent consideration in H1 2024 was £0.5m (see exceptional and other
adjusting items below).
On an adjusted basis, which excludes the exceptional interest cost, net
finance cost was £0.6m (H1 2024: £6.1m income).
Profit before tax
The Group's profit before tax for the period decreased by 12.9% to £73.2m (H1
2024: £84.0m). Adjusted profit before tax decreased by 6.5% to £81.5m (H1
2024: £87.2m) and declined by 3.8% in constant currency.
The difference between profit before tax and adjusted profit before tax
relates to the Group's net costs of £8.3m (H1 2024: £3.2m) from exceptional
and other adjusting items, associated with acquisition-related items and the
amortisation of acquired intangibles as a result of our North American
acquisitions. Further information on these items can be found below.
Taxation
The tax charge was £22.7m (H1 2024: £25.5m) on profit before tax of £73.2m
(H1 2024: £84.0m). This represented a tax rate of 31.0% (H1 2024: 30.4%).
The Group recorded a tax credit of £1.3m in H1 2025 related to the
amortisation of acquired intangibles (H1 2024: £0.8m). As we recognise the
associated amortisation charge outside of our adjusted profitability (see
exceptional and other adjusting items below), we also report the tax benefit
on the amortisation outside of our adjusted tax charge. A further tax credit
of £0.7m related to the unrealised acquisition expenses noted below has been
recognised in the period (H1 2024: nil).
The adjusted tax charge for the period was £24.7m (H1 2024: £26.3m) on an
adjusted profit before tax for the period of £81.5m (H1 2024: £87.2m). The
effective tax rate (ETR) was therefore 30.3% (H1 2024: 30.2%), on an adjusted
basis.
Overall, the adjusted ETR continues to trend upwards due to an increasing
reweighting of the geographic split of adjusted profit before tax away from
the United Kingdom to Germany and the United States, where tax rates are
higher.
The adjusted ETR is within the full-year range of 29.5% to 31.5% that we
indicated at the time of our 2024 Full Year results. We expect that the full
year ETR in 2025 will remain in this range, continuing to be subject to
increasing upwards pressure, due to the changing geographical mix of profits,
as noted above, and as governments across our primary markets come under
fiscal and political pressure to increase corporation tax rates.
The table below reconciles the tax charge to the adjusted tax charge for the
periods ended 30 June 2025, 30 June 2024 and the year ended 31 December 2024.
H1 2025 H1 2024 Year 2024
£m £m £m
Tax charge 22.7 25.5 72.7
Items to exclude from adjusted tax:
Tax credit on amortisation of acquired intangibles 1.3 0.8 1.6
Tax credit on exceptional items 0.7 - -
Adjusted tax charge 24.7 26.3 74.3
Effective tax rate 31.0% 30.4% 29.7%
Adjusted effective tax rate 30.3% 30.2% 29.3%
Exceptional and other adjusting items
The net loss from exceptional and other adjusting items in the period was
£6.3m (H1 2024: £2.4m). Excluding the £2.0m credit from the tax items noted
above (H1 2024: £0.8m), the profit before tax impact was a net loss of £8.3m
(H1 2024: net loss of £3.2m).
During H1 2025, costs of £3.2m were recognised associated with an unrealised
acquisition pursued by the Group, that ultimately did not proceed. These
include legal fees, advisory fees, and other related costs which have been
expensed in the Consolidated Income Statement. The costs are non-operational
in nature, not expected to regularly recur and have therefore been classified
as an exceptional item, which is consistent with our prior-year treatment of
similar costs.
In 2024, the Group completed the final payments to former owners related to
the contingent consideration for the purchase of BITS. This led to a gain of
£2.2m in 2024 (H1 2024: £2.5m) relating to a release of contingent
consideration, net of £0.4m (H1 2024: nil) of costs incurred as per the share
purchase agreement. As these items were related to the acquisition, were of a
non-operational and one-off nature, the gain was classified as an exceptional
item. A further £0.5m relating to the unwinding of the discount on the
contingent consideration has been removed from the adjusted net finance
expense for H1 2024 and classified as exceptional interest costs.
In calculating our adjusted results, we continue to exclude the amortisation
of acquired intangible assets as an 'other adjusting item'. This charge
distorts the understanding of our Group and Segmental operating results, as it
is non-cash, does not relate to operational performance, and is significantly
affected by the timing and size of our acquisitions.
The amortisation of acquired intangible assets was £5.1m (H1 2024: £5.2m),
primarily relating to the amortisation of the intangibles acquired as part of
previous North American acquisitions.
Reconciliation to adjusted measures for the period ended 30 June 2025
Adjustments
Reported Principal Amortisation Exceptionals Adjusted
Interim element on of acquired and others Interim
results agency intangibles £m results
£m contracts £m £m
£m
Revenue 3,988.8 1,676.5 - - 5,665.3
Cost of sales (3,484.6) (1,676.5) - - (5,161.1)
Gross profit 504.2 - - - 504.2
Administrative expenses (427.2) - 5.1 - (422.1)
Costs related to acquisitions (3.2) - - 3.2 -
Operating profit 73.8 - 5.1 3.2 82.1
Finance income 6.4 - - - 6.4
Finance costs (7.0) - - - (7.0)
Profit before tax 73.2 - 5.1 3.2 81.5
Income tax expense (22.7) - (1.3) (0.7) (24.7)
Profit for the period 50.5 - 3.8 2.5 56.8
Reconciliation to adjusted measures for the period ended 30 June 2024
Adjustments
Reported Principal Amortisation Exceptionals Adjusted
Interim element on of acquired and others Interim
results agency intangibles £m results
£m contracts £m £m
£m
Revenue 3,103.8 1,432.8 - - 4,536.6
Cost of sales (2,631.6) (1,432.8) - - (4,064.4)
Gross profit 472.2 - - - 472.2
Administrative expenses (396.3) - 5.2 - (391.1)
Gain related to acquisitions 2.5 - - (2.5) -
Operating profit 78.4 - 5.2 (2.5) 81.1
Finance income 9.9 - - - 9.9
Finance costs (4.3) - - 0.5 (3.8)
Profit before tax 84.0 - 5.2 (2.0) 87.2
Income tax expense (25.5) - (0.8) - (26.3)
Profit for the period 58.5 - 4.4 (2.0) 60.9
Profit for the period
The profit for the period decreased by 13.7% to £50.5m (H1 2024: £58.5m).
The adjusted profit for the period decreased by 6.7% to £56.8m (H1 2024:
£60.9m) and by 3.7% in constant currency.
Earnings per share
Diluted EPS decreased by 12.1% to 46.5p per share (H1 2024: 52.9p per share).
Adjusted diluted EPS decreased by 4.5% to 52.5p per share (H1 2024: 55.0p per
share). Adjusted EPS in H1 2025 was adversely impacted by 3.0p due to the
movement in amounts attributable to non-controlling interests versus H1 2024,
resulting from a US subsidiary that has a non-controlling interest, moving
from a loss in H1 2024 to a profit in H1 2025.
H1 2025 H1 2024 Year 2024
Basic weighted average number of shares 105.1 112.9 110.6
(excluding own shares held) (m)
Effect of dilution:
Share options 0.7 1.3 1.1
Diluted weighted average number of shares 105.8 114.2 111.7
Profit for the period attributable to 49.2 60.3 170.8
equity holders of the Parent (£m)
Basic earnings per share (p) 46.8 53.5 154.4
Diluted earnings per share (p) 46.5 52.9 152.9
Adjusted profit for the period attributable to 55.5 62.8 178.6
equity holders of the Parent (£m)
Adjusted basic earnings per share (p) 52.8 55.6 161.5
Adjusted diluted earnings per share (p) 52.5 55.0 159.9
Dividend
The Board recognises the importance of dividends to shareholders and the Group
has a long track record of paying ordinary dividends and other special cash
returns. Since flotation the Group has distributed nearly £1.3bn through a
combination of dividends and share buybacks.
Dividends are paid from the standalone balance sheet of the Parent Company
and, as at 30 June 2025, the distributable reserves were £324.5m (30 June
2024: £466.6m, 31 December 2024: £319.8m).
The Board has consistently applied the Company's dividend policy, which states
that the interim dividend will be approximately one third of the previous
year's total dividend and that the total dividend paid will result in a
dividend cover of two to 2.5 times based on adjusted diluted EPS.
The Board is therefore pleased to announce a 1.3% increase in the interim
dividend to 23.6p per share (H1 2024: 23.3p per share). The interim dividend
will be paid on Friday 24 October 2025. The dividend record date is set as
Friday 26 September 2025 and the shares will be marked ex-dividend on Thursday
25 September 2025.
Cash flow
The Group recorded a net cash outflow from operating activities during the
period of £165.8m (H1 2024: £1.4m inflow).
Typically, the Group sees modest to neutral operating cash inflows in the
first half of the year with substantial net operating cash inflows in the
second half of the year. However, the 31 December 2024 adjusted net funds
position benefited from strong collections and approximately £100m more of
early customer payments than in the prior year. As working capital positions
relating to these early customer payments have unwound in H1 2025, we have
seen an expected outflow from the 31 December 2024 position. Further, working
capital has been impacted by seasonal trends in accounts receivable and
accounts payable that have been exacerbated by the increase in business
volumes, the geographic mix of revenues and the timing of that revenue within
the half.
During the period, net operating cash outflows from working capital, including
inventories, trade and other receivables, and trade and other payables, were
£251.2m (H1 2024: £89.7m).
The Group had £316.8m of inventory as at 30 June 2025, an increase of 3.1% on
the balance as at 31 December 2024 of £307.2m. This increase is due primarily
to growth in business volumes and, in particular, to large projects in North
America and the timing of the associated deal execution. We expect that the
stabilised levels of inventory will continue to be well-managed, with highs
and lows remaining within historical operational norms during 2025.
After interest, tax and gross capital expenditure cashflows, our free cash
outflow was £200.6m in the period (H1 2024: £28.8m).
Capital expenditure in the period was £15.9m (H1 2024: £14.7m) primarily
representing investments in IT equipment and software to enable us to deliver
improved service to our customers.
The Group's Employee Benefit Trust (EBT) made no market purchases of the
Company's ordinary shares during the period (H1 2024: £10.2m) to satisfy
maturing PSP awards and Sharesave schemes and to reprovision the EBT in
advance of future maturities. During the period, the Company received savings
from employees of £3.0m to purchase options within the Sharesave schemes (H1
2024: £2.7m).
During 2024, the Group made the final payments of £18.7m related to the
previous BITS acquisition, in accordance with the share purchase agreement.
H1 2025 H1 2024 Year 2024
£m £m £m
Adjusted operating profit 82.1 81.1 246.7
Adjusting items (8.3) (2.7) (8.8)
Operating profit 73.8 78.4 237.9
Other non-cash items and other adjustments 28.3 24.3 46.0
Change in working capital (251.2) (89.7) 154.6
Change in pensions and provisions (0.1) 0.6 (1.3)
Depreciation of right-of-use assets 21.5 20.3 41.0
Cash generated from operations (127.7) 33.9 478.2
Interest and payments related to lease liabilities (24.6) (23.5) (47.4)
Adjusted operating cash flow (152.3) 10.4 430.8
Net interest received 2.5 8.0 10.4
Tax paid (34.9) (32.5) (61.1)
Gross capital expenditure (15.9) (14.7) (31.5)
Free cash flow (200.6) (28.8) 348.6
Dividends paid - - (78.9)
Share buyback including expenses - - (200.2)
Purchase of own shares net of proceeds 3.0 (7.5) (17.1)
Acquisition related payments (3.2) (14.7) (18.7)
Disposal of assets 0.1 - 0.3
Net cash flow (200.7) (51.0) 34.0
Net debt drawdown / (repayment) 17.0 (2.5) (4.5)
Movements in cash and cash equivalents (183.7) (53.5) 29.5
Effect of exchange rates on cash and cash equivalents (3.9) (6.3) (11.1)
Cash and cash equivalents at the beginning of the period 489.6 471.2 471.2
Cash and cash equivalents at the end of the period 302.0 411.4 489.6
Opening net funds 352.7 343.6 343.6
Movements in cash and cash equivalents including impact of exchange rates (187.6) (59.8) 18.4
Movements in borrowings (16.6) 2.7 4.8
Movements in lease liabilities (33.1) 1.3 (14.1)
Closing net funds 115.4 287.8 352.7
Opening adjusted net funds 482.2 459.0 459.0
Movements in cash and cash equivalents including impact of exchange rates (187.6) (59.8) 18.4
Movements in borrowings (16.6) 2.7 4.8
Closing adjusted net funds 278.0 401.9 482.2
The Group increased loans during the period by a net £16.6m (H1 2024: £2.7m
reduction) due to a new customer financing facility in North America made to
an existing customer that replaced a previous facility. We made regular
repayments towards the loan related to the construction of the German
headquarters in Kerpen.
The Group continued to manage its cash and working capital positions
appropriately, using standard mechanisms, to ensure that cash levels remained
within expectations throughout the period. From time to time, some customers
request credit terms longer than our typical period of 30-60 days. In certain
instances, we will arrange for the sale of the receivables on a true sale
basis to a finance institution. We would typically receive funds on 45-day
terms from the finance institution, which will then recover payment from the
customer on terms agreed with them. The cost of such an arrangement is borne
by the customer, either directly or indirectly, enabling us to receive the
full amount of payment in line with our standard terms.
The benefit to the cash and cash equivalents position of such arrangements as
at 30 June 2025 was £48.3m (30 June 2024: £26.7m, 31 December 2024:
£44.6m).
During H1 2025, the Group engaged in a limited invoice financing programme of
trade receivables across the Group. The arrangements are on a non-recourse
basis and are intended to manage working capital demands of specific customer
projects or engagements. As at 30 June 2025, the amount was £50.9m (30 June
2024: nil, 31 December 2024: £2.5m).
Cash and cash equivalents and net funds
Cash and cash equivalents as at 30 June 2025 were £302.0m compared to
£411.4m as at 30 June 2024. Cash and cash equivalents have decreased by
£187.6m from £489.6m as at 31 December 2024 (H1 2024: decrease of £59.8m
from £471.2m as at 31 December 2023).
Net funds as at 30 June 2025 were £115.4m, compared to net funds of £287.8m
as at 30 June 2024 and net funds of £352.7m as at 31 December 2024. The Group
excluded £162.6m, as at 30 June 2025 (30 June 2024: £114.1m and 31 December
2024: £129.5m), of lease liabilities from its non-GAAP adjusted net funds
measure, to allow an alternative view of the Group's overall liquidity
position excluding the effect of the lease liabilities required to be
capitalised under IFRS 16.
Adjusted net funds as at 30 June 2025 were £278.0m, compared to adjusted net
funds of £401.9m as at 30 June 2024 and £482.2m as at 31 December 2024.
Net funds as at 30 June 2025, 30 June 2024 and 31 December 2024 were as
follows:
H1 2025 H1 2024 Year 2024
£m £m £m
Cash and short-term deposits 302.0 411.4 489.6
Cash and cash equivalents 302.0 411.4 489.6
Borrowings - Customer-specific facility (19.6) (3.1) (2.1)
Borrowings - Kerpen building facility (4.4) (6.4) (5.3)
Total bank loans (24.0) (9.5) (7.4)
Adjusted net funds (excluding lease liabilities) 278.0 401.9 482.2
Lease liabilities (162.6) (114.1) (129.5)
Net funds 115.4 287.8 352.7
For a full reconciliation of net funds and adjusted net funds, see note 12 to
the summary financial information within this announcement.
Currency
The Group reports its results in pounds sterling. The strength in the value of
sterling against most currencies during the first half of 2025, in particular
the euro, has begun to impact our revenues and profitability, as a result of
the conversion of our increasingly substantial foreign earnings.
Restating the first half of 2024 at 2025 exchange rates would decrease H1 2024
revenue by approximately £54.9m, whilst H1 2024 adjusted profit before tax
would reduce by £2.5m. If the 30 June 2025 spot rates were to continue
through the remainder of 2025, the impact of restating 2024 at 2025 exchange
rates would be to decrease 2024 revenue by approximately £89.8m and 2024
adjusted profit before tax by approximately £1.2m. Restating H1 2025 results
at the exchange rates seen in H1 2024 would result in an increase in H1 2025
revenue of £72.6m and an increase in adjusted profit before tax of £2.4m.
Principal risks and uncertainties
The Group's activities expose it to a variety of economic, financial,
operational and regulatory risks. Our principal risks continue to be
concentrated in the availability and resilience of systems, our people, our
cost base, technology change, and in the design, entry into service and
running of large Services contracts. The principal risks and uncertainties
facing the Group are set out on pages 45 to 52 of the 2024 Annual Report and
Accounts, a copy of which is available on the Group's website at
https://investors.computacenter.com (https://investors.computacenter.com) .
The Group's risk management approach and the principal risks, potential
impacts and primary mitigating activities are unchanged from those set out in
the 2024 Annual Report and Accounts. Our risk management approach operated
effectively in the six months to 30 June 2025, with systems and controls
functioning as designed. Whilst we have not identified any new principal risks
during the period, we acknowledge the heightened level of overall risk across
several risk categories, due to the current macroeconomic uncertainty and its
impact on our operating environment in general.
This Strategic Report was approved by the Board on 8 September 2025 and was
signed on its behalf by:
MJ Norris K Mortimer
Chief Executive Officer
Chief Financial Officer
Directors' Responsibilities
Responsibility statement of the directors in respect of the half-yearly
financial report.
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted for use in the
UK;
· the interim management report includes a fair review of the
information required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
MJ Norris K Mortimer
Chief Executive Officer
Chief Financial Officer
Independent review report to Computacenter plc
Conclusion
We have been engaged by Computacenter plc (the 'company') to review the
condensed set of financial statements in the half-yearly financial report for
the six months ended 30 June 2025 which comprises the Consolidated Income
Statement, Consolidated Statement of Comprehensive Income, Consolidated
Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Cash
Flow Statement, and related explanatory notes. We have read the other
information contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with UK-adopted International Accounting
Standard (IAS) 34, 'Interim Financial Reporting' and Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by Financial Reporting Council
for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and consequently does
not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
As disclosed in Note 2, the annual financial statements of the group are
prepared in accordance with UK-adopted international accounting standards. The
condensed set of financial statements included in this half yearly financial
report has been prepared in accordance with UK- adopted International
Accounting Standard 34, 'Interim Financial Reporting'.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis of conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE (UK), however future events or conditions may cause the entity to
cease to continue as a going concern.
In our evaluation of the directors' conclusions, we considered the inherent
risks associated with the group's business model including effects arising
from macro-economic uncertainties such as geopolitical tensions, inflationary
pressures, supply chain disruptions, climate-related events, and evolving
regulatory and trade environments, we assessed and challenged the
reasonableness of estimates made by the directors and the related disclosures
and analysed how those risks might affect the company's financial resources or
ability to continue operations over the going concern period.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with UK-adopted International
Accounting Standard (IAS) 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report.
Our conclusion, including our Conclusions relating to going concern, are based
on procedures that are less extensive than audit procedures, as described in
the Basis for conclusion paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our review work has been undertaken so that we might state to the company
those matters we are required to state to it in an independent review report
and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our
review work, for this report, or for the conclusion we have formed.
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
8 September 2025
Consolidated Income Statement
For the six months ended 30 June 2025
Note H1 2025 H1 2024 Year 2024
£m £m £m
Revenue 5 3,988.8 3,103.8 6,964.8
Cost of sales 5 (3,484.6) (2,631.6) (5,929.8)
Gross profit 5 504.2 472.2 1,035.0
Administrative expenses (427.2) (396.3) (798.9)
(Costs) / gain related to acquisitions 8 (3.2) 2.5 1.8
Operating profit 73.8 78.4 237.9
Finance income 6.4 9.9 14.5
Finance costs (7.0) (4.3) (7.8)
Profit before tax 73.2 84.0 244.6
Income tax expense 9 (22.7) (25.5) (72.7)
Profit for the period 50.5 58.5 171.9
Attributable to:
Equity holders of the Parent 49.2 60.3 170.8
Non-controlling interests 1.3 (1.8) 1.1
Profit for the period 50.5 58.5 171.9
Earnings per share:
- basic 10 46.8p 53.5p 154.4p
- diluted 10 46.5p 52.9p 152.9p
All of the activities of the Group relate to continuing operations.
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2025
H1 2025 H1 2024 Year 2024
£m £m £m
Profit for the period 50.5 58.5 171.9
Items that may be reclassified to the Consolidated Income Statement:
(Loss) / gain arising on cash flow hedge (7.3) 1.9 (0.2)
Income tax effect 2.0 (0.6) (0.1)
(5.3) 1.3 (0.3)
Exchange differences on translation of foreign operations (18.2) (10.8) (17.2)
(23.5) (9.5) (17.5)
Items not to be reclassified to the Consolidated Income Statement:
Remeasurement of retirement benefit obligation - - 4.5
Other comprehensive expense for the period, net of tax (23.5) (9.5) (13.0)
Total comprehensive income for the period 27.0 49.0 158.9
Attributable to:
Equity holders of the Parent 26.6 50.8 157.8
Non-controlling interests 0.4 (1.8) 1.1
Total comprehensive income for the period 27.0 49.0 158.9
Consolidated Balance Sheet
As at 30 June 2025
Note H1 2025 H1 2024 Year 2024
£m £m £m
Non-current assets
Property, plant and equipment 89.2 92.4 90.7
Right-of-use assets 151.1 103.8 119.0
Intangible assets 296.5 319.7 317.5
Investment in associate 0.1 - 0.1
Deferred income tax assets 5.6 11.3 6.3
Trade and other receivables 38.0 20.1 32.7
Prepayments 6.6 7.0 7.7
587.1 554.3 574.0
Current assets
Inventories 316.8 271.2 307.2
Trade and other receivables 1,481.2 1,387.5 1,656.8
Income tax receivable 23.4 23.3 20.4
Prepayments 162.0 162.6 172.3
Accrued income 175.5 166.9 137.5
Derivative financial instruments 11 3.0 3.3 8.2
Cash and short-term deposits 12 302.0 411.4 489.6
2,463.9 2,426.2 2,792.0
Total assets 3,051.0 2,980.5 3,366.0
Current liabilities
Trade and other payables 1,686.0 1,571.2 2,054.3
Deferred income 263.1 224.2 285.7
Borrowings 12 4.7 4.6 4.1
Lease liabilities 40.4 35.6 36.3
Derivative financial instruments 11 11.2 1.7 3.4
Income tax payable 7.8 15.3 21.0
Provisions 4.8 1.6 4.9
2,018.0 1,854.2 2,409.7
Non-current liabilities
Borrowings 12 19.3 4.9 3.3
Lease liabilities 122.2 78.5 93.2
Retirement benefit obligation 23.0 26.3 22.3
Provisions 8.0 7.1 7.8
Deferred income tax liabilities 9.1 12.7 10.7
181.6 129.5 137.3
Total liabilities 2,199.6 1,983.7 2,547.0
Net assets 851.4 996.8 819.0
Capital and reserves
Issued share capital 8.9 9.3 8.9
Share premium 4.0 4.0 4.0
Capital redemption reserve 0.4 - 0.4
Own shares held (235.3) (138.2) (246.5)
Translation and hedging reserve (12.9) 17.7 9.7
Retained earnings 1,077.1 1,098.1 1,033.7
Shareholders' equity 842.2 990.9 810.2
Non-controlling interests 9.2 5.9 8.8
Total equity 851.4 996.8 819.0
Approved by the Board on 8 September 2025.
MJ Norris K Mortimer
Chief Executive Officer
Chief Financial Officer
Consolidated Statement of Changes in Equity
For the six months ended 30 June 2025
Attributable to equity holders of the Parent
Issued share capital Share Capital Own Transla-tion and hedging Retained earnings Share-holders' equity Non-control- Total
£m premium Redemp-tion shares reserves £m £m ling interests equity
£m reserve held £m £m £m
£m £m
At 1 January 2024 9.3 4.0 - (140.4) 27.2 1,041.6 941.7 7.7 949.4
Profit for the period - - - - - 60.3 60.3 (1.8) 58.5
Other comprehensive (expense) - - - - (9.5) - (9.5) - (9.5)
Total comprehensive (expense) / income - - - - (9.5) 60.3 50.8 (1.8) 49.0
Transactions with owners:
- Cost of share-based payments - - - - - 4.4 4.4 - 4.4
- Tax on share-based payments - - - - - 1.5 1.5 - 1.5
- Exercise of options - - - 12.4 - (9.7) 2.7 - 2.7
- Purchase of own shares - - - (10.2) - - (10.2) - (10.2)
Total - - - 2.2 - (3.8) (1.6) - (1.6)
At 30 June 2024 9.3 4.0 - (138.2) 17.7 1,098.1 990.9 5.9 996.8
Profit for the period - - - - - 110.5 110.5 2.9 113.4
Other comprehensive (expense) / income - - - - (8.0) 4.5 (3.5) - (3.5)
Total comprehensive (expense) / income - - - - (8.0) 115.0 107.0 2.9 109.9
Reclassification - - - 8.5 - (8.5) - - -
Transactions with owners:
- Cost of share-based payments - - - - - 2.7 2.7 - 2.7
- Tax on share-based payments - - - - - (1.7) (1.7) - (1.7)
- Share buyback programme - - - (198.7) - - (198.7) - (198.7)
- Expenses relating to share buyback programme - - - - - (1.5) (1.5) - (1.5)
- Cancellation of shares (0.4) - 0.4 84.2 - (84.2) - - -
- Exercise of options - - - 10.6 - (7.3) 3.3 - 3.3
- Purchase of own shares - - - (12.9) - - (12.9) - (12.9)
- Equity dividends - - - - - (78.9) (78.9) - (78.9)
Total (0.4) - 0.4 (116.8) - (170.9) (287.7) - (287.7)
At 31 December 2024 8.9 4.0 0.4 (246.5) 9.7 1,033.7 810.2 8.8 819.0
Profit for the period - - - - - 49.2 49.2 1.3 50.5
Other comprehensive (expense) - - - - (22.6) - (22.6) (0.9) (23.5)
Total comprehensive (expense) / income - - - - (22.6) 49.2 26.6 0.4 27.0
Transactions with owners:
- Cost of share-based payments - - - - - 3.5 3.5 - 3.5
- Tax on share-based payments - - - - - (1.1) (1.1) - (1.1)
- Exercise of options - - - 11.2 - (8.2) 3.0 - 3.0
Total - - - 11.2 - (5.8) 5.4 - 5.4
At 30 June 2025 8.9 4.0 0.4 (235.3) (12.9) 1,077.1 842.2 9.2 851.4
Consolidated Cash Flow Statement
For the six months ended 30 June 2025
Note H1 2025 H1 2024 Year 2024
£m £m £m
Operating activities
Profit before taxation 73.2 84.0 244.6
Net finance cost / (income) 0.6 (5.6) (6.7)
Depreciation of property, plant and equipment 11.0 10.4 21.5
Depreciation of right-of-use assets 21.5 20.3 41.0
Amortisation of intangible assets 10.6 9.3 18.8
Costs / (gain) related to acquisitions* 8 3.2 - (1.8)
Share-based payments 3.5 4.4 7.1
Loss on disposal of property, plant and equipment 0.1 0.2 0.3
Movements in inventories (23.6) (57.1) (92.8)
Movements in trade and other receivables 120.7 56.1 (225.7)
(including contract assets)
Movements in trade and other payables (348.3) (88.7) 473.1
(including contract liabilities)*
Movements in provisions and retirement benefit obligation (0.1) 0.6 (1.3)
Other adjustments (0.1) - 0.1
Cash (used in) / generated from operations (127.7) 33.9 478.2
Acquisition-related costs 8 (3.2) - -
Income taxes paid (34.9) (32.5) (61.1)
Net cash flow from operating activities (165.8) 1.4 417.1
Investing activities
Interest received 5.1 9.3 11.7
Contingent consideration - (14.7) (18.7)
Purchases of property, plant and equipment (9.0) (8.3) (19.0)
Purchases of intangible assets (6.9) (6.4) (12.5)
Proceeds from disposal of property, plant and equipment 0.1 - 0.3
Net cash flow from investing activities (10.7) (20.1) (38.2)
Financing activities
Interest paid (2.6) (1.3) (1.3)
Interest paid on lease liabilities (4.4) (2.6) (5.8)
Dividends paid to equity shareholders of the Parent - - (78.9)
Share buyback programme - - (198.7)
Expenses relating to share buyback programme - - (1.5)
Proceeds from exercise of share options 3.0 2.7 6.0
Purchase of own shares - (10.2) (23.1)
Repayment of borrowings (4.8) (2.5) (44.5)
Payment of capital element of lease liabilities (20.2) (20.9) (41.6)
Drawdown of borrowings 21.8 - 40.0
Net cash flow from financing activities (7.2) (34.8) (349.4)
(Decrease) / increase in cash and cash equivalents (183.7) (53.5) 29.5
Effect of exchange rates on cash and cash equivalents (3.9) (6.3) (11.1)
Cash and cash equivalents at the beginning of the period 489.6 471.2 471.2
Cash and cash equivalents at the period end 12 302.0 411.4 489.6
* The gain related to acquisitions was £2.5m in H1 2024 and was reported
within 'Movements in trade and other payables (including contract
liabilities)'. The prior period comparative has not been reclassified as it is
immaterial and not significant to the understanding of the Consolidated Cash
Flow Statement.
Notes to the Interim Condensed Consolidated Financial Statements
For the six months ended 30 June 2025
1 General information
The Interim Condensed Consolidated Financial Statements (Financial Statements)
of Computacenter plc (Parent Company or the Company) and its subsidiaries
(together the "Group") for the six months ended 30 June 2025 were authorised
for issue in accordance with a resolution of the Directors on 8 September
2025. The Consolidated Balance Sheet was signed on behalf of the Board by MJ
Norris and K Mortimer.
Computacenter plc is a limited company incorporated and domiciled in England
whose shares are publicly traded. Its registered address is Hatfield Business
Park, Hatfield Avenue, Hatfield, AL10 9TW.
2 Basis of preparation
The Financial Statements for the six months ended 30 June 2025 contained in
this announcement have been prepared in accordance with International
Accounting Standard 34 'Interim Financial Reporting', as adopted by the United
Kingdom. They do not include all the information and disclosures required in
the annual financial statements and should be read in conjunction with the
Group's 2024 Annual Report and Accounts which have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted by the
United Kingdom. The Financial Statements contained in this announcement are
unaudited.
The Financial Statements are prepared on the historical cost basis, other than
derivative financial instruments and contingent consideration, which are
stated at fair value.
The Financial Statements are presented in pound sterling (£) and all values
are rounded to the nearest hundred thousand, except when otherwise indicated.
In determining whether it is appropriate to prepare the Financial Statements
on a going concern basis, the Group prepares a three-year Plan (the Plan)
annually by aggregating top-down expectations of business performance across
the Group in the second and third year of the Plan with a detailed 12-month
bottom-up budget for the first year, which was approved by the Board. The
forecast cash flows from the Plan are aggregated with the current position, to
provide a total three-year cash position against which the impact of potential
risks and uncertainties can be assessed. In the absence of significant
external debt, the analysis also considers access to available committed and
uncommitted finance facilities, the ability to raise new finance in most
foreseeable market conditions and the ability to restrict dividend payments.
The Directors have identified a period of not less than 12 months from the
date of signing the Financial Statements, through to 8 September 2026, as the
appropriate period for the going concern assessment and have based their
assessment on the relevant forecasts from the Plan for that period. No events
or conditions beyond the assessment period that may cast significant doubt on
the Group's ability to continue as a going concern have been identified.
The potential impact of the principal risks and uncertainties, as set out on
pages 45 to 52 of the 2024 Annual Report and Accounts, is then applied to the
Plan. This assessment includes only those risks and uncertainties that,
individually or in plausible combination, would threaten the Group's business
model, future performance, solvency or liquidity over the assessment period
and which are considered to be severe but reasonable scenarios. It also takes
into account an assessment of how the risks are managed and the effectiveness
of any mitigating actions.
For the current period, the combined effect of the potential occurrence of
several of the most impactful risks and uncertainties in the downside
sensitivity scenario relates to a modelled, but not predicted, continuing
market downturn scenario, with slower-than-predicted recovery estimates,
beginning in the second half of 2025. This scenario simulates a continued
impact for some of our customers from a reduction in customer demand due to
the current economic crisis, and ongoing impact on the Group's revenues from
this instability in the global macroeconomic environment.
The supporting models of the Plan are subject to rigorous downside sensitivity
analysis that involves flexing a number of the main assumptions underlying the
forecasts within the Plan. The modelling resulted in a significant downturn in
Group revenues and margins, leading to a substantial loss-making position over
the assessment period. This analysis results in a large risk impact adjustment
to the cashflows over the assessment period, which is then compared to the
cash position generated by the Plan, throughout the assessment period, to
model whether the business will be able to continue in operation. Included
within this sensitivity scenario is the modelled lack of access to our
committed facility.
Under the sensitivity scenario, the business demonstrates modelled solvency
and liquidity over the assessment period.
Our cash and borrowing capacity provide sufficient funds to meet the
foreseeable needs of the Parent and Group. At 30 June 2025, the Group had cash
and short-term deposits of £302.0m and bank debt, primarily related to the
recently built headquarters in Germany and operations in North America, of
£24.0m. On 9 December 2022, the Group entered into an unsecured
multi-currency revolving loan facility of £200.0m. The facility had a term of
five years, which has been extended to seven years by exercising two one-year
extension options available on the first and second anniversary of the
facility.
The Group has a resilient balance sheet position, with net assets of £851.4m
as at 30 June 2025. The Group made a profit after tax of £50.5m for the
period ended 30 June 2025.
As the analysis continues to show a strong forecast cash position, even under
the severe economic conditions modelled in the sensitivity scenarios, the
Directors continue to consider that the Parent and Group are well placed to
manage business and financial risks in the current economic environment. Based
on this assessment, the Directors confirm that they have a reasonable
expectation that the Parent and Group will be able to continue in operation
and meet their liabilities as they fall due over the period of not less than
12 months from the date of signing the Financial Statements and therefore have
prepared the Financial Statements on a going concern basis.
3 Significant accounting policies
The accounting policies adopted are consistent with those of the previous
financial year as applied in the Group's 2024 Annual Report and Accounts,
except for the estimation of income tax (see note 9).
4 Adjusted measures
The Group uses a number of non-Generally Accepted Accounting Practice
(non-GAAP) financial measures in addition to those reported in accordance with
IFRS. The Directors believe that these non-GAAP measures, set out below,
assist in providing additional useful information on the underlying trends,
performance and position of the Group. The non-GAAP measures are also used to
enhance the comparability of information between reporting periods by
adjusting for non-recurring or uncontrollable factors which affect IFRS
measures, to aid the user in understanding the Group's performance.
Consequently, non-GAAP measures are used by the Directors and Management for
performance analysis, planning, reporting and incentive-setting purposes.
Adjusted measures have remained consistent with the previous financial year.
However, as with all non-GAAP alternative performance measures, these adjusted
measures present some natural limitations in their usage to understand the
Group's performance. These limitations include the lack of comparability with
non-GAAP and GAAP measures used by other companies and the fact that the
results may, from time-to-time, contain the benefit of acquisitions made but
exclude the significant costs associated with that acquisition or the
amortisation of acquired intangibles. It is therefore not a complete record of
the Group's financial performance as compared to its GAAP results. The
exclusion of other adjusting items may result in adjusted earnings being
materially higher or lower than reported earnings. In particular, when
significant acquisition related charges are excluded, adjusted earnings will
be higher than reported GAAP-compliant earnings.
These non-GAAP measures comprise: gross invoiced income, adjusted
administrative expenses, adjusted operating profit or loss, adjusted profit or
loss before tax, adjusted tax, adjusted profit or loss for the period,
adjusted earnings per share, and adjusted diluted earnings per share.
The Appendix to this announcement sets out the description and basis of
calculation of the Alternative Performance Measures and the rationale for
their use.
A reconciliation to adjusted measures is provided in the Chief Financial
Officer's Review contained in this announcement, which details the impact of
exceptional and other adjusting items when comparing to the non-GAAP financial
measures, in addition to those reported in accordance with IFRS. Further
detail is also provided within note 5 below.
5 Segment information
The Segment information is reported to the Board and the Chief Executive
Officer. The Chief Executive Officer is the Group's Chief Operating Decision
Maker (CODM).
The Group has the same operating Segments and reporting Segments. The
Segmental reporting structure is the basis on which internal reports are
provided to the Chief Executive Officer, as the CODM, for assessing
performance and determining the allocation of resources within the Group, in
accordance with IFRS 8.25. Segmental performance is measured based on external
revenues, gross profit, adjusted operating profit and adjusted profit before
tax.
Central Corporate Costs continue to be disclosed as a separate column within
the Segmental information. These costs are borne within the Computacenter (UK)
Limited legal entity and have been removed for Segmental reporting and
performance analysis, but form part of the overall Group administrative
expenses.
Segmental performance for the periods ended 30 June 2025, 30 June 2024 and 31
December 2024 was as follows:
Six months ended UK Germany Western North Inter-national Central Total
Europe
30 June 2025 £m £m
America* £m Corporate £m
£m
£m Costs
£m
Revenue
Technology Sourcing revenue
Gross invoiced income 1,074.6 840.4 476.6 2,450.3 14.6 - 4,856.5
Adjustment to gross invoiced income for income recognised as agent (663.6) (331.1) (234.0) (447.5) (0.3) - (1,676.5)
Total Technology Sourcing revenue 411.0 509.3 242.6 2,002.8 14.3 - 3,180.0
Services revenue
Professional Services 91.6 197.5 28.3 66.4 0.2 - 384.0
Managed Services 137.4 171.9 87.4 16.4 11.7 - 424.8
Total Services revenue 229.0 369.4 115.7 82.8 11.9 - 808.8
Total revenue 640.0 878.7 358.3 2,085.6 26.2 - 3,988.8
Results
Cost of sales (518.1) (716.7) (313.1) (1,928.8) (7.9) - (3,484.6)
Gross profit 121.9 162.0 45.2 156.8 18.3 - 504.2
Adjusted administrative expenses (104.6) (113.9) (54.1) (107.7) (12.1) (29.7) (422.1)
Adjusted operating profit / (loss) 17.3 48.1 (8.9) 49.1 6.2 (29.7) 82.1
Adjusted net interest (3.5) 3.2 0.2 0.7 (1.2) - (0.6)
Adjusted profit / (loss) 13.8 51.3 (8.7) 49.8 5.0 (29.7) 81.5
before tax
Exceptional items:
- costs related to acquisitions (3.2)
Total exceptional items (3.2)
Amortisation of acquired intangibles (5.1)
Profit before tax 73.2
* Included within the North America Segment total revenue of £2,085.6m is
an amount of £2,042.3m of revenue for the US.
The reconciliation of adjusted operating profit to operating profit as
disclosed in the Consolidated Income Statement is as follows:
Six months ended Total
30 June 2025 £m
Adjusted operating profit 82.1
Amortisation of acquired intangibles (5.1)
Exceptional items (3.2)
Operating profit 73.8
Six months ended UK Germany Western North Inter-national Central Total
Europe
30 June 2024 £m £m
America* £m Corporate £m
£m
£m Costs
£m
Revenue
Technology Sourcing revenue
Gross invoiced income 864.6 812.9 480.1 1,579.6 2.9 - 3,740.1
Adjustment to gross invoiced income for income recognised as agent (542.5) (287.3) (180.9) (422.1) - - (1,432.8)
Total Technology Sourcing revenue 322.1 525.6 299.2 1,157.5 2.9 - 2,307.3
Services revenue
Professional Services 71.0 201.5 32.0 61.2 - - 365.7
Managed Services 149.1 174.9 82.1 13.0 11.7 - 430.8
Total Services revenue 220.1 376.4 114.1 74.2 11.7 - 796.5
Total revenue 542.2 902.0 413.3 1,231.7 14.6 - 3,103.8
Results
Cost of sales (434.4) (734.7) (361.6) (1,103.9) 3.0 - (2,631.6)
Gross profit 107.8 167.3 51.7 127.8 17.6 - 472.2
Adjusted administrative expenses (94.4) (107.8) (49.6) (101.7) (11.8) (25.8) (391.1)
Adjusted operating profit / (loss) 13.4 59.5 2.1 26.1 5.8 (25.8) 81.1
Adjusted net interest 2.6 2.6 - 1.1 (0.2) - 6.1
Adjusted profit / (loss) 16.0 62.1 2.1 27.2 5.6 (25.8) 87.2
before tax
Exceptional items:
- unwinding of discount relating to acquisition of a subsidiary (0.5)
- gain related to acquisitions 2.5
Total exceptional items 2.0
Amortisation of acquired intangibles (5.2)
Profit before tax 84.0
* Included within the North America Segment total revenue of £1,231.7m is
an amount of £1,200.6m of revenue for the US.
The reconciliation of adjusted operating profit to operating profit as
disclosed in the Consolidated Income Statement is as follows:
Six months ended Total
30 June 2024 £m
Adjusted operating profit 81.1
Amortisation of acquired intangibles (5.2)
Exceptional items 2.5
Operating profit 78.4
Year ended UK Germany Western North Inter-national Central Total
Europe
31 December 2024 £m £m
America* £m Corporate £m
£m
£m Costs
£m
Revenue
Technology Sourcing revenue
Gross invoiced income 1,758.6 1,909.4 971.7 3,632.8 5.6 - 8,278.1
Adjustment to gross invoiced income for income recognised as agent (1,053.3) (674.8) (381.0) (842.2) (0.4) - (2,951.7)
Total Technology Sourcing revenue 705.3 1,234.6 590.7 2,790.6 5.2 - 5,326.4
Services revenue
Professional Services 158.2 407.5 62.2 150.4 - - 778.3
Managed Services 294.6 344.6 166.4 30.4 24.1 - 860.1
Total Services revenue 452.8 752.1 228.6 180.8 24.1 - 1,638.4
Total revenue 1,158.1 1,986.7 819.3 2,971.4 29.3 - 6,964.8
Results
Cost of sales (927.3) (1,620.5) (700.8) (2,690.7) 9.5 - (5,929.8)
Gross profit 230.8 366.2 118.5 280.7 38.8 - 1,035.0
Adjusted administrative expenses (190.1) (209.3) (104.8) (208.4) (24.8) (50.9) (788.3)
Adjusted operating profit / (loss) 40.7 156.9 13.7 72.3 14.0 (50.9) 246.7
Adjusted net interest (0.7) 7.4 - 1.5 (0.9) - 7.3
Adjusted profit / (loss) 40.0 164.3 13.7 73.8 13.1 (50.9) 254.0
before tax
Exceptional items:
- unwinding of discount relating to acquisition of a subsidiary (0.6)
- gain related to acquisitions 1.8
Total exceptional items 1.2
Amortisation of acquired intangibles (10.6)
Profit before tax 244.6
* Included within the North America Segment total revenue of £2,971.4m is
an amount of £2,901.7m of revenue for the US.
The reconciliation of adjusted operating profit to operating profit as
disclosed in the Consolidated Income Statement is as follows:
Year ended Total
31 December 2024 £m
Adjusted operating profit 246.7
Amortisation of acquired intangibles (10.6)
Exceptional items 1.8
Operating profit 237.9
6 Seasonality of operations
Historically, revenues have been higher in the second half of the year than in
the first six months. This is principally driven by customer buying behaviour
in the markets in which we operate. Typically, this leads to a more pronounced
effect on operating profit.
During 2025 this trend has continued, and we expect customer buying to be more
weighted towards the second half of the year leading, once again, to a more
pronounced effect on operating profit.
7 Dividends paid and proposed
A final dividend for 2024 of 47.4 pence per ordinary share was paid on 4 July
2025. An interim dividend in respect of 2025 of 23.6 pence per ordinary share,
amounting to a total dividend of £25.1m, was declared by the Directors at
their meeting on 8 September 2025. The expected payment date of the dividend
declared is 24 October 2025. This announcement does not reflect this dividend
payable.
8 Exceptional items
H1 2025 H1 2024 Year 2024
£m £m £m
Operating profit
(Costs) / gain related to acquisitions (3.2) 2.5 1.8
Exceptional operating (loss) / profit (3.2) 2.5 1.8
Interest cost relating to acquisition of a subsidiary - (0.5) (0.6)
(Loss) / profit on exceptional items before tax (3.2) 2.0 1.2
Tax relating to exceptional items 0.7 - -
(Loss) / profit on exceptional items after tax (2.5) 2.0 1.2
Included within H1 2025 are the following exceptional items:
· £3.2m costs associated with an unrealised acquisition pursued by the
Group during the period. These costs include legal fees, advisory fees, and
other related costs which have been expensed in the Consolidated Income
Statement. The acquisition-related costs are not related to operational
activity within the Group, not expected to regularly recur, and have therefore
been classified as an exceptional item which is consistent with our prior-year
treatment of similar costs.
Included within the year to 31 December 2024 are the following exceptional
items:
· £2.2m (H1 2024: £2.5m) relating to a release of contingent
consideration in relation to the Business IT Source Holdings, Inc. (BITS)
acquisition, net of £0.4m (H1 2024: nil) of costs incurred as per the share
purchase agreement. As these items related to the acquisition and not
operational activity within BITS and were of a one-off nature, they have been
classified as an exceptional item.
· £0.6m (H1 2024: £0.5m) relating to the unwinding of the discount on
the contingent payment for the purchase of BITS, classified as exceptional
interest cost.
9 Income tax
Tax for the six-month period is charged at 31.0% (H1 2024: 30.4%),
representing the best estimate of the average annual effective tax rate
expected for the full year, applied to the pre-tax income of the six-month
period. Effective tax rate for the year ended 31 December 2024 was 29.7%.
Pillar Two model rules
The Group is within the scope of the Organisation for Economic Cooperation and
Development (OECD) Pillar Two model rules.
In the UK, where Computacenter plc is incorporated, legislation has been
enacted to implement the OECD's Income Inclusion Rule (IIR), Domestic Top-up
Tax (DTT) and Undertaxed Profits Rule (UTPR) into UK law. Under the
legislation, the Group is liable to pay a top-up tax for the difference
between the Pillar Two Global anti-Base Erosion (GloBE) effective tax rate per
jurisdiction and the 15% minimum rate.
The Group has estimated that the effective tax rates exceed 15% in all
material jurisdictions in which it operates. For non-material jurisdictions
where the weighted average effective tax rate was lower than 15% for the six
months ended 30 June 2025, the Group's assessment indicates that any
adjustments required under the legislation are not material. Therefore, the
Group does not expect to experience a material impact on its overall effective
tax rate or on the income tax expense reported in the Consolidated Income
Statement as a result of the OECD Pillar Two model rules.
The Group continues to apply the amendments to IAS 12 which allow for
temporary mandatory relief from recognising and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes.
10 Earnings per share
Earnings per share amounts are calculated by dividing profit attributable to
ordinary equity holders by the weighted average number of ordinary shares
outstanding during the period (excluding own shares held).
To calculate diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all dilutive
potential shares. Share options granted to employees where the exercise price
is less than the average market price of the Company's ordinary shares during
the period are considered to be dilutive potential shares.
H1 2025 H1 2024 Year 2024
£m £m £m
Profit attributable to equity holders of the Parent 49.2 60.3 170.8
H1 2025 H1 2024 Year 2024
£m £m £m
Basic weighted average number of shares 105.1 112.9 110.6
(excluding own shares held)
Effect of dilution:
Share options 0.7 1.3 1.1
Diluted weighted average number of shares 105.8 114.2 111.7
H1 2025 H1 2024 Year 2024
Pence Pence Pence
Basic earnings per share 46.8 53.5 154.4
Diluted earnings per share 46.5 52.9 152.9
11 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:
· Level 1 fair value measurements are those derived from quoted prices
(unadjusted) in active markets for identical assets or liabilities;
· 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
· 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 2025, the Group had forward currency contracts, which were measured
at Level 2 fair value subsequent to initial recognition, to the value of an
asset of £3.0m and a liability of £11.2m (30 June 2024: asset of £3.3m and
liability of £1.7m; 31 December 2024: asset of £8.2m and liability of
£3.4m). The net realised loss from forward currency contracts, designated as
cashflow hedges, in H1 2025 of £0.4m (H1 2024: £0.2m; Year 2024: £0.2m) 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 Financial Statements is not
materially different from their carrying amount.
12 Net funds
H1 2025 H1 2024 Year 2024
£m £m £m
Cash and short-term deposits 302.0 411.4 489.6
Cash and cash equivalents 302.0 411.4 489.6
Borrowings: Bank and other loans (24.0) (9.5) (7.4)
Adjusted net funds (excluding lease liabilities) 278.0 401.9 482.2
Lease liabilities (162.6) (114.1) (129.5)
Net funds 115.4 287.8 352.7
Current
Borrowings: Bank and other loans (4.7) (4.6) (4.1)
Lease liabilities (40.4) (35.6) (36.3)
Non-current
Borrowings: Bank and other loans (19.3) (4.9) (3.3)
Lease liabilities (122.2) (78.5) (93.2)
13 Publication of non-statutory accounts
The Financial Statements contained in this announcement do not constitute
statutory accounts as defined in section 435 of the Companies Act 2006.
The comparative figures for the financial year ended 31 December 2024 are not
the company's statutory accounts for that financial year. Those accounts have
been reported on by the company's auditor and delivered to the registrar of
companies. The report of the auditor was (i) unqualified, (ii) did not include
a reference to any matters to which the auditor drew attention by way of
emphasis without qualifying their report, and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
Appendix:
Alternative performance measures
Alternative performance measures are used by the Group to understand and
manage performance. These are not defined under International Financial
Reporting Standards (IFRS) or UK-adopted International Accounting Standards
(UK-IFRS) and are not intended to be a substitute for any IFRS or UK-IFRS
measures of performance. They have been included as Management considers them
to be important measures, alongside the comparable Generally Accepted
Accounting Practice (GAAP) financial measures, in assessing underlying
performance. Wherever appropriate and practical, we provide reconciliations to
relevant GAAP measures. The table below sets out the basis of calculation of
the alternative performance measures and the rationale for their use.
Measure Description Rationale
Adjusted net funds and net funds Adjusted net funds or adjusted net debt includes cash and cash equivalents, The Group excludes lease liabilities from its non-GAAP adjusted net funds
other short- or long-term borrowings and current asset investments. This measure, to allow an alternative view of the Group's overall liquidity
measure excludes all lease liabilities recognised under IFRS 16. position excluding the effect of the lease liabilities required to be
capitalised under the IFRS 16 accounting standard.
Net funds is adjusted net funds including all lease liabilities recognised
under IFRS 16. A table reconciling this measure, including the impact of lease liabilities,
is provided within note 12 to the summary financial information within this
announcement.
Adjusted expense and profit measures Adjusted administrative expense, adjusted operating profit or loss, adjusted Adjusted measures exclude items which in Management's judgement need to be
profit or loss before tax, adjusted tax, adjusted profit or loss, adjusted disclosed separately by virtue of their size, nature or frequency, to aid
earnings per share and adjusted diluted earnings per share are, as understanding of the performance for the period or comparability between
appropriate, each stated before: exceptional and other adjusting items, periods.
including gains or losses on business acquisitions and disposals, amortisation
of acquired intangibles, utilisation of deferred tax assets (where initial
recognition was as an exceptional item or a fair value adjustment on
acquisition), and the related tax effect of these exceptional and other Adjusted measures allow Management and investors to compare performance
adjusting items. without these recurring or non-recurring items.
Recurring items include purchase price adjustments, including amortisation of Management does not consider these items when reviewing the underlying
acquired intangible assets and adjustments made to reduce deferred income performance of a Segment or the Group as a whole. A reconciliation to adjusted
arising on acquisitions and acquisition-related items. Recurring items are measures is provided within the Chief Financial Officer's review, which
adjusted each period, irrespective of materiality, to ensure consistent details the impact of exceptional and other adjusted items when compared to
treatment. the non-GAAP financial measures, in addition to those reported in accordance
with IFRS. Further detail is provided within note 5 to the summary financial
information within this announcement.
Non-recurring items are those that Management judge to be one-off or
non-operational, such as gains and losses on the disposal of assets,
impairment charges and reversals, and restructuring related costs.
Constant currency We evaluate the long-term performance and trends within our strategic KPIs on We believe providing constant currency information gives valuable supplemental
a constant-currency basis. The performance of the Group and its overseas detail regarding our results of operations, consistent with how we evaluate
Segments are also shown, where indicated, in constant currency. The constant our performance.
currency presentation, which is a non-GAAP measure, excludes the impact of
fluctuations in foreign currency exchange rates.
Free cash flow Free cash flow is cash flow from operations minus net interest received, Free cash flow measures the cash generated by the operating activities during
interest and payments related to lease liabilities, income tax paid and gross the period that is available to repay debt, undertake acquisitions or
capital expenditure. distribute to shareholders.
Gross invoiced income and IFRS revenue Gross invoiced income is based on the value of invoices raised to customers, Gross invoiced income reflects the cash movements to assist Management and the
net of the impact of credit notes and excluding VAT and other sales taxes. users of the summary financial information within this announcement in
Gross invoiced income includes all items recognised on an 'agency' basis understanding revenue growth on a 'principal' basis and to assist in their
within revenue, on a gross income billed to customers basis, as adjusted for assessment of working capital movements in the Consolidated Balance Sheet and
deferred and accrued revenue. A reconciliation of revenue to gross invoiced Consolidated Cash Flow Statement. This measure allows an alternative view of
income is provided within note 5 to the summary financial information within growth in adjusted gross profit, based on the product mix differences and the
this announcement. accounting treatment thereon.
IFRS revenue refers to revenue recognised in accordance with International
Financial Reporting Standards, including IFRS 15 'Revenue from Contracts with
Customers' and IFRS 16 'Leases'.
Organic revenue and profit measures In addition to the adjustments made for adjusted measures, organic measures: Organic measures allow Management and investors to understand the
like-for-like revenue and current-period margin performance of the underlying
business.
· exclude the contribution from discontinued operations, disposals and
assets held for sale of standalone businesses in the current and prior period;
There have been no material acquisitions since 1 January 2024. Therefore, the
· exclude the contribution from acquired businesses until the year result for the period did not have any benefit within revenue or adjusted
after the first full year following acquisition; and profit before tax.
· adjust the comparative period to exclude prior-period acquired
businesses if they were acquired part-way through the prior period.
The results of any acquisitions would be excluded where narrative discussion
refers to 'organic' growth in future announcements.
Acquisitions and disposals where the revenue and contribution impact would be
immaterial are not adjusted.
Product order backlog The total value of committed outstanding purchase orders placed with our The Technology Sourcing backlog, alongside the Managed Services contract base
technology vendors against non-cancellable sales orders received from our and the Professional Services forward order book, gives us visibility of
customers for delivery within 12 months, on a gross invoiced income basis. future revenues in these areas.
Return on capital employed (ROCE) ROCE is calculated as adjusted operating profit, divided by capital employed, This is an indicator of the current period financial return on the capital
which is the closing total net assets excluding adjusted net funds. invested in the Group.
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