Computacenter 2013 Final Results Announcement

March 2014

Computacenter plc, the independent provider of IT infrastructure services and solutions, today announces its final results for the twelve months ended 31 December 2013.

"Another strong UK performance. Important progress in Germany with revenue and profit growth"

FINANCIAL HIGHLIGHTS

  • Group revenues increased 5.4 per cent to £3.072 billion (2012: £2.914 billion) and up 2.5 per cent in constant currency
  • Adjusted* profit before tax increased by 3.0 per cent to £81.7 million (2012 restated: £79.3 million) and was up by 1.4 per cent in constant currency
  • Adjusted* diluted earnings per share ('EPS') increased 6.1 per cent to 43.3 pence (2012 restated: 40.8 pence)
  • Net funds prior to customer specific financing (CSF) was £90.3 million (2012: £147.3 million), after completing a Return of Value of approximately £75 million to our shareholders in July 2013
  • Total dividend for 2013 of 17.5 pence per share up 12.9 per cent (2012: 15.5 pence)

Statutory Highlights

  • After exceptional items, the 2013 Group statutory profit before tax was £50.5 million (2012: £64.8 million)
  • Statutory diluted earnings per share of 23.0 pence (2012: 32.4 pence)
  • Net funds including CSF of £71.4 million (2012: £128.6 million)

Total exceptional items of £28.8 million (2012 restated: £11.9 million), including:

  • Trading losses on three previously announced onerous contracts in Germany of £15.7 million in 2013 (2012 restated: £8.0 million)
  • Accordingly, 2012 results are re-stated to reclassify trading losses on the three onerous contracts in Germany within exceptional items
  • A non-cash impairment of goodwill and acquired intangibles in France of £12.2 million, due to deterioration in business performance

Operating Highlights:

  • 2013 has seen our fourth year of annual revenue growth and total revenue broke through the £3 billion barrier for the first time in Computacenter's history
  • Continued growth in Group Services revenue, up 3.7 per cent to £965.9 million in constant currency, and now making up approximately 31.4 per cent of the Group's total revenues
  • Another excellent performance in the UK driven by good momentum in Services growth and a strong Supply Chain performance
  • A year of financial and operational stability within our German business, which reported a growth in total revenues and profitability
  • France continues to be impacted by challenging market and operating conditions although the issues arising from our Group ERP system implementation are now substantially behind us
  • Group Operating Model successfully implemented in the UK and Germany, already delivering benefits

* Adjusted profit before tax and diluted EPS are stated prior to exceptional items and amortisation of acquired intangibles. Adjusted operating profit is also stated after charging interest on CSF. Exceptional items for 2012 have been restated to take account of the reclassification of trading losses and provisions in respect of the three onerous German contracts.

Mike Norris, Chief Executive of Computacenter plc, commented:

The Board expects Computacenter to make further progress in 2014. At such an early stage of the year it is difficult to be very specific about the outcome, but we believe all of our major geographies will move in the right direction.

In 2014, we will continue to build on Computacenter's strong platform by increasing its number of customers, broadening our customer relationships, increasing our service productivity and innovating our offerings. This should enable us to continue our track record of cash generation and earnings per share growth.

Full announcement

* Adjusted profit before tax and diluted EPS are stated prior to exceptional items and amortisation of acquired intangibles. Adjusted operating profit is also stated after charging interest on CSF. Exceptional items for 2012 have been restated to take account of the reclassification of trading losses and provisions in respect of the three onerous German contracts.

For further information, please contact:  

 

   

Computacenter plc.

 

Mike Norris, Chief Executive 

01707 631 601

Tony Conophy, Finance Director

 

www.computacenter.com

 

 

 

Tulchan Communications

020 7353 4200

Christian Cowley

 

James Macey White

 

Rebecca Scott

 

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