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Computacenter PLC Interim Results 2017

Interim Results for the six months ended 30 June 2017

Computacenter PLC Interim Results 2017

25/08/2017

COMPUTACENTER 2017 INTERIM RESULTS ANNOUNCEMENT
AUGUST 2017

 

Computacenter plc (‘Computacenter’ or the ‘Group’), Europe’s preferred IT provider to enable users and their business in a digital world, today announces its final results for the six month period ended 30 June 2017.

Financial Highlights:

  • Group revenue increased 15.0 per cent to £1.70 billion (H1 2016: £1.48 billion) and by 8.7 per cent in constant currency2
  • Group adjusted1 profit before tax increased by 65.6 per cent to £41.9 million (H1 2016: £25.3 million) and by 58.7 per cent in constant currency2
  • Adjusted1 diluted earnings per share (EPS) of 25.6 pence (H1 2016: 15.3 pence), an increase of 67.3 per cent
  • Net funds3 of £137.3 million (H1 2016: £96.6 million), an increase of £40.7 million
  • Interim dividend of 7.4 pence (H1 2016: 7.2 pence), an increase of 2.8 per cent
  • We anticipate returning circa £100 million of excess cash to shareholders during Q4 2017

Operating Highlights:

  • The Group's first half performance was marginally ahead of our expectations for the period, as revised at the time of our Q1 Trading Update on 24 April 2017;
  • The UK business achieved good revenue growth across the Supply Chain and Professional Services practices with improved Services margins dampened by Supply Chain margins which remain challenging;
  • Strong revenue growth within the German business, led by key Supply Chain accounts and supported by continuing demand across our Services portfolio; and
  • Continuing profit recovery in France with a materially improved revenue mix from Supply Chain towards Services in the first half, making the business more sustainable.

Mike Norris, Chief Executive of Computacenter plc, commented:

“The majority of our profit growth in the first half came from improved operational performance, with some help from currency movements. We also benefitted from a comparison with what was a weaker trading performance in the first half of the prior year, whereas the comparison for the second half of 2017 is challenging. We remain on track for a record performance, and marginally ahead of the upgraded board expectation expressed at our Trading Update in April 2017.

We have never been more optimistic about the market’s potential, as customers invest capital, digitalise their businesses and require support to reduce their long-term operating costs. It remains critical that Computacenter invests too, in skills, tools, automation, infrastructure and customer satisfaction as we remain more focused on our long-term performance than the short term. As can be seen from recent results, our investments over the last few years have paid off but they are not guaranteed. However, market opportunity and competition makes this continuous investment both attractive and necessary.

It is also worthy of note that most of our investments are expensed through the Income Statement, rather than capitalised. Our cash generation over recent years has enabled us to have a strong dividend policy and to periodically return additional value to shareholders. We intend to do this again in the fourth quarter of 2017, with an anticipated return of value of approximately £100 million. This would bring the total returned to shareholders, via ordinary and special returns, to £648 million since listing on the London Stock Exchange on 21 May 1998.”

Read the full announcement here.

 

  1. 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 are, as appropriate, each stated before: exceptional and other adjusting items including gain or loss on business disposals, gain or loss on disposal of investment properties, 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 adjusting items, as Management do not consider these items when reviewing the underlying performance of the segment or the Group as a whole. Additionally, adjusted gross profit or loss and adjusted operating profit or loss includes the interest paid on customer-specific financing (CSF) which Management considers to be a cost of sale. A reconciliation between key adjusted and statutory measures is provided on page 13 of the Group Finance Director’s review. Further detail is provided within note 5 to the Financial Statements.

     

  2. We evaluate the long-term performance and trends within our strategic key performance indicators (KPIs) on a constant currency basis. Further, the performance of the Group and its overseas segments are shown, where indicated, in constant currency. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information gives valuable supplemental detail regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our prior-year local currency financial results using the current year average exchange rates and comparing these recalculated amounts to our current year results or by presenting the results in the equivalent local currency amounts. Wherever the performance of the Group, or its overseas segments, are presented in constant currency, the equivalent prior-year measure is also presented in actual currency using the exchange rates prevailing at the time. Financial Highlights, as shown on this page, and statutory measures, are provided in actual currency.
  3. Net funds includes cash and cash equivalents, CSF, other short or other long-term borrowings and current asset investments.

 


For further information, please contact: 
Computacenter plc.
Mike Norris, Chief Executive                01707 631 601
Tony Conophy, Finance Director          01707 631 515
www.computacenter.com

Tulchan Communications                020 7353 4200
James Macey White
www.tulchangroup.com

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