Computacenter PLC Interim Results 2016
Interim Results for month ended 30 June 2016
COMPUTACENTER 2016 INTERIM RESULTS ANNOUNCEMENT
Computacenter plc ("Computacenter" or the "Group"), the independent provider of IT infrastructure and services that enables users, today announces its final results for the six month period ended 30 June 2016.
- The Group's adjusted revenues1 decreased by 0.6 per cent in constant currency2 to £1,478.2 million, and increased by 2.8 per cent in actual currency2 (H1 2015: £1,438.0 million)
- The Group's adjusted profit before tax1 has decreased by 13.9 per cent in constant currency2 to £25.3 million, and by 13.1 per cent in actual currency2 (H1 2015: £29.1 million)
- Adjusted diluted earnings per share1 has decreased by 10.0 per cent to 15.3 pence for H1 2016 (H1 2015: 17.0 pence)
- Net Funds4 increased from £44.9 million at 30 June 2015 to £96.6 million at 30 June 2016
- Interim dividend of 7.2 pence per share, an increase of 12.5% (H1 2015: 6.4 pence per share)
- The Group's statutory revenues increased by 2.6 per to £1,478.2 million (H1 2015: £1,441.4 million)
- The Group made a statutory profit before tax of £23.6 million, a decrease of 66.6 per cent in actual currency2
- The Group's statutory diluted earnings per share decreased by 73.0 per cent to 13.2 pence in H1 2016 (H1 2015: 48.8 pence)
- Group’s first half performance marginally ahead of Management’s expectations for the period as set at the time of our Q1 Trading Update in April 2016
- Challenging first half for the UK business, principally due to a reduction in Services volumes driving a decline in Services margins and lower hardware margins
- Strong revenue growth across the German business, continuing the momentum generated in the second half of 2015
- Profit performance from the French business significantly ahead of Management’s expectations, driven by improvement in Supply Chain and Services margins
Mike Norris, Chief Executive of Computacenter plc, commented:‘The first half of 2016 finished slightly better than we had anticipated at the time of our Q1 Trading Update in April 2016, mainly due to the better performance of Computacenter in France. Despite the challenging market conditions in the UK referred to in our Q1 2016 Trading Update, as well as planned investments, the Board expects the full year to show modest progress in our adjusted profit before tax1, as compared to 2015 after allowing for the £3 million benefit from the one-off gain realised in the comparative period.
The pipeline of Managed Services growth in the Group as a whole is encouraging and should deliver growth in 2017. Even more noticeable is the growing pipeline for Digital Workplace projects which we are looking to close in the second half of 2016, as customers look to take advantage of new operating systems. Particularly pleasing is the likely growth in major customers, one of our strategic key performance indicators.
We also remain confident that Computacenter will finish the year with record levels of net funds3.’
1 Adjusted revenue, adjusted Services revenue, adjusted Professional Services revenue, adjusted Supply Chain revenue, and adjusted administrative expenses excludes the revenue and administrative expenses from a disposed subsidiary, R.D. Trading Ltd (RDC), for the comparative reporting periods. RDC was sold on 2 February 2015. Adjusted operating profit or loss, adjusted profit or loss before tax, adjusted profit or loss for the year, 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, 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. Each of these measures also excludes the results of RDC for the comparative periods. Additionally, 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 within the Group Finance Director’s review included within this announcement. Further detail is provided within note 5 to the summary financial information included within this announcement.
2 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 at the beginning of this announcement, 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:
Mike Norris, Chief Executive 01707 631 601
Tony Conophy, Finance Director 01707 631 515
Tulchan Communications 020 7353 4200
James Macey White