Computacenter PLC Full Year Results 2016
Latest group results
COMPUTACENTER 2016 FULL YEAR RESULTS ANNOUNCEMENT
Computacenter plc (‘Computacenter’ or the ‘Group’), the independent provider of IT infrastructure and services that enables users and their business, today announces audited results for the year ended 31 December 2016.
- Group adjusted1 revenue increased 6.3 per cent to £3.25 billion (2015: £3.05 billion) but was down 0.5 per cent in constant currency2
- Group adjusted1 profit before tax decreased by 0.6 per cent to £86.4 million (2015: £86.9 million) and by 4.3 per cent in constant currency2
- Adjusted1 diluted earnings per share (EPS) of 54.0 pence (2015: 53.4 pence), an increase of 1.1 per cent
- Net funds3 of £144.5 million (2015: £120.8 million), an increase of £23.7 million
- Proposed final dividend of 15.0 pence (2015: second interim dividend of 15.0 pence), for a total dividend of 22.2 pence (2015: 21.4 pence), an increase of 3.7 per cent
- Record adjusted1 EPS of 54.0 pence (2015: 53.4 pence), an increase of 1.1 per cent.
- The Group has reported annual Services revenues of over £1 billion for the first time in 2016.
- In the UK, strong second half revenue growth was unable to prevent a 1.1 per cent full year adjusted1 revenue decline. Supply Chain margin challenges and Services revenue decline contributed to a 21.1 per cent reduction in adjusted1 operating profit.
- Germany delivers another full year constant currency2 revenue growth across both Supply Chain and Services, alongside a 15.4 per cent increase in adjusted1 operating profit, also in constant currency2.
- France performs ahead of Management’s expectation for 2016, with a £4.5 million increase in adjusted1 operating profit to £2.9 million driven by continuing strength in Supply Chain margins.
Mike Norris, Chief Executive of Computacenter plc, commented:
“Whilst in 2016 we had record adjusted1 diluted EPS, it was a year of mixed fortune with the UK business profitability reducing materially but the overall Group performance showing resilience due to the strength in Germany and the turnaround in France. The Group should have a year of progress in 2017, with a rebalancing of profits between the first and second halves of the year towards the historical pattern.
We expect the UK to see modest improvements due to Professional Services and Supply Chain helping the overall performance. While Germany will be coming off a strong year, and therefore a difficult comparison, the business has strong momentum and potential to improve Services margins. For the French business we would be happy to repeat the same bottom line, with some deterioration in our Supply Chain compensated by improvement in Services revenue.
New technologies and the drive to digitalisation within our core customer base is driving our customers to invest capital in new projects which is unlikely to abate, however, this is coupled with a resolute desire to reduce run rate operating costs. As a business we have to step up to this challenge and improve our competitive position by focusing on productivity gains and automation.”Read the full announcement here
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 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 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 within the Group Finance Director’s review included within this announcement. Further detail is provided within note 4 to the summary financial information included within this announcement.
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 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 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