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Financial results 2015

Financial results 2015

10/03/2016

Computacenter 2015 Final Results Announcement
March 2016

Computacenter plc ("Computacenter" or the "Group"), the independent provider of IT infrastructure and services that enables users, today announces its final results for the twelve month period ended 31 December 2015.

FINANCIAL HIGHLIGHTS

  • The Group's adjusted revenues1 increased by 5.5 per cent in constant currency2 to £3,054.2 million, and decreased by 0.3 per cent in actual currency2 (2014: £3,063.3 million).
  • The Group's adjusted profit before tax1 has increased by 9.9 per cent in constant currency2 to £86.9 million, and by 7.2 per cent in actual currency2 (2014: £81.1 million).
  • Adjusted diluted earnings per share1 increased by 21.1 per cent to 53.4 pence for the year.
  • Net Funds4 increased £1.6 million from £119.2 million at 31 December 2014 to £120.8 million at 31 December 2015.
  • Second interim dividend of 15.0p, for a total dividend of 21.4p (2014: 19.0p), an increase of 12.6%3

Statutory Highlights:

  • The Group made a statutory profit before tax of £126.8 million, an increase of 66.0 per cent in actual currency2
  • The Group's statutory diluted earnings per share increasing by 105.3 per cent to 82.1 pence in 2015.

Operating Highlights:

  • UK generates further revenue growth in Services. UK Adjusted Supply Chain1 revenue performance flat against 2014, following a second half performance below Management’s expectations;
  • Germany delivers full year constant currency2 revenue growth across both Supply Chain and Services, alongside a 13.6 per cent increase in Adjusted Operating Profit1; and
  • France performs ahead of Management’s expectation for 2015, following a particularly strong Q4 performance in Supply Chain. 

Mike Norris, Chief Executive of Computacenter plc, commented:

‘Due to the highly cash generative nature of our business and despite approximately £242 million of cash being distributed to shareholders over the last 3 years, it is likely that by the end of 2016 Computacenter’s Net Funds4 will be at record levels.
We are encouraged by the momentum we have in our German business going into 2016. The pleasing performance in France in 2015, while unlikely to accelerate in the short term, should be repeated.

The UK will have a more challenging year, particularly in the first half. Services revenue will decline in 2016 due to the expiry of a large contract at the end of the first quarter of 2015 and the large volume of business take-on last year creating a challenging comparison, coupled with the one-off £3 million gain highlighted in our Interim Statement in 2015.

We intend to increase the rate of spend on our strategic investments, which will be weighted towards the first half of the year, as we invest in our long term competitive advantage through our Income Statement.

While it is too early to make any firm commitments on the year as a whole and there is much work to be done, we expect 2016 to be a year of further progress. However, it is worth making clear that the effects referred to above will impact the phasing of our profit delivery and mean that the first half profit is expected to be below that reported for the same period in 2015.

The Company remains committed to long-term earnings per share growth through increased profitability and prudent use of our cash generation.’

Full announcement

1Adjusted 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, RDC, for both the current year and the comparative reporting year. 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 both the current and 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 details are provided in note 3 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 provides valuable supplemental information 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 adjusted amounts to our current year reported results or by presenting the results in the equivalent local currency amounts.

3 The comparative Dividend (pence per share) figure provided for 2014 has not been adjusted for the share capital consolidation that took place on 20 February 2015. The figures, as adjusted for the share capital consolidation, are provided within the section entitled ‘Dividend’ in this announcement.

4 Net funds includes cash and cash equivalents, CSF, other short or other long-term borrowings and current asset investment. A breakdown is provided within note 8 to the summary financial information included within this announcement.



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
Christian Cowley
James Macey White
Rebecca Scott
www.tulchangroup.com

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