Press Release

com:20080710:RnsJ7434Y
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RNS Number : 7434Y  
  
Computacenter PLC  
  
10 July 2008  
  
Computacenter plc  
  
Pre-Close Trading Update  
  
Computacenter is today holding an Investor and Analyst conference call to 
provide an update on trading for the six months to 30 June 2008.    
  
Group revenues for the first-half of 2008 will show growth of approximately 8%. 
Even after taking into consideration the benefit of a strengthening euro, the 
organic growth rate is the strongest for a number of years.   
  
Since we last reported on trading, the improved performance at our UK and French 
subsidiaries has continued. We are pleased to report that the Q2 2008 
performance was ahead of Q1 2008, and ahead of Q2 2007 in both revenue and 
profit in both countries.  
  
As we have already announced, the UK had a difficult start to 2008 and the first 
six weeks trading was particularly tough, however UK sales for the first six 
months were up 4.8% and up 8.3% in Q2. We have seen strong growth from our 
Software Business Unit where we believe we have gained significant market share 
however this does have a diluting effect on our overall gross margins.  
  
We continue to invest heavily in our UK business to build our position in the 
mid-market and to increase our services capability. These investments, together 
with the poor start to the year will, as anticipated, result in UK first-half 
profitability below last year.  
  
The improved performance in France in Q2 has meant that the first half loss will 
be broadly similar to H1 2007 in local currency but the positive trend in 
performance together with some major contract successes bodes well for the 
second half of 2008.  
  
In Germany trading has been consistent throughout the first half of 2008. 
Revenue in local currency has fallen slightly in comparison to the first-half of 
2007, however, mainly due to improved services margins, the profit growth we 
experienced last year has continued.   
  
Group debt at the end of the period will be approx £30M (2007H1: £16.5M) before 
customer specific financing. Good cash generation meant that before taking into 
account the £20.8M we have spent buying back shares since 1 July 2007 our net 
debt position improved by £7.3M.  
  
We are encouraged by the Group's performance in the second quarter. Although 
there is much uncertainty in the market place, customers undoubtedly need to 
invest in information technology to increase the efficiency of their businesses, 
reduce risk and improve their competitiveness. We believe customers are 
increasingly looking to Computacenter to gain an increased value from their 
information technology investment.  
  
As anticipated first-half Group pre-tax profits are expected to be lower than 
the same period last year. However, due to the impact of share buy backs and an 
improved tax position, earnings per share will show an improvement.    
  
Computacenter will report its Interim results on 28 August 2008.  
  
Enquiries:  
  
 
  Computacenter plc                               
  Mike Norris, Chief Executive     01707 631601   
  Tony Conophy, Finance Director   01707 631515   
  Tessa Freeman, PR Manager        01707 631514   
                                                  
  Tulchan Communications           020 7353 4200  
  Andrew Grant                                    
  Stephen Malthouse                               
  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
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