Press Release

Computacenter plc

Incorporated in England

Registration number: 03110569

LEI: 549300XSXUZ1I19DB105

ISIN: GB00BV9FP302

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSE OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) No. 596/2014.

 

FOR IMMEDIATE RELEASE

 

Computacenter plc

 

Trading Update - 24 April 2017

 

Computacenter plc (the "Group"), the independent provider of IT infrastructure services that enables users, is today providing a trading update for the first quarter to 31 March 2017. This trading update is being made earlier than the date previously published due to the Group's performance in the first quarter and the improved outlook for the full year.   

 

Overview

 

While much remains to be done to complete the year, we believe that the Group's performance for 2017 as a whole will exceed current market expectations¹ due to buoyant market conditions for new investments in technology, particularly seen by our German business, backed up by steady progress in France and UK and favourable currency movements.

 

Group Financial Performance

 

Group revenue for the first quarter has increased by 16 per cent on an as reported basis and by nine per cent in constant currency. 

 

Group Services revenue increased by 14 per cent on an as reported basis and by seven per cent in constant currency. 

 

Group Supply Chain revenue increased by 17 per cent on an as reported basis and by 11 per cent in constant currency. 

 

UK revenue reduced by one per cent for the first quarter with Services revenue increasing by four per cent and Supply Chain revenue decreasing by four per cent.

 

German revenue increased by 23 per cent for the first quarter with Services revenue increasing by eight per cent and Supply Chain revenue increasing by 31 per cent, all in constant currency.

 

In France, our revenue increased by six per cent for the first quarter with an increase of 22 per cent in Services revenue and two per cent in Supply Chain revenue, all in constant currency.

 

Group Financial Position

 

At the end of the quarter, Group net funds were in line with the Board's expectations.

 

Group Outlook

 

We are clearly encouraged by the Group's performance in the first quarter in all our major geographies but particularly in Germany.  Our performance in 2016, while reasonable in the year as a whole, was weaker in the first half which does create a less-difficult half-on-half comparison. This will mean higher profit growth in the first half of 2017 than the second half and will return Computacenter to a more historical norm in the balance of our profits between the first and second half of the year. 

 

Our customers drive to digitalise their operations is creating significant demand particularly for our Professional Services and Supply Chain businesses. This is currently more than compensating for the pressure exerted by customers to reduce long term support costs that has a potential negative effect on our Managed Services business. However, this pressure is felt across the industry and those companies who deal with it best will gain market share.

 

¹ Market expectations are Bloomberg £90.1m and Reuters £90.6m

 

Enquiries:
Computacenter plc Mike Norris, Chief Executive Tony Conophy, Finance Director	01707 631601 01707 631515
Tulchan Communications James Macey White	020 7353 4200

 

 

	Change vs 2016		Q1 Change As Reported2	Q1 Change Constant Currency3
	Supply Chain Revenue
	UK		(4%)	(4%)
	Germany		46%	31%
	France		14%	2%
	Group		17%	11%
	Services Revenue
	UK		4%	4%
	Germany		21%	8%
	France		36%	22%
	Group		14%	7%
	Total Revenue
	UK		(1%)	(1%)
	Germany		37%	23%
	France		18%	6%
	Group		16%	9%

 

2	Change vs 2016 Q1 revenues reported at 2016 exchange rates
3	Change vs 2016 Q1 revenues reported at 2017 exchange rates