Computacenter H1 profit and revenue rise, on track for record performance

FTSE 250 IT services provider Computacenter reported a 15% jump in first-half revenue on Friday, thanks in part to favourable currency movements and an "outstanding" performance in its German business, and said it remains on track for a record performance in 2017.

In the six months to the end of June, adjusted pre-tax profit rose to £41.9m from £25.3m the year before, on revenue of £1.7bn, up from £1.5bn in the first half of 2016. The company said its first-half performance was marginally ahead of its expectations, with the majority of profit growth coming from improved operational performance, with some help from currency movements.

It also benefited from a comparison with what was a weaker trading performance in the first half of the prior year, whereas the comparison for the second half of 2017 is challenging. The company also highlighted an "outstanding" first half in the German business, with total revenue up 13.6% at constant currency, or 25.5% at actual currency.

It said progress in the UK was solid, while it now has a "clearly defined" French business.

Computacenter said it remains on track for a record performance, and marginally ahead of the upgraded board expectation expressed in its April trading update.

In addition, the group expects to return around £100m to shareholders in the fourth quarter, bringing the total returned to shareholders, via ordinary and special returns, to £648m since listing on the LSE in May 1998.

Chief executive Mike Norris said: "We have never been more optimistic about the market's potential, as customers invest capital, digitalise their businesses and require support to reduce their long-term operating costs. It remains critical that Computacenter invests too, in skills, tools, automation, infrastructure and customer satisfaction as we remain more focused on our long-term performance than the short term.