Computacenter profit rises as annual revenue tops £4bn for first time
Computacenter posted a jump in full-year profit on Tuesday as revenue exceeded £4bn for the first time, with strong growth in the UK and Germany.
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In the year to the end of December 2018, adjusted pre-tax profit rose 11.3% to £118.2m on revenue of £4.35bn, up 14.7% on the year. Meanwhile, adjusted diluted earnings per share were up 16.3% to 85.7p and the dividend was lifted by 16.1% to 30.3p a share.
Analysts had pencilled in revenue of £4.28bn and pre-tax profit of £115.4m.
On a statutory basis, pre-tax profit declined 3.2% £108.1m.
Revenue in the services business was up 1.5% to £1.18bn and supply chain revenue came in at £3.18bn, up 20.5%.
Computacenter said that FusionStorm, the US-based IT solutions provider it bought on 30 September, contributed £3m of adjusted operating profit through the last three months of the year.
The company, which provides IT infrastructure and services, said Germany delivered another record performance, with revenue growth of 8.3% leading to a 14.5% increase in adjusted operating profit, both on a constant currency basis.
In the UK, revenue was up 9.7%, with adjusted operating profit 12% higher. In France, meanwhile, adjusted operating profit rose 27% at constant currency due to strong Technology Sourcing margins. However, revenues fell 4.1% due to the loss of a low margin Managed Services contract.
Chief executive Mike Norris said: "2018 was a record year in revenue, adjusted operating profit and adjusted diluted earnings per share for the group. We have also laid foundations for further growth in the years ahead.
"We have invested in the physical infrastructure that enables our Technology Sourcing, increased our Services capability and expanded our geographical footprint through acquisitions. In addition, we reduced the number of shares in circulation by 6.97%, through a return of value tender offer of £100 million. Even after these substantial investments, Computacenter finished the year with a strong balance sheet and a cash surplus, which underpins our confidence in the future."