Q3 Trading Update – 28 October 2024

Computacenter PLC

28 October 2024

 

Computacenter plc

Incorporated in England

Registration number: 03110569

LEI: 549300XSXUZ1I19DB105

ISIN: GB00BV9FP302

Computacenter plc

Q3 Trading Update - 28 October 2024

Computacenter plc ('Computacenter', the 'Company' or the 'Group'), a leading independent technology and services provider, today publishes a trading update, based on unaudited financial information, for the third quarter to 30 September 2024 ('the quarter').

Overview

Our performance for the Group during Q3 was broadly in line with the prior year. After a strong start to the quarter, Technology Sourcing volumes in September were below our expectations reflecting a more cautious corporate spending environment and slower completion of committed product orders in North America. Our overall performance in Germany met our expectations with the UK ahead of last year but below our expectations.

During the quarter Technology Sourcing revenue increased driven by North America, as we continued to execute the orders won during the first half. However, certain US shipments are now expected to be completed in Q4 and early 2025. We are encouraged by further good order intake in the US during the period.

Services revenue during the quarter increased year on year with strong revenue growth in Professional Services outweighing a decline in Managed Services.

We have made good progress with the £200m share buyback programme, which commenced in late July, and have completed £191.7m to date. Following the completion of the buyback we expect to maintain a strong balance sheet with positive adjusted net funds.

Group outlook

Looking to the full year, Q4 is our largest quarter of the year and our committed product order backlog remains healthy having grown since the end of the first half. We continue to expect to deliver a second half that is comfortably ahead of last year, however, after a softer end to Q3 than anticipated and a backdrop of prudent corporate spending, we now expect adjusted profit before tax on a constant currency basis for the full year to be modestly behind last year. At current exchange rates we expect a negative £7-8m translation impact on adjusted profit before tax in FY 2024.

Looking further ahead, the combination of the strength of our integrated Technology Sourcing and Services model and our geographic diversity, gives us continued confidence in our long-term growth prospects.

Our next scheduled trading update is the announcement of our Pre-close Trading Update on 28 January 2025.

Enquiries:

Computacenter plc
Mike Norris, CEO	[phone]
Chris Jehle, CFO	[phone]
Christian Cowley, Investor Relations	[phone]
Teneo
James Macey White / Matt Low	[phone]

About Computacenter:

Computacenter is a leading independent technology and services provider, trusted by large corporate and public sector organisations. We are a responsible business that believes in winning together for our people and our planet. We help our customers to Source, Transform and Manage their technology infrastructure to deliver digital transformation, enabling people and their business. Computacenter plc is a public company quoted on the London Stock Exchange (CCC.L) and a member of FTSE 250. Computacenter employs over 20,000 people worldwide.

DISCLAIMER - FORWARD LOOKING STATEMENTS

This announcement includes statements that are, or may be deemed to be, 'forward-looking statements'. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms 'anticipates', 'believes', 'estimates', 'expects', 'intends', 'may', 'plans', 'projects', 'should' or 'will', or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include, but are not limited to, statements regarding the Group's intentions, beliefs or current expectations concerning, amongst other things, results of operations, prospects, growth, strategies and expectations of its respective businesses.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the actual results of the Group's operations and the development of the markets and the industry in which they operate or are likely to operate and their respective operations may differ materially from those described in, or suggested by, the forward-looking statements contained in this announcement. In addition, even if the results of operations and the development of the markets and the industry in which the Group operates are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, those risks in the risk factor section of the Computacenter plc 2023 Annual Report and Accounts, as well as general economic and business conditions, industry trends, competition, changes in regulation, currency fluctuations or advancements in research and development.

Forward-looking statements speak only as of the date of this announcement and may, and often do, differ materially from actual results. Any forward-looking statements in this announcement reflect the Group's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's operations, results of operations and growth strategy.

Neither Computacenter plc nor any of its subsidiaries undertakes any obligation to update the forward-looking statements to reflect actual results or any change in events, conditions or assumptions or other factors unless otherwise required by applicable law or regulation.

 

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