Interim Management Statement (1619Q)
October 14 2011 - 2:00AM
UK Regulatory
TIDMCCC
RNS Number : 1619Q
Computacenter PLC
14 October 2011
Computacenter plc
Interim Management Statement
14 October 2011
Computacenter plc ("Computacenter"), the independent provider of
IT infrastructure services and solutions today publishes its
Interim Management Statement from 30 June 2011 to date. Figures
below are based on unaudited financial information, for the third
quarter.
Financial Performance
Trading in the third quarter continued along very similar lines
to during the first half.
Revenue growth for the quarter, on a reported basis, increased
by 5% to GBP652 million (2010: GBP621 million) including the
effects of acquisitions, with a 1% decline excluding acquisitions
(exchange rate movements in the period and for the year to date
have been immaterial). Revenue growth year-to-date for the third
quarter was 6% to GBP2.02 billion (GBP1.90 billion) including
acquisitions, and 2% growth excluding the effects of
acquisitions.
Group Services revenue grew by 6% in the third quarter including
acquisitions and by 2% excluding acquisitions, bringing the
year-to-date position to 6% and 4% respectively.
Group Product revenue grew by 4% in the third quarter including
acquisitions with a decline of 3% excluding acquisitions, bringing
the year-to-date position to a growth rate of 6% and 1%
respectively.
UK
UK revenue declined by 15% in the period to GBP234 million
(2010: GBP275 million). During the first half, we referred to the
declining revenue trend for our Products business due to a shift in
the spending profiles of particular large customers. This trend
continued with Product revenue down 20% in the third quarter, a
slight improvement on the 22.6% decline at the half year. Services
revenue declined by 6%, which is solely attributed to the declining
revenue of our Professional Services business and more
specifically, Cabling, which is suffering from a decline in large
construction projects. The UK is unaffected by the financial impact
of any acquisitions. We remain optimistic by our new business
pipeline and we are encouraged by recent additions to our Managed
Services contract base in the third quarter, with further hopes of
concluding more contract wins before the end of the year. The UK
has successfully transferred its core systems to our new group-wide
ERP system that went live at the beginning of September.
Germany
German revenue in the third quarter grew by 19% to EUR339
million (2010: EUR285 million), including a small acquisition in
Germany of HSD and the acquisition of Damax in Switzerland during
the third quarter.
Going forward, we are reporting our Swiss revenues within our
German segmental reporting. Excluding the effect of these
acquisitions, revenue grew by 14%. Product revenue grew 22%
including the acquisitions and 17% without acquisitions and
Services revenue grew 14% with the acquisitions and 8% without the
acquisitions. We remain pleased with the performance of the German
business, particularly when considering that these comparatives
become more challenging as the year progresses. Germany has had a
number of Managed Services successes in this quarter, including our
largest ever international service desk contract, which will be
delivered by our multi-lingual service desk capability.
France
In France, the overall revenue growth rate in the third quarter
was 28% to EUR126 million (2010: EUR99 million) with a decline of
2%, excluding the effects of the acquisition. Product revenue grew
by 29% including acquisitions with a decline of 5% excluding the
acquisition. Services growth was an encouraging 23% including the
acquisition, with growth of 10% without acquisitions. Top Info, the
company we acquired at the beginning of the second quarter of this
year, continues to perform in line with expectations. While much
work remains to be done in France with the integration of Top Info,
the relocation of some of our facilities and the migration to the
group-wide ERP system over the next 12 months, we are extremely
pleased with the Services new business win rate, and the growth,
which is enabling us to develop the improved visibility of
operations that we experience in the other countries in which
Computacenter operates.
Financial Position
At the end of the third quarter of this year, net cash excluding
customer specific financing (CSF) was approximately GBP101 million,
compared to GBP107 million at the end of Q3 2010 and GBP139 million
at the end of December 2010. We continue to benefit from the
extended credit scheme with one of our major vendors by
approximately GBP30 million. In addition to the two acquisitions
and a large property investment, costing a total of GBP33.5 million
in the first half of the year, we completed the acquisition of an
80% stake in Damax AG based in Switzerland in the third quarter,
for GBP5.4 million. While Damax is only a recent addition to the
Group, trading is ahead of our initial expectations.
Group Outlook
We remain on track to deliver a performance in line with the
Board's expectations for the year as a whole. As the Board has
stated previously, comparisons with 2010 are more challenging
towards the end of the year, but we continue to be confident that
2011 will be another year of progress for Computacenter. The
prospects within the new business pipeline that we referred to in
the Group's Interim results have either reached a successful
conclusion, or are progressing encouragingly. While there are
clearly no certainties, we are confident that 2011 will prove to be
the most successful year in Computacenter's journey by delivering
record growth rates in our contractual services business that will
underpin growth in the years ahead. .
Our next scheduled trading update will be the pre-close
briefing, prior to our annual results, which is scheduled for 12
January 2012.
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
Christian Cowley
James Macey White
This information is provided by RNS
The company news service from the London Stock Exchange
END
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