Computacenter PLC Q1 2015 Trading Update (0604L)
April 23 2015 - 2:01AM
UK Regulatory
TIDMCCC
RNS Number : 0604L
Computacenter PLC
23 April 2015
Computacenter plc
Q1 2015 Trading Update
23 April 2015
Computacenter plc ("Computacenter" or the "Group"), the provider
of IT infrastructure services that enables users, today publishes a
trading update for the first quarter. Figures below are based on
unaudited financial information for that period.
The revenue results in the text below exclude the impact of our
subsidiary R.D. Trading Limited ("RDC") in 2015 and 2014, following
the Group's disposal of RDC on 2 February 2015. For comparison
purposes, results including RDC are shown within the table included
in the Appendix to this trading update.
Financial Performance
Revenue for the first quarter, on an as reported basis, reduced
by 2% to GBP715.9 million (2014: GBP733.7 million). In constant
currency, this represented an overall increase of 3%, with Group
Services revenue growing by 6% and Group Supply Chain revenue
growing by 2%.
UK
We were particularly pleased with the first quarter performance
by the UK business, with overall revenue growth of 7% to GBP361.4
million (2014: GBP339.0 million). Performance in the first quarter
of 2014 was especially strong, and saw a remarkable 27% revenue
growth in Supply Chain due to a specific customer's spend.
Therefore, this year to see a further 5% growth in Supply Chain
during the first quarter, on top of last year's performance, is
encouraging. This growth of 5% brought the overall Supply Chain
revenue to GBP232.6 million (2014: GBP222.6 million). We have
experienced strong growth in enterprise datacentre and networking
equipment as customers finish end user operating system upgrades
and are now investing their budgets elsewhere. Services revenue
grew by 11% to GBP128.8 million (2014: GBP116.4 million). The start
of Q2 2015 will see the end of a significant part of a long-term
contract, which we have highlighted previously. However, the impact
of this will be more than offset by the start-up of new contracts
in Q2 and throughout the rest of 2015. Our Professional Services
pipeline remains strong and significant new Contractual Services
opportunities are emerging.
Germany
The total revenue in our German business increased by 5% in
constant currency to GBP252.3 million (2014: GBP240.3 million),
with Services revenue growing by 2% and Supply Chain revenue
growing by 7%. We achieved a significant increase in a Services
contract with a major existing customer in Germany during the
period. However, this increase will not make a contribution to
revenue growth until the second half of this year. We are
encouraged by the current opportunity set and the bidding process
is becoming more active.
France
Revenue in France declined by 12% in constant currency to
GBP90.8 million (2014: GBP102.9 million), with Supply Chain revenue
declining by 14% and Services revenue growing by 1%. The decline in
the Supply Chain revenue is largely due to the exiting of
unprofitable business and the refocussing of the company on larger
accounts and Services opportunities. While there remains much work
to be done, our Group Operating Model is enabling us to overcome
many of the challenges in our French business and we believe that
we are on the road to recovery, albeit the road will be a long
one.
Financial Position
At the end of Q1 2015, Group net funds was GBP27.0 million. This
is down by approximately GBP1.4 million on last year. However, we
returned value to shareholders of GBP100 million in the first
quarter of 2015 (the "Return of Value"), GBP56 million of which was
from the proceeds of the sale of RDC and the other GBP44 million
from our cash flow, meaning Computacenter's net funds position,
excluding the Return of Value has improved by circa GBP42.6 million
in the last 12 months.
Group Outlook
2015 should be a year of progress for Computacenter. As we
highlighted in our 2014 Final Results, the business is not without
its challenges, particularly as we take on a large amount of new
business in the UK. We are pleased to say that this is currently
progressing well but it is likely to take another two quarters to
get through this period of peak workload associated with bringing
these new customers on board. While the performance of our German
business in Q1 2015 was not as good as Q4 2014, we are moving in
the right direction. In France, whilst still loss making, there has
been an improvement on last year's performance which if maintained
throughout the year would be satisfactory in the short-term.
While peaks and troughs in our business performance come and go,
we believe the strategy we have laid out will enable us to continue
the above market performance growth in our Services business for
some time to come.
Our next scheduled trading update will be the announcement of
the Group's Interim Results on 28 August 2015.
Enquiries
Computacenter plc
Mike Norris, Chief Executive 01707 631601
Tony Conophy, Finance Director 01707 631515
Tulchan Communications 020 7353 4200
James Macey White
Matt Low
APPENDIX
Change vs 2014 Q1 Change Q1 Change Q1 Change Q1 Change
As Reported Constant As Reported Constant
* Currency * Currency
(incl RDC) ** (excl RDC) **
(incl RDC) (excl RDC)
---------------------- ------------- ------------ ------------- ------------
Supply Chain Revenue
UK 1% 1% 5%
Germany (4%) 7%
France (23%) (14%)
Group (5%) 0% (4%) 2%
----------------------- ------------- ------------ ------------- ------------
Services Revenue
UK 10% 10% 11%
Germany (9%) 2%
France (10%) 1%
Group 0% 6% 1% 6%
----------------------- ------------- ------------ ------------- ------------
Total Revenue
UK 4% 4% 7%
Germany (6%) 5%
France (21%) (12%)
Group (3%) 3% (2%) 3%
----------------------- ------------- ------------ ------------- ------------
* Change vs Q1 2014 revenues reported at Q1 2014
exchange rates
** Change vs Q1 2014 revenues reported at Q1
2015 exchange rates
This information is provided by RNS
The company news service from the London Stock Exchange
END
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