TIDMCCC
RNS Number : 3777X
Computacenter PLC
28 August 2015
Computacenter plc
Interim results for the six months ended 30 June 2015
Computacenter plc ("Computacenter" or the "Group"), the
independent provider of IT infrastructure and services that enables
users, today announces unaudited results for the six month period
ended 30 June 2015
Financial Highlights (Note: Figures provided in the tables
directly below are provided on an as reported basis)
H1 2015 H1 2014 Change (%)
Financial Key Performance Indicators
Adjusted revenue(1) (GBP million) 1,438.0 1,435.4 0.2
Adjusted profit before tax(1)
(GBP million) 29.1 25.6 13.7
Adjusted diluted earnings
per share(1) (pence) 17.0 13.2 28.8
Dividend (pence per share)(2) 6.4 5.9 8.5
Statutory Performance
Statutory profit(3) (GBP million) 70.7 18.0 292.8
Statutory basic earnings per
share (pence) 49.6 7.4 570.3
Statutory diluted earnings
per share (pence) 48.8 7.4 559.5
Cash Position
Underlying Net Funds(4) (GBP
million) 44.9 9.9 353.6
Net Funds (GBP million) 44.9 54.0 (16.9)
Revenue Performance by Sector
Adjusted Services revenue(1)
(GBP million) 489.2 487.2 0.4
Adjusted Supply Chain revenue(1)
(GBP million) 948.8 948.2 0.1
Reconciliation between Adjusted and Statutory Performance in H1
2015
Adjusted profit before tax(1)
(GBP million) 29.1
Exceptional and other adjusting
items:
(0.4) (please refer to note 7
Increase in estimated costs of to the accounts)
redundancy and other restructuring
in French business (GBP million)
Release of provision taken for 0.4 (please refer to note 7
onerous German contracts (GBP to the accounts)
million)
Gain recorded on disposal of 42.2 (please refer to note 7
R.D. Trading Limited ("RDC") to the accounts)
(GBP million)
Pre-disposal earnings of RDC 0.3 (please refer to note 5
in the period to the accounts)
(GBP million)
Amortisation of acquired intangibles (0.9) (please refer to note 5
(GBP million) to the accounts)
Statutory profit(3) (GBP million) 70.7
Operational Highlights:
-- UK business generated continued momentum in its Services
business, and consolidated upon the significant Supply Chain growth
achieved in H1 2014;
-- German Supply Chain business delivered strong revenue growth.
Modest growth seen in Services business with margins lower than
expected, primarily due to Professional Services cost
increases;
-- During the period, the Group's onerous contracts have
continued to perform better than expectations; and
-- Operating loss reduced within French business, due to
reductions in selling, general and administrative expenses
("SG&A") following the implementation of the 2014 Social Plan
and additional cost saving measures. Good progress made in the
collection of overdue receivables, but the top-line performance in
both Services and Supply Chain remains disappointing.
Mike Norris, Chief Executive of Computacenter plc,
commented:
'Despite the significant headwinds created by a weak Euro, the
operating performance of the Group remains in line with the Board's
original expectations for 2015. However, the Group has additionally
benefited from a number of one-off gains, which will not be
repeated in either the second half of the year or during 2016. As a
result of the impact of these additional gains, we now anticipate
that the Group's 2015 adjusted profit performance will be slightly
ahead of the Board's original expectations for that period.'
(1) Adjusted revenue, adjusted Services revenue, adjusted
Professional Services revenue and adjusted Supply Chain revenue
excludes the revenue from a disposed subsidiary, RDC, for both the
current period and the comparative reporting period. RDC was sold
on 2 February 2015. Adjusted operating profit or loss, adjusted
profit or loss before tax, adjusted profit or loss for the period,
adjusted earnings per share and adjusted diluted earnings per share
are, as appropriate, each stated before: exceptional and other
adjusting items including gain or loss on business disposals,
amortisation of acquired intangibles, utilisation of deferred tax
assets (where initial recognition was as an exceptional item or a
fair value adjustment on acquisitions), and the related tax effect
of these exceptional and other adjusting items, as management do
not consider these items when reviewing the underlying performance
of the segment or the Group as a whole. Each of these measures also
excludes the results of RDC for both the current and comparative
periods. Additionally, adjusted operating profit or loss takes
account of the interest paid on customer-specific financing ("CSF")
which management considers to be a cost of sale.
(2) The comparative Dividend (pence per share) figure provided
for 2014 has not been adjusted for the share capital consolidation
that took place on 20 February 2015. The figures, as adjusted for
the share capital consolidation, are provided within the section
entitled 'Dividend' in this Interim Report.
(3) Statutory profit or loss refers to the unadjusted profit or
loss before tax.
(4) The H1 2014 'Underlying Net Funds' position is presented
having been adjusted for the receipt of GBP59.8 million in
consideration for the disposal of RDC (net of costs relating to the
transaction), cash and cash equivalents of GBP3.9 million in the
books of RDC at the time of its disposal, cash and cash equivalents
of GBP1.4 million recorded in the books of RDC as at 30 June 2014
and a net cash impact of approximately GBP98.9 million relating to
the Return of Value transaction completed in Q1 2015.
Note: A reconciliation between key adjusted and statutory
segmental measures is provided in note 5, segment information.
Enquiries:
Computacenter plc:
Mike Norris, Chief Executive 01707 631601
Tony Conophy, Finance Director 01707 631515
Tulchan Communications:
James Macey White 0207 353 4200
Matt Low
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 Groups' 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 Groups' 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 2014 Computacenter Annual Report & 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 Groups' 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 Groups' 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.
Chairman's Statement
We are pleased with our progress in the first half of 2015. Our
business in the UK has benefited from the start of a number of
significant Managed Services contracts won in 2014, in Germany we
have seen good growth in the opportunities for Managed Services,
winning a number of new contracts and in France we have seen
improvements in our operations as a result of our Group-wide model
being implemented there.
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On a strategic note, we completed the disposal of our recycling
unit, RDC, early in the year. The proceeds from this transaction,
together with our healthy operational cash flow, allowed us to
return approximately GBP98 million to our shareholders, only 18
months after our previous return of GBP75 million.
We have made a number of changes to the Board during the first
half. I take this opportunity to welcome Minnow Powell as our new
Audit Committee Chairman and also Philip Yea to the roles of
Remuneration Committee Chairman and Senior Independent Director.
Fresh eyes and a wealth of experience will help to ensure that we
continue to challenge ourselves in all that we do. This year also
saw the 20th anniversary of the appointment of Mike Norris as the
Group's Chief Executive Officer, and I congratulate him on this
remarkable milestone.
We continue to strive to ensure improvements in our competitive
position. Our past performance counts for little if we do not keep
winning the confidence and business of our customers. This is the
focus of all our employees and I thank them for it.
We are on course for a satisfactory outcome in 2015.
Greg Lock
28 August 2015
Group Operating Update
NOTE: With the exception of the statutory financial performance
for the Group and the UK business, the results outlined in the text
below exclude the impact of our subsidiary RDC in 2015 and 2014,
following the Group's disposal of RDC on 2 February 2015.
Financial performance
During the period, the Group's total adjusted revenues(1)
increased by 6.5% on a constant currency basis to GBP1,438.0
million, and were flat on an as reported basis (H1 2014: GBP1,435.4
million).
The Group's adjusted profit before tax(1) has increased by 15.0%
on a constant currency basis to GBP29.1 million and by 13.7% on an
as reported basis (H1 2014: GBP25.6 million). Due to this increase
in the Group's overall profitability, adjusted diluted earnings per
share(1) increased by 28.8% to 17.0 pence in the first half of
2015.
The Group made a statutory profit(3) of GBP70.7 million, which
represented an increase of 292.8% on an as reported basis, having
been significantly enhanced by the disposal of the Group's
subsidiary RDC, as outlined below. This resulted in the Group's
statutory diluted earnings per share increasing by 559.5% to 48.8
pence in 2015.
During the period, the Group enjoyed a net profit of GBP41.6
million from exceptional and other adjusting items. These included
a gain of GBP42.2 million from the consideration received by the
Group as a result of the divestment of RDC. The performance of the
Group's onerous contracts in the first half of 2015 has also been
better than expectations. As a result, GBP0.4 million of the
remaining provision taken for their expected lifetime losses has
been released. This is in addition to the release of GBP1.5 million
made during the fourth quarter of 2014. The exceptional cost of the
French Social Plan has increased by GBP0.4 million, following a
small increase in the number of people that have left the business
against the original expectations of Management.
Services performance
The Group's adjusted Services revenue(1) increased by 6.3% on a
constant currency basis to GBP489.2 million and was up by 0.4% on
an as reported basis (H1 2014: GBP487.2 million). There continues
to be encouraging levels of growth across the UK Services business,
acceptable top-line progress in German Services revenue with an
encouraging pipeline albeit with slightly reduced margins, and a
disappointing Services performance in France which was particularly
hindered by a lack of volume in Professional Services business
impacting utilisation levels of the Group's French central
engines.
The Group now has annual Services revenues of over GBP1 billion,
and a large proportion of this is generated by our Managed Services
contracts. Across the Group's Managed Services portfolio, there is
inevitably a variance in the level of financial performance
dependent on the stage that each contract is at in its lifecycle,
with margins generally improving as contracts mature. During the
first half of 2015 there has been an unusual timing of contract
lifecycles, which is unlikely to be repeated in future years, and
which has resulted in an overall benefit to the Group's profit
performance during the period of approximately GBP3 million.
Supply Chain performance
The Group adjusted Supply Chain revenue(1) was up by 6.6% on a
constant currency basis at GBP948.8 million, and increased by 0.1%
on an as reported basis (H1 2014: GBP948.2 million). The UK built
on the significant levels of Supply Chain growth it achieved in the
first half of 2014 and especially in the first quarter of that
year. The German Supply Chain business saw significant levels of
revenue growth especially towards the end of the period, and there
was an expected decline in French Supply Chain volumes as the
business continues to exit mid-market, low-margin generating
business and focus on our core customers.
Cash and Return of Value
Cash flow was again strong during the first half of 2015 and
Underlying Net Funds(4) increased by GBP35.0 million, from GBP9.9
million as at 30 June 2014 to GBP44.9 million at the period end.
Underlying net funds for H1 2014 are adjusted for the sale of RDC
for GBP56 million announced on 2 February 2015, and the Return of
Value completed for GBP97.9 million on 10 March 2015. After
disposal costs, transaction costs, cash disposed of and the RDC
cash balance at 30 June 2014 this results in a net adjustment of
GBP44.1 million removed from the H1 2014 reported balance which
allows a more relevant comparison to the 30 June 2015 cash
balance.
The Return of Value, as announced by the Group on 2 February
2015, was the Company's third significant one-off return of value
to shareholders, and the second such transaction in two years.
Approximately GBP98 million was returned to shareholders during H1
2015, being 71.9 pence for every share held in the Company as at
the close of trading on 19 February 2015. As part of the
transaction, an associated share capital reorganisation took place
on 20 February 2015, whereby every 17 ordinary shares of 6 (2/) (3)
pence each in the Company were effectively consolidated into 15
ordinary shares of 7 (5/) (9) pence each (the "Share
Consolidation").
Dividend
We are pleased to announce an interim dividend of 6.4 pence per
share. The total interim dividend paid out in 2014 was 5.9 pence
per share or 6.7 pence per share on a pro forma basis, after taking
account of the Share Consolidation.
The dividend announced is in line with our policy that the
interim dividend will be approximately one-third of the previous
year's full dividend. The interim dividend will be paid on 16
October 2015. The dividend record date is set on Friday 18
September 2015, and the shares will be marked ex-dividend on
Thursday 17 September 2015.
Outlook
Despite the significant headwinds created by a weak Euro, the
operating performance of the Group remains in line with the Board's
original expectations for 2015. However, the Group has additionally
benefited from a number of one-off gains, which will not be
repeated in either the second half of the year or during 2016. As a
result of the impact of these additional gains, we now anticipate
that the Group's adjusted 2015 profit performance will be slightly
ahead of the Board's original expectations for that period.
The UK's Services growth rate has been buoyant due to the win
rate in 2014 which is set to continue throughout the year, although
the growth rate is likely to be a little quieter in 2016. The
opposite is true of our German business where we would expect
growth rates for Services in 2016 to accelerate due to significant
wins in 2015. For the year as a whole, Computacenter in France will
see a significant reduction in its operating loss, and whilst this
is pleasing, much work remains to be done before the losses can be
eradicated completely.
Computacenter's strategy of substantial investment in its
Services offerings to sustain significant organic growth has served
us well in recent years, and we are confident that this is set to
continue.
Computacenter in the United Kingdom
Financial performance
Computacenter in the United Kingdom achieved growth in revenue
and profitability during the first half of 2015. Adjusted
revenue(1) increased by 5.5% to GBP688.7 million (H1 2014: GBP652.5
million).
Adjusted operating profit(1) grew by 1.8% to GBP22.9 million (H1
2014: GBP22.5 million), whilst statutory profit(3) increased by
160.6% to GBP65.4 million (H1 2014: GBP25.1 million) after
including the disposal of RDC in February 2015.
Services performance
The UK Services business has increased its rate of growth
against that seen in the first half of 2014. Adjusted Services
revenue(1) increased by 9.8% to GBP263.6 million (H1 2014: GBP240.1
million), which represents solid progress against a strong
performance in the first half of 2014 and includes the loss,
previously reported, of a significant part of a long-term Managed
Services contract at the beginning of the second quarter of 2015.
This revenue growth has been split fairly equally between our
Managed Services and Professional Services businesses, which have
grown by 9.5% and 10.6% respectively.
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
Although our Managed Services business has achieved a number of
important wins during the period, and additionally the renewal of
our largest UK Services contract by revenue for a further five-year
term, its main focus has been on ensuring the successful take-on of
a number of significant new contracts won in the second half of
2014. This process continues to progress well, supported by
effective execution and is, as a result, generating financial
returns in line with our expectations. We anticipate that the
on-boarding of these contracts will have been completed by the end
of Q3 2015. Significant new Managed Services opportunities continue
to emerge, although it should be noted that, as always, there is a
lead-in time before these generate value for the Group, in this
case impacting its financial performance from 2016 onwards. We have
also completed the first implementation of our Next Generation
Service Desk offering for a customer.
Our Professional Services business continued to see strong
levels of activity, largely as a result of volumes being delivered
through transformational activity associated with Managed Services
wins in 2014. It has seen particularly strong levels of growth
within the Datacenter area, as customers shift their spending
patterns following the completion of Windows 7 related workplace
upgrades, and its forward order book indicates that strong levels
of activity will follow in the second half of the year.
Supply Chain performance
The UK's Supply Chain business achieved overall adjusted
revenue(1) growth of 3.1% to GBP425.1 million (H1 2014: GBP412.5
million). This performance was achieved against a very tough
comparative from the prior period, during which the business grew
by 17.6%, following a particularly strong first quarter of
2014.
As in our Professional Services business, we have seen a
reduction in Workplace equipment sales, and an increase in spending
within Datacenter and Networking. Although our Supply Chain
performance is reliant on the short and medium-term demands of our
customers, and therefore remains difficult to predict, we
anticipate that there will be some recovery of Workplace volumes
following the recent release of Microsoft Windows 10 as a number of
our customers again look to improve their users' experience through
the modernisation of their workplace.
SG&A
The UK business has seen levels of SG&A increase by 7.6%
against the first half of 2014. This is primarily as a result of
win related commission payments, planned investment for future
growth through the Group's strategic initiatives, improvements in
supporting IT infrastructure required to facilitate these and a
controlled increase in headcount.
Computacenter in Germany
Financial performance
Total revenue increased by 14.1% on a constant currency basis to
EUR731.3 million (H1 2014: EUR640.8 million), and by 1.7% on an as
reported basis.
Adjusted operating profit(1) for the German business, which
excludes the three onerous contracts, increased by 22.1% in
constant currency to EUR11.6 million (H1 2014: EUR9.5 million), and
by 9.0% on an as reported basis. Statutory profit(3) increased by
13.0% in constant currency to EUR10.4 million (H1 2014: EUR9.2
million), and was flat on an as reported basis.
Services performance
Services revenue grew by 4.4% during the period in constant
currency to EUR253.7 million (H1 2014: EUR243.0 million), and
decreased by 7.0% on an as reported basis.
The majority of this growth has been provided by our Managed
Services business, which saw a 4.8% revenue increase in constant
currency against the first half of 2014. This has been the result
of a number of targeted wins secured in 2014, and importantly the
achievement of additional business on existing contracts which we
are confident will sustain our current level of Managed Services
growth through the second half of the year. As previously
announced, during the period we have achieved a significant
increase in a Managed Services contract with a major existing
customer in Germany, which will have an increased revenue impact
during the second half of 2015. Whilst the level of contribution
generated by the Managed Services business was in line with our
expectations, these would have been better but for the
underperformance of a significant Services contract in the first
half of the year. However, this is within the normal range for the
start up of a new large contract and we do not expect this to be a
long-term issue. There has been significant bidding activity during
H1 2015, and given that the rate of renewal activity will slow down
significantly in the second half of 2015, we can continue to focus
on new business which will impact our 2016 financial
performance.
Our Professional Services business has seen relatively modest
revenue growth of 3.3% on a constant currency basis, but some
margin decline primarily as a result of increased costs caused by a
scarcity of Professional Services resource. Targeted action is now
underway to resolve this issue, and the Professional Services
pipeline looks strong for the second half of the year.
Supply Chain performance
The German Supply Chain business has performed strongly during
the first half of the year, achieving revenue growth of 20.1% on a
constant currency basis to EUR477.6 million (H1 2014: EUR397.8
million), and 7.0% on an as reported basis. This constant currency
revenue growth has been seen particularly within the Networking and
Datacenter areas. These increases have come from customer demand
generated primarily by our ability to deliver cloud solutions.
Supply Chain margins have been slightly lower than in the prior
year period, as a result of the increased volume sizes of the
contracts that we have won, winning new catalogue based contracts
and by an adverse product mix within the Networking area. We
anticipate increased levels of Workplace Supply Chain activity in
the second half of the year following the release of Windows 10,
which will see significant focus from the business during that
time.
SG&A
SG&A within the German business has increased by 6.2% on a
constant currency basis against that seen in H1 2014, primarily as
a result of increased commission costs from business growth, and
the increased cost of implementing transitional arrangements in
moving the German sales force onto our Group pay-plan, which we
view as a critical foundation in pursuing increased levels of
revenue and profit growth across the business.
Computacenter in France
Financial performance
Total revenue decreased by 7.7% on a constant currency basis to
EUR259.3 million (H1 2014: EUR281.0 million), and by 17.8% on an as
reported basis.
The adjusted operating loss(1) for the French segment improved
by 40.6% in constant currency to EUR4.1 million (H1 2014: adjusted
operating loss(1) of EUR6.9 million), and by 47.4% on an as
reported basis. The statutory loss(3) incurred by the business
improved by 75.7% in constant currency to EUR4.6 million (H1 2014:
EUR18.9 million), and by 78.7% on an as reported basis.
Services performance
Services revenue decreased by 5.6% on a constant currency basis
to EUR43.5 million (H1 2014: EUR46.1 million), and by 15.6% on an
as reported basis.
Our Managed Services business saw revenue decrease by 4.2% on a
constant currency basis to EUR32.1 million (H1 2014: EUR33.5
million), primarily as a result of the loss of a small number of
Managed Services contracts during 2014 caused by poor service
levels being delivered by the business following the implementation
of the Group's SAP system in 2013. Our Managed Services performance
continues to be enhanced by the Group's largest Services contract,
which has now almost completed the take-on phase. Given this
success, we are focusing our efforts on winning significant
international Managed Services contracts with large commercial
entities headquartered in France using the Group's leverage and
scale.
Our Professional Services performance during the first half of
the year was disappointing, with a revenue decline of 9.5% in
constant currency. We have not been able to generate the volumes
that we would like to have seen in the first half of 2015, which
has resulted in significant over-capacity within the Group's French
central engines. There has been a significant reduction in our
SG&A cost base following the implementation of the Group's
Social Plan in 2014, but the structural cost base of the business
in Services remains too high for the level of revenue currently
generated, and we therefore continue to focus on increasing this
level of revenue. The implementation of our Group Operating Model
has allowed us to identify ongoing areas of overcapacity more
readily and precisely during the first half of the year.
Supply Chain performance
Total Supply Chain revenue over the period reduced by 8.2% on a
constant currency basis to EUR215.7 million (H1 2014: EUR234.9
million), and by 18.2% on an as reported basis. Whilst this area of
the business continues to deliver improved levels of customer
satisfaction, revenue has declined principally due to the exiting
of unprofitable business. However, the Supply Chain performance
remains too reliant on Workplace product sales and Software
revenue, which are low-margin generating and working capital
intensive. A continuing focus on improving our resource to sell
higher-margin Datacenter and Networking product, and into private
sector customers, especially those located in main commercial
centres in France, will be a priority during the second half of the
year. We have been disappointed at our inability to make this
transition thus far. It should be noted that the overall Supply
Chain performance has been impacted by a spend reduction from two
of our most significant Supply Chain customers, and we anticipate
that there will be increased levels of activity from them in the
second half of the year.
SG&A
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Levels of SG&A within the French business have reduced by
11.0% in constant currency against the first half of 2014. This has
been principally impacted by the implementation of the French
Social Plan in 2014 which has resulted in reduced sales and
administration costs, and following this SG&A in the business
has been very tightly controlled at a Group Management level. The
French business took an additional cost of EUR2.0 million in H2
2014 within the administrative expenses line to provide for
doubtful debts. Following better than expected progress made in the
collection of those debts during the period, EUR0.9 million of this
provision has now been released back to the administrative expenses
line.
Computacenter in Belgium
Financial performance
Total revenue increased by 6.5% on a constant currency basis to
EUR33.0 million (H1 2014: EUR31.0 million), and decreased by 5.5%
on an as reported basis.
Adjusted operating profit(1) for the Belgian segment increased
by 16.7% in constant currency to EUR1.4 million (H1 2014: EUR1.2
million), and was flat on an as reported basis. Statutory profit3
increased by 18.2% in constant currency to EUR1.3 million (H1 2014:
EUR1.1 million), and by 11.1% on an as reported basis.
Services performance
Services revenue decreased by 6.0% during the period in constant
currency to EUR11.0 million (H1 2014: EUR11.7 million), and reduced
by 16.7% on an as reported basis.
Supply Chain performance
Supply Chain revenue in the first half of 2015 increased by
14.0% in constant currency to EUR22.0 million (H1 2014: GBP19.3
million), and by 1.3% on an as reported basis.
SG&A
SG&A decreased by 3.3% on a constant currency basis to
EUR2.7 million (H1 2014: EUR2.8 million), and by 13.8% on an as
reported basis.
Financial review
Summary of Group Income Statement
Reconciliation from statutory to adjusted measures H1 2015
Adjustments
--------------------------------- ----------- ----------------------------------------------------- -----------
GBP'000 GBP'000 GBP'000 GBP'000
GBP'000 R.D. Trading CSF Utilisation Exceptionals GBP'000
Statutory Limited interest of deferred & others Adjusted
results tax results
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Revenue 1,441,404 (3,447) - - - 1,437,957
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Cost of sales (1,255,033) 2,774 (180) - - (1,252,439)
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Gross profit 186,371 (673) (180) - - 185,518
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Administrative expenses (156,383) 354 - - - (156,029)
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Operating profit:
--------------------------------- ----------- ----------------------------------------------------- -----------
Before amortisation of
acquired intangibles and
exceptional items 29,988 (319) (180) - - 29,489
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Amortisation of acquired
intangibles (851) - - - 851 -
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Exceptional items (13) - - - 13 -
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Operating profit 29,124 (319) (180) - 864 29,489
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Gain on disposal of a subsidiary 42,155 - - - (42,155) -
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Finance revenue 621 (1) - - - 620
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Finance costs (1,223) - 180 - - (1,043)
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Profit before tax 70,677 (320) - - (41,291) 29,066
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Income tax expense:
--------------------------------- ----------- ----------------------------------------------------- -----------
Before exceptional items (8,883) 71 - 1,387 (113) (7,538)
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Exceptional items (52) - - - 52 -
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Profit for the period 61,742 (249) - 1,387 (41,352) 21,528
--------------------------------- ----------- ------------- --------- ------------ ------------- -----------
Reconciliation from statutory to adjusted measures H1 2014
Adjustments
-------------------------- ----------- -----------------------------------------------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
GBP'000 R.D. Trading CSF Utilisation Exceptionals Adjusted
Statutory Limited interest of deferred & others results
results tax
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Revenue 1,458,284 (22,847) - - - 1,435,437
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Cost of sales (1,268,013) 17,450 (341) - - (1,250,904)
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Gross profit 190,271 (5,397) (341) - - 184,533
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Administrative expenses (161,830) 2,962 - - - (158,868)
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Operating profit:
-------------------------- ----------- ----------------------------------------------------- -----------
Before amortisation of
acquired intangibles and
exceptional items 28,441 (2,435) (341) - - 25,665
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Amortisation of acquired
intangibles (884) - - - 884 -
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Exceptional items (9,100) - - - 9,100 -
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Operating profit 18,457 (2,435) (341) - 9,984 25,665
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Finance revenue 771 (8) - - - 763
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Finance costs (1,194) - 341 - - (853)
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Profit before tax 18,034 (2,443) - - 9,984 25,575
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Income tax expense:
-------------------------- ----------- ----------------------------------------------------- -----------
Before exceptional items (7,919) 574 - - (117) (7,462)
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Profit for the period 10,115 (1,869) - - 9,867 18,113
-------------------------- ----------- ------------- --------- ------------ ------------- -----------
Adjusted revenue
Adjusted Group revenue has increased by GBP2.6 million or 0.2%
over the period to GBP1,438.0 million at reported rates. The
revenue result has been impacted by foreign exchange headwinds with
an increase of 6.5% when measured in constant currency.
Exceptional and other adjusting items
A net gain of GBP42.1 million resulting from exceptional and
other adjusted items was recorded (2014: net loss of GBP9.1
million).
The principal item was the gain on the disposal of R.D. Trading
Limited ('RDC'), a Group subsidiary, of GBP42.2 million. The
disposal occurred on 2 February 2015 with cash proceeds, net of
disposal costs and cash disposed of GBP56.0 million.
Further social plan provisioning in France of GBP0.4 million was
required during the period ended 30 June 2015. Whilst costs
incurred against the existing level of social plan provisioning
have been at an expected level, further entrants have been added to
the social plan over the period.
A GBP0.4 million release from the onerous contracts provision in
Germany has been made. This represents better than forecast
performance at the time provision was recorded from the two
remaining contracts, resulting in less utilisation of the provision
than planned over the period.
Profit before tax
Adjusted profit before tax increased by 13.7% to GBP29.1 million
at reported rates (H1 2014: GBP25.6 million), an increase of 15.0%
in constant currency.
The statutory profit before tax increased by GBP52.7 million to
GBP70.7 million (H1 2014: GBP18.0 million), primarily due to the
gain of GBP42.2 million generated on the disposal of RDC.
Tax charge
The adjusted tax charge on ordinary activities was GBP7.5
million (H1 2014: GBP7.5 million), on an adjusted profit before tax
of GBP29.1 million (H1 2014: GBP25.6 million). The adjusted
effective tax rate ('ETR') was 25.9% (H1 2014: 29.2%). The H1 2015
ETR is lower than the prior year period due to a change in the
geographic split of profit before tax with lower losses in France
being the primary factor.
The statutory tax charge was GBP8.9 million (H1 2014: GBP7.9
million) on profit before tax of GBP70.7 million (H1 2014: GBP18.0
million). This represents a statutory ETR of 12.6% (H1 2014:
43.9%). The gain on the disposal of RDC of GBP42.2 million recorded
in the statutory profit before tax for the period ended 30 June
2015 is not a taxable gain and is the most significant reason for
the movement in the ETR.
As the German tax losses continue to be utilised, the deferred
tax asset, previously recognised as an exceptional tax item, is no
longer replenishing and the utilisation of the asset impacts the
statutory ETR.
The table below reconciles the statutory tax charge to the
adjusted tax charge for the period ended 30 June 2015.
H1 2015 H1 2014
GBP'000 GBP'000
----------------------------------------------------- -------- --------
Statutory tax charge 8,935 7,919
----------------------------------------------------- -------- ------------
Adjustments to exclude:
----------------------------------------------------- -------- ------------
Utilisation of German deferred tax assets (1,387) -
----------------------------------------------------- -------- ------------
Tax on amortisation of acquired intangibles 113 117
----------------------------------------------------- -------- ------------
Tax on exceptional items (52) -
----------------------------------------------------- -------- ------------
RDC (71) (574)
----------------------------------------------------- -------- ------------
Adjusted tax charge 7,538 7,462
----------------------------------------------------- -------- ------------
Profit for the period
The adjusted profit for the period increased by 18.8% to GBP21.5
million (H1 2014: GBP18.1 million). The statutory profit after tax
increased by GBP51.6 million to GBP61.7 million (H1 2014: GBP10.1
million).
Adjusted earnings per share
The adjusted earnings per share increased by 28.8% to 17.0p per
share (H1 2014: 13.2p per share). The adjusted earnings per share
for the 2014 comparative has been restated to exclude the result of
RDC which was sold on 2 February 2015.
H1 2015 H1 2014 Year 2014
------------------------------------------------------------ ------- ---------
Basic weighted average number of shares (excluding
own shares held) (no. '000) 124,571 135,961 135,985
--------------------------------------------------- ------- ------- ---------
Effect of dilution:
--------------------------------------------------- ------- ------------------
Share options 2,014 1,423 1,784
--------------------------------------------------- ------- ------- ---------
Diluted weighted average number of shares 126,585 137,384 137,769
--------------------------------------------------- ------- ------- ---------
Statutory profit attributable to equity holders
of the parent (GBP '000) 61,742 10,115 55,117
--------------------------------------------------- ------- ------- ---------
Basic earnings per share (p) 49.6 7.4 40.5
--------------------------------------------------- ------- ------- ---------
Diluted earnings per share (p) 48.8 7.4 40.0
--------------------------------------------------- ------- ------- ---------
Adjusted profit attributable to equity holders of
the parent (GBP '000) 21,528 18,113 60,801
--------------------------------------------------- ------- ------- ---------
Adjusted basic earnings per share (p) 17.3 13.3 44.7
--------------------------------------------------- ------- ------- ---------
Adjusted diluted earnings per share (p) 17.0 13.2 44.1
--------------------------------------------------- ------- ------- ---------
Net funds
Net funds have decreased from GBP119.2 million at the end of
2014 to GBP44.9 million as at 30 June 2015. In addition to the
final 2014 dividend (paid in June 2015) of GBP15.8 million, the
Group returned GBP97.9 million to shareholders during the half
year, following the announcement of the disposal of RDC for GBP56.0
million. After disposal costs, transaction costs, cash disposed and
the RDC cash balance at 30 June 2014 this results in a net outflow
of GBP44.1 million.
The Group had no material borrowings outside of
customer-specific finance leases and loans.
Currency
The Group reports its results in Pound Sterling. The
strengthening of Sterling, particularly against the Euro, is
expected to remain a foreign exchange translation headwind. If the
30 June 2015 spot rates were to continue through the remainder of
2015, the impact of restating 2014 at 2015 exchange rates would be
a reduction of approximately GBP204 million in 2014 adjusted
revenue and a reduction of approximately GBP2 million in 2014
adjusted profit before tax.
Risk and uncertainties
The Group's activities expose it to a variety of risks;
economic, financial, operational and regulatory.
Our principal risks continue to be concentrated in the
availability and resilience of systems, our people, our cost base,
technology change, and in the design, take on and running of large
Services contracts.
The Group's risk management approach and the principal risks,
potential impacts and primary mitigating activities are unchanged
from those set out in the 2014 Annual Report and Accounts.
The principal risks and uncertainties facing the Group are set
out on pages 18 to 21 of the 2014 Annual Report and Accounts, a
copy of which is available on the Group's website,
www.computacenter.com.
Responsibility statement
Responsibility statement of the Directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU
-- the interim management report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being
an indication of important events that have occurred during the
first six months of the financial year and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
MJ Norris
Chief Executive
28 August 2015
FA Conophy
Finance Director
28 August 2015
On behalf of the Board
Independent review report to Computacenter plc
Introduction
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2015 which comprises the Consolidated
Income Statement, Consolidated Statement of Comprehensive Income,
Consolidated Balance Sheet, Consolidated Statement of Changes in
Equity, Consolidated Cash Flow Statement and the related
explanatory notes. We have read the other information contained in
the half-yearly financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the Disclosure and Transparency Rules ('the DTR')
of the UK's Financial Conduct Authority ('the UK FCA'). Our review
has been undertaken so that we might state to the company those
matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company
for our review work, for this report, or
for the conclusions we have reached.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the EU.
The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the EU.
Our Responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2015 is not prepared, in all material respects, in accordance
with IAS 34 as adopted by the EU and the DTR of the UK FCA.
Tudor Aw
for and on behalf of KPMG LLP Chartered Accountants
15 Canada Square London
E14 5GL
28 August 2015
Consolidated income statement
For the six months ended 30 June 2015
Unaudited Unaudited Audited
H1 2015 H1 2014 Year 2014
Note GBP'000 GBP'000 GBP'000
-------------------------------------- --------- ----------- ----------- -----------
Revenue 5 1,441,404 1,458,284 3,107,759
------------------------------------------ ----- ----------- ----------- -----------
Cost of sales (1,255,033) (1,268,013) (2,697,842)
------------------------------------------------- ----------- ----------- -----------
Gross profit 186,371 190,271 409,917
------------------------------------------------- ----------- ----------- -----------
Administrative expenses (156,383) (161,830) (323,814)
------------------------------------------------- ----------- ----------- -----------
Operating profit:
------------------------------------------------- ----------- ------------------------
Before amortisation of acquired intangibles
and exceptional items 29,988 28,441 86,103
------------------------------------------------- ----------- ----------- -----------
Amortisation of acquired intangibles (851) (884) (1,868)
------------------------------------------------- ----------- ----------- -----------
Exceptional items 7 (13) (9,100) (7,588)
------------------------------------------ ----- ----------- ----------- -----------
Operating profit 29,124 18,457 76,647
------------------------------------------------- ----------- ----------- -----------
Gain on disposal of a subsidiary 7 42,155 - -
------------------------------------------ ----- ----------- ----------- -----------
Finance revenue 621 771 1,615
------------------------------------------------- ----------- ----------- -----------
Finance costs (1,223) (1,194) (1,844)
------------------------------------------------- ----------- ----------- -----------
Profit before tax 70,677 18,034 76,418
------------------------------------------------- ----------- ----------- -----------
Income tax expense:
------------------------------------------------- ----------- ------------------------
Before exceptional items (8,883) (7,919) (21,115)
------------------------------------------------- ----------- ----------- -----------
Exceptional items 7 (52) - (185)
------------------------------------------ ----- ----------- ----------- -----------
Income tax expense 8 (8,935) (7,919) (21,300)
------------------------------------------ ----- ----------- ----------- -----------
Profit for the period 61,742 10,115 55,118
------------------------------------------------- ----------- ----------- -----------
Attributable to:
------------------------------------------------- ----------- ------------------------
Equity holders of the parent 61,742 10,115 55,117
------------------------------------------------- ----------- ----------- -----------
Non-controlling interests - - 1
------------------------------------------------- ----------- ----------- -----------
Profit for the period 61,742 10,115 55,118
------------------------------------------------- ----------- ----------- -----------
Earnings per share
------------------------------------------------- ----------- ------------------------
- basic for profit for the period 9 49.6p 7.4p 40.5p
------------------------------------------ ----- ----------- ----------- -----------
- diluted for profit for the period 9 48.8p 7.4p 40.0p
------------------------------------------ ----- ----------- ----------- -----------
Consolidated statement of comprehensive income
For the six months ended 30 June 2015
Unaudited Unaudited Audited
H1 2015 H1 2014 Year 2014
GBP'000 GBP'000 GBP'000
------------------------------- -------------------------------- --------- ----------
Profit for the period: 61,742 10,115 55,118
------------------------------------------------------- -------- --------- ----------
Items that may be reclassified to income statement:
------------------------------------------------------- -------- ---------------------
Loss arising on cash flow hedge (480) (376) (251)
------------------------------------------------------- -------- --------- ----------
Income tax effect 97 81 54
------------------------------------------------------- -------- --------- ----------
(383) (295) (197)
------------------------------------------------------- -------- --------- ----------
Exchange differences on translation of foreign
operations (12,662) (5,811) (10,976)
------------------------------------------------------- -------- --------- ----------
(13,045) (6,106) (11,173)
------------------------------------------------------- -------- --------- ----------
Items not to be reclassified to income statement:
------------------------------------------------------- -------- ---------------------
Remeasurement of defined benefit plan - - (1,177)
------------------------------------------------------- -------- --------- ----------
Other comprehensive income for the year, net
of tax (13,045) (6,106) (12,350)
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
------------------------------------------------------- -------- --------- ----------
Total comprehensive income for the period 48,697 4,009 42,768
------------------------------------------------------- -------- --------- ----------
Attributable to:
------------------------------------------------------- -------- ---------------------
Equity holders of the parent 48,697 4,009 42,768
------------------------------------------------------- -------- --------- ----------
Consolidated balance sheet
As at 30 June 2015
Unaudited Unaudited Audited
H1 2015 H1 2014 Year 2014
Note GBP'000 GBP'000 GBP'000
------------------------------------- --------- --------- ----------
Non-current assets
------------------------------------- --------- --------- ----------
Property, plant and equipment 75,000 82,891 79,940
------------------------------------- --------- --------- ----------
Intangible assets 79,032 95,710 90,344
------------------------------------- --------- --------- ----------
Investment in associate 38 43 42
------------------------------------- --------- --------- ----------
Deferred income tax asset 14,177 14,977 15,049
------------------------------------- --------- --------- ----------
168,247 193,621 185,375
------------------------------------- --------- --------- ----------
Current assets
------------------------------------- --------- --------- ----------
Inventories 41,379 71,840 50,006
------------------------------------- --------- --------- ----------
Trade and other receivables 506,375 532,520 695,915
------------------------------------- --------- --------- ----------
Prepayments 50,640 56,745 52,688
------------------------------------- --------- --------- ----------
Accrued income 89,478 69,180 50,869
------------------------------------- --------- --------- ----------
Forward currency contracts 1,157 164 2,434
------------------------------------- --------- --------- ----------
Cash and short-term deposits 14 53,619 70,982 129,865
------------------------------------- --------- --------- ----------
742,648 801,431 981,777
------------------------------------- --------- --------- ----------
Total assets 910,895 995,052 1,167,152
------------------------------------- --------- --------- ----------
Current liabilities
------------------------------------- --------- --------- ----------
Trade and other payables 466,481 482,414 635,279
------------------------------------- --------- --------- ----------
Deferred income 95,762 109,060 106,862
------------------------------------- --------- --------- ----------
Financial liabilities 6,169 11,614 6,850
------------------------------------- --------- --------- ----------
Forward currency contracts 1,368 700 389
------------------------------------- --------- --------- ----------
Income tax payable 8,188 9,118 9,810
------------------------------------- --------- --------- ----------
Provisions 6,264 10,442 9,808
------------------------------------- --------- --------- ----------
584,232 623,348 768,998
------------------------------------- --------- --------- ----------
Non-current liabilities
------------------------------------- --------- --------- ----------
Financial liabilities 2,564 5,350 3,818
------------------------------------- --------- --------- ----------
Provisions 3,380 11,491 8,176
------------------------------------- --------- --------- ----------
Deferred income tax liabilities 696 829 748
------------------------------------- --------- --------- ----------
6,640 17,670 12,742
------------------------------------- --------- --------- ----------
Total liabilities 590,872 641,018 781,740
------------------------------------- --------- --------- ----------
Net assets 320,023 354,034 385,412
------------------------------------- --------- --------- ----------
Capital and reserves
------------------------------------- --------- --------- ----------
Issued capital 9,297 9,276 9,283
------------------------------------- --------- --------- ----------
Share premium 3,830 4,597 4,597
------------------------------------- --------- --------- ----------
Capital redemption reserve 74,957 74,963 74,957
------------------------------------- --------- --------- ----------
Own shares held (10,260) (11,655) (10,760)
------------------------------------- --------- --------- ----------
Foreign currency translation reserve (16,988) 838 (4,326)
------------------------------------- --------- --------- ----------
Retained earnings 259,176 276,002 311,648
------------------------------------- --------- --------- ----------
Shareholders' equity 320,012 354,021 385,399
------------------------------------- --------- --------- ----------
Non-controlling interests 11 13 13
------------------------------------- --------- --------- ----------
Total equity 320,023 354,034 385,412
------------------------------------- --------- --------- ----------
Approved by the Board on 28 August 2015
MJ Norris FA Conophy
Chief Executive Officer Group Finance Director
Consolidated statement of changes in equity
For the six months ended 30 June 2015
Attributable to equity holders of the
parent
----------------------------------------------------------------
Foreign
Own currency Non-
Issued Share Capital shares translation Retained Shareholder's controlling Total
capital premium redemption held reserve earnings equity interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
At 1 January
2014 9,271 4,362 74,963 (11,976) 6,649 281,388 364,657 13 364,670
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Profit for the
period - - - - - 10,115 10,115 - 10,115
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Other
comprehensive
income - - - - (5,811) (295) (6,106) - (6,106)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Total
comprehensive
income - - - - (5,811) 9,820 4,009 - 4,009
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Cost of
share-based
payments - - - - - 1,724 1,724 - 1,724
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Tax on
share-based
payment
transactions - - - - - 27 27 - 27
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Exercise of
options 5 235 - 321 - (321) 240 - 240
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Equity
dividends - - - - - (16,636) (16,636) - (16,636)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
At 30 June
2014 9,276 4,597 74,963 (11,655) 838 276,002 354,021 13 354,034
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Profit for the
period - - - - - 45,002 45,002 1 45,003
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Other
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
comprehensive
income - - - - (5,164) (1,078) (6,242) (1) (6,243)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Total
comprehensive
income - - - - (5,164) 43,924 38,760 - 38,760
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Prior period
corrections 6 - (6) 695 - (695) - - -
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Cost of
share-based
payments - - - - - 1,086 1,086 - 1,086
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Tax on
share-based
payment
transactions - - - - - 12 12 - 12
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Exercise of
options 1 - - 2,483 - (644) 1,840 - 1,840
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Purchase of
own
shares - - - (2,283) - - (2,283) - (2,283)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Equity
dividends - - - - - (8,037) (8,037) - (8,037)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
At 31 December
2014 9,283 4,597 74,957 (10,760) (4,326) 311,648 385,399 13 385,412
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Profit for the
period - - - - - 61,742 61,742 - 61,742
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Other
comprehensive
income - - - - (12,662) (383) (13,045) (2) (13,047)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Total
comprehensive
income - - - - (12,662) 61,359 48,697 (2) 48,695
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Cost of
share-based
payment - - - - - 2,033 2,033 - 2,033
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Tax on
share-based
payment
transactions - - - - - 761 761 - 761
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Exercise of
options - - - 3,874 - (2,933) 941 - 941
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Issue of
shares 14 (14) - - - - - - -
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Expense on
Return
of Value - (753) - - - - (753) - (753)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Return of
Value - - - - - (97,916) (97,916) - (97,916)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Purchase of
own
shares - - - (3,374) - - (3,374) - (3,374)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Equity
dividends - - - - - (15,776) (15,776) - (15,776)
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
At 30 June
2015 9,297 3,830 74,957 (10,260) (16,988) 259,176 320,012 11 320,023
-------------- -------- -------- ---------- -------- ----------- --------- ------------- ----------- --------
Consolidated cash flow statement
For the six months ended 30 June 2015
Unaudited Unaudited Audited Year
H1 2015 H1 2014 2014
Note GBP'000 GBP'000 GBP'000
-------------------------------------------------------- --------- --------- ------------
Operating activities
-------------------------------------------------------- --------- -----------------------
Profit before tax 70,677 18,034 76,418
-------------------------------------------------------- --------- --------- ------------
Net finance expense 601 423 229
-------------------------------------------------------- --------- --------- ------------
Depreciation 9,425 10,263 20,398
-------------------------------------------------------- --------- --------- ------------
Amortisation 6,648 6,056 12,675
-------------------------------------------------------- --------- --------- ------------
Share-based payments 2,033 1,724 2,810
-------------------------------------------------------- --------- --------- ------------
Loss on sale of property, plant and equipment 147 106 676
-------------------------------------------------------- --------- --------- ------------
Loss on sale of intangibles 21 133 1
-------------------------------------------------------- --------- --------- ------------
(Increase)/decrease in inventories (1,568) (15,167) 5,834
-------------------------------------------------------- --------- --------- ------------
Decrease/(increase) in trade and other receivables 111,834 107,200 (51,167)
-------------------------------------------------------- --------- --------- ------------
(Decrease)/increase in trade and other payables (146,362) (108,140) 50,275
-------------------------------------------------------- --------- --------- ------------
Decrease in customer contract provisions (1,172) (2,375) (1,851)
-------------------------------------------------------- --------- --------- ------------
Gain on disposal of a subsidiary 7 (42,155) - -
---------------------------------------------------- --------- --------- ------------
Other adjustments (102) 623 (473)
-------------------------------------------------------- --------- --------- ------------
Cash generated from operations 10,027 18,880 115,825
-------------------------------------------------------- --------- --------- ------------
Income taxes paid (9,029) (8,592) (21,408)
-------------------------------------------------------- --------- --------- ------------
Net cash flow from operating activities 998 10,288 94,417
-------------------------------------------------------- --------- --------- ------------
Investing activities
-------------------------------------------------------- --------- -----------------------
Interest received 621 1,197 1,615
-------------------------------------------------------- --------- --------- ------------
Disposal of subsidiary, net of cash
disposed of 12 56,145 - -
---------------------------------------------------- --------- --------- ------------
Acquisition of subsidiaries, net of cash acquired - (465) (465)
-------------------------------------------------------- --------- --------- ------------
Sale of property, plant and equipment 18 31 44
-------------------------------------------------------- --------- --------- ------------
Purchases of property, plant and equipment (7,862) (5,216) (12,189)
-------------------------------------------------------- --------- --------- ------------
Proceeds from sale of intangible assets - - 1
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
-------------------------------------------------------- --------- --------- ------------
Purchases of intangible assets (2,000) (3,638) (5,494)
-------------------------------------------------------- --------- --------- ------------
Net cash flow from investing activities 46,922 (8,091) (16,488)
-------------------------------------------------------- --------- --------- ------------
Financing activities
-------------------------------------------------------- --------- -----------------------
Interest paid (1,042) (1,783) (1,275)
-------------------------------------------------------- --------- --------- ------------
Dividends paid to equity shareholders of the
parent (15,776) (16,636) (24,673)
-------------------------------------------------------- --------- --------- ------------
Return of Value 11 (97,916) - -
---------------------------------------------------- --------- --------- ------------
Expenses on Return of Value (767) - -
-------------------------------------------------------- --------- --------- ------------
Proceeds from issue of shares 941 240 1,791
-------------------------------------------------------- --------- --------- ------------
Purchase of own shares (3,374) - (2,283)
-------------------------------------------------------- --------- --------- ------------
Repayment of capital element of finance leases (1,704) (3,410) (4,983)
-------------------------------------------------------- --------- --------- ------------
Repayment of loans (433) (2,378) (7,767)
-------------------------------------------------------- --------- --------- ------------
New borrowings 113 2,363 3,908
-------------------------------------------------------- --------- --------- ------------
Net cash flow from financing activities (119,958) (21,604) (35,282)
-------------------------------------------------------- --------- --------- ------------
(Decrease)/increase in cash and cash equivalents (72,038) (19,407) 42,647
-------------------------------------------------------- --------- --------- ------------
Effect of exchange rates on cash and cash equivalents (4,493) (1,363) (3,835)
-------------------------------------------------------- --------- --------- ------------
Cash and cash equivalents at the beginning
of the period 129,146 90,334 90,334
-------------------------------------------------------- --------- --------- ------------
Cash and cash equivalents at the end
of the period 14 52,615 69,564 129,146
---------------------------------------------------- --------- --------- ------------
Notes to the accounts
For the six months ended 30 June 2015
1 Corporate information
The interim condensed consolidated financial statements of the
Group for the six months ended 30 June 2015 were authorised for
issue in accordance with a resolution of the Directors on 27 August
2015.
Computacenter plc is a limited company incorporated and
domiciled in England whose shares are publicly traded.
2 Basis of preparation
The interim condensed consolidated financial statements for the
six months ended 30 June 2015 have been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting',
as adopted by the European Union.
They do not include all of the information and disclosures
required in the annual financial statements, and should be read in
conjunction with the Group's annual financial statements as at 31
December 2014 which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union.
The Group has maintained its positive cash position in the
period. In order to ensure that the Group can maintain its strong
liquidity position it has a GBP40 million committed facility, which
remained unutilised at the reporting date. The Group's forecast and
projections, which allow for reasonably possible variations, show
that the Group will continue to maintain its strong liquidity
position, and therefore supports the Directors' view that the Group
has sufficient funds available to meet its foreseeable
requirements. The Directors have concluded therefore that the going
concern basis remains appropriate.
3 Significant accounting policies
The accounting policies applied by the Group in these interim
condensed consolidated financial statements are the same as those
applied by the Group in its consolidated financial statements for
the year ended 31 December 2014, except for the adoption of new
standards and interpretations as of 1 January 2015, which did not
have any impact on the accounting policies, financial position or
performance of the Group, as noted below:
-- Annual Improvements to IFRSs - 2010-2012 Cycle
-- Annual Improvements to IFRSs - 2011-2013 Cycle
The Group has not early adopted any other standard,
interpretation or amendment that has been issued but is not yet
effective.
4 Adjusted measures
The Company uses a number of non-Generally Accepted Accounting
Practice ('non-GAAP') financial measures in addition to those
reported in accordance with IFRS. The Directors believe that these
non-GAAP measures, listed below, are important when assessing the
underlying financial and operating performance of the Group.
4.1 Adjusted revenue
Adjusted revenue excludes the revenue from a disposed
subsidiary, RDC, for both the current period and for comparative
reporting periods. RDC was sold on 2 February 2015.
4.2 Adjusted results
As above, the adjusted results exclude the results of RDC for
both the current and comparative periods.
Adjusted revenue, adjusted Services revenue, adjusted
Professional Services revenue and adjusted Supply Chain revenue
excludes the revenue from a disposed subsidiary, RDC, for both the
current period and the comparative reporting period. RDC was sold
on 2 February 2015. Adjusted operating profit or loss, adjusted
profit or loss before tax, adjusted profit or loss for the period,
adjusted earnings per share and adjusted diluted earnings per share
are, as appropriate, each stated before: exceptional and other
adjusting items including gain or loss on business disposals,
amortisation of acquired intangibles, utilisation of deferred tax
assets (where initial recognition was as an exceptional item or a
fair value adjustment on acquisitions), and the related tax effect
of these exceptional and other adjusting items, as management do
not consider these items when reviewing the underlying performance
of the segment or the Group as a whole.
Additionally, adjusted operating profit or loss takes account of
the interest paid on customer-specific financing ('CSF') which
management considers to be a cost of sale.
A reconciliation between key adjusted and statutory measures is
provided in note 5, segment information, with further detail
provided as part of financial review.
5 Segment information
For management purposes, the Group is organised into
geographical segments, with each segment determined by the location
of the Group's assets and operations. The Group's business in each
geography is managed separately.
No operating segments have been aggregated to form the
reportable operating segments shown below.
Segmental performance for the periods to H1 2015, H1 2014 and
Full Year 2014 were as follows:
Six months ended 30 June 2015 (unaudited)
UK Germany France Belgium Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------- -------- -------- -------- ---------
Revenue
------------------------------------- ---------------------------- -------------------
Adjusted Supply Chain revenue 425,099 349,624 157,937 16,106 948,766
------------------------------------- -------- -------- -------- -------- ---------
Adjusted Services revenue
------------------------------------- ---------------------------- -------------------
Professional Services 64,665 51,061 8,381 752 124,859
------------------------------------- -------- -------- -------- -------- ---------
Managed Services 198,923 134,669 23,477 7,263 364,332
------------------------------------- -------- -------- -------- -------- ---------
Total adjusted Services revenue 263,588 185,730 31,858 8,015 489,191
------------------------------------- -------- -------- -------- -------- ---------
Total adjusted revenue 688,687 535,354 189,795 24,121 1,437,957
------------------------------------- -------- -------- -------- -------- ---------
RDC
------------------------------------- ---------------------------- -------------------
Supply Chain revenue 3,157 - - - 3,157
------------------------------------- -------- -------- -------- -------- ---------
Professional Services revenue 290 - - - 290
------------------------------------- -------- -------- -------- -------- ---------
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
Total RDC revenue 3,447 - - - 3,447
------------------------------------- -------- -------- -------- -------- ---------
Statutory revenue 692,134 535,354 189,795 24,121 1,441,404
------------------------------------- -------- -------- -------- -------- ---------
Results
------------------------------------- ---------------------------- -------------------
Adjusted gross profit 102,920 67,026 12,561 3,011 185,518
------------------------------------- -------- -------- -------- -------- ---------
Administrative expenses (80,008) (58,505) (15,554) (1,962) (156,029)
------------------------------------- -------- -------- -------- -------- ---------
Adjusted operating profit/(loss) 22,912 8,521 (2,993) 1,049 29,489
------------------------------------- -------- -------- -------- -------- ---------
Adjusted net interest 273 (738) 94 (52) (423)
------------------------------------- -------- -------- -------- -------- ---------
Adjusted profit/(loss) before tax 23,185 7,783 (2,899) 997 29,066
------------------------------------- -------- -------- -------- -------- ---------
Exceptional items:
------------------------------------- ---------------------------- -------------------
- onerous contracts trading losses - (690) - - (690)
------------------------------------- -------- -------- -------- -------- ---------
- onerous contracts provision for
future losses - 1,126 - - 1,126
------------------------------------- -------- -------- -------- -------- ---------
- exceptional gains/(losses) - - (449) - (449)
------------------------------------- -------- -------- -------- -------- ---------
Total exceptional items - 436 (449) - (13)
------------------------------------- -------- -------- -------- -------- ---------
Gain on disposal of a subsidiary 42,155 - - - 42,155
------------------------------------- -------- -------- -------- -------- ---------
Amortisation of acquired intangibles (240) (572) - (39) (851)
------------------------------------- -------- -------- -------- -------- ---------
RDC 320 - - - 320
------------------------------------- -------- -------- -------- -------- ---------
Statutory profit/(loss) before
tax 65,420 7,647 (3,348) 958 70,677
------------------------------------- -------- -------- -------- -------- ---------
The reconciliation for adjusted operating profit to operating
profit, as disclosed in the Consolidated Income Statement, is as
follows:
Six months ended 30 June 2015 (unaudited)
UK Germany France Belgium Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- -------- -------- --------
Adjusted segment operating profit/(loss) 22,912 8,521 (2,993) 1,049 29,489
----------------------------------------- ------ -------- -------- -------- --------
Add back interest on CSF 33 147 - - 180
----------------------------------------- ------ -------- -------- -------- --------
Amortisation of acquired intangibles (240) (572) - (39) (851)
----------------------------------------- ------ -------- -------- -------- --------
Exceptional items - 436 (449) - (13)
----------------------------------------- ------ -------- -------- -------- --------
RDC 319 - - - 319
----------------------------------------- ------ -------- -------- -------- --------
Segment operating profit/(loss) 23,024 8,532 (3,442) 1,010 29,124
----------------------------------------- ------ -------- -------- -------- --------
Other segment information
----------------------------------------- ------ ------------------ ------------------
Share-based payments 1,711 180 142 - 2,033
----------------------------------------- ------ -------- -------- -------- --------
5 Segment information continued
Six months ended 30 June 2014
(unaudited)
----------------------------------------- -------------------------------------------------
UK Germany France Belgium Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------- -------- -------- -------- -------- ---------
Revenue
----------------------------------------- -------- -------- -------- -------- ---------
Adjusted Supply Chain revenue 412,483 326,830 193,037 15,862 948,212
----------------------------------------- -------- -------- -------- -------- ---------
Adjusted Services revenue
----------------------------------------- -------- -------- -------- -------- ---------
Professional Services 58,480 55,446 10,316 1,474 125,716
----------------------------------------- -------- -------- -------- -------- ---------
Managed Services 181,570 144,246 27,525 8,169 361,510
----------------------------------------- -------- -------- -------- -------- ---------
Total adjusted Services revenue 240,050 199,692 37,841 9,643 487,226
----------------------------------------- -------- -------- -------- -------- ---------
Total adjusted revenue 652,533 526,522 230,878 25,505 1,435,438
----------------------------------------- -------- -------- -------- -------- ---------
RDC
----------------------------------------- -------- -------- -------- -------- ---------
Supply Chain revenue 21,559 - - - 21,559
----------------------------------------- -------- -------- -------- -------- ---------
Professional Services revenue 1,287 - - - 1,287
----------------------------------------- -------- -------- -------- -------- ---------
Total RDC revenue 22,846 - - - 22,846
----------------------------------------- -------- -------- -------- -------- ---------
Statutory revenue 675,379 526,522 230,878 25,505 1,458,284
----------------------------------------- -------- -------- -------- -------- ---------
Results
----------------------------------------- -------- -------- -------- -------- ---------
Adjusted gross profit 96,895 69,648 14,734 3,256 184,533
----------------------------------------- -------- -------- -------- -------- ---------
Administrative expenses (74,381) (61,807) (20,406) (2,274) (158,868)
----------------------------------------- -------- -------- -------- -------- ---------
Adjusted operating profit/(loss) 22,514 7,841 (5,672) 982 25,665
----------------------------------------- -------- -------- -------- -------- ---------
Adjusted net interest 377 328 (738) (57) (90)
----------------------------------------- -------- -------- -------- -------- ---------
Adjusted profit/(loss) before
tax 22,891 8,169 (6,410) 925 25,575
----------------------------------------- -------- -------- -------- -------- ---------
Exceptional items:
----------------------------------------- -------- -------- -------- -------- ---------
- onerous contracts trading losses - (2,383) - - (2,383)
----------------------------------------- -------- -------- -------- -------- ---------
- onerous contracts provision
for future losses - 2,375 - - 2,375
----------------------------------------- -------- -------- -------- -------- ---------
- exceptional gains/(losses) - - (9,092) - (9,092)
----------------------------------------- -------- -------- -------- -------- ---------
Total exceptional items - (8) (9,092) - (9,100)
----------------------------------------- -------- -------- -------- -------- ---------
Amortisation of acquired intangibles (240) (600) - (44) (884)
----------------------------------------- -------- -------- -------- -------- ---------
RDC 2,443 - - - 2,443
----------------------------------------- -------- -------- -------- -------- ---------
Statutory profit/(loss) before
tax 25,094 7,561 (15,502) 881 18,034
----------------------------------------- -------- -------- -------- -------- ---------
The reconciliation for adjusted operating profit to operating profit as
disclosed in the Consolidated Income Statement is as follows:
--------------------------------------------------------------------------------------------
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
UK Germany France Belgium Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------- -------- -------- -------- -------- ---------
Adjusted segment operating profit/(loss) 22,514 7,841 (5,672) 982 25,665
----------------------------------------- -------- -------- -------- -------- ---------
Add back interest on CSF 108 227 - - 335
----------------------------------------- -------- -------- -------- -------- ---------
Amortisation of acquired intangibles (240) (600) - (44) (884)
----------------------------------------- -------- -------- -------- -------- ---------
Exceptional items - (8) (9,092) - (9,100)
----------------------------------------- -------- -------- -------- -------- ---------
RDC 2,441 - - - 2,441
----------------------------------------- -------- -------- -------- -------- ---------
Segment operating profit/(loss) 24,823 7,460 (14,764) 938 18,457
----------------------------------------- -------- -------- -------- -------- ---------
Other segment information
----------------------------------------- -------- -------- -------- -------- ---------
Share-based payments 1,373 178 173 - 1,724
----------------------------------------- -------- -------- -------- -------- ---------
5 Segment information continued
Year ended 31 December 2014
----------------------------------------- ---------------------------------------------------
UK Germany France Belgium Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------- --------- --------- -------- -------- ---------
Revenue
----------------------------------------- --------- --------- -------- -------- ---------
Adjusted Supply Chain revenue 878,145 774,913 393,406 34,580 2,081,044
----------------------------------------- --------- --------- -------- -------- ---------
Adjusted Services revenue
----------------------------------------- --------- --------- -------- -------- ---------
Professional Services 120,446 108,950 19,752 2,113 251,261
----------------------------------------- --------- --------- -------- -------- ---------
Managed Services 368,663 283,203 57,957 15,979 725,802
----------------------------------------- --------- --------- -------- -------- ---------
Total adjusted Services revenue 489,109 392,153 77,709 18,092 977,063
----------------------------------------- --------- --------- -------- -------- ---------
Total adjusted revenue 1,367,254 1,167,066 471,115 52,672 3,058,107
----------------------------------------- --------- --------- -------- -------- ---------
RDC
----------------------------------------- --------- --------- -------- -------- ---------
Supply Chain revenue 41,197 - - - 41,197
----------------------------------------- --------- --------- -------- -------- ---------
Professional Services revenue 8,455 - - - 8,455
----------------------------------------- --------- --------- -------- -------- ---------
Total RDC revenue 49,652 - - - 49,652
----------------------------------------- --------- --------- -------- -------- ---------
Statutory revenue 1,416,906 1,167,066 471,115 52,672 3,107,759
----------------------------------------- --------- --------- -------- -------- ---------
Results
----------------------------------------- --------- --------- -------- -------- ---------
Adjusted gross profit 209,555 151,682 31,757 6,120 399,114
----------------------------------------- --------- --------- -------- -------- ---------
Administrative expenses (148,827) (124,906) (40,592) (4,057) (318,382)
----------------------------------------- --------- --------- -------- -------- ---------
Adjusted operating profit/(loss) 60,728 26,776 (8,835) 2,063 80,732
----------------------------------------- --------- --------- -------- -------- ---------
Adjusted net interest 929 452 (929) (125) 327
----------------------------------------- --------- --------- -------- -------- ---------
Adjusted profit/(loss) before
tax 61,657 27,228 (9,764) 1,938 81,059
----------------------------------------- --------- --------- -------- -------- ---------
Exceptional items:
----------------------------------------- --------- --------- -------- -------- ---------
- onerous contracts trading losses - (3,824) - - (3,824)
----------------------------------------- --------- --------- -------- -------- ---------
- onerous contracts provision
for future losses - 5,364 - - 5,364
----------------------------------------- --------- --------- -------- -------- ---------
- exceptional gains/(losses) - - (9,128) - (9,128)
----------------------------------------- --------- --------- -------- -------- ---------
Total exceptional items - 1,540 (9,128) - (7,588)
----------------------------------------- --------- --------- -------- -------- ---------
Amortisation of acquired intangibles (551) (1,232) - (85) (1,868)
----------------------------------------- --------- --------- -------- -------- ---------
RDC 4,815 - - - 4,815
----------------------------------------- --------- --------- -------- -------- ---------
Statutory profit/(loss) before
tax 65,921 27,536 (18,892) 1,853 76,418
----------------------------------------- --------- --------- -------- -------- ---------
The reconciliation for adjusted operating profit to operating profit, as
disclosed in the Consolidated Income Statement, is as follows:
Year ended 31 December 2014
----------------------------------------------------------------------------------------------
UK Germany France Belgium Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------- --------- --------- -------- -------- ---------
Adjusted segment operating profit/(loss) 60,728 26,776 (8,835) 2,063 80,732
----------------------------------------- --------- --------- -------- -------- ---------
Add back interest on CSF 165 391 - - 556
----------------------------------------- --------- --------- -------- -------- ---------
Amortisation of acquired intangibles (551) (1,232) - (85) (1,868)
----------------------------------------- --------- --------- -------- -------- ---------
Exceptional and other adjusting
items - 1,540 (9,128) - (7,588)
----------------------------------------- --------- --------- -------- -------- ---------
RDC 4,815 - - - 4,815
----------------------------------------- --------- --------- -------- -------- ---------
Segment operating profit/(loss) 65,157 27,475 (17,963) 1,978 76,647
----------------------------------------- --------- --------- -------- -------- ---------
Other segment information
----------------------------------------- --------- --------- -------- -------- ---------
Share-based payments 2,525 215 63 - 2,803
----------------------------------------- --------- --------- -------- -------- ---------
6 Seasonality of operations
Historically, revenues have been higher in the second half of
the year than in the first six months. This is principally driven
by customer buying behaviour in the markets in which we operate.
Typically this leads to a more pronounced effect on operating
profit. In addition, the effect is compounded further by the
tendency for the holiday entitlements of our employees to accrue
during the first half of the year and to be utilised in the second
half.
7 Exceptional and other adjusting items
Unaudited Unaudited Audited
H1 2015 H1 2014 Year 2014
GBP'000 GBP'000 GBP'000
----------------------------------------------- --------- --------- ----------
Operating profit
----------------------------------------------- --------- ---------------------
Redundancy and other restructuring costs (449) (9,100) (9,128)
(MORE TO FOLLOW) Dow Jones Newswires
August 28, 2015 02:01 ET (06:01 GMT)
----------------------------------------------- --------- --------- ----------
Onerous contracts 436 - 1,540
----------------------------------------------- --------- --------- ----------
(13) (9,100) (7,588)
----------------------------------------------- --------- --------- ----------
Gain on disposal of a subsidiary 42,155 - -
----------------------------------------------- --------- --------- ----------
Exceptional and other adjusting items before
taxation 42,142 (9,100) (7,588)
----------------------------------------------- --------- --------- ----------
Income tax
----------------------------------------------- --------- ---------------------
Tax on onerous contracts included in operating
profit (52) - (185)
----------------------------------------------- --------- --------- ----------
Exceptional and other adjusting items after
taxation 42,090 (9,100) (7,773)
----------------------------------------------- --------- --------- ----------
Included within the current period are the following exceptional
and other adjusting items:
-- Computacenter (UK) Limited disposed of its wholly owned
subsidiary RDC during the period. A gain of GBP42.2 million was
recognised on disposal of RDC. See Note 12 for details. In line
with our accounting policy, management has elected under IAS1 to
report this gain as a separate line item on the face of the income
statement due to the materiality, infrequency and nature of the
gain on disposal of RDC. As noted on Note 4.2 the adjusted results
exclude this gain. This election provides the best guidance to
users of our external reporting as to the underlying profitability
trends within the Group and to present the results of the Group in
a way that is fair, balanced and understandable.
-- Computacenter France continued with its substantial
restructuring exercise that began in 2014. An additional cost of
GBP0.4 million has been recognised as part of the Social Plan. As
the redundancy and restructuring costs were previously treated as
an exceptional item on recognition, the further provision has also
been treated as an exceptional item.
-- The Group's remaining two onerous contracts continue to show
operational improvements therefore management has revised its
estimates of the losses to be incurred. On this basis the Group has
released GBP0.4 million of the provision. As the onerous contracts
were previously treated as an exceptional item on recognition, the
write back of the provision has also been released as an
exceptional item.
Included within the prior period is the following exceptional
and other adjusting items:
Computacenter France incurred an exceptional charge of GBP9.1
million relating to the estimated costs of a comprehensive
restructuring plan within the Group's French business that has been
provided for at 30 June 2014. The substantial restructuring
exercise aimed to reduce the cost base, improve the competitiveness
and therefore improve the profitability of the Group's French
business.
8 Income tax
The Group calculates the period income tax expense using the tax
rate that would be applicable to the total expected total annual
earnings.
The charge based on the profit for the period comprises:
Unaudited Unaudited Audited
H1 2015 H1 2014 Year 2014
GBP'000 GBP'000 GBP'000
-------------------------------------------- ---------- --------- ----------
UK corporation tax 6,077 6,653 17,048
--------------------------------------------- --------- --------- ----------
Foreign tax
--------------------------------------------- --------- ---------------------
- before exceptional items 3,643 2,159 5,820
--------------------------------------------- --------- --------- ----------
- exceptional items - - (459)
--------------------------------------------- --------- --------- ----------
Total foreign tax 3,643 2,159 5,361
--------------------------------------------- --------- --------- ----------
Adjustments in respect of prior periods - (103) 191
--------------------------------------------- --------- --------- ----------
Total current income tax 9,720 8,709 22,600
--------------------------------------------- --------- --------- ----------
Deferred tax
--------------------------------------------- --------- ---------------------
- before exceptional items (785) (790) (1,340)
--------------------------------------------- --------- --------- ----------
- adjustments in respect of prior periods - - (604)
--------------------------------------------- --------- --------- ----------
Exceptional items - - 644
--------------------------------------------- --------- --------- ----------
Total deferred tax (785) (790) (1,300)
--------------------------------------------- --------- --------- ----------
8,935 7,919 21,300
--------------------------------------------- --------- --------- ----------
9 Earnings per ordinary share
Earnings per share amounts are calculated by dividing profit
attributable to ordinary equity holders by the weighted average
number of ordinary shares outstanding during the year (excluding
own shares held).
Diluted earnings per share amounts are calculated by dividing
profit attributable to ordinary equity holders by the weighted
average number of ordinary shares outstanding during the year
(excluding own shares held) adjusted for the effect of dilutive
options.
Unaudited Unaudited Audited
H1 2015 H1 2014 Year 2014
GBP'000 GBP'000 GBP'000
--------------------------- ---------------------------- --------- ----------
Profit attributable to equity holders of the
parent 61,742 10,115 55,117
------------------------------------------------ ------- --------- ----------
H1 2015 H1 2014 Year 2014
No. '000 No. '000 No. '000
------------------------------------------------------------ --------- ---------
Basic weighted average number of shares (excluding
own shares held) 124,571 135,961 135,985
--------------------------------------------------- ------- --------- ---------
Effect of dilution:
--------------------------------------------------- ------- --------------------
Share options 2,014 1,423 1,784
--------------------------------------------------- ------- --------- ---------
Diluted weighted average number of shares 126,585 137,384 137,769
--------------------------------------------------- ------- --------- ---------
H1 2015 H1 2014 Year 2014
pence pence pence
------------------------------------------- ---------- ------- ---------
Basic earnings per share 49.6 7.4 40.5
----------------------------------------------- ------ ------- ---------
Diluted earnings per share 48.8 7.4 40.0
----------------------------------------------- ------ ------- ---------
10 Dividends paid and proposed
A final dividend for 2014 of 13.1 pence per ordinary share was
paid on 19 June 2015. An interim dividend in respect of 2015 of 6.4
pence per ordinary share, amounting to a total dividend of
GBP7,850,110, was declared by the Directors at their meeting on 27
August 2015. The expected payment date of the dividend declared is
16 October 2015. This interim report does not reflect this dividend
payable.
11 Return of Value
On 20 February 2015 (the "Issue Date"), the Company effected a
capital reorganisation (the "Capital Reorganisation") in order to
facilitate the Return of Value to shareholders. As part of the
Capital Reorganisation, each existing ordinary share of 6 (2) /(3)
each was subdivided into 15 undesignated shares of (4) /(9) pence
each, and immediately following such subdivision every 17
undesignated shares were consolidated into 1 new ordinary share of
7 (5) /(9) pence each. Additionally on the Issue Date, an amount of
GBP14,500 standing to the credit of the Company's share premium
account was applied to pay up in full 145,000,000 non-redeemable B
shares with a nominal value of 0.01 pence each.
12 Business combinations
Disposal of subsidiary
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