Computacenter PLC Q1 2016 Trading Update (8503V)

TIDMCCC

RNS Number : 8503V

Computacenter PLC

21 April 2016

Computacenter plc

Q1 2016 Trading Update

21 April 2016

Computacenter plc ("Computacenter" or the "Group"), the provider of IT infrastructure services that enables users, today publishes a trading update for the first quarter to 31 March 2016. Figures below are based on unaudited financial information for that period.

The revenue results in the text below exclude the impact of our subsidiary R.D. Trading Limited ("RDC") in 2016 and 2015, following the Group's disposal of RDC on 2 February 2015. For comparison purposes, results including RDC are shown within the table included in the Appendix to this trading update.

Financial Performance

Revenue for the first quarter, on an as reported basis, increased by 2% to GBP730.2 million (2015: GBP715.8 million). In constant currency, this was flat on the prior year, with Group Services revenue down by 1% and Group Supply Chain revenue growing by 1%.

Overall revenue in the UK was down 4% in the first quarter to GBP348.5 million (2015: GBP361.3 million). Supply Chain revenue reduced by 2% and Services revenue reduced by 5%. The Services revenue decline was broadly in-line with our expectations and is due to two factors. Firstly, the end of a large contract at the end of Q1 last year, which has been highlighted previously, and secondly, the large volume of new business take-on activity in the first half of 2015. We expect our comparative performance against 2015 to improve as we go through 2016.

Germany

Total revenue in our German business increased by 7% in constant currency to GBP281.2 million (2015: GBP261.8 million), with Services revenue growing by 7% and Supply Chain revenue growing by 8%. As indicated previously we are expecting growth in our Services business in Germany due to major contract wins in 2015 starting up in the first half of 2016. We are also enthusiastic about potential further wins in 2016 which would contribute to growth in the future.

France

Revenue in France declined by 6% in constant currency to GBP88.7 million (2015: GBP94.2 million), with Supply Chain revenue declining by 5% and Services revenue declining by 9%. Our French business has continued the improved pre-tax profit performance seen last year and while much work remains to be done, significant progress is being achieved.

Financial Position

At the end of Q1 2016, Group net funds were GBP102.5 million compared to GBP26.0 million at the end of Q1 2015. The GBP97.9 million return of value to shareholders was carried out prior to the end of Q1 2015, therefore these figures are directly comparable. This represents a cash out-flow of GBP18.3 million since the 2015 year end (Q1 2015: Cash out-flow of GBP50 million) which is lower than expected, partly due to foreign exchange revaluation benefit for net funds denominated in EUR Euro, and partly due to strong performance of our debtor collections which were aided by the quarter end timing.

Group Outlook

As we highlighted in our 2015 final results we expect 2016 to be a year of progress and we also expect to end the year with record levels of net funds.

Our momentum in Germany and pleasing performance compared to the past in France, looks set to continue. While the UK will have a more challenging year particularly in the first half as previously indicated, the new business pipeline is beginning to build.

Our next scheduled trading update will be the announcement of the Group's Interim Results on 26 August 2016.

Enquiries

Computacenter plc

   Mike Norris, Chief Executive                      01707 631601 
   Tony Conophy, Finance Director               01707 631515 
   Tulchan Communications                            020 7353 4200

James Macey White

Matt Low

APPENDIX

 
 
 
      Change vs         Q1 Change     Q1 Change    Q1 Change     Q1 Change 
         2015           As Reported    Constant    As Reported    Constant 
                             *         Currency         *         Currency 
                           (incl          **          (excl          ** 
                           RDC)         (incl         RDC)         (excl 
                                         RDC)                       RDC) 
 ------------------   -------------  ----------  -------------  ---------- 
 
 
  Supply Chain 
   Revenue 
  UK                       (4%)         (4%)          (2%)         (2%) 
  Germany                  12%           8%           12%           8% 
  France                   (2%)         (5%)          (2%)         (5%) 
 
  Group                     2%          (0%)           3%           1% 
 -------------------  -------------  ----------  -------------  ---------- 
 
  Services Revenue 
  UK                       (6%)         (6%)          (5%)         (5%) 
  Germany                  11%           7%           11%           7% 
  France                   (6%)         (9%)          (6%)         (9%) 
 
  Group                     1%          (1%)           1%          (1%) 
 -------------------  -------------  ----------  -------------  ---------- 
 
  Total Revenue 
  UK                       (4%)         (4%)          (4%)         (4%) 
  Germany                  11%           7%           11%           7% 
  France                   (2%)         (6%)          (2%)         (6%) 
 
  Group                     2%          (0%)           2%           0% 
 -------------------  -------------  ----------  -------------  ---------- 
 
 
  * Change vs Q1 revenues reported 
   at 2015 exchange rates 
  ** Change vs Q1 revenues reported 
   at 2016 exchange rates

This information is provided by RNS

The company news service from the London Stock Exchange

END

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