Computacenter PLC Q3 2016 Trading Statement (1148N)
October 21 2016 - 2:00AM
UK Regulatory
TIDMCCC
RNS Number : 1148N
Computacenter PLC
21 October 2016
Computacenter plc
Q3 2016 Trading Update
21 October 2016
Computacenter plc ("Computacenter" or the "Group"), the provider
of IT infrastructure services that enables users, today publishes a
trading update for the third quarter. Figures below are based on
unaudited financial information for the nine months to 30(th)
September 2016 ("year-to-date").
Financial Performance
Overall revenue for the third quarter was up 2% to GBP735
million (2015: GBP721 million) on an as reported basis, and down 4%
in constant currency. Year-to-date revenue grew by 4% on an as
reported basis, and reduced by 2% in constant currency. Group
Services revenue grew by 4% on an as reported basis and reduced by
1% in constant currency in the third quarter, resulting in
year-to-date growth of 4% and a reduction of 1% respectively. Group
Supply Chain revenue grew by 1% on an as reported basis and reduced
by 5% in constant currency in the third quarter, bringing the
year-to-date position to a growth of 4% and a reduction of 2%
respectively.
The outlook for the Group's trading result for the whole of 2016
remains in line with the Board's expectations as expressed at the
time of our Interim Results announcement.
UK
Whilst the UK continued to demonstrate softness in its results
through the third quarter, the performance was better than H1 with
an overall revenue reduction of 3% to GBP314 million (2015: GBP323
million), improving the year-to-date position to an overall
reduction of 4%. Services revenue in the third quarter fell by 10%
and during the year-to-date by 8%, and Supply Chain revenue grew by
2% in the quarter, bringing the year-to-date position to a
reduction of 2%.
We are pleased to see a return to growth in our Supply Chain
business, however, as broadly anticipated, our Services revenue
remains challenged principally due to the buoyant nature of
projects in 2015.
Germany
German revenue for the third quarter decreased by 2% in constant
currency and increased by 8% on an as reported basis to GBP325
million (2015: GBP301 million). This brings the year-to-date
position to an increase of 3% in constant currency and 14% on an as
reported basis. Services revenue increased by 10% in the third
quarter in constant currency and by 22% on an as reported basis,
bringing the year-to-date position to an increase of 8% and 19%
respectively. Supply Chain revenue reduced by 8% in constant
currency and increased by 2% on an as reported basis during the
third quarter bringing the year-to-date position to an increase of
1% and 11% respectively.
It is encouraging to see the positive momentum of our German
business from the first half continued into Q3.
France
In the third quarter, French revenue decreased by 12% in
constant currency and by 3% on an as reported basis to GBP83
million (2015: GBP85 million), bringing the year-to-date position
to a decline of 7% and a growth of 3% respectively. Services
revenue reduced by 1% in constant currency and grew by 9% on an as
reported basis, bringing the year-to-date position to a decline of
3% and a growth of 7% respectively. Supply Chain revenue in the
third quarter declined by 14% in constant currency and by 5% on an
as reported basis, bringing the year-to-date position to a decline
of 7% and an increase of 2% respectively.
Our strategy of reshaping our French business in line with the
Group's strategy continues to deliver a positive profit
performance.
Financial Position
At the end of Q3 2016, Group net funds were GBP96.7 million.
This is up by approximately GBP29 million on last year.
We remain on target to finish the year with record levels of net
funds.
Group Outlook
While much remains to be done in 2016 in the all-important
fourth quarter, the performance in the third quarter has
re-enforced our confidence for the year as a whole.
Prospects for 2017 and beyond, particularly driven by the
increased adoption of the digital workplace, are encouraging across
all our geographies.
Computacenter's next scheduled trading update will be the
pre-close briefing, prior to the annual results, which is scheduled
for 23 January 2017.
Change vs Q3 Change Q3 Change
2015 As Reported Constant
* Currency
**
------------------ ------------- ----------
Supply Chain
Revenue
UK 2% 2%
Germany 2% (8%)
France (5%) (14%)
Group 1% (5%)
-------------------- ------------- ----------
Services Revenue
UK (10%) (10%)
Germany 22% 10%
France 9% (1%)
Group 4% (1%)
-------------------- ------------- ----------
Total Revenue
UK (3%) (3%)
Germany 8% (2%)
France (3%) (12%)
Group 2% (4%)
-------------------- ------------- ----------
* Change vs 2015 Q3 revenues
reported at 2015 exchange rates
** Change vs 2015 Q3 revenues
reported at 2016 exchange rates
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
This information is provided by RNS
The company news service from the London Stock Exchange
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