Computacenter PLC Q1 2018 Trading Update and Capital Markets Event (3121M)
April 27 2018 - 2:00AM
UK Regulatory
TIDMCCC
RNS Number : 3121M
Computacenter PLC
27 April 2018
Computacenter plc
Q1 2018 Trading Update and Capital Markets Event
27 April 2018
Computacenter plc ("Computacenter" or the "Group"), the
independent provider of IT infrastructure services that enables
users, is today providing a trading update for the first quarter to
31 March 2018. Figures below are based on unaudited financial
information for that period.
Overview
While it is still early in the year, the first quarter's
performance has been better than expected, particularly for our
Supply Chain revenues. This leads the Board to believe that 2018 is
likely to be a year of further progress for Computacenter in
profitability as well as earnings per share.
Group Financial Performance
Group revenue for the first quarter has increased by 23 per cent
and by 21 per cent in constant currency. Group Services revenue
increased by two per cent and remained flat in constant currency.
Group Supply Chain revenue increased by 33 per cent and by 31 per
cent in constant currency.
This revenue performance is flattered by a one-off, not to be
repeated, software licence sale in the UK of GBP34.1m which, whilst
profitable, diluted Group margins. Excluding this one-off deal,
Group revenues were up 19 per cent and by 17 per cent in constant
currency. Supply Chain revenues were up 27 per cent and by 25 per
cent in constant currency. This is a much better comparison to use
both now and in 12 months' time.
UK revenue increased by 31 per cent, which represents 21 per
cent growth excluding the aforementioned software licence deal.
Services revenue declined by seven per cent and Supply Chain
revenue increased by 52 per cent, 37 per cent excluding the
software license deal.
German revenue increased by 19 per cent for the first quarter
with Services revenue increasing by seven per cent and Supply Chain
revenue increasing by 25 per cent, all in constant currency.
In France, our revenue was flat for the first quarter with an
increase of five per cent in Services revenue, and a decrease of
one per cent in Supply Chain revenue, all in constant currency.
Group Financial Position
At the end of the quarter, Group net funds were in line with the
Board's expectations. In the quarter we completed a Tender Offer
returning approximately GBP100 million to shareholders.
Group Outlook
As we have predicted, our customers' drive to digitalise their
business has driven strong demand for our Supply Chain revenues,
particularly in the UK and Germany. Our French business had a
difficult comparison due to the great performance last year.
Overall, we do not see any obvious reason why the current positive
market conditions for Computacenter should not continue in the near
term.
We are responding to our customers' desire to take cost out of
long-term support contracts by increasing the competitiveness of
our Services offerings through productivity improvements which
protect our profitability. However, this market trend does put
corresponding pressure on our Services top line growth which is
currently being more than compensated by the Supply Chain
performance.
Capital Markets Event
Computacenter is hosting a Capital Markets Event at its
Blackfriars office this morning. Presentations will be given by a
number of senior management focussed on the long-term strategic
development of the Group. A copy of the materials to be presented
today will be made available on the Computacenter website:
investors.computacenter.com. No new material information will be
provided during the presentations.
Our next scheduled trading update will be the announcement of
the Group's Interim Results on Friday 24 August 2018.
Enquiries:
Computacenter
plc
Mike Norris, Chief
Executive 01707 631601
Tony Conophy,
Finance Director 01707 631515
Tulchan Communications
020 7353
James Macey White 4200
Matt Low
--------------
Change vs 2017 Q1 Change Q1 Change
As Reported* Constant
Currency**
-------------------- -------------- ------------
Supply Chain
Revenue
UK 52% 52%
Germany 28% 25%
France 1% (1%)
Group 33% 31%
--------------------- -------------- ------------
Services Revenue
UK (7%) (7%)
Germany 10% 7%
France 8% 5%
Group 2% 0%
--------------------- -------------- ------------
Total Revenue
UK 31% 31%
Germany 22% 19%
France 3% 0%
Group 23% 21%
--------------------- -------------- ------------
* Change vs 2017 Q1 revenues
reported at 2017 exchange rates
** Change vs 2017 Q1 revenues
reported at 2018 exchange rates
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTUNRBRWBASUAR
(END) Dow Jones Newswires
April 27, 2018 02:00 ET (06:00 GMT)
Computacenter (LSE:CCC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Computacenter (LSE:CCC)
Historical Stock Chart
From Jul 2023 to Jul 2024