Computacenter PLC Q3 2018 Trading Update (7762F)
October 31 2018 - 3:00AM
UK Regulatory
TIDMCCC
RNS Number : 7762F
Computacenter PLC
31 October 2018
Computacenter plc
Incorporated in England
Registration number: 03110569
LEI: 549300XSXUZ1I19DB105
ISIN: GB00BV9FP302
FOR IMMEDIATE RELEASE
Computacenter plc
Q3 Trading Update - 31(st) October 2018
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 2018 ("year-to-date") and excludes revenues from the
acquisition in the Netherlands which was completed on 1(st)
September 2018 and our US acquisition completed on 30th September
2018.
Financial Performance
Overall Group revenue for the third quarter declined
year-on-year by three per cent to GBP900 million (2017: GBP931.9
million) and by the same amount in constant currency. This small
decline, compared to the strong results in the first half, is due
to a significantly more challenging comparison. To illustrate this,
the first half of 2017 saw growth of nine per cent against the
first half of 2016, whereas the third quarter of 2017 grew by 20
per cent against the comparative period, both in constant currency.
The third quarter Group revenues lead to a year-to-date increase of
11 per cent and of ten per cent in constant currency.
Group Services revenue grew by one per cent in constant currency
during Q3 leading to a year-to-date growth of one per cent in
constant currency. Group Technology Sourcing revenue declined by
five per cent during the quarter leading to a year-to-date growth
of 14 per cent, both in constant currency. Growth rates in constant
currency are not significantly different to the reported sterling
equivalent growth rates and both are presented below for
comparison.
UK
The UK saw a decline in overall revenue of nine per cent in the
third quarter to GBP296 million (2017: GBP326 million) leading to a
year-to-date increase of 17 per cent. Services revenue in the third
quarter decreased by four per cent in line with the decrease in the
year as a whole.
Technology Sourcing revenue decreased by 12 per cent in the
third quarter leading to a year-to-date increase of 28 per
cent.
Germany
German revenue grew in the third quarter by one per cent to
GBP451 million (2017: GBP448 million), and by two per cent in
constant currency, leading to a year-to-date increase of nine per
cent and of eight per cent in constant currency. Services revenue
increased in the third quarter by one per cent, and by two per cent
in constant currency, leading to a year-to-date increase of six per
cent and of five per cent in constant currency. Technology Sourcing
revenue increased in the third quarter by one per cent and by two
per cent in constant currency, leading to a year-to-date increase
of ten per cent and of nine per cent in constant currency.
France
French revenue declined in the third quarter by six per cent,
and by the same amount in constant currency, to GBP119 million
(2017: GBP127 million), leading to a year-to-date decline of two
per cent and of three per cent in constant currency. Services
revenue in the third quarter declined by one per cent and was flat
in constant currency, leading to a year-to-date decline of seven
per cent and of eight per cent in constant currency. Technology
Sourcing revenue decreased in the third quarter by eight per cent
and by seven per cent in constant currency, leading to a
year-to-date flat position and a decline of one per cent in
constant currency.
International
Our International segment grew by 13 per cent in the third
quarter, and the same in constant currency to GBP34 million (2017:
GBP30 million) leading to a year-to-date growth of 12 per cent and
of 14 per cent in constant currency. Services growth in the third
quarter was 28 per cent, 29 per cent in constant currency leading
to a year-to-date growth of 23 percent, 28 per cent in constant
currency. In Technology Sourcing, which is a lot less significant
to our International segment, revenue declined by 13 per cent in
the third quarter, and by the same in constant currency leading to
a year-to-date decline of five per cent, six per cent in constant
currency.
Financial Position
At the end of the third quarter, Group cash and cash equivalents
were in line with the Board's expectations. During the first
quarter of the year we completed a Tender Offer returning
approximately GBP100 million to shareholders and at the end of the
third quarter we completed our Dutch acquisition. On 1 October
2018, the Group drew down an existing Computacenter debt facility
of GBP100 million, to fund the Initial Consideration and the
Capital Injection for the purchase of fusionstorm as set out in our
announcement on the same date.
Group Outlook
While the overall growth rates in the third quarter in isolation
are subdued compared to recent quarters, as mentioned above, the
third quarter presented a more challenging comparison. Our
expectation for the fourth quarter is for improved growth before
acquisitions but not to the levels seen in the first half of the
year.
As we look out further into the future our pipeline for
Professional Services is building nicely while the Infrastructure
Managed Services market place is somewhat more challenged which is
making growth more difficult. However, we remain confident in our
ability to gain Infrastructure Managed Services market share due to
our focus on innovation and productivity improvements.
The outlook for the Group's trading result for the whole of 2018
remains in line with the Board's expectations as upgraded within
the 12th July 2018 Trading Update and confirmed in the Interim
Results.
The core technology drivers of digitisation, Cloud, Security and
Network capacity improvement remain robust and these drivers,
coupled with our recent geographical expansion, should position us
well for future growth into 2019 and beyond.
Computacenter's next scheduled trading update will be the
pre-close briefing, prior to the Annual Results, which is scheduled
for 23(rd) January 2019.
Enquiries:
Computacenter plc
Mike Norris, Chief
Executive 01707 631601
Tony Conophy, Finance
Director 01707 631515
Tulchan Communications
James Macey White / 020 7353
Matt Low 4200
Change vs 2017 Q3 Change Q3 Change
As Reported* Constant
Currency**
----------------------- -------------- ------------
Technology Sourcing
Revenue
UK (12%) (12%)
Germany 1% 2%
France (8%) (7%)
International (13%) (13%)
Group (5%) (5%)
------------------------ -------------- ------------
Services Revenue
UK (4%) (4%)
Germany 1% 2%
France (1%) (0%)
International 28% 29%
Group 0% 1%
------------------------ -------------- ------------
Total Revenue
UK (9%) (9%)
Germany 1% 2%
France (6%) (6%)
International 13% 13%
Group (3%) (3%)
------------------------ -------------- ------------
* Change vs 2017 Q3 revenues reported
at 2017 exchange rates
** Change vs 2017 Q3 revenues reported
at 2018 exchange rates
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTBRBDGGDXBGIG
(END) Dow Jones Newswires
October 31, 2018 03:00 ET (07:00 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
