Computacenter PLC Pre-Close Trading Statement (8166N)
January 23 2019 - 2:00AM
UK Regulatory
TIDMCCC
RNS Number : 8166N
Computacenter PLC
23 January 2019
Computacenter plc
Incorporated in England
Registration number: 03110569
LEI: 549300XSXUZ1I19DB105
ISIN: GB00BV9FP302
FOR IMMEDIATE RELEASE
Computacenter plc
Pre-Close Trading Update - 23 January 2019
Computacenter plc ("Computacenter" or the "Group"), the provider
of IT infrastructure services that enables users, is today
providing an update on trading based on preliminary unaudited
financial information for the year ended 31 December 2018 ("the
year").
Overview
We stated one year ago that we expected 2018 to be a year of
stable profitability and we are pleased that we have materially
out-performed the expectations that we held at the beginning of the
year with record revenues and adjusted profitability.
Our adjusted pre-tax results for the year are anticipated to be
marginally ahead of the Board's expectation as upgraded within the
12 July 2018 Trading Update and confirmed both in the Interim
Results and the Q3 Trading Update on 31 October.
Financial Performance
Excluding the revenues from acquisitions made during the year,
overall Group revenue for the year grew by eight per cent and by
seven per cent in constant currency.
Group Services revenue for the year increased by one per cent
and by the same amount in constant currency. Group Technology
Sourcing revenue for the year increased by eleven per cent and by
ten per cent in constant currency.
UK
The UK overall revenue for the year increased by ten per cent.
Services revenue for the year decreased by five per cent.
Technology Sourcing revenue for the year increased by 17 per
cent.
Germany
German overall revenue grew in the year by nine per cent and by
eight per cent in constant currency. Services revenue for the year
increased by six per cent and by four per cent in constant
currency. Technology Sourcing revenue for the year increased by 11
per cent and by ten per cent in constant currency.
France
French overall revenue for the year declined by three per cent
and by four per cent in constant currency. Services revenue for the
year declined by five per cent and by six per cent in constant
currency. Technology Sourcing revenue for the year decreased by
three per cent and by four per cent in constant currency.
International
Our International segment, excluding the recent acquisitions,
increased overall revenue by 12 per cent and by 13 per cent in
constant currency. Services revenue for the year increased by 21
percent and by 24 per cent in constant currency. In Technology
Sourcing, which is a lot less significant to our International
segment, revenue for the year decreased by one per cent and by two
per cent in constant currency.
Acquired Businesses
The performance of the two businesses we acquired in the second
half of last year collectively outperformed our expectations,
particularly with the over performance of our new business in the
USA. Collectively these businesses delivered revenue in excess of
GBP220 million in the fourth quarter.
Financial Position
At the end of the year, Group cash and cash equivalents were
ahead of the Board's expectations. We were extremely pleased with
both the cash generation during the year and the closing cash and
cash equivalents position.
During the first quarter of the year we completed a Tender Offer
returning approximately GBP100 million to shareholders and during
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
As we have said above, 2018 was a record year which has
materially outperformed our original expectations. We believe that
we will again show financial progress during 2019. The first half
performance in 2018 will create a challenging comparison but
positive market momentum, driven by our customers' appetite to
invest in digital technology to enhance their business, gives the
Board confidence in the future. We will also see a full year
contribution from the acquisitions we made in the second half of
the year.
We look forward to publishing our final results for the year
ended 31 December 2018 on Tuesday 12 March 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
Conference Call:
There will be a conference call for analysts and investors this
morning at 08:30. For dial-in details, please contact Charlotte
Horner at Tulchan Communications at
Computacenter@tulchangroup.com
Appendix:
* Figures below exclude revenues from the acquisition in the
Netherlands which was completed on 1 September 2018 and our US
acquisition completed on 30 September 2018 for comparability
purposes.
Change vs 2017 Q4 Change Q4 Change FY Change FY Change
As Reported* Constant As Reported Constant
Currency** * Currency
**
--------------------- -------------- ------------ ------------- ----------
Technology Sourcing
Revenue
UK (4%) (4%) 17% 17%
Germany 12% 11% 11% 10%
France (8%) (9%) (3%) (4%)
International 8% 8% (1%) (2%)
Group 2% 2% 11% 10%
---------------------- -------------- ------------ ------------- ----------
Services Revenue
UK (8%) (8%) (5%) (5%)
Germany 3% 3% 6% 4%
France 0% 0% (5%) (6%)
International 15% 11% 21% 24%
Group (1%) (1%) 1% 1%
---------------------- -------------- ------------ ------------- ----------
Total Revenue
UK (5%) (5%) 10% 10%
Germany 9% 9% 9% 8%
France (7%) (7%) (3%) (4%)
International 12% 10% 12% 13%
Group 2% 1% 8% 7%
---------------------- -------------- ------------ ------------- ----------
* Change vs 2017 Q4 and FY revenues reported
at 2017 exchange rates
** Change vs 2017 Q4 and FY 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
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