Computacenter PLC Pre-Close Trading Statement (5361M)
January 22 2021 - 2:00AM
UK Regulatory
TIDMCCC
RNS Number : 5361M
Computacenter PLC
22 January 2021
Computacenter plc
Incorporated in England
Registration number: 03110569
LEI: 549300XSXUZ1I19DB105
ISIN: GB00BV9FP302
FOR IMMEDIATE RELEASE
Computacenter plc
Pre-Close Trading Update - 22 January 2021
Computacenter plc ("Computacenter" or the "Group"), a leading
independent technology partner trusted by large corporate and
public sector organisations, today publishes a trading update,
based on preliminary unaudited financial information, for the year
ended 31 December 2020 ("the year").
Overview
Computacenter's trading has continued positively through to the
end of the year which enables us to increase our guidance further
from that last given on 10 December 2020. We now believe
adjusted(1) profit before tax for the year as a whole will be in
excess of GBP195 million.
Financial Performance
Total revenue for the Group grew by eight per cent. Excluding
the effect of the recent acquisitions made in November, Pivot
Technology Solutions in North America and BT Services France, total
revenue grew by three per cent overall.
Throughout the Group we saw strong growth in Technology Sourcing
product sales into the public sector and services based customers
as opposed to customers in the manufacturing and industrial sectors
where spend slowed materially. Services revenues remained broadly
flat across the Group, with strong utilisation of our own staff and
a reduction in contractor spend, leading to improved margins. This
margin improvement coupled with a significant reduction in cost due
predominantly to restricted travel enabled the improved
profitability achieved in the year.
Financial Position
The Group's adjusted(2) net funds, excluding IFRS16 lease
liabilities, finished extremely strongly at around GBP188 million.
Our usual strong year-end net funds position was strengthened still
further as a number of our customers paid ahead of normal payment
cycles, partly, we suspect, where overseas customers looked to
avoid sometimes negative interest rates.
Group Outlook
The positive momentum we have seen in trading since the start of
the pandemic shows no sign of abating, and our pipelines for both
Technology Sourcing and Services are as strong as at any time we
have seen in the last year. While it is impossible to predict when
or how our customers will react as the pandemic reduces its impact
on our day to day lives, given the momentum we have in the business
which is obviously further aided by our acquisition in the US, we
are as confident as we can be at this stage that 2021 will be a
year of progress for the Group.
We look forward to publishing our final results for the year
ended 31 December 2020 on Tuesday 16 March 2021.
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 Oliver
Norgate at Tulchan Communications at computacenter@tulchangroup.com
.
(1) Adjusted profit before tax is stated before: exceptional and
other adjusting items including gain or losses on business
acquisitions and disposals, and amortisation of acquired
intangibles, as Management do not consider these items when
reviewing the underlying performance of the Group. Further detail
on the impact of exceptional and other adjusted items when compared
to the non-Generally Accepted Accounting Practice financial
measures, in addition to those reported in accordance with IFRS, is
provided within our 2019 Annual Report and Accounts.
(2) Adjusted net funds includes cash and cash equivalents, other
short or other long-term borrowings and current asset investments.
Following the adoption of IFRS 16 this measure excludes all finance
lease liabilities. A table reconciling this measure, including the
impact of finance lease liabilities, is provided within our 2019
Annual Report and Accounts.
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END
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