Computacenter PLC Pre-Close Trading Statement (1750O)
January 30 2023 - 2:00AM
UK Regulatory
TIDMCCC
RNS Number : 1750O
Computacenter PLC
30 January 2023
Computacenter plc
Incorporated in England
Registration number: 03110569
LEI: 549300XSXUZ1I19DB105
ISIN: GB00BV9FP302
FOR IMMEDIATE RELEASE
Computacenter plc
Pre-Close Trading Update - 30 January 2023
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 2022 ("the year").
Overview
Computacenter has finished the year with a record fourth
quarter, which will result in an eighteenth consecutive year of
underlying* adjusted diluted earnings per share growth, and a 2022
full-year result which is slightly ahead of the guidance given by
the Group in its Q3 Trading Update. Whilst our performance in 2022
has been helped by a strong US dollar, and a small acquisition in
the second half of the year, this assistance has been far
outweighed by the headwinds faced by the business as the
Covid-related benefits it experienced in 2020 and 2021 unwound,
particularly impacting our Services margins.
Financial Performance
Total revenue, on a Gross Invoiced Income basis, grew by over 30
percent including the effects of acquisitions made in the middle of
2022, and by over 27 per cent in constant currency.
We saw strong demand in all countries from Technology Sourcing
product sales which remained extremely buoyant to the end of the
year. Our Services revenue performance was strong, whilst our
Services margin performance was impacted by the unwinding of
covid-related benefits during the year, and inflationary pressures
which we expect to continue into 2023.
Financial Position
The Group's adjusted net funds, excluding IFRS16 lease
liabilities, finished extremely strongly at around GBP244 million.
At the half year we reported substantial increases in our
inventory, primarily as a result of supply chain shortages within
the industry. Whilst our inventory levels continued to increase
through until the end of the third quarter, these shortages have
since improved materially, and as a result there has been a
substantial reversal of this inventory position as the industry,
and particularly our customers, readjusted to more plentiful
supply. We expect our levels of inventory to reduce further in
2023, towards historical normal levels, as this trend continues.
December is the peak month in our annual cash cycle with net
outflows expected to occur through to the end of March 2023 in line
with our cash cycle.
Group Outlook
In line with our expectations, adjusted profit before tax was
down in the first half of the year against H1 2021, by nearly 6 per
cent. We are therefore pleased with the profit growth which we have
subsequently achieved for the year as a whole, and the significant
momentum that we will carry into 2023, including in our previous
and in-year US acquisitions, which have continued to make good
progress, both in terms of profit growth and cash generation.
Covid-19 factors have now washed through our results and will
not impact comparative numbers moving forward.
Our Technology Sourcing product sales remain extremely buoyant,
and we are confident of continued Services revenue growth. Services
margins are broadly in line with pre-covid levels, although
inflationary pressures will make it challenging to maintain this in
the short-term.
As we announced at the half year and in our Q3 Trading Update,
Computacenter has an ambitious investment programme within the
business, particularly in systems, to enhance our competitive
position and sustain our long-term performance. Despite the
uncertain macro-economic outlook within a number of our core
countries, and our substantial investment programme, we expect 2023
to be another year of progress.
Looking further ahead, we are encouraged by our customers
continued investment in technology, and we are as bullish as we
have ever been about our target market and competitive
positioning.
We look forward to publishing our final results for the year
ended 31 December 2022 on Monday 20 March 2023.
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
* As described on pages 72 to 73 of our 2021 Annual Report and
Accounts, several one-off tax items were processed during the
second half 2021 that substantially reduced the tax charge, and
therefore the adjusted ETR, for the year as a whole. These one-off
items are excluded from our internal underlying adjusted diluted
earnings per share measure which is used for measuring our progress
against LTIP performance conditions. Had the one-off items not
impacted during 2021, the underlying adjusted(1) diluted EPS for
2021 would have been 160.9 pence per share.
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