Computacenter Share Discussion Threads

[srichardson8] 13/11/2020 10:32

Reply to my query on BT France Service acquisition

Many apologies for the delay in responding. Just to clarify that further information on the performance will likely be given in the pre-close update in January, with fuller disclosure offered in the 2020 preliminary announcement (and the follow on Annual Report & AGM)

In the meantime, it may be useful to read a passage from the September interim results statement explaining the rationale:

Based on the Cisco Gold Certification we received last year and our investments to develop our networking business, we have continued to expand our Networking and Security teams, as our business has grown significantly over the past few months in this space. This is also encouraging in anticipation of the BT Services France acquisition, which is planned to complete by the end of this year and will reinforce our services capabilities. We have a dedicated team working on the integration project.

As we anticipate some challenges with a couple of very large private sector accounts, we need to continue to develop our customer portfolio targeting large French organisations, to ensure we can create new opportunities. The business will continue to recruit sales specialists and business development managers in the second half of the year, to further support our long-term development plan and enable us to exploit addressable opportunities within the marketplace and start leveraging the BT Services France acquisition in early 2021.

It's also worth highlighting BT France is a significantly smaller transaction than Pivot so it requires a different level of disclosure, however it’s worth reiterating the company will look to provide more colour as early as possible next year.

[imastu pidgitaswell] 10/11/2020 15:48

Often the way - the ones that have done best get sold so peeps can out funds into the ones that will benefit directly from the vaccine - leisures, transports, entertainment etc.

Profit taking, basically.

[roks] 10/11/2020 15:41

ffs whats going on

[roks] 03/11/2020 14:54

Happy to consolidate above 22 for now, I guess I was a bit impatient for 27.
I notice there was a small change in my trading account, it was my CCC divi lol.

[togglebrush] 03/11/2020 11:25

Many thanks to srichardson82 for 929 of 929

[srichardson8] 02/11/2020 11:20

'BT’s domestic operations in France include management and maintenance of IT and network infrastructure, as well as networking and related professional services. During the fiscal year ending in March 2019 they generated total revenue of c.€118m (c.£104m). The acquisition would enable Computacenter to strengthen its position in the French networking market and increase the number of its major domestic customers in France.'

That is all I could find from the (I think) March announcement. I have asked IR if they will be releasing any further details but doubt if much wil be forthcoming for a small acqusition of an unquoted business.

[togglebrush] 02/11/2020 07:32

A very Taciturn company
‘
Pivot Technology Solutions, Inc. ("Pivot"), in Canada, …will become part of Computacenter on Monday 2 November 2020. By my calculation this cost equals £61.75 million,..Computacenter held cash and cash equivalents of £222.1 million at 30 June 2020 No other details available
'
On the same day we will acquire BT Services France see post 24 on this thread and no further details since 2017 No details available ???
'
Doesn’t the BOD believe shareholders are entitled to details of deals which concern the value of this company’s shares ???

[srichardson8] 30/10/2020 16:19

So far only once have I had much to worry about with Computacenter which we bought in September 2016. That was after August 18 when a slightly disappointing interim report suggested a poorish contribution from the (then newly acquired0 US business and a fall in UK sales. Since then things have gone pretty swimmingly and only in that year to December 2018 did RoCE fall below 20%, despite the modest headline margins. Contrast that (but only for a second) with MicroFocus. Now they are upping their bet on N America, a very tough market where (I assume) IBM is king of the computer services hill. In the 6 months to June confirmed acquisition Pivot had revenues of C$708mn but profits of only C$1.3mn (roughly £415m and £700k). But of revenues it does have 'approximately 70% of which is from Fortune 100 enterprises'. I trust CCC to make this a really significant acquisition over time despite that low price tag (about £60mn) for a company with decent revenues but a poor profit record.

[roks] 30/10/2020 10:35

Looks solid

[imastu pidgitaswell] 30/10/2020 07:26

Yep, there are companies like this and ADM, which just keep on keeping on through Brexit, pandemics, financial crises, Brexit 2 etc etc. Double digit annual share price growth plus dividends over a decade or more.

And everyone ignores them, preferring ones which crash. Odd really.

[roks] 29/10/2020 16:00

I was getting a bit panicky....

About this time of the year they have their ShareSave Scheme so employees maturing their 3 or 5 years plans get to buy their shares with their savings.

Not sure that has any significance on the share price ..

[bigbigdave] 29/10/2020 15:36

That's more like it up 3.7%, bring on the trading statement.

[tongosti] 28/10/2020 13:16

Thanks pal.

[roks] 28/10/2020 13:05

If this doesn't close above 23 then I think its gooing to try and close that gap from 20.30....just a guess.

[shanklin] 28/10/2020 13:01

Yep, well done tongosti

Glad I only added a few

[tongosti] 28/10/2020 12:23

Sometimes it works some other times it doesn't pal. I did not like the brutal reversal post a huge volume day closing at the high then. Still, am a fan of the business so on any future constructive behaviour I will look to reinitiate. Good luck.

[roks] 28/10/2020 12:15

Good moive tong....thought it would hold at 23 but its broken through.

[tongosti] 28/10/2020 10:02

As per my 903, the tape did a good job in announcing what would come up next.

[trainsailing] 24/10/2020 15:13

hxxps://schoolsweek.co.uk/100k-more-laptops-for-schools-but-access-is-slashed/

Government orders another 100,000 laptops which are being provided by Computacenter. With increasing Covid cases and businesses delaying their return to the office CCCs services will continue to be in demand.

[togglebrush] 24/10/2020 08:55

After the Bell RNS... extracts which may explain share price action ???
'
Computacenter ... confirms that, with the shareholder approval, ....acquisition of the entire issued share capital of Pivot, with an all cash offer of CAD 2.60 per share, will occur on Monday 2 November 2020.
'
Cost is CAD 105.8 million on a fully diluted basis of 40,688,650 shares, options, and Restricted Stock Units, payable upon completion of the acquisition. By my calculation this equals £61.75 million,
'
Computacenter held cash and cash equivalents of £222.1 million at 30 June 2020
'
Intention announced 9th Sep 20__________About Pivot::-
'
Pivot is an industry-leading information technology services and solutions provider to many of the world's most successful companies, including members of the Fortune 1000, as well as governments and educational institutions. By leveraging its extensive original equipment manufacturer (OEM) partnerships and its own fulfilment, professional, deployment, workforce and managed services, Pivot supports the IT infrastructure needs of its clients.
'
With over CAD $1 billion in revenues, approximately 70% of which is from Fortune 100 enterprises, the Company has a robust customer base on which to build growth: For more information, visit www.pivotts.com
'

[shanklin] 24/10/2020 07:24

Should affect the price on ex div date not payment date

[capitalist] 24/10/2020 07:14

Drop in part due to dividend being paid, possibly triggering bigger drop.

[tongosti] 23/10/2020 16:11

Agreed and happy to see you're managing risk on this one. Hope am wrong and you're right - if so I wouldn't be shy to try my luck again. Cheers.