Computacenter PLC Pre-Close Trading Statement (8166N)

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 [e-mail]

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 [e-mail] or visit www.rns.com.

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January 23, 2019 02:00 ET (07:00 GMT)