Computacenter PLC Trading Statement 1st Quarter 2017 (0577D)

TIDMCCC

RNS Number : 0577D

Computacenter PLC

24 April 2017

Computacenter plc

Incorporated in England

Registration number: 03110569

LEI: 549300XSXUZ1I19DB105

ISIN: GB00BV9FP302

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSE OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) No. 596/2014.

FOR IMMEDIATE RELEASE

Computacenter plc

Trading Update - 24 April 2017

Computacenter plc (the "Group"), the independent provider of IT infrastructure services that enables users, is today providing a trading update for the first quarter to 31 March 2017. This trading update is being made earlier than the date previously published due to the Group's performance in the first quarter and the improved outlook for the full year.

Overview

While much remains to be done to complete the year, we believe that the Group's performance for 2017 as a whole will exceed current market expectations(1) due to buoyant market conditions for new investments in technology, particularly seen by our German business, backed up by steady progress in France and UK and favourable currency movements.

Group Financial Performance

Group revenue for the first quarter has increased by 16 per cent on an as reported basis and by nine per cent in constant currency.

Group Services revenue increased by 14 per cent on an as reported basis and by seven per cent in constant currency.

Group Supply Chain revenue increased by 17 per cent on an as reported basis and by 11 per cent in constant currency.

UK revenue reduced by one per cent for the first quarter with Services revenue increasing by four per cent and Supply Chain revenue decreasing by four per cent.

German revenue increased by 23 per cent for the first quarter with Services revenue increasing by eight per cent and Supply Chain revenue increasing by 31 per cent, all in constant currency.

In France, our revenue increased by six per cent for the first quarter with an increase of 22 per cent in Services revenue and two per cent in Supply Chain revenue, all in constant currency.

Group Financial Position

At the end of the quarter, Group net funds were in line with the Board's expectations.

Group Outlook

We are clearly encouraged by the Group's performance in the first quarter in all our major geographies but particularly in Germany. Our performance in 2016, while reasonable in the year as a whole, was weaker in the first half which does create a less-difficult half-on-half comparison. This will mean higher profit growth in the first half of 2017 than the second half and will return Computacenter to a more historical norm in the balance of our profits between the first and second half of the year.

Our customers drive to digitalise their operations is creating significant demand particularly for our Professional Services and Supply Chain businesses. This is currently more than compensating for the pressure exerted by customers to reduce long term support costs that has a potential negative effect on our Managed Services business. However, this pressure is felt across the industry and those companies who deal with it best will gain market share.

(1) Market expectations are Bloomberg GBP90.1m and Reuters GBP90.6m

 
 Enquiries: 
 
 Computacenter 
  plc 
  Mike Norris, Chief        01707 
   Executive                631601 
   Tony Conophy,             01707 
   Finance Director          631515 
 
 Tulchan Communications     020 7353 
  James Macey White         4200 
 
 
 
 
   Change vs 2016         Q1 Change       Q1 Change 
                        As Reported(2)     Constant 
                                          Currency(3) 
 ------------------   ----------------  ------------- 
 
 
  Supply Chain 
   Revenue 
  UK                        (4%)             (4%) 
  Germany                    46%             31% 
  France                     14%              2% 
 
  Group                      17%             11% 
 -------------------  ----------------  ------------- 
 
  Services Revenue 
  UK                         4%               4% 
  Germany                    21%              8% 
  France                     36%             22% 
 
  Group                      14%              7% 
 -------------------  ----------------  ------------- 
 
  Total Revenue 
  UK                        (1%)             (1%) 
  Germany                    37%             23% 
  France                     18%              6% 
 
  Group                      16%              9% 
 -------------------  ----------------  ------------- 
 
 
 
 (2)   Change vs 2016 Q1 revenues reported at 2016 
        exchange rates 
 (3)   Change vs 2016 Q1 revenues reported at 2017 
        exchange rates 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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April 24, 2017 02:00 ET (06:00 GMT)