Pre-Close Trading Update

 
TIDMCCC 
 
Computacenter plc 
 
                            Pre-Close Trading Update 
 
Computacenter is today holding an Investor and Analyst conference call to 
provide an update on trading for the six months to 30 June 2010. 
 
Overall Group profitability in the first half will be in excess of 10% ahead of 
the same period last year and in line with management expectations.  As 
previously forecast, there were no exceptional charges in the period. 
 
The first half of 2010 has seen good revenue growth on an as reported basis of 
around 5%. Excluding the effect of the disposal of our trade distribution 
business in 2009, we have seen revenue growth of 7%. 
 
The growth rate in Q2 was marginally below that experienced in the first 
quarter, but remains steady.  We have seen a positive trend in IT capital 
expenditure in all our regions compared to last year, with Computacenter France 
and Germany showing signs of improvement, as the period progressed. 
 
At the end of the period, Group net funds were circa  GBP95 million before customer 
specific financing "CSF" (net funds before CSF at end H1 2009 were  GBP47 
million).  The cash position was flattered by approximately  GBP25 million, due to 
the ongoing extended credit facilities from one of our major suppliers, which is 
set to continue, at least until the end of 2010.  At the end of the period, CSF 
was circa  GBP37 million ( GBP65 million at 30 June 2009). 
 
In the UK, excluding the effect of the disposal, we saw revenue growth of 6%, 
with a 6% growth in product sales and a 7% growth in services.  Services growth 
has accelerated in the second quarter, after a modest 3% growth in Q1, as we 
indicated in our interim management statement on 14 May 2010.  This increase in 
growth rate is due to the start up of new contracts previously announced.  We 
expect this improved growth rate to continue through the second half of the year 
and our prospect pipeline for 2011 is promising.  The UK product sales growth 
experienced in the first quarter has been more subdued in Q2, but we are pleased 
with performance to date. 
 
After a particularly challenging first two months of 2010, our German business 
has seen a period of stability and has achieved overall revenue growth of 5% in 
the first half of 2010, but a small revenue decline of 2%, excluding 
acquisitions.  Performance in Q2 was broadly in line with the performance in Q2 
2009, but profitability for the six months as a whole, will be behind the same 
period last year.  However, the encouraging improvements we saw as we went 
through the period, gives us more confidence for the second six months of the 
year. 
 
Computacenter France has seen an overall growth rate of 9% with 10% growth in 
product sales and 5% in services sales.  Profitability will be broadly in line 
with the same period a year ago, which is ahead of our expectation at the 
beginning of the year.  Therefore, we are looking forward to an improved 
performance from Computacenter France, in the year as a whole. 
 
We are pleased with the progress the Group has made, albeit slightly held back 
by the first two months results in Germany.  While we are fully aware that 
market conditions remain highly competitive and the economic outlook is far from 
certain, the first six months of 2010 has led us to believe that this will be 
another year of progress for Computacenter and we remain on track to achieve our 
expectations for the year end outcome. 
 
Computacenter will report Interim results on 27 August 2010. 
 
 
Enquiries: 
 
Computacenter plc 
Mike Norris, Chief Executive - 01707 631601 
Tony Conophy, Finance Director - 01707 631515 
Tessa Freeman, PR Manager - 01707 631514 
 
Tulchan Communications - 020 7353 4200 
Andrew Grant 
Lucy Legh 
 
[HUG#1431182] 
 
 
 
 
 
 
 
 
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Source: Computacenter PLC via Thomson Reuters ONE