Computacenter Share Chat (CCC)

These results indicate significant progress and no unexpected outcomes, suggesting that these shares have the potential to bounce back to their previous levels from a few weeks ago. Here are a few noteworthy highlights:

- The US market already contributes to over 50% of net sales.

- There is a commitment to provide a shareholder return of at least 10% of market capitalization by the end of 2024.

- Pre-booked orders have increased by 130% at the end of the year.

Considering the trend of companies listing in the US, I wonder if a US listing or a dual UK:US listing would enhance the valuation multiple. Regardless, this company's track record should justify a price-to-earnings ratio of 18+ which would value it at £30 or more.

ComputaCenter plc posted interims for the HY ended 30th June this morning. Revenue was up 26.8% to £3,584.9m, PBT was up 13.9% to £122.8m while EPS was up 13.7% to 76.5p. The Group is on course for its nineteenth year of uninterrupted full-year adjusted diluted earnings per share growth. The balance sheet remains solid with over £300m cash and net funds of £164.8m. Valuation is relatively attractive with forward PE ratio at 12.4x top quartile for the Software & IT Services sector. The fragile macro environment is the main cloud to the investment case, share price also lacks some momentum. CCC is a solid, growing and profitable company worth monitoring for the longer run, but is perhaps still a little early to be buying...

...from WealthOracle

www.wealthoracle.co.uk/detailed-result-full/CCC/787

Stargate

Nice prediction :) Are you are a charter by any chance!

Nice rise!

Https://www.proactiveinvestors.co.uk/companies/news/1025898/computacenter-soars-after-better-than-expected-results-1025898.html

Project sp, may rise to 2600, by 11/9/23.

Sale. Albeit small but not a good sign.

Well we seem to be on a steady climb. Oh what have I said - the market will now crash!

We've been there once Robina - I sold a tranch at £30.50 March last year and rebought in at £19.84 a couple of weeks ago.
Patience is the game on this one but nice divi in the meantime.
Great to see Shares giving some love to this hidden gem this week https://www.sharesmagazine.co.uk/article/time-to-buy-under-the-radar-and-reliable-uk-tech-business-computacenter

That £30+ I'd say is 3 years away.
£25 in 18months.

Morning.
As an employee based at Hatfield,i have to say there is a pleasant feel about the site this morning.

Given these results show significant progress and no surprises these shares should bounce back at least to where they were a few weeks ago.
A few highlights for me:-
US already accounts for >50% of net sales
There's a commitment to return at least 10% of market cap by way of a shareholder return no later than the end of 2024
Pre-booked orders at year end up 130%
Since there's a move towards US listings for some companies I wonder if this or a dual UK:US Iisting would bolster valuation multiple?
Either way this company's track record should justify a PE of 18+ which would put it at £30+

I wasn't really thinking deposit exposure, more inventory or project related bad debt which I presume wouldn't be covered. I understand that there is a buyer for SVB in the US but I'd imagine they are picking up assets and not not the debts.
The banking sector is a sector strength for CCC but I agree it is unlikely to be major exposure.

US cash banked - should not be a major concern given that SVB deposit holders got back 100%.

SCT's results being "ahead of expec." was a good cross-read. SCT PE c 20 vs CCC c12.5. Expected peeps to buy in after SCT's excellent results. No reaction. Good. Gave me a chance to even buy more pre-FY results for CCC.

I guess we are all anxiously awaiting the full year results - as there was a delay to the statement due to the need to complete the audit in one of the US divisions. I only use the word 'anxious' because it happened to coincide with the Silicone Valley Bank and a few smaller banks in the US going bust. Let's hope there's no material exposure there. I guess there is also the concern that we are heading into a recession.
Perhaps Softcat's results today provide some comfort in the fact that they state that the market (UK for them)continues to grow despite the macro-economy. Fingers crossed CCC's broader market exposure and lower PE ratio will lead to a re-rating! I bought a few more when they went sub-£20 as I just believe their true value is upwards of £30.

Indeed. If I am comparing apples with apples, an increase in net funds from £159.3m at half year to £244m at year end is tremendous and shows that although margins are low at c.3.8% CCC is a money making machine. I can feel another special div coming on....
It's so well managed and their investment plan moving into Asia (half year report) with a small bolt on acquisition indicates that they are on a steady path to global coverage. Whence, it will not surprise me if Mr Dell (or suchlike) comes knocking! Onwards and upwards.

Everything going well. Should 're rate . Pe must be close to 10. Should be close to 20 at least.

Today's drop shows some clear nerves before Monday's Pre Close Statement.
I wish I had a crystal ball to see if it is worth trading in the short term but it remains a long term hold for me.
I so nearly bougt some when it dallied with 1800p in late October but I resisted.
So quiet on here - anyone got any thoughts on what is in store?

author-image
LUCY TOBIN | THE TIPSTER
Share tip: Bang the drums for Computacenter, the quiet guy of IT
Lucy Tobin
Sunday December 11 2022, 12.01am, The Sunday Times
Computacenter isn’t one of tech’s flashy firms; it’s the quiet IT guy who companies rely on. It works alongside some of tech’s showier businesses, including Google, Amazon and Apple, but mostly does the drudge work.

The FTSE 250-listed Computacenter helps the likes of the NHS, Kellogg’s and governments worldwide run their cloud data centres, cybersecurity and networking, and general IT maintenance contracts.

Its two main revenue streams are “technology sourcing” — selling firms computers and related products — and services. Reselling software is fairly low-margin, but it has helped the company to build relationships that lead to more lucrative, long-term maintenance contracts and cybersecurity work.

That strategy has played its part in Computacenter booking 17 straight years of earnings-per-share growth. Revenues have had a strong run too — up 16 per cent in the first half of the year, with a big contribution from the US, where savvy acquisitions have helped turnover grow almost 50 per cent to $1.3 billion (£1.1 billion), driven by contracts from huge data centres.

Yet Computacenter’s share price has been pummelled. At £19.74, it’s well off the near-£30 seen in March. Why? In part it’s because the numbers have fallen from their Covid peaks, when remote working drove revenues higher.

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“After two exceptional years, Computacenter believes 2022 will be a year of modest [profit] growth,” it said in October.

There are also concerns that the recession might encourage companies to trim IT budgets. However, this cash-generative business still delivered growth throughout the last financial crisis and is strong in tech’s more resilient areas of cloud computing and cybersecurity.

Computacenter is sitting on net cash of about £194 million, and it is reliably generous to investors. During years when it hasn’t made acquisitions (and it now looks to be bedding down existing US deals rather than going on a shopping spree), it has regularly returned cash to shareholders, offering a special dividend roughly every two years over the past eight, on top of its ordinary annual payout.

There is also the possibility of a bid approach; the cheap pound has encouraged foreign rivals to buy a gaggle of fast-growing UK tech firms, including software makers Micro Focus and Aveva and cybersecurity specialist Avast. Computacenter could be next. Meantime, the shares are trading on just 11 times forward earnings and IT spending isn’t going to fade away. Buy.

Can anyone access and share the full article please?

Personally I don't hold too much credence by this column but I am sure that with strong US in roads for CCC that the likes of Mr Dell must be taking note.....

Software group Computacenter is ready for a reboot
Wednesday October 12 2022, 12.01am, The Times
London’s software sector has not been short of takeover interest — see the proposed buyout of Aveva and recent delisting of Avast. FTSE 250 constituent Computacenter supplies rather than creates the technology but it also has all the hallmarks of a takeover target.

The Hertfordshire-based group’s shares trade at a substantial discount to its own long-running average and international peers, the business is debt-free, highly cash-generative and has already made good inroads into the vast US corporate IT services market. Those attributes and a weak pound could make the group alluring for a larger international rival.

A 36 per cent fall in the shares this year marks the reversal of a stellar re-rating since the March 2020 stock market crash. An enterprise value of 5.6

Afternoon All
This weeks notes from the CEO end by forecasting marginal growth this and next year.Yes the share price is lower than we would like but the company is still solid in troubled times

Thanks PTG777 I will take a look

Last year profits were very high (post C-19), this year, despite the warning a few months back they would be down due to a) C-19 drop off and b) chip shortage/supply chain constraints........and they were.........so while revenues are up (I reckon in part to another US acquisition), I suspect some were expecting profits to remain in line / above last year.

Company has been making a some key purchases over last year, one in the US and Asia from memory to bolster those markets where they are growing in......while obviously I can't predict where the market will place the share price, there is a great video by Rogue_rader on their balance sheet - very good/insightful give it a view.

Does anyone know what has caused the price drop today ?