Computacenter Share Chat (CCC)

Excellent results today !This puts this company on a PEG of approx 0.6 , this is my type of company, low PE, consistent growth

Great contract and I agree on the valuation. My slight niggle is that the Dept for Ed. seems to be a big part of the contract wins whereas Softcat do see to win contracts from a wider range (geographically and departmentally).
I saw Morgan Stanley initiated CCC at equal weight this week but had Softcat Overweight noting that "there is some risk around the integration of three large deals simultaneously, especially during the pandemic and since the US acquisitions - Fusionstorm/Pivot - appear to be underperforming initial expectations."
Full article https://www.sharecast.com/news/broker-recommendations/morgan-stanley-initiates-coverage-of-softcat-computacenter--7836147.html

Thats a nice contract
25 pound + by results

And the gov contacts keep rolling in 11/03/2021 £32,000,000

Don't know why were not above £25.00 a share with these million pound contracts every month........

https://bidstats.uk/tenders/2021/W10/746586164

We're doomed then.

BERENBERG RAISES COMPUTACENTER PRICE TARGET TO 3,000 (2,600) PENCE - 'BUY'

Maybe this is falling as investors 'rotate' out of tech stocks.

You'll forget about the purchase price if, in a few weeks time when they announce full year results, they announce a special dividend in addition to their normal one.....they have a habit of doing this every few years.
I think there might be a little doubt in the city that they can maintain the profitability that we have seen in the last 12m which is why it is trading sideways but as you say a good execution of plan in the US could easily deliver.

Yes but the recent sp is falling not rising despite the recent contracts.
Maybe we need to see what the US venture brings.
Long term this ought to be OK. As usual for me though I invested at the wrong time on the news. I need another me in a parallel universe to do the opposite. That one would make a fortune.

Not sure I altogether agree. Certainly all current goods news is factored in for now but 1 year share price growth of 22% and 2 year growth of 103% is pretty darn good when you you compare it 0.1% in the bank.

They may be on a roll business prospects wise but it's not exactly reflected in the share price.

There seems to be considerable momentum of spend when you look at the UK Public Sector procurement. I would say that CCC has a significant edge when it comes to cumulative value of contracts i.e. they pick up bigger structural projects on the whole whereas SCT seems to pick up smaller value software contracts. I know nothing of which is the best margin.
CCC for me is more interesting as it has now been listed as a Strategic Partner for UK Gov and is spreading its wings to US - with industry veteran Norris still at the helm he has the skillset and ambition to broaden the company's reach whilst staying true to the core philosophy which is to offer big companies a great global service.
PS I don't work for them but have held shares in CCC since their floatation in '98 so I've seen some good and tough times but I feel that they are on a bit of a roll if they can quickly integrate their two acquisitions from 2020.

Softcat a competitor to Computacenter was brought down to 1120p a few weeks before results, now trading at 1558p after results even reaching excess of 1600p at one point. This is after director sells see below:-

Softcat directors sell over £11m in stock Investors Chronicle11:35 Wed, 03 Feb
In brief: Softcat CFO Sells GBP900,000 Worth Of Shares London South East21:27 Thu, 28 Jan
Share:
In brief: Softcat Chair Martin Hellawell Sells GBP17 Million In Shares London South East13:46 Wed, 27 Jan.

Now if you follow the impressive contracts for Computacenter;-

https://bidstats.uk/tenders/?q=computacenter&scope=supplier#742588415-738656284-50

and Softcat :-

https://bidstats.uk/tenders/?q=softcat

both doing very well.....

I think Computacenter will be a similar trace upto and beyond results, Just my thoughts....

Well at the end of a week where the sp is declining rapidly I have to decide whether to sell and buy back lower or just cut my losses. I only bought recently which is probably the main cause of the decline. The story looks good and the PE isn't that high really.

£136m would deliver an EPS of c£1.19 which is a PE of about 21 on todays price.
To have net cash of £188m at year end versus £218m last year AND having paid out for Pivot and BT is impressive.
If year end sales were +8% for the group including acquisitions = c£5,457m and 3% excluding acquisitions = £5,204m that means that the acquisitions contributed £253m top line for Nov-Dec.
Crudely extrapolated that could be c. £1,518m TO annually.
Working on the assumption they hold sales rate and can achieve similar average net margins of 2.7% as the underlying business the acquisitions could deliver c £40m PBT next year or £33m net . We "could" be looking at an overall business with net profits of c.£165m or about £1.40 a share.
There's a lot of ifs and buts here I know but with a fair wind we could be seeing £28 a share this time next year.
Add to this the likelihood of a special dividend I am happy to hold this stock.

Consensus Net £136 million from Stockopedia

Very good. Where did you pull your 2020 Consensus estimate of £136 million from? I wish they'd write in the reports for ease

Profit before tax will be in excess of GBP195 million. Trading has continued positively through to the end of the year.
Total revenue grew by three per cent overall.
Strong growth in Technology Sourcing product sales. Services revenues remained broadly flat.
Net funds, finished extremely strongly at around GBP188 million.
Group Outlook trading since the start of the pandemic shows no sign of abating,
Final results for the year ended 31 December 2020 on Tuesday 16 March 2021.
Conference Call for analysts and investors this morning at 08:30

My notes for scale 2019 Net Profit £102 million ; 2020 Consensus estimate £136 million

I'm loving this newfound website - quite addictive reading the public sector contract wins. Can £5b be right for a 1.5 month project - so that's c£625m for each of 8 contractors?!
Anyway, I guess we will get an update this Friday as CCC have an update scheduled.

https://bidstats.uk/tenders/2021/W02/742850611

£5B

https://bidstats.uk/tenders/?q=computacenter&scope=supplier#742588415-738656284-50

Notice the value of contracts month on month, and the education contracts..... Roll on Feb

Plenty of contracts

https://bidstats.uk/tenders/?q=computacenter&scope=supplier

I am not invested here but found this whilst looking for other information. Looks like CC have just been awarded an £87m contract to provide hardware to Manchester DOE for hardware in response to Covid 19. Apologies if already known or part of an existing expected contract.
https://bidstats.uk/tenders/2021/W01/742457459

Pivot deal
____Deal 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
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. For more information, visit www.pivotts.com

After the Bell RNS... extracts which may explain yesterdays 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.