(Sharecast News) - Tech sourcing, consultancy and services group Computacenter expects to report record profits for 2023 with cash generation ahead of guidance, and said it is considering whether to use the surplus capital for shareholder payouts or acquisitions.
Ahead of its annual report in March, the company said total revenues were up 12% last year, though it did not a "normalisation of activity" in Technology Sourcing in the second half following a strong first-half performance. On a regional basis, good results in Germany and North America outweighed the impact of a weaker performance in the UK.
The group forecasts another record year of adjusted profit before tax, but did not disclose guidance. In 2022, adjusted profit before tax came in at £263.7m.
"This result has been delivered against the backdrop of uncertain macroeconomic conditions throughout the year while, as planned, increasing the level of investment in strategic initiatives. It reflects the strength of our integrated Technology Sourcing and Services model as well as our geographic diversity," Computacenter said.
The company finished the year with adjusted net funds of £450m, ahead of its own forecasts, and said it is now "evaluating our options". The company explained: "Historically, Computacenter has a track record of returning surplus capital to shareholders when suitable acquisitions are not available."
The stock was up 1% at 2,886p in early deals on Wednesday.
Computacenter (CCC)