Computacenter profit leaps in 2020 as public sector business grows

(Alliance News) - Computacenter PLC on Tuesday flagged "excellent" results as profit jumped in 2020 despite the virus pandemic.

Revenue for 2020 rose 7.7% to GBP5.44 billion from GBP5.05 billion, with pretax profit jumping 46% to GBP206.6 million from GBP141.0 million. Adjusted pretax profit rose 37% to GBP200.5 million.

"Whilst it took 36 years for the group to reach GBP100 million of adjusted profit before tax, we are very pleased that it only took another three years to reach GBP200 million," said Computacenter.

Overall, the computer services provider estimates that the pandemic had a net positive impact of around GBP30 million of adjusted pretax profit.

Computacenter said that reduced spend from industrial customers was offset by new business within the public sector and financial services. Revenue from public sector customers, such as local and central government, increased by 37%, now accounting for 32% of group revenue from 25% in 2019.

The UK, in particular, has seen "very strong demand" within the public sector and financial services, the company said, as organisations relied heavily on Computacenter to enable working from home, other emergency IT responses, and a small number of very large national infrastructure projects.

"After multiple upgrades during the year and today's excellent results, it is clear that the 2020 performance has exceeded all expectations, and 2020 has seen the fastest profit growth Computacenter has achieved in its 22 years as a public company. Clearly, the challenge it gives us is to grow again in 2021," said Chief Executive Mike Norris.

"While Computacenter will always focus on the long term and resist the temptation of short-term actions to maintain growth, we feel the opportunity for progression this year, while not certain, is real," said Norris. "We have come into 2021 with solid momentum and have experienced a very positive start to the year. As always, we will give an update to shareholders in our April statement once we have completed our first quarter at the end of March."

Computacenter proposed a final dividend of 38.4 pence, bringing the total for 2020 to 50.7p, versus just 10.1p paid out for 2019.

Shares in Computacenter were up 3.0% at 2,342.17 pence in London on Tuesday.

By Lucy Heming; lucyheming@alliancenews.com

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