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16 May 2008 07:00
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Interim Management StatementΒ
16 May 2008
Computacenter plc the independent IT services provider today publishes its first Interim Management StatementΒ in advance of its Annual General Meeting to be held atΒ 11:00Β today.Β
Financial Performance
During theΒ first quarter ofΒ 2008 weΒ experienced difficultΒ tradingΒ in ourΒ UKΒ and FrenchΒ subsidiariesΒ when compared to the same period last year. Β However,Β theΒ UKΒ performance improved materially towards the latter part of the period.Β InΒ Germany, trading was ahead of the same period last year.Β UKΒ sales in the quarter, including acquisitions,Β were up 1.1% to Β£346.6MΒ and on a like for like basis were down 1.5%. NonΒ UKΒ sales in local currency were down 7.1% to β¬332.8M due mainly to lower sales inΒ France. However, Group sales were up 1.8% to Β£598.4M helped by the strength of the Euro againstΒ Sterling.Β
Sales in all geographies were undoubtedly affected compared to last year by the Easter holiday occurring in the period rather than in the second quarter. Group Sales in the second quarter have started encouraginglyΒ and are ahead of last year, partly due to the reversing effect of the Easter holidays.Β
Financial Position
Computacenter has used its share buy back programme from time to time acquiring 5.3M shares since the year end to date at a cost of Β£9.5M, which will increase interest charges by Β£0.5M for a full year, but is EPS accretive. At the end of the quarter we had net borrowings of Β£17.2MΒ (Β£16.2MΒ at 31 December 2007)Β before customer specific financing.
Group Outlook
Despite economic uncertainties and a poor start to the year in theΒ UKΒ andΒ FranceΒ in the first quarter, we are encouraged by trading in recent weeks and ourΒ expectations remain unchanged forΒ the year as a whole,Β assuming no material deterioration in market conditions.Β However, it is likely that the pre tax profit will be more skewed towards the second half which may result in the first half being slightly below the first half of last year. This is due to not achieving ourΒ revenueΒ growth objectivesΒ to date,Β despite increased investments,Β and the increased proportion of Group profits generated inΒ Germany,Β whichΒ haveΒ alwaysΒ beenΒ biasedΒ towards the second half of the year.
Enquiries:
Computacenter plc
Mike Norris, Chief Executive 01707 631601Β
Tony Conophy, Finance Director Β 01707 631515Β
Tessa Freeman, PR Manager 01707 631514
Β
Tulchan Communications 020 7353 4200
Andrew Grant
Stephen Malthouse
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