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16 May 2008 07:00
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Interim Management StatementĀ
16 May 2008
Computacenter plc the independent IT services provider today publishes its first Interim Management StatementĀ in advance of its Annual General Meeting to be held atĀ 11:00Ā today.Ā
Financial Performance
During theĀ first quarter ofĀ 2008 weĀ experienced difficultĀ tradingĀ in ourĀ UKĀ and FrenchĀ subsidiariesĀ when compared to the same period last year. Ā However,Ā theĀ UKĀ performance improved materially towards the latter part of the period.Ā InĀ Germany, trading was ahead of the same period last year.Ā UKĀ sales in the quarter, including acquisitions,Ā were up 1.1% to Ā£346.6MĀ and on a like for like basis were down 1.5%. NonĀ UKĀ sales in local currency were down 7.1% to ā¬332.8M due mainly to lower sales inĀ France. However, Group sales were up 1.8% to Ā£598.4M helped by the strength of the Euro againstĀ Sterling.Ā
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 encouraginglyĀ and are ahead of last year, partly due to the reversing effect of the Easter holidays.Ā
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 Ā£9.5M, which will increase interest charges by Ā£0.5M for a full year, but is EPS accretive. At the end of the quarter we had net borrowings of Ā£17.2MĀ (Ā£16.2MĀ at 31 December 2007)Ā before customer specific financing.
Group Outlook
Despite economic uncertainties and a poor start to the year in theĀ UKĀ andĀ FranceĀ in the first quarter, we are encouraged by trading in recent weeks and ourĀ expectations remain unchanged forĀ the year as a whole,Ā assuming no material deterioration in market conditions.Ā 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 ourĀ revenueĀ growth objectivesĀ to date,Ā despite increased investments,Ā and the increased proportion of Group profits generated inĀ Germany,Ā whichĀ haveĀ alwaysĀ beenĀ biasedĀ towards the second half of the year.
Enquiries:
Computacenter plc
Mike Norris, Chief Executive 01707 631601Ā
Tony Conophy, Finance Director Ā 01707 631515Ā
Tessa Freeman, PR Manager 01707 631514
Ā
Tulchan Communications 020 7353 4200
Andrew Grant
Stephen Malthouse
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