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16 May 2008 07:00
Interim Management Statement
16 May 2008
Computacenter plc the independent IT services provider today publishes its first Interim Management Statement in advance of its Annual General Meeting to be held at 11:00 today.
Financial Performance
During the first quarter of 2008 we experienced difficult trading in our UK and French subsidiaries when compared to the same period last year. However, the UK performance improved materially towards the latter part of the period. In Germany, trading was ahead of the same period last year. UK sales in the quarter, including acquisitions, were up 1.1% to £346.6M and on a like for like basis were down 1.5%. Non UK sales in local currency were down 7.1% to €332.8M due mainly to lower sales in France. However, Group sales were up 1.8% to £598.4M helped by the strength of the Euro against Sterling.
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 encouragingly and are ahead of last year, partly due to the reversing effect of the Easter holidays.
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 £9.5M, which will increase interest charges by £0.5M for a full year, but is EPS accretive. At the end of the quarter we had net borrowings of £17.2M (£16.2M at 31 December 2007) before customer specific financing.
Group Outlook
Despite economic uncertainties and a poor start to the year in the UK and France in the first quarter, we are encouraged by trading in recent weeks and our expectations remain unchanged for the year as a whole, assuming no material deterioration in market conditions. 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 our revenue growth objectives to date, despite increased investments, and the increased proportion of Group profits generated in Germany, which have always been biased towards the second half of the year.
Enquiries:
Computacenter plc
Mike Norris, Chief Executive 01707 631601
Tony Conophy, Finance Director 01707 631515
Tessa Freeman, PR Manager 01707 631514
Tulchan Communications 020 7353 4200
Andrew Grant
Stephen Malthouse
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