Computacenter Regulatory News (CCC)

Computacenter plc

Q3 2016 Trading Update

21 October 2016

Computacenter plc ("Computacenter" or the "Group"), the provider of IT infrastructure services that enables users, today publishes a trading update for the third quarter. Figures below are based on unaudited financial information for the nine months to 30th September 2016 ("year-to-date").

Financial Performance

Overall revenue for the third quarter was up 2% to £735 million (2015: £721 million) on an as reported basis, and down 4% in constant currency. Year-to-date revenue grew by 4% on an as reported basis, and reduced by 2% in constant currency. Group Services revenue grew by 4% on an as reported basis and reduced by 1% in constant currency in the third quarter, resulting in year-to-date growth of 4% and a reduction of 1% respectively. Group Supply Chain revenue grew by 1% on an as reported basis and reduced by 5% in constant currency in the third quarter, bringing the year-to-date position to a growth of 4% and a reduction of 2% respectively. 

The outlook for the Group's trading result for the whole of 2016 remains in line with the Board's expectations as expressed at the time of our Interim Results announcement.

UK

Whilst the UK continued to demonstrate softness in its results through the third quarter, the performance was better than H1 with an overall revenue reduction of 3% to £314 million (2015: £323 million), improving the year-to-date position to an overall reduction of 4%. Services revenue in the third quarter fell by 10% and during the year-to-date by 8%, and Supply Chain revenue grew by 2% in the quarter, bringing the year-to-date position to a reduction of 2%. 

We are pleased to see a return to growth in our Supply Chain business, however, as broadly anticipated, our Services revenue remains challenged principally due to the buoyant nature of projects in 2015.

Germany

German revenue for the third quarter decreased by 2% in constant currency and increased by 8% on an as reported basis to £325 million (2015: £301 million). This brings the year-to-date position to an increase of 3% in constant currency and 14% on an as reported basis. Services revenue increased by 10% in the third quarter in constant currency and by 22% on an as reported basis, bringing the year-to-date position to an increase of 8% and 19% respectively. Supply Chain revenue reduced by 8% in constant currency and increased by 2% on an as reported basis during the third quarter bringing the year-to-date position to an increase of 1% and 11% respectively. 

It is encouraging to see the positive momentum of our German business from the first half continued into Q3.

France

In the third quarter, French revenue decreased by 12% in constant currency and by 3% on an as reported basis to £83 million (2015: £85 million), bringing the year-to-date position to a decline of 7% and a growth of 3% respectively. Services revenue reduced by 1% in constant currency and grew by 9% on an as reported basis, bringing the year-to-date position to a decline of 3% and a growth of 7% respectively. Supply Chain revenue in the third quarter declined by 14% in constant currency and by 5% on an as reported basis, bringing the year-to-date position to a decline of 7% and an increase of 2% respectively.

Our strategy of reshaping our French business in line with the Group's strategy continues to deliver a positive profit performance.

Financial Position

At the end of Q3 2016, Group net funds were £96.7 million. This is up by approximately £29 million on last year.

We remain on target to finish the year with record levels of net funds.

Group Outlook

While much remains to be done in 2016 in the all-important fourth quarter, the performance in the third quarter has re-enforced our confidence for the year as a whole.

Prospects for 2017 and beyond, particularly driven by the increased adoption of the digital workplace, are encouraging across all our geographies.

Computacenter's next scheduled trading update will be the pre-close briefing, prior to the annual results, which is scheduled for 23 January 2017.

Enquiries

Computacenter plc

Mike Norris, Chief Executive 01707 631601

Tony Conophy, Finance Director 01707 631515

Tulchan Communications 020 7353 4200

James Macey White

Matt Low