Computacenter off to a good start

Information technology services provider Computacenter has started the year with an optimistic outlook, and told investors that it expects its full year results to be marginally ahead of its expectations.

Information technology services provider Computacenter has started the year with an optimistic outlook, and told investors that it expects its full year results to be marginally ahead of its expectations.

Group revenue for the year increased by 2.0% on a reported basis and 6.0% in constant currency, while Group Supply Chain revenue was flat on a reported basis with an increase of 4.0% in constant currency.

In the fourth quarter, the firm saw a 6.0% increase in Group Services revenue in constant currency and an increase in Group Supply Chain revenue of 5.0% in constant currency.

At the year-end, net cash excluding customer-specific financing (CSF) was £150m, compared to £136.8m at December 31st 2011]. Including CSF, net cash was £131m, compared to £113.7m at December 31st the prior year.

In a statement the group said: "We are pleased with the year-end cash position, particularly given some short term working capital demands during the year relating to the ongoing business growth and our, now completed move to a new warehousing facility in France.

"We have also made significant capital investment in the business, particularly in relation to new systems, logistics facilities, service desk capability and remote management in order to sustain our growth."

Regionally, UK revenue grew by 9% for the year, with Services revenue increasing by 15% and Supply Chain revenue growing by 5%. German revenue, in constant currency, increased by 4% for the year as a whole, with 8% growth in Services and 2% growth in Supply Chain.

In France, revenue in constant currency grew by 7%, with 18% growth in Services revenue and 5% growth in Supply Chain revenue. In the second half of 2013, the group's largest French customer will go through a periodic renewal, but this should be offset by improvements elsewhere, it said.

"Computacenter UK has entered 2013 in good shape, with a strong Services pipeline," the company continued.

"We expect to make further progress in improving the performance of our problem contracts in Germany, where we will focus primarily on margin improvement. While it is too early to make predictions about 2013, we enter the year optimistic that the group will make progress."

The share price rose 3.33% to 434p by 09:05.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021