Computacenter details 75m-pound cash return for shareholders
Shareholders at IT infrastructure group Computacenter are in for a windfall of 75m pounds after the company outlined details of its cash return on Friday.
Shareholders at IT infrastructure group Computacenter are in for a windfall of 75m pounds after the company outlined details of its cash return on Friday.
As announced as part of its full-year results in March, the firm is to make a one-off return of value of 48.7p per existing ordinary shares, equivalent to £75m of 10.8% of its current market capitalisation.
The firm said it believes it is the "appropriate" time to return capital to shareholders in addition to the normal dividend.
"The cash-generative nature of Computacenter's business has resulted in a net cash balance in excess of our current needs," said Chief Executive Mike Norris.
"This has placed us in a position where we are now able to make the second significant one-off return of value to our shareholders, while maintaining an appropriate balance sheet structure to continue growing the business and serving our clients."
Net cash at the end of the 2012 totalled £147.4m, above the £136.8m generated the year before.
The cash return, still to be approved by shareholders, is being made by way of a B-share structure along with a nine-for-10 share capital consolidation. The B shares can either be purchased back by Credit Suisse for 48.7p each or received as a 48.7p-per-share dividend.
Computacenter's share price fell sharply last month after the company warned that it now expects to make only "modest progress" in 2013 due to contractual issues in Germany and a difficult market environment in France.
By Thursday's close, the stock stove at 442.1p, well below the 52-week high of 567p reached in April before the last trading update.
Interim results from the firm will be released on July 16th.