Trading Statement 3rd Quarter 2017

Computacenter plc

Incorporated in England

Registration number: 03110569

LEI: 549300XSXUZ1I19DB105

ISIN: GB00BV9FP302

 

FOR IMMEDIATE RELEASE

Computacenter plc

Q3 Trading Update - 27^th October 2017

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 30^th September 2017 ("year-to-date").

Financial Performance

Overall revenue for the third quarter was up 27% to £931 million (2016: £735 million) on an as reported basis, and up 20% in constant currency.  Year-to-date revenue grew by 18% on an as reported basis, and increased by 12% in constant currency.

Group Services revenue grew by 15% on an as reported basis and increased by 9% in constant currency in the third quarter, resulting in year-to-date growth of 12% on an as reported basis and 8% in constant currency.  Group Supply Chain revenue grew by 33% on an as reported basis and increased by 25% in constant currency in the third quarter, resulting in year-to-date growth of 20% on an as reported basis and 15% in constant currency.

The outlook for the Group's trading result for the whole of 2017 remains in line with the Board's expectations as set out in in the half year results, which have been upgraded twice this year.

UK

Whilst the UK is growing slightly slower than the Group as a whole, the results in the third quarter clearly demonstrate an improved performance with overall revenue growth of 8% to £335 million (2016: £310 million), improving the year-to-date position to an overall growth of 6%.   Services revenue in the third quarter increased by 7% bringing the year-to-date position to a growth of 6%, with Supply Chain revenue growing by 9% in the quarter, bringing the year-to-date position to an increase of 6%.

Germany

German revenue grew in the third quarter by 26% in constant currency and by 40% on an as reported basis to £453.0 million (2016: £325 million) bringing the year-to-date position to an increase of 18% in constant currency and 28% on an as reported basis.  Services revenue increased in the third quarter by 9% in constant currency and by 20% on an as reported basis, bringing the year-to-date position to an increase of 7% in constant currency and 16% on an as reported basis.  Supply Chain revenue increased in the third quarter by 36% in constant currency and increased by 50% on an as reported basis, bringing the year-to-date position to an increase of 24% in constant currency and 35% on an as reported basis. A significant percentage, but by no means all, of the Supply Chain growth comes from one large customer at margins below the Group average.   

France

French revenue grew in the third quarter by 34% in constant currency and by 48% on an as reported basis to £127 million (2016: £86 million), bringing the year-to-date position to an increase of 12% in constant currency and 22% on an as reported basis.  Services revenue increased in the third quarter by 16% in constant currency and by 26% on an as reported basis, bringing the year-to-date position to an increase of 19% in constant currency and 29% on an as reported basis.  Supply Chain revenue increased in the third quarter by 39% in constant currency and by 54% on an as reported basis, bringing the year-to-date position to an increase of 11% in constant currency and 20% on an as reported basis.

Financial Position

At 30 September 2017, Group net funds were £151.5 million.  This is up by approximately £54.5 million on an as reported basis and by £53.3 million in constant currency against the same period last year.

We remain on track to complete the return of value of approximately £100 million in the fourth quarter of 2017 which we announced at the time of our Interim Report.  

Group Outlook

The momentum we have experienced across the Group, particularly in Germany, in the first half of the year has been maintained, if not improved during the third quarter of 2017.  Whilst the fourth quarter is our most difficult comparison to 2016 of any quarter in the year, we remain on track for a record performance.

New technologies, digitalisation and our customers' appetite to invest is as buoyant as we can remember, which is obviously driving our Professional Services and Supply Chain services.  However, as noted in our 2016 Final Results, it is also true to say our target market's desire to reduce operating costs, and therefore the cost of running their IT, has intensified which is eroding our Contractual Services base, thus increasing the need to invest in productivity and innovation to remain competitive.

Computacenter's next scheduled trading update will be the pre-close briefing, prior to the Annual Results, which is scheduled for 22^nd January 2018.

Enquiries:
Computacenter plc
Mike Norris, Chief Executive	01707 631601
Tony Conophy, Finance Director	01707 631515
Tulchan Communications
James Macey White / Matt Low	020 7353 4200

 

	Change vs 2016		Q3 Change As Reported*	Q3 Change Constant Currency**
	Supply Chain Revenue
	UK		9%	9%
	Germany		50%	36%
	France		54%	39%
	Group		33%	25%
	Services Revenue
	UK		7%	7%
	Germany		20%	9%
	France		26%	16%
	Group		15%	9%
	Total Revenue
	UK		8%	8%
	Germany		40%	26%
	France		48%	34%
	Group		27%	20%
*	Change vs 2016 Q3 revenues reported at 2016 exchange rates
**	Change vs 2016 Q3 revenues reported at 2017 exchange rates