Computacenter PLC Trading Statement 1st Quarter 2017 (0577D)
April 24 2017 - 1:00AM
UK Regulatory
TIDMCCC
RNS Number : 0577D
Computacenter PLC
24 April 2017
Computacenter plc
Incorporated in England
Registration number: 03110569
LEI: 549300XSXUZ1I19DB105
ISIN: GB00BV9FP302
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSE OF
ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) No. 596/2014.
FOR IMMEDIATE RELEASE
Computacenter plc
Trading Update - 24 April 2017
Computacenter plc (the "Group"), the independent provider of IT
infrastructure services that enables users, is today providing a
trading update for the first quarter to 31 March 2017. This trading
update is being made earlier than the date previously published due
to the Group's performance in the first quarter and the improved
outlook for the full year.
Overview
While much remains to be done to complete the year, we believe
that the Group's performance for 2017 as a whole will exceed
current market expectations(1) due to buoyant market conditions for
new investments in technology, particularly seen by our German
business, backed up by steady progress in France and UK and
favourable currency movements.
Group Financial Performance
Group revenue for the first quarter has increased by 16 per cent
on an as reported basis and by nine per cent in constant
currency.
Group Services revenue increased by 14 per cent on an as
reported basis and by seven per cent in constant currency.
Group Supply Chain revenue increased by 17 per cent on an as
reported basis and by 11 per cent in constant currency.
UK revenue reduced by one per cent for the first quarter with
Services revenue increasing by four per cent and Supply Chain
revenue decreasing by four per cent.
German revenue increased by 23 per cent for the first quarter
with Services revenue increasing by eight per cent and Supply Chain
revenue increasing by 31 per cent, all in constant currency.
In France, our revenue increased by six per cent for the first
quarter with an increase of 22 per cent in Services revenue and two
per cent in Supply Chain revenue, all in constant currency.
Group Financial Position
At the end of the quarter, Group net funds were in line with the
Board's expectations.
Group Outlook
We are clearly encouraged by the Group's performance in the
first quarter in all our major geographies but particularly in
Germany. Our performance in 2016, while reasonable in the year as a
whole, was weaker in the first half which does create a
less-difficult half-on-half comparison. This will mean higher
profit growth in the first half of 2017 than the second half and
will return Computacenter to a more historical norm in the balance
of our profits between the first and second half of the year.
Our customers drive to digitalise their operations is creating
significant demand particularly for our Professional Services and
Supply Chain businesses. This is currently more than compensating
for the pressure exerted by customers to reduce long term support
costs that has a potential negative effect on our Managed Services
business. However, this pressure is felt across the industry and
those companies who deal with it best will gain market share.
(1) Market expectations are Bloomberg GBP90.1m and Reuters
GBP90.6m
Enquiries:
Computacenter
plc
Mike Norris, Chief 01707
Executive 631601
Tony Conophy, 01707
Finance Director 631515
Tulchan Communications 020 7353
James Macey White 4200
Change vs 2016 Q1 Change Q1 Change
As Reported(2) Constant
Currency(3)
------------------ ---------------- -------------
Supply Chain
Revenue
UK (4%) (4%)
Germany 46% 31%
France 14% 2%
Group 17% 11%
------------------- ---------------- -------------
Services Revenue
UK 4% 4%
Germany 21% 8%
France 36% 22%
Group 14% 7%
------------------- ---------------- -------------
Total Revenue
UK (1%) (1%)
Germany 37% 23%
France 18% 6%
Group 16% 9%
------------------- ---------------- -------------
(2) Change vs 2016 Q1 revenues reported at 2016
exchange rates
(3) Change vs 2016 Q1 revenues reported at 2017
exchange rates
This information is provided by RNS
The company news service from the London Stock Exchange
END
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