Computacenter PLC Trading Statement 3rd Quarter 2017 (7711U)
October 27 2017 - 1:00AM
UK Regulatory
TIDMCCC
RNS Number : 7711U
Computacenter PLC
27 October 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 GBP931
million (2016: GBP735 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 GBP335
million (2016: GBP310 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 GBP453.0 million
(2016: GBP325 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 GBP127 million
(2016: GBP86 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 GBP151.5 million.
This is up by approximately GBP54.5 million on an as reported basis
and by GBP53.3 million in constant currency against the same period
last year.
We remain on track to complete the return of value of
approximately GBP100 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 020 7353
/ Matt Low 4200
Change vs 2016 Q3 Change Q3 Change
As Reported* 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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