Computacenter plc (“Computacenter” or the “Group”)
Final results for the year ended 31 December 2018
Computacenter plc ("Computacenter" or the "Group"), the independent provider of IT infrastructure and services that enables users and their business, today announces audited results for the year ended 31 December 2018.
|Adjusted1profit before tax(£ million)||118.2||106.2||11.3|
|Adjusted1diluted earnings per share(pence)||75.7||65.1||16.3|
|Dividend per share(pence)||30.3||26.1||16.1|
|Statutory profit before tax (£ million)||108.1||111.7||(3.2)|
|Statutory diluted earnings per share (pence)||70.1||66.5||5.4|
|Cash and cash equivalents||200.4||206.6||(3.0)|
|Net Fund3(£ million)||57.3||191.2||(70.0)|
|Net cash flow from operating activities (£ million)||115.2||106.1||8.6|
|Revenue Performance by Sector|
|Services revenue (£ million)||1,175.0||1,157.2||1.5|
|Technology Sourcing revenue (£ million)||3,177.6||2,636.2||20.5|
|Reconciliation between Adjusted1and Statutory Performance|
|Adjusted1profit before tax(£ million)||118.2||106.2|
|Exceptional and other adjusting items:|
|Costs related to acquisition(£ million)||(5.7)||-|
|Release of provision for onerous German contracts(£ million)||-||1.4|
|Gain on disposal of an investment property (£ million)||-||4.3|
|Amortisation of acquired intangibles (£ million)||(4.4)||(0.2)|
|Statutory profit before tax(£ million)||108.1||111.7|
- The Group's total revenues grew £559 million during the year, £540 million in constant currency2, to exceed £4 billion for the first time. FusionStorm joined the Group, contributing £3.0 million of adjusted1 operating profit to the Group through the last three months of 2018
- Germany delivered another record performance with revenue growth of 8.3 per cent leading to a 14.5 per cent increase in adjusted1 operating profit, both on a constant currency2 basis. The German business opened a new Integration Center to address the growth in the Technology Sourcing
- The UK saw excellent revenue growth of 9.7 per cent, leading to an increase in adjusted1 operating profit of 12.0 per cent
- Adjusted1 operating profit in France rose 27.0 per cent on a constant currency2 basis due to strong Technology Sourcing margins. Revenues were down by 4.1 per cent on a constant currency2 basis due to the loss of a low margin Managed Services contract
Mike Norris, Chief Executive of Computacenter plc, commented:‘2018 was a record year in revenue, adjusted1 operating profit and adjusted1 diluted earnings per share for the Group. We have also laid foundations for further growth in the years ahead.
We have invested in the physical infrastructure that enables our Technology Sourcing, increased our Services capability and expanded our geographical footprint through acquisitions. In addition, we reduced the number of shares in circulation by 6.97 per cent, through a Return of Value Tender Offer of £100 million. Even after these substantial investments, Computacenter finished the year with a strong balance sheet and a cash surplus, which underpins our confidence in the future.
Specifically, while the Technology Sourcing success of last year creates a difficult comparison in 2019, particularly in the first half, lower Services margins in 2018 give us a significant opportunity to improve. We also expect a profit contribution from our acquired business in the USA.
As we look out further into the future, we remain enthusiastic about our customers’ desire to enhance the digital experience, grow their network capacity, modernise their infrastructure and enhance their competitiveness, by investing in technology.
1 Adjusted operating profit or loss, adjusted profit or loss before tax, adjusted tax, adjusted profit or loss for the year, adjusted earnings per share and adjusted diluted earnings per share are, as appropriate, each stated before: exceptional and other adjusting items including gain or loss on business disposals, gain or loss on disposal of investment properties, gains or losses related to material acquisitions, amortisation of acquired intangibles, utilisation of deferred tax assets (where initial recognition was as an exceptional item or a fair value adjustment on acquisition), and the related tax effect of these exceptional and other adjusting items, as Management do not consider these items when reviewing the underlying performance of the Segment or the Group as a whole. Additionally, adjusted gross profit or loss and adjusted operating profit or loss includes the interest paid on customer-specific financing (CSF) which Management considers to be a cost of sale. A reconciliation between key adjusted and statutory measures is provided within the Group Finance Director’s review included within this announcement. Further detail is provided within note 4 to the summary financial information included within this announcement.
2 We evaluate the long-term performance and trends within our strategic key performance indicators (KPIs) on a constant currency basis. Further, the performance of the Group and its overseas segments are shown, where indicated, in constant currency. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information gives valuable supplemental detail regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our prior-year local currency financial results using the current year average exchange rates and comparing these recalculated amounts to our current year results or by presenting the results in the equivalent local currency amounts. Wherever the performance of the Group, or its overseas segments, are presented in constant currency, the equivalent prior-year measure is also presented in actual currency using the exchange rates prevailing at the time. Financial Highlights, as shown at the beginning of this announcement, and statutory measures, are provided in actual currency.
3 Net funds includes cash and cash equivalents, CSF, other short or other long-term borrowings and current asset investments.
For further information, please contact:
Mike Norris, Chief Executive 01707 631 601
Tony Conophy, Finance Director 01707 631 515
Tulchan Communications 020 7353 4200
James Macey White