Pre-Close Trading Update

Computacenter plc Pre-Close Trading Update Computacenter is today holding an Investor and Analyst conference call to provide an update on trading for the six months to 30 June 2010. Overall Group profitability in the first half will be in excess of 10% ahead of the same period last year and in line with management expectations.  As previously forecast, there were no exceptional charges in the period. The first half of 2010 has seen good revenue growth on an as reported basis of around 5%. Excluding the effect of the disposal of our trade distribution business in 2009, we have seen revenue growth of 7%. The growth rate in Q2 was marginally below that experienced in the first quarter, but remains steady.  We have seen a positive trend in IT capital expenditure in all our regions compared to last year, with Computacenter France and Germany showing signs of improvement, as the period progressed. At the end of the period, Group net funds were circa £95 million before customer specific financing "CSF" (net funds before CSF at end H1 2009 were £47 million).  The cash position was flattered by approximately £25 million, due to the ongoing extended credit facilities from one of our major suppliers, which is set to continue, at least until the end of 2010.  At the end of the period, CSF was circa £37 million (£65 million at 30 June 2009). In the UK, excluding the effect of the disposal, we saw revenue growth of 6%, with a 6% growth in product sales and a 7% growth in services.  Services growth has accelerated in the second quarter, after a modest 3% growth in Q1, as we indicated in our interim management statement on 14 May 2010.  This increase in growth rate is due to the start up of new contracts previously announced.  We expect this improved growth rate to continue through the second half of the year and our prospect pipeline for 2011 is promising.  The UK product sales growth experienced in the first quarter has been more subdued in Q2, but we are pleased with performance to date. After a particularly challenging first two months of 2010, our German business has seen a period of stability and has achieved overall revenue growth of 5% in the first half of 2010, but a small revenue decline of 2%, excluding acquisitions.  Performance in Q2 was broadly in line with the performance in Q2 2009, but profitability for the six months as a whole, will be behind the same period last year.  However, the encouraging improvements we saw as we went through the period, gives us more confidence for the second six months of the year. Computacenter France has seen an overall growth rate of 9% with 10% growth in product sales and 5% in services sales.  Profitability will be broadly in line with the same period a year ago, which is ahead of our expectation at the beginning of the year.  Therefore, we are looking forward to an improved performance from Computacenter France, in the year as a whole. We are pleased with the progress the Group has made, albeit slightly held back by the first two months results in Germany.  While we are fully aware that market conditions remain highly competitive and the economic outlook is far from certain, the first six months of 2010 has led us to believe that this will be another year of progress for Computacenter and we remain on track to achieve our expectations for the year end outcome. Computacenter will report Interim results on 27 August 2010. Enquiries: Computacenter plc Mike Norris, Chief Executive - 01707 631601 Tony Conophy, Finance Director - 01707 631515 Tessa Freeman, PR Manager - 01707 631514 Tulchan Communications - 020 7353 4200 Andrew Grant Lucy Legh [HUG#1431182] This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Computacenter PLC via Thomson Reuters ONE
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