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.
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.
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
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
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
Mike Norris, Chief Executive - 01707
Tony Conophy, Finance Director - 01707 631515
Tessa Freeman, PR
Manager - 01707 631514
Tulchan Communications - 020 7353 4200