UK ‘ahead of last year but below expectations’ in Computacenter Q3 note

Performance in Q3 mostly in line with the prior year, despite technology sourcing volumes below expectations

Computacenter remains confident in its long-term growth prospects despite continued difficulties in the UK market, it said in a trading note today.

The wind has slightly turned since 2023, when the reseller reported a set of encouraging results, driven by growth in technology sourcing and services.

In Q3 FY24, technology sourcing, which is how the company describes resale, volumes were below expectations due to a more cautious corporate spending environment and slower completion of committed product orders in North America, according to the VAR.

On the other hand, activity in North America increased global technology sourcing revenue during the quarter.

In Europe, Germany proved to be a satisfying market and met this year’s expectations.

But the Hertfordshire-based reseller’s motherland keeps giving it a hard time, after continued difficulties over Q1 FY24 and H1 2023.

Despite not meeting expectations, the country is ahead of last year.

As for services, revenue went up year-on-year in Q3 thanks to professional services, making up for the dip in managed services.

Hopes and predictions

Looking towards the future, the company is ahead of schedule on its share buyback programme, ending on 30 June 2025.

Started on July 26, the company has already completed £191.7m out of the £200m share buyback.

“Following the completion of the buyback we expect to maintain a strong balance sheet with positive adjusted net funds,” said the company.

While still expecting to deliver a second half that is “comfortably” ahead of last year, Computacenter now expects adjusted profit before tax on a constant currency basis for the full year to be behind last year.

“Looking further ahead, the combination of the strength of our integrated technology sourcing and services model and our geographic diversity, gives us continued confidence in our long-term growth prospects,” added the reseller.