Computacenter shares ‘record H2 performance’ in trading update

The reseller experienced good overall results despite lukewarm UK performance

Computacenter has reported the “most profitable” half year in its history in a trading update published today.

Despite what the company referred to as “a more challenging market backdrop in 2024” and “against a strong comparative in 2023”, its total revenue in increased 0.5 per cent in constant currency (ccy) and decreased two per cent on a reported basis, for the year ended 31 December 2024.

The services outfit is pleased “with overall execution towards the end of the year”, despite technology sourcing projects slipping in the early part of 2025 in the US and the UK.

The reseller also observed strong performances in Germany and North America.

The LSE-listed group said it remains “mindful” of the current macroeconomic and political conditions in Europe, especially with the UK rise in National Insurance from April, which is expected to have a negative impact of around £5m in 2025.

Computacenter will have to turn its focus to NORAM, where the company is excited by “the growth opportunities” it sees ahead after a “strong performance” this year.

Adjusted operating profit in H2 FY24 is also expected to be ahead of H2 FY23, in both ccy and on a reported basis.

This makes it Computacenter's “most profitable half year” in its history, ending 2024 with customers generating over £1m of gross profit per year.

On 30 October, the company also completed its £200m share buyback programme launched on 26 July 2024, nine months earlier than expected.

Because of the lower interest income receipts caused by this early share buyback, together with group-wide strategic investments, and a £7m adverse translation impact from a stronger pound sterling, Computacenter is now expecting adjusted profit before tax for 2024 to be at £261.3m, at the lower end of the £253.6m to £266.5m range forecasted by analysts.

The top VAR also expects to make progress in FY 2025 with earnings per share benefiting from the impact of the share buyback.

Technology sourcing gross invoiced income was ahead, and services revenue increased by two per cent ccy, reflecting a stronger performance in the second half of the year with technology sourcing gross invoiced income increasing by 13 per cent and services revenue up five per cent.

For FY24, professional services delivered strong revenue growth which was partly offset by a softer performance in managed services.

Strong order intake during the second half, especially in NORAM, allowed Computacenter to leave 2024 in “a robust position” with a committed product order backlog at the end of December, ahead of its position in December 2023, as well as the end of June 2024.

Computacenter will publish its half-year results for the period ending 31 December 2024 on Tuesday, 18 March 2025.

This positive trading update comes after mixed results in Q3 and H1 FY24, after which CFO Chris Jehle left the company.