Computacenter PLC

Earnings Release • Jan 22, 2016

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RNS Number : 6574M

Computacenter PLC

22 January 2016

Computacenter plc

Trading Update - 22 January 2016

Computacenter plc ("Computacenter"), the independent provider of IT infrastructure services that enables users, is today providing an update on trading based on preliminary unaudited financial information for the year ended 31 December 2015 ("the year").  

The results in the text below exclude the impact of our subsidiary R.D. Trading Limited ("RDC") in 2015 and 2014 following the Group's disposal of RDC on 2 February 2015.   For comparison purposes the results including RDC are shown within the table included in the Appendix to this Trading Update.

Financial Performance

The adjusted pre-tax results for the year are anticipated to be in line with the Board's expectations for 2015, as upgraded at the time of our 2015 Interim Results. This performance has been achieved despite a substantial headwind throughout the year, due to the strength of Sterling against the Euro, which has adversely impacted Group profits by approximately £3 million.

Group revenue for the year was flat on a reported basis and increased by 5% in constant currency.  Group Services revenue increased by 1% on a reported basis and 6% in constant currency.  Group Supply Chain revenue decreased by 1% on a reported basis but increased by 5% in constant currency.  

Financial Position

At the end of 2015, Group net funds was £120 million, which is flat on last year.  

After adjusting for the disposal of RDC and the net cash impact of the Return of Value transaction completed in Q1 2015, Computacenter's underlying net funds position has improved by circa £44 million in the last 12 months.

United Kingdom

UK revenue grew by 3% for the year, with Services revenue increasing by 8% and Supply Chain revenue flat.  Pleasingly the pace of our Services growth remains broadly consistent with the previous year despite the significant reduction of one particular contract (as previously set out in our Interim Management Statement dated 22 October 2014).

Germany

German revenue increased by 14% in constant currency for the year, with Services revenue increasing by 7% and Supply Chain revenue increasing by 17%.  2015 has been a breakthrough year for Computacenter Germany's Services growth rate.  During the second half of 2015 we have managed to secure contracts that should enable this to continue. 

France

Our French business has performed ahead of our original expectations for 2015, due to a strong fourth quarter in our Supply Chain business.  Revenue in constant currency decreased by 6% with Services revenue declining by 10% and Supply Chain revenue down by 6% for the year as a whole. The Services revenue decline is due to the loss of a small number of Services contracts towards the end of 2014.  The decline in Supply Chain revenue was in line with our continuing objective of aligning our French business with the Group strategy.   

Outlook

We are encouraged by the positive momentum that has built up in our German business, which bodes well for significant growth in 2016.  In France we have outperformed our expectations for 2015.  However, much still remains to be done to improve this position still further and to make the business sustainable.  The prospects for the UK, particularly in Services, are still of growth but more modest this year.  The benefit of our portfolio of countries should enable Computacenter to show another year of progress in 2016. 

We look forward to publishing our final results for the year ended 31st December 2015 on Friday 11th March 2016.   

Enquiries:          

Computacenter plc        

Mike Norris, Chief Executive                      01707 631601

Tony Conophy, Finance Director               01707 631515

Tulchan Communications                           

James Macey White                                       020 7353 4200

Conference Call

There will be a conference call for analysts and investors this morning at 09:00. For dial-in details, please contact Charlotte Horner at Tulchan Communications at Computacenter@tulchangroup.com

Appendix

	Change vs 2014		Q4 Change As Reported * (incl RDC)	Q4 Change Constant Currency ** (incl RDC)		Q4 Change As Reported * (excl RDC)	Q4 Change Constant Currency ** (excl RDC)		FY Change As Reported * (incl RDC)	FY Change Constant Currency ** (incl RDC)		FY Change As Reported * (excl RDC)	FY Change Constant Currency ** (excl RDC)
	Supply Chain Revenue
	UK		(12%)	(12%)		(8%)	(8%)		(4%)	(4%)		0%	0%
	Germany		(2%)	8%		(2%)	8%		6%	17%		6%	17%
	France		(13%)	(4%)		(13%)	(4%)		(15%)	(6%)		(15%)	(6%)
	Group		(8%)	(3%)		(7%)	(1%)		(3%)	3%		(1%)	5%
	Services Revenue
	UK		2%	2%		2%	2%		7%	7%		8%	8%
	Germany		2%	13%		2%	13%		(3%)	7%		(3%)	7%
	France		(21%)	(12%)		(21%)	(12%)		(19%)	(10%)		(19%)	(10%)
	Group		0%	5%		0%	5%		1%	6%		1%	6%
	Total Revenue
	UK		(7%)	(7%)		(5%)	(5%)		0%	0%		3%	3%
	Germany		(1%)	10%		(1%)	10%		3%	14%		3%	14%
	France		(14%)	(5%)		(14%)	(5%)		(16%)	(6%)		(16%)	(6%)
	Group		(6%)	(1%)		(5%)	1%		(2%)	4%		0%	5%
	* Change vs Q4 & FY 2014 revenues reported at 2014 exchange rates
	** Change vs Q4 & FY 2014 revenues reported at 2015 exchange rates

This information is provided by RNS

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