Computacenter PLC Full Year Results 2017
Latest group results
COMPUTACENTER 2017 FULL YEAR RESULTS ANNOUNCEMENT
Computacenter plc (‘Computacenter’ or the ‘Group’), the independent provider of IT infrastructure and services that enables users and their business, today announces audited results for the year ended 31 December 2017.
- Group revenue increased 16.9 per cent to £3.79 billion (2017: £3.25 billion)
and by 12.0 per cent in constant currency2
- Group adjusted1 profit before tax increased by 22.9 per cent to £106.2 million (2016:
£86.4 million) and by 18.4 per cent in constant currency2
- Adjusted1 diluted earnings per share (EPS) of 65.1 pence (2016: 54.0 pence),
an increase of 20.6 per cent
- Net funds3 of £191.2 million (2016: £144.5 million), an increase of £46.7 million
- Proposed final dividend of 18.7 pence (2016: 15.0 pence), for a total dividend of 26.1 pence (2016: 22.2 pence), an increase of 17.6 per cent
- Record adjusted1 EPS of 65.1 pence (2016: 54.0 pence), an increase of 20.6 per cent
- The Group's total revenues grew £548 million during the year, £408 million in constant currency2
- Germany delivers another record performance with full year revenue growth of 15.5 per cent driven by excellent Supply Chain sales leading to a 57.0 per cent increase in adjusted1 operating profit, both on a constant currency2 basis
- The UK re-established positive sales momentum with growth of 8.8 per cent in full year revenue. Supply Chain margin challenges, and increasing SG&A, contributed to an 18.2 per cent decline in adjusted1operating profit
- France again performs ahead of Management’s expectation for 2017, with revenue growth of 13.0 per cent and an 80.0 per cent increase in adjusted1 operating profit, both on a constant currency2 basis
Mike Norris, Chief Executive of Computacenter plc, commented:
“The growth rates we recorded in 2017 meant we achieved record Group revenues, adjusted1 profit before tax and adjusted1 diluted EPS, and set ourselves a high bar to outperform in 2018. However, with a tailwind from the Return of Value completed in February 2018, we expect 2018 will be a year of progress in our primary measure of adjusted1 diluted EPS.
We have seen good growth in our German business for the last few years, which we believe should continue with rising revenue from our Supply Chain business and margin improvement from our Services business. The UK business should return to operating profit growth in 2018, helped by recent contract wins and solid market conditions. In France, where we have experienced strong operating profit growth for the last two years, we expect 2018 to be challenging as we have significant contract renewals and we will not have the benefit of a particularly successful project that finished at the end of 2017. We are hopeful that we will grow our footprint beyond our current geographies more successfully in the coming years.
Across the Group, the two major trends that we have highlighted over the last few years have strengthened still further. Firstly, our customers’ appetite to invest in digitalisation to enhance their customers’ and users’ experience continues to grow. Secondly, our customers increasingly want to reduce the ongoing cost of running their IT, by introducing more innovative solutions such as automation. These trends are driving Computacenter’s growth in Supply Chain and Professional Services and are motivating us to invest, and to enhance our competitiveness in Managed Services, which we are.”
- Adjusted operating profit or loss, adjusted profit or loss before tax, adjusted tax, adjusted profit or loss for the year, adjusted earnings per share and adjusted diluted earnings per share are, as appropriate, each stated before: exceptional and other adjusting items including gain or loss on business disposals, gain or loss on disposal of investment properties, amortisation of acquired intangibles, utilisation of deferred tax assets (where initial recognition was as an exceptional item or a fair value adjustment on acquisition), and the related tax effect of these exceptional and other adjusting items, as Management do not consider these items when reviewing the underlying performance of the Segment or the Group as a whole. Additionally, adjusted gross profit or loss and adjusted operating profit or loss includes the interest paid on customer-specific financing (CSF) which Management considers to be a cost of sale. A reconciliation between key adjusted and statutory measures is provided within the Group Finance Director’s Review included within this announcement. Further detail is provided within note 4 to the Consolidated Financial Statements included with this announcement.
- We evaluate the long-term performance and trends within our strategic key performance indicators (KPIs) on a constant currency basis. Further, the performance of the Group and its overseas Segments are shown, where indicated, in constant currency. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information gives valuable supplemental detail regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our prior-year local currency financial results using the current year average exchange rates and comparing these recalculated amounts to our current year results or by presenting the results in the equivalent local currency amounts. Wherever the performance of the Group, or its overseas Segments, are presented in constant currency, or equivalent local currency amounts, the equivalent prior-year measure is also presented in the reported pound sterling equivalent using the exchange rates prevailing at the time. Highlights 2017, as shown above, and statutory measures, are provided in the reported pound sterling equivalent.
- Net funds includes cash and cash equivalents, CSF, other short or other long-term borrowings and current asset investments.
For further information, please contact:
Mike Norris, Chief Executive 01707 631 601
Tony Conophy, Finance Director 01707 631 515
Tulchan Communications 020 7353 4200
James Macey White