Computacenter plc has reported a positive financial performance for the year ended 31 December 2019 in a trading update.
“Last year was one of the most successful years in Computacenter's history,” the company said. “Not only have we recorded our best ever revenue, profit, earnings per share and cash generation from ongoing operations, but we have increased our profitability by the largest absolute amount ever.”
Total revenue for the group grew by 16% and by 17% in constant currency. Excluding the effect of recent acquisitions, particularly the US and the Netherlands businesses purchased in 2018, organic revenue grew by 3% and by 4% in constant currency.
Overall reported UK revenue was “broadly flat” however. Some “low margin deals” being reported in the UK on an agency basis under IFR15, contributed to an increase in Technology Sourcing gross margins though. In Germany, the firm saw “continued good growth” aided by the performance of both existing and new public sector customers.
France enjoyed “strong growth” from large customers and increased sales capacity boosted the customer base. France is said to have delivered its largest ever profit contribution to the group. The Netherlands is also said to be in a better position to make bigger gains, as the acquired operations were fully integrated into the group's ERP system and management structures from 1 November 2019.
In the US, while the financial performance in the first half of 2019 was “somewhat disappointing”, the operation “recovered strongly in the second half”.
“The results of 2019 set a high bar for the business in 2020. However, we go into the year with confidence, helped by the strong momentum within the group and the broader market,” said Computacenter.
The final results for the year will be published on Thursday 12 March 2020.
