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Annual Results

Computacenter pre-tax profits fall

13 March 2017 07:34

Computacenter's statutory pre-tax profits fell to £87.1m in the year to the end of December - down from £126.8m last time.

The group had record adjusted diluted earnings per share of 54.0 pence (2015: 53.4 pence), an increase of 1.1% and had reported annual Services revenues of over £1bn for the first time in 2016.

In the UK, strong second half revenue growth was unable to prevent a 1.1% full year adjusted revenue decline.

Supply Chain margin challenges and Services revenue decline contributed to a 21.1% reduction in adjusted operating profit.

Adjusted revenues of £3,245.4m rose by 6.3% but adjusted pre-ta profits fell by 0.6% to £86.4m.

Chief executive Mike Norris said: "Whilst in 2016 we had record adjusted diluted EPS, it was a year of mixed fortune with the UK business profitability reducing materially but the overall Group performance showing resilience due to the strength in Germany and the turnaround in France.

"The Group should have a year of progress in 2017, with a rebalancing of profits between the first and second halves of the year towards the historical pattern.

"We expect the UK to see modest improvements due to Professional Services and Supply Chain helping the overall performance.

"While Germany will be coming off a strong year, and therefore a difficult comparison, the business has strong momentum and potential to improve Services margins.

"For the French business we would be happy to repeat the same bottom line, with some deterioration in our Supply Chain compensated by improvement in Services revenue.

"New technologies and the drive to digitalisation within our core customer base is driving our customers to invest capital in new projects which is unlikely to abate, however, this is coupled with a resolute desire to reduce run rate operating costs.

"As a business we have to step up to this challenge and improve our competitive position by focusing on productivity gains and automation."

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