Computacenter's figures were well-flagged, but bosses of the IT technology specialist are far more positive about 2012 than they were in January, and that has boosted the company's share price. Chief executive Mike Norris thinks the business pipeline is "as exciting, if not more so" than last year, and only another economic slump would stop it meeting forecasts for a seventh consecutive year of double-digit profit growth in 2012.
Last year, high demand for IT upgrades in Germany and France offset an 18 per cent drop in UK supply chain revenue. But, while the continent is still growing fast, there's been a clear improvement here too, which implies UK sales stopped falling in the first quarter of 2012. Underlying operating profit in the UK business fell 14 per cent to £37.3m in 2011, although margins improved and new contracts won in the second half will feed through this year. Moreover, demand for Windows 7 upgrades, which Microsoft will stop supporting in 2014, is accelerating.
Overseas, Germany overtook the UK as Computacenter's biggest sales generator - revenue jumped a fifth to £1.4bn and profits leapt 39 per cent to £32m. Mr Norris believes that the growth rate is likely to be slow in 2012, but he "might be proved wrong". Together with France and Belgium, it is now responsible for half of Computacenter's profits.
Broker JP Morgan Cazenove expects 2012 adjusted EPS of 40.9p (37.4p in 2011).
COMPUTACENTER (CCC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 411p | MARKET VALUE: | £636m | |
| TOUCH: | 409-413p | 12-MONTH HIGH: | 494p | LOW: 317p |
| DIVIDEND YIELD: | 3.6% | PE RATIO: | 10 | |
| NET ASSET VALUE | 262p* | NET CASH: | £113.6m | |
| Year to 31 Dec | Turnover (£bn | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 2.38 | 42.1 | 18.5 | 8.0 |
| 2008 | 2.56 | 39.5 | 24.7 | 8.2 |
| 2009 | 2.50 | 48.4 | 25.7 | 11.0 |
| 2010 | 2.68 | 65.4 | 34.1 | 13.2 |
| 2011 | 2.85 | 72.1 | 41.0 | 15.0 |
| % change | +7 | +10 | +20 | +14 |
Ex-div: 16 May Payment: 15 Jun *Includes intangible assets of £104.2m, or 68p a share | ||||
