"Growing pains" was how Computacenter chairman Greg Lock described a profit warning in mid-June, after the IT services provider had to take an extra £7m in start-up costs on new contracts, particularly in Germany. That left adjusted pre-tax profits in the first half down 10 per cent to £24m, and broker Panmure Gordon nudged down its adjusted EPS forecasts for the full-year from 36.2p to 35.4p, but expects a recovery to 41.5p in 2013 (from 37.4p in 2011).
Mr Lock said he expects slower growth in contractual services revenue outside the UK after a strong first half in which turnover from this segment rose 9.4 per cent to £595m. The UK, which is responsible for three-quarters of group operating profit, increased profits by 5 per cent, driven by a double-digit increase in service revenues and a stable supply chain performance.
Computacenter's German operation also saw a strong showing on the service side, buoyed by contract wins at the end of 2011, which drove reported revenue up 7.5 per cent to €718m (£570.8m). However, this was tempered by significant weakness in the supply chain operation, responsible for two-thirds of turnover in Germany, which was impacted by the economic instability in the eurozone. Revenues there declined by almost 10 per cent in the second quarter and meant profits from Germany slumped by €3m to €5.4m.
COMPUTACENTER (CCC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 376p | MARKET VALUE: | £579m | |
| TOUCH: | 374-376p | 12-MONTH HIGH: | 464p | LOW: 285p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 257p* | NET CASH: | £83.7m | |
| Half-year to 30 Jun | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 1.37 | 26.2 | 13.3 | 4.50 |
| 2012 | 1.42 | 20.8 | 10.3 | 5.00 |
| % change | +4 | -21 | -23 | +11 |
Ex-div: 19 Sep Payment: 19 Oct *Includes intangible assets of £102m, or 66p a share | ||||
