Computacenter (CCC)

 

Computacenter pre-tax profits nearly double

Computacenter's adjusted pre-tax profits rose to £41.9m in the six months to the end of June - 65.6% up on last time - and on track for a record full-year performance.

Revenues were 15% higher at £1,700.3m and statutory pre-tax profits more than doubled to £47.5m from £23.6m.

The group declared an dividend of 7.4p per share up from 7.2p a year ago.

Chief executive Mike Norris said: The majority of our profit growth in the first half came from improved operational performance, with some help from currency movements.

"We also benefited from a comparison with what was a weaker trading performance in the first half of the prior year, whereas the comparison for the second half of 2017 is challenging.

"We remain on track for a record performance, and marginally ahead of the upgraded board expectation expressed at our Trading Update in April 2017.

"We have never been more optimistic about the market's potential, as customers invest capital, digitalise their businesses and require support to reduce their long-term operating costs.

"It remains critical that Computacenter invests too, in skills, tools, automation, infrastructure and customer satisfaction as we remain more focused on our long-term performance than the short term.

"As can be seen from recent results, our investments over the last few years have paid off but they are not guaranteed.

"However, market opportunity and competition makes this continuous investment both attractive and necessary.

"It is also worthy of note that most of our investments are expensed through the Income Statement, rather than capitalised.

"Our cash generation over recent years has enabled us to have a strong dividend policy and to periodically return additional value to shareholders.

"We intend to do this again in the fourth quarter of 2017, with an anticipated return of value of approximately £100 million.

"This would bring the total returned to shareholders, via ordinary and special returns, to £648 million since listing on the London Stock Exchange on 21 May 1998."