Business
Pre-Close Trading Update
Pre-Close Trading Update.
About this update from Computacenter Plc
[{"type":"text","content":"\n\nComputacenter plc\nPre-Close Trading Update - 28 January 2025\nComputacenter plc (\"Computacenter\" or the \"Group\"), a leading independent technology and services provider, today publishes a trading update, based on preliminary unaudited financial information, for the year ended 31 December 2024 (\"the year\").\nFY 2024 - record H2 performance and number of major customers; continuing strong cash generation\nIn the context of a more challenging market backdrop in 2024 and against a strong comparative in 2023, total revenue in 2024 for the Group, on a gross invoiced income basis, increased by 0.5% in constant currency and decreased by 2% on a reported basis. In constant currency, Technology Sourcing gross invoiced income was marginally ahead and Services revenue increased by 2%. This reflected a stronger performance in the second half of the year with Technology Sourcing gross invoiced income increasing by 13% and Services revenue up 5%. In Services for 2024 as a whole, Professional Services delivered strong revenue growth which was partly offset by a softer performance in Managed Services.\nWhile we are pleased with overall execution towards the end of the year, with Germany and North America delivering strong performances, parts of our larger current Technology Sourcing projects in the US and the UK have slipped into the early part of 2025. For the second half of 2024 adjusted operating profit is expected to be ahead of the equivalent period in 2023 in both constant currency and on a reported basis. This represents Computacenter's most profitable half year in its history and we ended the year with a record number of customers generating over £1m of gross profit per annum.\nFor the full year in 2024, also taking into account our ongoing group-wide strategic investments, lower interest income receipts following the earlier completion of the share buyback, and a £7m adverse translation impact from stronger sterling, we now expect adjusted1 profit before tax for 2024 to be at the low end of the range of analysts' forecasts2.\nFinancial Position\nThe £200m share buyback programme announced on 26 July 2024, was completed earlier than expected on 30 October 2024. The Group's adjusted net funds3, excluding IFRS 16 lease liabilities, finished the year extremely strongly at around £480m benefiting from strong collections and some m...