28th Jul 2025 08:35
(Alliance News) - Computacenter PLC on Monday said softer trading in Germany and France and increased investment means first half adjusted profit would be only slightly ahead of a year ago.
In response, shares in the Hatfield-England-based technology services provider fell 2.0% to 2,190.11 pence each in London on Monday morning.
Computacenter said it delivered strong revenue growth in the half year ended June 30 largely driven by growth in high-volume Technology Sourcing business, resulting in good growth in gross profit.
This reflected an excellent performance in North America and further growth in the UK.
However, the company experienced softer trading in Germany and France during the second quarter driven by temporary lower levels of public sector activity following political changes, with the performance in France significantly weaker than last year.
During the half-year, the company also increased investment as it continues to upgrade systems.
As a result, Computacenter now expects first half adjusted operating profit to be slightly ahead of last year's GBP81.1 million, including a GBP2 million adverse currency translation impact.
Following the completion of the share buyback programme in the second half of 2024, net interest income is expected to be over GBP6m lower than a year ago, whilst earnings per share is enhanced.
More positively, Computacenter said it is "encouraged" by committed product order backlog at June 30, which remains "healthy" across all geographies.
"We have started July strongly with certain large orders in North America and the UK which were expected to complete during the first half, moving into Q3," the firm added.
The company expects some recovery in public sector activity in Germany in the second half while France is expected to remain challenging.
Overall, Computacenter continues to expect full year adjusted operating profit in 2025 to be ahead of the prior year, including an adverse GBP4m currency translation impact. Adjusted pretax profit is expected to be at a similar level to 2024 due to the anticipated reduction in net finance income following the share buyback.
In 2024, Computacenter reported adjusted operating profit of GBP246.7 million and adjusted pretax profit of GBP254.0 million.
Half-year results will be published on September 9.
By Jeremy Cutler, Alliance News reporter
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