31st Jul 2019 09:54
(Alliance News) - Shares in Computacenter PLC surged Wednesday after it expected full year profit to be "materially" higher than the current market forecasts of a nearly 8% growth on the year prior.
Shares in Computacenter were 11% higher at 1,507.01 pence in London on Wednesday.
For the six months ended June, the FTSE 250-listed IT firm expects adjusted pretax profit to be "marginally" ahead of the the year prior. The firm had previously described the six months period the year before as being a "challenging comparison."
Consequently, Computacenter now expects 2019 adjusted pretax profit to be "materially ahead" of the GBP127.5 million market expectation.
In 2018, Computacenter generated GBP118.2 million adjusted pretax profit on revenue of GBP4.35 billion.
The improved performance follows the mid-cap reporting a "strong" first quarter, with this momentum being continued into the remainder of the first half of the year within its Technology Sourcing unit.
All this improved performance is coming from the "established" businesses within the firm. Indeed, its recent US acquisition was described as having "underperformed" its expectations.
"Although it remains profitable and the recent US performance has been encouraging, it has been immaterial to the group and more than compensated by the strong organic performance from the rest of Computacenter," the firm emphasised in a statement.
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