9th Sep 2020 08:51
(Alliance News) - Computacenter PLC on Wednesday reported profit growth for the first half, amid an increased demand due to Covid-19 pandemic, and said that it has agreed to buy Pivot Technology Solutions in Canada.
Shares in Computacenter were up 3.1% at 2,248.00 pence each in London.
Revenue for the first half of 2020 rose 1.5% to GBP2.46 billion from GBP2.43 billion year-on-year, while pretax profit grew by 43% to GBP72.4 million from GBP50.8 million.
First half adjusted pretax profit totalled GBP74.6 million, up 39% year-on-year.
The IT services firm said significant reductions in spend from industrial customers was offset by new business within the government and financial services sector.
The Covid-19 crisis led to a higher demand for technology sourcing to enable working from home and other emergency IT responses, the company added.
Chief Executive Mike Norris said: "As previously stated, our business has performed well this year to date and proven to be flexible in these extraordinary times."
"While nothing can be taken for granted, it is the board's view that, based on current business activity levels, our adjusted profit before tax for the year is unlikely to be less than GBP180 million."
In 2019, the company had recorded adjusted pretax profit of GBP146.3 million.
The FTSE 250-listed company upped its interim dividend payout by 22% to 12.3p per share from 10.1p.
Separately, Computacenter said it has agreed to buy Toronto Stock Exchange-listed Pivot Technology Solutions.
Computacenter will pay CAD2.60 cash for each Pivot share, the deal worth CAD105.8 million - nearly USD80 million or GBP62 million - based on the firm's 40.7 million shares.
Pivot is an IT solutions provider which makes around 85% of its revenue from customers in the US and the remainder from customers in Canada.
"We are pleased with our progress in the US, including the acquisition of Fusionstorm in 2018. The acquisition of Pivot represents an opportunity to increase our scale, geographic footprint and capabilities in US. Additionally, Canada expands our total market opportunity and helps us meet the needs of international customers," said CEO Norris.
By Tapan Panchal; [email protected]
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