LONDON - Computacenter plc, a prominent technology and services provider, has reported a third-quarter performance that aligns closely with the previous year's results. The company experienced a robust start to the quarter, but noted that Technology Sourcing volumes in September fell short of expectations due to a more reserved corporate spending climate and delays in North American product order completions. Despite these challenges, the company's overall performance in Germany met expectations, with the UK performing better than last year, albeit below the company's own projections.
For the quarter ending September 30, 2024, Computacenter saw an increase in Technology Sourcing revenue, particularly in North America, as the company continued to fulfill orders from the first half of the year. However, some U.S. shipments are now anticipated to be finalized in the fourth quarter and into early 2025. The company also reported a satisfactory order intake in the U.S. during this period.
Service revenues saw an uptick from the previous year, with Professional Services experiencing significant growth, which offset a decrease in Managed Services revenue. Computacenter has also made substantial progress with its £200 million share buyback program initiated in late July, having completed £191.7 million of the buyback to date. The company expects to maintain a strong balance sheet with positive adjusted net funds following the completion of the buyback.
Looking ahead to the full year, the fourth quarter is traditionally Computacenter's most significant in terms of revenue, and the company's committed product order backlog remains robust, having grown since the end of the first half. While the company anticipates a second half that will outperform the previous year, the softer end to the third quarter and cautious corporate spending have led to a projection of a full-year adjusted profit before tax on a constant currency basis that is modestly behind the previous year. At current exchange rates, Computacenter is bracing for a negative £7-8 million translation impact on adjusted profit before tax for the fiscal year 2024.
Despite these immediate challenges, Computacenter remains optimistic about its long-term growth prospects, citing the strength of its integrated Technology Sourcing and Services model and its geographic diversity. The company's next trading update is scheduled for January 28, 2025, with the announcement of its Pre-close Trading Update. This article is based on a press release statement from Computacenter plc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.