Computacenter (CCC) H2 2013 earnings summary

Executive summary

• Revenue reached a record £3,072.1m, up 5.4% year-over-year, with adjusted profit before tax rising 3% to £81.7m.

• Strong cash generation enabled a £75m special return to shareholders, in addition to regular dividends.

• UK and Germany performed well, while France underperformed due to operational and market challenges.

• Group Operating Model implementation drove efficiencies, especially in Germany and the UK.

Financial highlights

• Adjusted diluted EPS increased 6.1% to 43.3p; statutory diluted EPS fell to 23.0p due to exceptional items.

• Total dividend per share rose 12.9% to 17.5p.

• Net cash (excluding customer-specific financing) was £90.3m at year-end.

• Exceptional items totaled £28.8m, including £15.7m for onerous German contracts and £12.2m impairment in France.

• Statutory profit before tax was £50.5m, down from £64.8m in 2012.

Outlook and guidance

• Board expects further progress in 2014, with all major geographies anticipated to improve.

• UK and Germany expected to benefit from recent wins and margin improvements; France to remain loss-making but with reduced losses.

• Continued focus on growing Services, increasing productivity, and innovating offerings.