Computacenter reports record year but warns of challenging 2024

22nd Mar 2024 07:20

(Sharecast News) - Computacenter delivered another record year of revenues and adjusted profits with gross invoiced income topping the £10bn mark, but said that trading conditions at the start of this year are likely to be challenging.

The tech services company said it expects to make "further progress" in 2024, though growth will be weighted to the second half, "reflecting a significantly more challenging comparison in the first half".

Gross invoiced income rose 11.4% to £10.08bn in 2023, driven by strong growth in the Technology Sourcing division, helping group revenues to rise 7% to £6.92bn.

Adjusted pre-tax profit was up a lesser 5.4% at £278m, with adjusted earnings per share rising 3% to 174.8p, which the firm put down to doubled levels of investment in strategic initiatives to "improve our capabilities, enhance productivity and secure future growth".

Computacenter proposed a final dividend of 47.4p, increasing the full-year payout by 3.1% to 70p.

"We delivered our nineteenth consecutive year of growth in adjusted earnings per share, outperforming our markets in 2023, as our large customers continued to invest heavily in new technology," said chief executive Mike Norris.

"We managed an uncertain macroeconomic backdrop and inflationary pressures effectively, reduced our inventory significantly, resulting in a record net cash position. As planned, we stepped up our investment in strategic initiatives to underpin our competitiveness and future growth."

As for 2024, the company said volumes in Technology Sourcing will likely normalise as some of the high-volume, lower-margin projects delivered, especially in the first half of 2023, were completed.