Computacenter adjusted operating profits seen slightly ahead of FY24

(Sharecast News) - IT support and services firm Computacenter said on Monday that it continues to expect FY25 adjusted operating profits to be ahead of FY24 after delivering "strong revenue growth" in H1. Computacenter stated that its increased revenues were primarily driven by growth in its high-volume technology sourcing business, resulting in "good growth" in gross profits.

The FTSE 250-listed group said this reflected "an excellent performance" in North America and further growth in the UK. However, Computacenter did acknowledge that it had experienced softer trading in Germany and France during the Q2, principally due to temporary lower levels of public sector activity following political changes.

As a result, Computacenter now expects H125 adjusted operating profits to be "slightly ahead" H124's £81.1m outcome, including a roughly £2.0m hit from adverse currency translation.

Looking ahead, Computacenter said it was "encouraged" by its committed product order backlog at the half, which "remains healthy" across all geographies, positioning the group for H2.

"While the broader geopolitical and macro uncertainty is expected to persist, we anticipate some recovery in public sector activity in Germany in the second half while France is expected to remain challenging," said Computacenter. "Overall, we continue to expect FY adjusted operating profit in FY25 to be ahead of the prior year, including an adverse circa £4.0m currency translation impact, with adjusted profit before tax expected to be at a similar level to the prior year."

Reporting by Iain Gilbert at Sharecast.com