Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Computacenter mulling shareholder returns after strong 2023

(Sharecast News) - Tech sourcing, consultancy and services group Computacenter expects to report record profits for 2023 with cash generation ahead of guidance, and said it is considering whether to use the surplus capital for shareholder payouts or acquisitions. Ahead of its annual report in March, the company said total revenues were up 12% last year, though it did not a "normalisation of activity" in Technology Sourcing in the second half following a strong first-half performance. On a regional basis, good results in Germany and North America outweighed the impact of a weaker performance in the UK.

The group forecasts another record year of adjusted profit before tax, but did not disclose guidance. In 2022, adjusted profit before tax came in at £263.7m.

"This result has been delivered against the backdrop of uncertain macroeconomic conditions throughout the year while, as planned, increasing the level of investment in strategic initiatives. It reflects the strength of our integrated Technology Sourcing and Services model as well as our geographic diversity," Computacenter said.

The company finished the year with adjusted net funds of £450m, ahead of its own forecasts, and said it is now "evaluating our options". The company explained: "Historically, Computacenter has a track record of returning surplus capital to shareholders when suitable acquisitions are not available."

The stock was up 1% at 2,886p in early deals on Wednesday.

Share this article

Related Sharecast Articles

UPS tops Q1 profit forecasts but misses on revenue
(Sharecast News) - American transport and logistics giant United Parcel Service saw shares rise on Tuesday after quarterly profits beat analysts' forecasts, even though revenues fell more than expected.
Getir investors said to fund European exit with new cash injection
(Sharecast News) - Investors in grocery delivery app Getir, which at one point attained a valuation of almost £10bn, are reportedly set to inject yet more money into the company to fund its exit from the UK and Europe.
Bushveld updates Vametco mineral resources
(Sharecast News) - Bushveld Minerals updated the market on mineral resources and reserves for the Vametco vanadium mine near Brits on the Western Limb of the Bushveld Complex on Tuesday.
Power Metal Resources completes Molopo drillhole
(Sharecast News) - Power Metal Resources announced the completion of drillhole DDH1-14C at its Molopo Farms Complex project in southwestern Botswana on Tuesday.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.