Computacenter this morning said it is “well positioned” for the second half of 2025 as it unveiled “strong” first-half revenue growth.
Here we round up five points of interest from the LSE-listed giant’s trading update.
1. Getting back to growth
Computacenter 19-year run of unbroken earnings per share growth came to an end last year as its top line shrank back from the record levels generated in 2023.
Following a chirpy Q1 trading update, the Hatfield-based giant this morning revealed it delivered “strong” revenue growth in the first six months of the year.
This was largely driven by growth in high-volume technology sourcing business, resulting in “good growth in gross profit”, Computacenter said.
It also expects H1 2025 adjusted operating profit to be “slightly ahead” of the £81.1m it banked last year.
2. UK OK
Having blotted Computacenter’s copybook last year, the UK saw “further growth” during the first half.
This mirrors a recent uptick in fortunes at Computacenter’s UK-centric peer Softcat, which smashed expectations for its fiscal first-half ending 31 January 2025.
North America – now Computacenter’s largest business following a series of blockbuster acquisitions – delivered an “excellent performance”.
3. Continental concerns
Having been a star performer in 2024, Germany – along with France – endured “softer” trading during the second quarter “driven by temporary lower levels of public sector activity following political changes”, Computacenter said.
It anticipates “some recovery in public sector activity in Germany in the second half”, while France is “expected to remain challenging”.
4. Bursting backlog
Despite these continental European niggles, Computacenter said its committed product order backlog as at 30 June “remains healthy across all geographies meaning we are well positioned for the second half”.
“We have started July strongly with certain large orders in North America and the UK which were expected to complete during the first half, moving into Q3,” it stated.
5. Profit perspective
Computacenter’s view on whether its profits will grow or not in 2025 depends on the profit measure looked at.
While it expects operating profit to be ahead of 2024, adjusted profit before tax is set to be at a “similar level” due to the anticipated reduction in net finance income following a massive share buyback.
