Computacenter Share Price Plunged 8.5% on Its FY 2023 Results

The Computacenter plc (LON: CCC) share price plunged 8.48% after releasing the final results for the year ended 31 December 2023. The company reported its nineteenth consecutive year of adjusted earnings per share (EPS) growth, which was impressive. However, its share price still fell. 

The leading independent technology and services provider achieved unparalleled annual highs in revenue, gross profit, and adjusted EPS while maintaining a commitment to future expansion. The company’s gross invoiced income surpassed £10 billion, a rise of 11.4%, propelled by robust growth in Technology Sourcing and steady advancement in Services, with a 10.2% increase in gross profit.

A 5.4% improvement in adjusted Profit Before Tax (PBT) highlights more significant strategic investments, while adjusted diluted EPS rose 3%. The company’s exceptional cash flow generation, attributed to efficient inventory management, led to an adjusted net fund boost of £214.7 million, reaching £459.0 million.

Outstanding Group performance demonstrates the strength of our integrated Technology Sourcing and Services framework and its extensive global reach. Technology Sourcing gross invoiced income in constant currency increased 13.1%, fueled by solid spending from large enterprises and additional gains in market share.

Service revenues saw a 3.1% uptick in constant currency terms, and the gross margin remained uptrending throughout the year. The firm reported Sustained growth in Germany, with a 13.8% rise in adjusted operating profit in constant currency terms, solidifying its top market position.

There was notable expansion in North America, with adjusted operating profit soaring by 24.0% in constant currency, highlighting the potential for long-term growth. The company invested £28.1 million in strategic projects (up from £14.8 million in 2022) to bolster its capabilities, boost productivity, and secure future expansion.

Computacenter adopted its 2032 mid-term and 2040 Net Zero objectives through the Science Based Targets initiative (SBTi) as part of its sustainability strategy. A proposed end-of-year dividend of 47.4p, leading to an annual dividend increase of 3.1% to 70.0p.

With a robust balance sheet, the firm is exploring various options for capital allocation. Given the more demanding comparative challenges in the first half, the company anticipates continued progress in 2024, with growth expected to lean towards the latter half of the year.

Computacenter share price. 

The Computacenter share price plunged 8.48% to trade at 2688.0p from Tuesday’s closing price of 2937.0p.