Computacenter Shares Dip on Softer Q3

Computacenter plc (LON: CCC) shares fell on Monday after the technology and services provider issued a trading update revealing a softer-than-anticipated end to the third quarter.

The stock is currently down around 0.7% at 2,318p a share. However, it initially opened Monday’s session at 2,284p.

While the company’s overall performance for the quarter was broadly in line with the prior year, a slowdown in Technology Sourcing volumes in September impacted results.

This was attributed to a more cautious corporate spending environment and delays in product order completions in North America.

Despite this, the company managed to deliver growth in Services revenue, driven by strong performance in Professional Services.

However, a decline in Managed Services partially offset this growth.

Looking ahead, Computacenter said it expects a stronger second half of the year with a healthy order backlog.

Even so, due to the softer end to the third quarter and a more prudent corporate spending backdrop, the company now anticipates that full-year adjusted profit before tax will be modestly behind last year’s level.

“At current exchange rates, we expect a negative £7-8m translation impact on adjusted profit before tax in FY 2024,” the company stated.

Despite the near-term challenges, Computacenter remains optimistic about its long-term growth prospects, stating that the combination of its integrated Technology Sourcing and Services model and its geographic diversity provides it with continued confidence.