Shares of Computacenter plc (LON: CCC) jumped 4.72% higher after the British IT company released a trading update raising its profit guidance for the year ended 31 December 2020 to above £195 million.
The group grew its total revenues by 8% driven by strong demand for its Technology Sourcing product sales in the public sector and services based customers as opposed to customers in the manufacturing and industrial sectors who reduced their spending significantly.
The company’s margins improved greatly after reducing its dependence on contractors and utilising its staff more efficiently. The firm also incurred lower costs due to the reduced travel expenditures following the coronavirus restrictions.
Computacenter finished the year in a solid financial position with adjusted net funds worth around £188 million driven by early payments from overseas customers. The firm suspects were avoiding the impact of negative rates.
The company clarified that demand for its Technology Sourcing and Services was still as strong as at any time in the last year as the momentum carried over into 2021 and that its order pipeline had not slowed down.
The IT firm expressed confidence that 2021 would be a banner year.
Computacenter share price
Computacenter shares surged 4.72% to trade at 2570p having risen from Thursday’s closing price of 2454p.