Bank of computer screens
Computacenter gives cautious 2024 outlook / Image source: Adobe
  • Record year for sales and profit
  • 2024 seen second half-weighted
  • Full year dividend up 3%

Despite delivering another record year of revenue and profit, shares in IT reseller Computercenter (CCC) fell 7% to a two-month low of £27.41 after the firm gave a cautious outlook.

The FTSE 250 company said although it expects 2024 to be another year of progress, it sees growth weighted to the second half of the year.

The second-half weighting reflects a ‘significantly’ more challenging comparison in the first half of the year which investors interpreted as uncertainty over the full year.

Over the last 12 months the shares are up 39% compared with a 5% gain in the mid-cap FTSE 250 index.


Gross invoiced income grew 11.4% to just over £10 billion driven by ‘strong’ growth in Technology Sourcing and ‘solid’ growth in Services.

Revenue increased by 7% to £6.92 billion, which was around 5% shy of analysts’ forecasts according to Refinitiv data. Adjusted pre-tax profit increased 5.4% to £278 million and adjusted earnings per share were 3% higher to 174.8p, ahead of market expectations.

Chief executive Mike Norris commented: ‘We delivered our nineteenth consecutive year of growth in adjusted earnings per share, outperforming our markets in 2023, as our large customers continued to invest heavily in new technology.

‘We managed an uncertain macroeconomic backdrop and inflationary pressures effectively, reduced our inventory significantly, resulting in a record net cash position.

‘Looking further ahead, the combination of the strength of our integrated Technology Sourcing and Services model and our geographic diversity, gives us continued confidence in our long-term growth prospects.’


AJ Bell investment director Russ Mould commented: ‘It always provokes some discomfort on the part of investors when a company flags a second-half weighting for the year ahead and that, plus a strong run for the shares for the past year, explains the negative reaction to IT reseller Computacenter’s latest results.

‘Although to be fair, the reason for the second-half weighting is tough comparison with a particularly strong first half of 2023.

‘There may be some impatience about the company’s failure to clarify what it will do with a growing cash pile, with only a modest increase in the ordinary dividend delivered.’

Dan Ridsdale, head of technology at research group Edison said:

‘This is not a business built for the short term. While we do see some near-term factors challenging the company’s financial comparators the company looks well place to sustain a healthy growth trajectory in the medium to long term.’

Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (Martin Gamble) and the editor (Ian Conway) own shares in AJ Bell.


Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJ Bell logo

Issue Date: 20 Mar 2024