Computacenter delivers solid set of 2023 results

Channel player Computacenter indicates that it weathered the macroeconomic storms and has continued to deliver another year of growth

Computacenter has delivered a set of results for 2023 that have defied the narrative of a tough year, with growth being generated across the business.

The firm’s numbers for the 12 months ended 31 December include the milestone moment of the firm delivering £10bn in gross invoice income, up 11.4% year on year.

The arrows were all pointed upwards in terms of gross profit, adjusted profit before tax and adjusted earnings per share. Revenues improved by by 7% coming in at £6.92bn.

Both the technology sourcing and services sides of the business delivered, with gross invoiced income growth of 12.9% and 14.2% respectively.

The growth in the technology sourcing business was largely as a result of increased demand on the networking and datacentre fronts. In terms of workplace technologies, the market remained subdued, but Computacenter is expecting the arrival of more AI-capable technologies will spark a recovery in 2024.

On the service side, the combination of professional and managed services was described by the firm as “critical to our business model” and improved as the year progressed, with customer’s looking to the channel player to assist with a range of issues, including the roll-out of network and datacentre integrations and workplace.

The firm has been following a strategy of driving both organic growth and using M&A activity to expand geographically, particularly in the US, and that approach has delivered another year of growth.

Outside the UK, the firm saw its international arms contribute, with Germany delivering adjusted operating profit increase of 13.8% and a 24% improvement in North America. The expansion the firm has undergone in the past five years has helped it more than double adjusted profit before tax and adjusted earnings per share.

Mike Norris, chief executive officer of Computacenter, was understandably bullish about the progress made in 2023. “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,” he said.

“We managed an uncertain macroeconomic backdrop and inflationary pressures effectively, reduced our inventory significantly, resulting in a record net cash position. As planned, we stepped up our investment in strategic initiatives to underpin our competitiveness and future growth.” 

Those investments included spending £28.1m in strategic initiatives designed to improve the firm’s productivity and capabilities and to support future growth.

In his comments accompanying the results, Norris added that the business had benefited from focusing on large customers that had kept spending on technology during 2023. The business was able to deepen its relationships with existing customers and cultivate fresh business during the year.

Looking to this year, the firm is expecting macroeconomic headwinds to continue to be a feature, but Norris is confident the business would keep its momentum.

“We expect 2024 to be another year of progress with growth weighted to the second half, while continuing to invest for future growth. 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,” he said.

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