Computacenter Plc (CCC.L), a provider of technology and services, announced on Monday that its third-quarter performance was largely consistent with that of the previous year.
Looking forward, the company anticipates a stronger second half compared to the same period last year. However, for fiscal year 2024, Computacenter expects adjusted profit before tax, on a constant currency basis, to slightly lag behind the previous year. This forecast is due to an unexpectedly softer conclusion to the third quarter and a cautious approach to corporate spending.
For the full year, the company anticipates a negative translation impact on adjusted profit before tax, estimated between £7 million and £8 million.
Despite these short-term challenges, Computacenter remains optimistic about its long-term growth outlook, supported by the robustness of its integrated Technology Sourcing and Services model as well as its geographical diversity.
In its trading update for the third quarter ending September 30, the company reported that Technology Sourcing volumes in September did not meet expectations after a strong start to the quarter. This shortfall was attributed to a more cautious corporate spending climate and slower fulfillment of confirmed product orders in North America.
Performance in Germany met the company’s expectations, while the UK outperformed last year but did not meet projections. Revenue from Technology Sourcing rose, primarily driven by North America. The company indicated that certain shipments in the US are now scheduled for completion in the fourth quarter and early 2025.
During the quarter, Services revenue improved year-on-year, with significant growth in Professional Services compensating for a decline in Managed Services.
