Computacenter Shares Edged 2.72% Higher on Q3 Trading Update

The Computacenter plc (LON: CCC) share price edged 2.72% higher after presenting a trading update for the third quarter ending on September 30, 2023. The update is based on unaudited financial information and provides insights into the Group's performance and outlook.

During the third quarter of 2023, the Group's performance was consistent with expectations. The period resembled the first half of the year, with notable strengths in the German and US markets, while the UK market remained challenging.

As anticipated, the growth achieved in the first half of the year was exceptional. However, during this quarter, Technology Sourcing volumes returned to normal levels as some of the firm’s high-revenue, low-margin projects were completed. 

Nevertheless, the company remains optimistic about its sales pipeline for the upcoming fourth quarter. Services revenue maintained its upward trajectory throughout the quarter. Despite the persisting challenges of inflationary pressures, the company effectively managed its margin recovery.

The company is also making significant strides with its strategic investments to enhance Computacenter's long-term competitive advantage.

After a robust cash performance in the year’s first half, as industry supply chains normalised, the firm’s inventory decreased further. During the third quarter, the company continued to generate robust cash flows, further enhancing its balance sheet strength.

While the fourth quarter remains crucial, and much work is still ahead, the firm maintains its belief that fiscal year 2023 will be another year of progress with growth in profitability. 

Looking beyond the current fiscal year, the firm’s strength in Technology Sourcing, Professional Services, and Managed Services, combined with its focus on long-term customer relationships, positions it favourably to compete effectively and expand its market share.

The company’s next scheduled trading update is the announcement of its Pre-close Trading Update on January 24, 2024.

In conclusion, Computacenter remains committed to delivering robust performance, adapting to market conditions, and capitalising on opportunities for sustainable growth in the dynamic and ever-evolving technology and services sector.

Computacenter share price. 

Computacenter share price edged 2.72% higher to trade at 2564.0p from Friday’s closing price of 2496.0p.