Wednesday 9 September 2020 8:48 am

Computacenter shares jump on pandemic-driven profit

Computacenter’s share price rose more than six per cent this morning, after the technology group posted a boost in profit driven by the rise in remote working.

The FTSE 250 group reported a pre-tax profit of £72.4m for the first half of 2020, up from £50.8m a year earlier, as costs also fell.

Computacenter said in a statement that while it had been hit by “significant reductions” in spending from industrial customers, it had gained enough new business from customers in the government and financial services sectors to offset any losses.

Overall revenue rose 1.5 per cent to £2.47bn, after services revenue remained relatively flat but sales in its technology sourcing division increased two per cent.

Computacenter announced an interim dividend of 12.3p a share, up 21 per cent from 10.1p a share in the first half of last year.

The firm’s half-year report follows a trading update issued at the end of last week, in which Computacenter said its positive first half of the year had continued into the first two months of the second half.

“As previously stated, our business has performed well this year to date and proven to be flexible in these extraordinary times,” said chief executive Mike Norris in a statement today.

“It is impossible to predict exactly how the world will recover in 2021, and beyond, and the implications for our customer base. We do believe that our customers will continue to invest in technology and that we have built a substantial reseller business… which should enable us to deliver a reliable and consistent business for our customers, employees and shareholders.”

Computacenter said the firm’s adjusted profit before tax for the year is unlikely to be less than £180m.

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