FINANCIAL HIGHLIGHTS
Underlying performance
Group revenues increased 2.2 per cent to £2.91 billion (2011: £2.85 billion) and up 6.5 per cent in constant currency
Adjusted profit before tax decreased 4.0 per cent to £71.3 million (2011: £74.2 million) and broadly flat in constant currency
Adjusted diluted earnings per share ('EPS') decreased 3.5 per cent to 36.1 pence (2011: 37.4 pence), with 14.3 per cent compound EPS growth over the past five years
Net funds prior to customer specific financing (CSF) was £147.3 million (2011: £136.8 million)
Statutory Performance
Profit before tax decreased 10.1 per cent to £64.8 million (2011: £72.1 million)
Diluted EPS decreased by 17.6 per cent to 32.4 pence (2011: 39.3 pence)
Net funds after CSF of £128.6 million (2011: £113.6 million)
Total dividend for 2012 of 15.5 pence per share up 3.3 per cent (2011: 15.0 pence)
RETURN OF CAPITAL
During the course of 2013, the Board intends to return up to £75 million to shareholders, in addition to the normal dividend
OPERATING HIGHLIGHTS
Group annual Services contract base grew 11.0 per cent in constant currency to a record £615.0 million (2011: £554.0 million)
Excellent performance in the UK with adjusted* operating profit increasing 40.2 per cent to £52.2 million driven by strong contribution from new Services contracts
German Services business adversely impacted by additional resourcing costs associated with simultaneous contract wins, however there are early signs of improvement in performance
Significant investment in France including head office relocation and new logistics facility
Group-wide ERP system delivering operational benefits in the UK and Germany with France on track to go live in H1 2013
Group operating model implemented in the UK and Germany since the start of 2013
Mike Norris, Chief Executive of Computacenter plc, commented:
"We expect 2013 to be a year of progress for Computacenter. While the Group financial outcome for 2013 will be dependent on the in-year performance of Germany and the speed at which we recover from our problem contracts, which is unpredictable, we are confident that these contracts will improve. More importantly, winning, contracting and taking on new contracts successfully, is more fundamental to the long-term growth of the business and its strategic development. This will be underpinned by our new Group operating model, which has taken effect in the UK and Germany, since the start of 2013.
Our pipeline for new business in the UK is significant, bringing growth prospects for 2014 and beyond, whilst the pipeline is beginning to grow in France and again in Germany. We therefore look forward with confidence.
The cash generative nature of Computacenter's business has resulted in a net cash balance in excess of our current needs. While we intend to continue to maintain a robust and prudent balance sheet, the Board believes that it is now appropriate to consider a return of capital to shareholders, in addition to the normal dividend. As soon as practicable in 2013, the Board intends to return up to £75 million to shareholders and we are exploring options as to the best mechanism to effect this return to all shareholders."
