Financial Highlights:
Group revenue of £1.43 billion (H1 2012: £1.42 billion)
Group adjusted profit before tax of £26.2 million (H1 2012 restated: £25.8 million), an increase of 1.9%
Adjusted diluted earnings per share (Diluted EPS) of 12.5p (H1 2012 restated: 12.7p)
Net funds excluding customer specific financing (CSF) of £82.1 million (H1 2012: £101.6 million), after remitting £31.4 million to a third party escrow account during the period as part of the return of value to shareholders of approximately £75 million which completed in early July 2013
Interim dividend of 5.2p (H1 2012: 5.0p)
Statutory Highlights:
Total exceptional items of £29.3 million (H1 2012 restated : £3.6 million), including:
o Trading losses on three previously announced onerous contracts in Germany of £5.1 million in H1 2013 (H1 2012 : £1.7 million)
o One-off provision of £10.7 million for future losses on the three onerous contracts in Germany (in addition to the £2.1 million provision taken in December 2012)
o A non-cash impairment of goodwill and acquired intangibles in France of £12.2 million, due to deterioration in business performance
o Accordingly, 2012 results are re-stated to reclassify trading losses on the three onerous contracts in Germany within exceptional items
After exceptional items, H1 2013 Group statutory loss before tax of £4.3 million (H1: profit of £20.8 million)
Statutory diluted loss per share of 5.7p (H1 2012: diluted earnings per share of 10.0p)
Net funds including CSF of £65.8 million (H1 2012: £83.8 million)
Operational Highlights:
Continued good progress towards objective of increasing the proportion of Group revenue generated from Services
Group Services revenue increased by 3.0% in constant currency across the Group
Excellent momentum in the UK continues, with a very encouraging Managed Services pipeline
Pleasing underlying performance in Germany, also with a strong Managed Services pipeline
Trading performance of the three onerous contracts in Germany has stabilised since our Interim Management Statement released on 24 April 2013 - provision has now been made for future losses over their lifetime
Successful implementation of Group Operating Model in Germany
French business continues to face challenging market conditions. Short-term adverse impact from its migration to the Group ERP system. Confident of improved French business performance in the long term
Successful Group ERP migration in the UK and Germany already delivering important benefits, enabling the implementation of the Group Operating Model
Financial flexibility of the Group increased through a £40 million committed facility secured in the period
Mike Norris, Chief Executive of Computacenter plc, commented:
"Trading remains in line with the Board's expectations for the year, with the exception of the provisions we have made in respect of our three onerous contracts in Germany.
We believe that the performance of the Group during the first half of 2013, excluding the three onerous contracts in Germany and the issues we have faced in our French business, has been one of our best ever. We are confident that we can maintain the momentum of our general success and solve our isolated issues."
