Computacenter (GB:CCC) reported its interim results for 2022 with a slump in profits as work-from-home culture has hit the company’s demand in Britain..
The company’s revenue increased by 16.6% to £2.8 billion, mainly driven by U.S. and German business.
North America witnessed the highest revenue growth of 48.3% due to growth in hyperscale technology business. The German business also saw some good growth in managed services in offices, driving revenues up by 10.2%.
But this was largely offset by a slump in the UK markets, which saw revenues decline by 7%. This was due to a downfall in the technology sourcing business which was down by 10% in revenue.
As the company witnessed a shift towards low-margin products and services, its pre-tax profits fell by 5.9% to £111.9 million.
Despite the lower profits, the company’s dividend increased by 31% to 22.1p per share. Shares were down by almost 11%. In the last year, the stock has traded down by 22%.
What does Computacenter do?
Computacenter is a technology service provider for big companies as well as the public sector.
The company’s services include managing IT infrastructure, technology sourcing, digital transformation, and other support services.
Computacenter share price forecast
According to TipRanks’ analyst rating consensus, CCC has a Moderate Buy rating. The stock has ratings from five analysts, out of which three are Buy and two are Hold recommendations.
The CCC price target is 3,055.0p, which is 39.2% higher than the price level. The analyst price targets range from a low of 2,470p to a high of 3,575p.
Conclusion
Computacenter believes the second half of the year will have more balanced operations as the order book continues to build. Also, the supply disruptions have somewhat eased, and the company is on track to meet its full-year profit growth.
Mike Norris, chief executive of the company, said, “Our customers’ commitment to investment in technology feels extremely robust despite well publicised and difficult economic conditions around the world. This gives us confidence for 2023 and beyond.”
