Computacenter: Tech group notes record performance in North American market
Leading independent technology and services provider Computacenter has reported a mixed set of full-year results for 2024 despite a record performance in North America in the second half.
Revenue inched up 0.6 per cent to £7bn while adjusted profit before tax fell 8.6 per cent to £254m.
Its North American business achieved another record year, driven by new hyperscale and enterprise customer wins. Strong demand for the group’s Technology Sourcing and Professional Services helped counterbalance broader economic uncertainty.
Group revenue from Technology Sourcing rose 0.8 per cent to £5.3bn, while overall Professional Services revenue remained largely flat at £1.6bn.
Gross profit came in at £1bn, down slightly from the previous year, with margins declining to 14.9 per cent.
Despite softer earnings, Computacenter increased its total dividend by one per cent to 70.7p per share.
The company also completed a £200m share buyback, bringing total shareholder distributions to nearly £1bn since 2013.
Net cash inflow from operations increased to £417.1m.
Computacenter ended the year with adjusted net funds of £482.2m, up 5.1 per cent year-on-year.
The company said its product order backlog was up 116 per cent compared to the previous year, positioning it well for 2025.
Mike Norris, chief executive officer, said: “Computacenter delivered a solid performance in 2024 as a whole in the context of a tough first half comparative and a more challenging IT market. Encouragingly, the second half was the most profitable in our history and was derived from our highest number of major customers. We executed well in North America, achieving another record year while Germany performed robustly.
“Cash generation was strong, providing us with the capacity to continue to invest in leading systems and to deliver enhanced shareholder returns through the completion of a £200m buyback.
“Since 2013 we have distributed nearly £1bn to shareholders while making targeted acquisitions that have enhanced our global footprint, performance and business resilience as well as our long-term growth potential.
“We are well-placed for progress in 2025, entering the year with a strong order backlog across all regions, an exciting opportunity set and a continued focus on helping our customers realise the transformative benefits of IT.”