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Highlights:

  • CCC recorded significant H1 revenue growth driven by Technology Sourcing in North America and the UK.
  • CCC's French operations underperformed, impacted by lower public sector activity following political shifts.
  • CCC expects FY25 adjusted operating profit to exceed FY24, despite drop in finance income and currency headwinds.

Computacenter plc (LSE:CCC), a UK-listed independent IT infrastructure and services provider, has issued a trading update for the half-year ended 30 June 2025. The Group reported revenue growth largely driven by strong demand in its Technology Sourcing segment, particularly in North America and the UK. While Computacenter recorded a healthy performance in North America and the UK, it experienced a decline in Germany and France during the second quarter. The Group attributed this to lower levels of public sector activity, a temporary slowdown tied to recent political developments. The French operations were notably weaker compared to the same period last year. Despite these regional challenges, Computacenter reported growth in gross profit. Adjusted operating profit for H1FY25 is expected to be slightly ahead of H1FY24 (GBP 81.1 million), even after absorbing approximately GBP 2 million in adverse currency translation.

Computacenter has continued to invest in group-wide upgrades and system improvements during the first half. The company’s balance sheet recorded approximately GBP 278 million in adjusted net funds as of 30 June 2025. However, the completion of a share buyback programme in late 2024 has led to lower net interest income in the current half. Net finance income is anticipated to be over GBP 6 million lower than the prior period. While this may dampen pre-tax profit for the full year, it has positively impacted earnings per share.

The company enters the second half of FY2025 with a healthy product order backlog across all regions. Management noted that several large orders initially expected to close in H1 were deferred to July, bolstering Q3 activity, particularly in North America and the UK. While public sector demand in Germany is expected to rebound somewhat, challenges in France are likely to persist through the remainder of the year.

Nonetheless, Computacenter maintains its full-year guidance, expecting adjusted operating profit for FY25 to be above FY24 levels, despite an estimated GBP 4 million hit from currency translation and reduced finance income. Adjusted profit before tax is expected to be broadly in line with the previous year. The company will release its detailed half-year results on 9 September 2025.

CCC trading at 2.78% lower at GBX 2,172.00 per share as on 28 July 2025.