Computacenter posts record profits despite economic woes

UK IT firm posts record profits, slashes inventory to boost cash reserves.

Computacenter posts record profits despite economic woes
Computacenter CCC

Computacenter (LSE: CCC), the computer technology and IT service provider, demonstrated resilience in 2023, reporting record profits and revenue growth despite an uncertain economic backdrop. Shares fell 6.8% initially on Wednesday.

The FTSE 250 company's pretax profit rose 9.3% to £272.1 million. Revenues increased 7% to £6.92 billion, while basic earnings per share climbed 8% to 175p.

Computacenter raised its final dividend to 47.4p, taking the total dividend for 2023 to 70p, up 3.1% year-on-year. Notably, net cash soared 78% to £471.2 million after inventory reduction measures.

CEO Mike Norris attributed the solid performance to effective management of economic uncertainties and inflation through inventory optimisation. He anticipates further progress in 2024, with growth weighted toward the second half.

Computacenter shares are up 39% over the past 12 months.

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