Computacenter shares dipped 4.2% to 2,623p despite the company announcing that its top-line grew strongly in the first quarter of 2022 on Friday.
Computacenter saw its top line grow strongly in the first quarter of 2022, as planned, but adjusted profit before tax grew more modestly, owing to one extremely large volume customer diluting our overall margin.
Furthermore, the significant elimination of lockdown measures in the areas where the group operates has resulted in a return to a more normal, and more sustainable, cost base post-COVID-19.
As Computacenter reported at the time of its final results, H1 2021 presented a more difficult comparison than the entire year, so being profitable ahead of 2021 after the first quarter is encouraging.
Computacenter Outlook
Although adjusted profit before tax at the end of H1 2022 will likely be lower than in 2021, Computacenter will still be operating in line with its business’s historical seasonality, giving the group confidence for the entire year even though much work remains to be done.
The group is optimistic that FY 2022 will be a year of continued improvement and Computacenter is currently on target for the entire year.
There are certainly numerous issues in the world, and the business, like most firms, is affected by wage inflation and supply chain limitations. However, these challenges provide Computacenter with the opportunity to differentiate itself from the competitors by providing superior execution.
The momentum that Computacenter has developed over many years, as well as the solidity of its balance sheet, invoked confidence in the group’s future and the group said its next scheduled trading update is its Interim Results, which will release on 9 September 2022.
