Computacenter shareholders to be given £75m windfall

Channel titan to issue one-off payment after concluding it has a 'net cash balance in excess of our current needs'

The drinks will be on Computacenter shareholders this weekend as the UK's biggest VAR announced today it is issuing investors with a £75m return.

The one-off payment of 48.7p per existing ordinary share equates to 10.8 per cent of the Hatfield-based firm's market capitalisation. The return is subject to shareholder approval, and a circular will shortly be sent out ahead of an extraordinary general meeting on 11 June.

In a statement issued to the markets today, Computacenter explained that "while the company intends to continue to maintain a robust and prudent balance sheet, the directors believe that it is now appropriate to undertake a return of capital to shareholders".

Chief executive Mike Norris added: "The cash-generative nature of Computacenter's business has resulted in a net cash balance in excess of our current needs. This has placed us in a position where we are now able to make the second significant one-off return of value to our shareholders, while maintaining an appropriate balance sheet structure to continue growing the business and serving our clients."

A recent trading update revealed that Computacenter's first-quarter sales were down marginally due to a seven per cent slowdown in German revenue. But UK operations enjoyed a six per cent top-line boost and the company seems quietly upbeat about its prospects in its homeland for the remainder of the year.

The reseller closed the quarter with net cash – exclusive of customer-specific financing – of £98m.