Computacenter sees 'no sign' of growth slowing in 2021

UK giant reported strong demand from the public sector and services customers for its Technology Sourcing products

Computacenter is optimistic that the "strong" growth it saw in its fiscal 2020 will continue throughout this year.

In a trading update on its full-year 2020, the services giant revealed that total revenue had grown by eight per cent year on year, or by three per cent excluding last year's acquisitions of North American Pivot Technology and BT Services France.

The firm enjoyed "strong growth" in sales from its Technology Sourcing business into the public sector and services-based customers, as opposed to customers in the manufacturing and industrial sectors where spending "slowed materially". Services revenues remained flat across the group, it added.

The firm has raised its profit guidance yet again in its latest trading update and now expects profit before tax to surpass £195m - £5m more than its last update on 10 December - and its adjusted net funds to finish at around £188m.

"Our usual strong year-end net funds position was strengthened still further as a number of our customers paid ahead of normal payment cycles, partly, we suspect, where overseas customers looked to avoid sometimes negative interest rates," the company stated.

The services giant does not anticipate a slowdown in this growth for its current financial year despite the ongoing uncertainty around customer reaction to the pandemic.

"The positive momentum we have seen in trading since the start of the pandemic shows no sign of abating, and our pipelines for both Technology Sourcing and Services are as strong as at any time we have seen in the last year," it reported.

"While it is impossible to predict when or how our customers will react as the pandemic reduces its impact on our day to day lives, given the momentum we have in the business which is obviously further aided by our acquisition in the US, we are as confident as we can be at this stage that 2021 will be a year of progress for the group."