Computacenter points to 'robust' trading as it responds to lower-than-expected analyst forecasts

Reseller responds after less than half of analysts didn’t upgrade forecasts following H1 trading update

Computacenter claims that trading has continued to be "robust" as it responds to analysts that were reluctant to upgrade their market forecasts following its H1 trading statement in July.

In an unscheduled update, Computacenter said that trading has been "robust" in July and August.

The Hatfield-based reseller admits that the second half of 2021 faces a tough compare against the same period last year when demand was particularly high amid the throes of the Covid pandemic.

But it adds that, even if it logs a flat performance in the second half of 2021, adjusted pre-tax profits will still come in 10 per cent ahead of current market expectations.

"While visibility in our business is never perfect, given the momentum in the business, a substantial order backlog, the successful acquisitions and a strong forecast we will endeavour to beat last year's second half performance, not just match it," the firm added.

Less than half of the analysts covering Computacenter upgraded their forecasts following Computacenter's H1 trading update published on 21 July, which prompted the ad-hoc trading update today.

July's trading update confirmed that it is "highly likely" Computacenter will continue to grow its earnings per share this year due to a "strong pipeline" of business for H2.

However, the reseller highlighted concerns about product shortages within the industry as well as the strengthening value as the pound.

It also stated that the UK business faces "by far" the most challenging year-on-year comparisons in the group.

Computacenter's share price rose by as much as two per cent this morning after the trading update was published.

The firm will publish its interim results next week on Wednesday 9 September.