Computacenter FY 2022 results: Group revenue hits £6.5bn

The VAR saw revenue rise 28.5 per cent with CEO Mike Norris calling the performance "an astonishingly strong finish" to the year

IT services giant Computacenter has recorded another positive year in its FY2022, with revenue up year on year by 28.5 per cent to £6.5bn.

The 2022 full-year results also highlighted a growth of 30.7 per cent in gross invoiced income to reach £9bn, and a 9 per cent growth in gross profit from £867.8m to £947.1m.

Technology sourcing was the LSE-listed reseller's biggest growth area with revenue up 36.7 per cent to £7.4bn. Services also grew by 8.3 per cent to hit £1.5bn.

In the UK gross invoiced income (GII) grew by 12.6 per cent from following what the company called "an astonishingly strong finish" to the year.

Computacenter's results come just days after Softcat reported their interim results, which showed gross invoiced income (GII) growth slowing to 4.9 per cent.

Computacenter's share price this morning was up two per cent.

The view from the CEO

"At Computacenter, we are pleased to have shown adjusted earnings per share growth in 2022 over the previous year considering the challenging headwind from the unravelling of temporary Covid-related cost base reduction benefits," said Computacenter CEO Mike Norris.

"In 2023, we do not have anywhere near the same challenge as we have faced in 2022. Demand from most of our largest customers remains solid, particularly for IT infrastructure on which their businesses rely.

"We have seen top-line revenue extremely buoyant so far this year and expect this trend to continue."

However, Norris conceded that market condition hurdles remain.

"Our challenges for the coming year include, to a small extent, Technology Sourcing margins, due to the fact it is the largest customers, which are dilutive to margins, that are spending most, and, more significantly, Services margins due to price pressure in the market and salary inflation.

"Supply constraints have eased materially and while some will always remain, we are now operating at close to normal market conditions."

Ona positive note on supply, Norris said the reseller has seen constraints to their inventory levels start to ease since the start of Q4 of year, and that it expects further that trend to continue.

He added that Computacenter is also currently going through an internal IT investment phase, which is expected to last for a further two or three years.

"While this has put pressure on our profitability in the short term, we believe it is the right thing to do so as we can take advantage of the long-term growth opportunities in the market and enhance our competitive position to take market share."