Record hardware orders from hyperscale and AI data-centre customers propelled the newly promoted FTSE 100 group to its strongest half-year on record.
Computacenter (LSE: CCC) shares climbed a further 3% on Tuesday, extending a share price that has already nearly doubled this year, after the IT infrastructure group posted an 87% jump in adjusted pre-tax profit to £152.4m for the six months to 30 June, on revenue up 72% to £6.85bn.
The surge was driven overwhelmingly by its Technology Sourcing arm, which supplies hardware to hyperscale, neocloud and enterprise customers racing to build out AI and data-centre capacity, with North America now accounting for 62% of group operating profit, up from 44% a year earlier.
The shift towards high-volume hardware sales came at a cost to profitability, with gross margin slipping to 9.6% from 12.6%, though the trade-off was offset by a record committed order backlog of £9.3bn, more than four times the level seen a year ago. The interim dividend was lifted 15% to 27.1p and adjusted earnings per share nearly doubled.
Two US acquisitions completed during the period, AgreeYa and GAI, the latter giving Computacenter access to the US federal government market, alongside the UK's underlying acceleration and a robust performance in Germany despite one-off efficiency costs there. The half-year came shortly after the company's promotion to the FTSE 100 in June.
Management now expects full-year adjusted pre-tax profit of at least £380m, comfortably ahead of the roughly £341m analysts had pencilled in, underlining how thoroughly the AI infrastructure boom has reshaped expectations for the group. Investors will be watching whether margin pressure from the hardware-heavy sales mix persists as the backlog is worked through over coming quarters.
This report is based on Computacenter’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Jakub Żerdzicki on Unsplash.
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