Computacenter shares up 10% in four months
Computacenter (CCC) £13.34
Gain to date: 10.2%
Original entry price: Buy at £12.10, 2 May 2019
If you’ve been on holiday and missed some of the results that came out in August, you may be interested to note a comment from Computacenter. Its first half results (23 Aug) said that the full year profit growth in monetary terms will be the best in the company’s history.
While these gains are mainly expected to come from organic growth, Computacenter says its acquired business in the US should provide a more significant contribution in the second half of the year.
Against this confident backdrop it is worth noting that the UK operations saw sales fall by 7.8% in the first half of the year. The previous year contained two very large one-off deals which made for tough comparative figures to beat this time. Excluding those deals the UK grew in the first half of 2019 by 3% which is fine but not outstanding.
The second half period also has some tough comparative figures to beat with the French arm up against some big numbers achieved in 2018. A good first half this year for the geographic region is encouraging but France is certainly a territory to watch closely over the coming months for the business.
SHARES SAYS: Overall a decent performance. We’re happy to retain a ‘buy’ rating on the stock but admit it could be a volatile period ahead.