Computacenter: Record year for London firm as large IT businesses splash out on tech

London based tech company Computacenter has achieved record revenue and profit, fuelled by significant investments from large businesses in IT services.

During the full financial year 2023, total sales surged 11.3 per cent to over £10bn, which the FTSE 250 firm said was driven by “strong growth in technology sourcing and solid growth in services”.

Computacenter reported a seven per cent increase in revenue, reaching £6.9bn, while gross profit rose over 10 per cent to surpass £1bn for the first time. Adjusted net funds increased by £215m to £459m.

The firm, which helps businesses set up and manage their computer systems and software efficiently, said momentum in its technology sourcing business was boosted by “resilient large enterprise spend” and market share gains.

Its North America region saw strong growth, with an adjusted operating profit increase of 24 per cent in constant currency, showing “long-term growth opportunity”.

Mike Norris, chief executive of Computacenter, said: “We delivered our nineteenth consecutive year of growth in adjusted earnings per share, outperforming our markets in 2023, as our large customers continued to invest heavily in new technology.

“We managed an uncertain macroeconomic backdrop and inflationary pressures effectively, reduced our inventory significantly, resulting in a record net cash position. As planned, we stepped up our investment in strategic initiatives to underpin our competitiveness and future growth.”

Computacenter said it expects growth in 2024 to be weighted more heavily to the second half of the year.

“Looking further ahead, the combination of the strength of our integrated Technology Sourcing and Services model and our geographic diversity, gives us continued confidence in our long-term growth prospects,” Norris added.

Shares in the company have soared nearly 50 per cent in the past year.