Computacenter H1 Profit Climbs, Lifts Dividend; To Buy Pivot Technology Solutions
Computacenter Plc. (CCC.L), a technology company, Wednesday reported that its first-half profit before tax grew 42.5 percent to 72.4 million pounds from 50.8 million pounds last year.
Earnings per share were 45.3 pence, up 36.4 percent from 33.2 pence a year ago.
Adjusted profit before tax was 74.6 million pounds, compared to 53.5 million pounds last year. Adjusted earnings per share were 46.7 pence, compared to prior year’s 34.5 pence.
Revenue grew 1.5 percent to 2.46 billion pounds from 2.43 billion pounds last year. Revenue edged up 0.6 percent in constant currency.
Services revenue dropped 0.2 percent, while technology Sourcing revenue grew 2 percent.
Further, the company announced an interim dividend of 12.3 pence per share, compared to last year’s 10.1 pence per share. The interim dividend will be paid on October 23, and the dividend record date is September 25.
Separately, Computacenter announced its agreement to directly or indirectly acquire Canada’s Pivot Technology Solutions, Inc. (PTG.TO), by way of a Canadian Plan of Arrangement with an all cash offer of C$2.60 per share.
The offer has the unanimous recommendation of Pivot’s board.
Pivot is an IT solutions provider with approximately 85 percent of its revenues from customers in the US and the remainder from customers in Canada. Pivot employs approximately 600 people in the US and 100 in Canada.
Senior leadership in Pivot is expected to remain and play a key role in the combined Computacenter business. This includes Kevin Shank, Pivot President & CEO, who has worked in partnership with Computacenter in a previous role, and David Toews, Pivot Chief Financial Officer.
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