FTSE 250 firm Computacenter (CCC) delivered a markedly stronger-than-expected trading performance in 2025. It prompted the UK-listed IT services supplier to bring forward its full-year update. The update highlighted broad-based momentum across revenue, profits, cash generation and order intake.
It also saw the stock charge more than 8% higher in London.
| Computacenter (CCC) | Price: £33.47 | Market cap: £3.88bn |
The company said gross invoiced income increased by 31% year-on-year in 2025, or 32% on a constant-currency basis. This was comfortably ahead of market expectations. Analysts at Jefferies estimated the revenue outcome to be around 14% above consensus forecasts. This underlines the scale of the outperformance.
Profits outperformance
Profitability also improved meaningfully. Adjusted profit before tax is now expected to be at least £270 million, representing growth of no less than 6% versus the previous. That implies a 6% beat to forecasts. These had previously anticipated a largely flat year.
The stronger result was achieved despite the group absorbing higher levels of investment. There was also increased employee-related costs and lower interest income following its share buyback programme.
Jefferies analyst Charles Brennan said the results demonstrated the resilience of the business model. ‘This growth has been delivered while absorbing additional investments, additional employee-related costs, and lower interest income following the buyback’, he noted.
Geographically, performance was led by the US, where growth was described as strong across both hyperscaler and enterprise customers. That strength more than offset weaker trading conditions in France. Meanwhile, trends in the UK and Germany continued to show improvement as the year progressed.
Computacenter’s cash machine
Cash generation was another key highlight. Adjusted net funds at year end stood at around £600 million. This amount is equivalent to roughly one-fifth of the group’s £3.5 billion market capitalisation at the close yesterday. Management attributed the robust cash position to early customer payments. This was partially offset by cash outflows linked to the acquisition of AgreeYa.
Even so, Brennan said the update underscored ‘a strong balance sheet position, which continues to provide strategic optionality.’
Looking ahead, Computacenter pointed to a solid outlook supported by strong order intake, particularly in the US. The company said its committed order backlog across all regions was “significantly” ahead of levels recorded at the end of 2024 and in mid-2025. This provides confidence in further organic growth and strategic progress in 2026.
Jefferies’ Brennan described the update as positive ‘on all fronts’, and we completely agree. Computacenter has been creating value for shareholders for years through consistent returns of surplus cash and regular dividends on top of share price gains. As a result, total returns have averaged 18% a year since 2022.
Brennan reckons there’s scope for upgrades to 2026 forecasts, and that will only strengthen the scope for more above average total returns ahead.
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