Computacenter PLC (LSE:CCC) shares rose 6% after it reported what it called “extraordinary” growth in revenue, despite the challenging macroeconomic conditions, leaving it on course to deliver a nineteenth consecutive year of adjusted diluted earnings per share growth.
Analysts at Jefferies said: "Better than expected interims and an upbeat tone to the statement lead to c2% upgrades in FY23 and beyond."
"We continue to believe investors materially undervalue Computacenter's track record of outperforming expectations and delivering high quality cash backed profits."
The bank raised its price target to 3300p and reiterated a 'buy' rating.
The Hatfield, England-based computer services firm said in the six months ended June 30 revenue increased 27% to £3.58 billion from £2.83 billion the year before.
"We have seen extraordinary growth in gross invoiced income and revenue despite well published challenging macro-economic conditions," it said.
"During the period we have grown significantly faster than the market as a whole and also our major competitors. Therefore, we have gained market share," the firm added.
Technology Sourcing revenue rose 33.5% to £2.77 billion, Professional Services revenue rose 11.8% to £333.7 million and Managed Services revenue rose 6.3% to £482.8 million.
Pre-tax profit rose 14% to £122.8 million from £107.8m before, and shareholders saw the dividend rise 2.3% to 22.6p from 22.1p.
The firm said it had made "good progress" in the third quarter to date with "significant" cash generation.
Mike Norris, chief executive said: “Coupled with this first half performance, we have seen good progress in Q3 to date.”
“Due to the industry returning to normal supply conditions we have seen a significant generation of cash as our inventory has reduced in the first half of 2023.”
“We expect this to continue in the second half which will leave Computacenter with a strong balance sheet by the end of the year,” he added.