Computacenter PLC (LON:CCC) shares surged after the IT services provider said it is on track for record full year performance ahead of its expectations following a 65.6% increase in first half profits.
In the six months ended 30 June, adjusted pre-tax profit rose to £41.9mln from £25.3mln the same period a year ago
Shares jumped 19.02% to 1,050p in morning trading.
READ: UBS expects more challenging trading conditions for Computacenter as UK economy slows
Company hikes interim dividend
'The majority of our profit growth in the first half came from improved operational performance, with some help from currency movements,” said chief executive Mike Norris.
“We also benefitted from a comparison with what was a weaker trading performance in the first half of the prior year, whereas the comparison for the second half of 2017 is challenging.”
Revenue rose to £1.7bn from £1.4bn last year, up 15% on a reported basis.
On track for record performance
READ: Computacenter expects to beat 2017 expectations after solid first-quarter growth
Within the group’s services business, revenue rose 12.9% to £562.1mln, driven by growth in Germany, an improvement in the UK and progress in France.
The group's supply chain business saw revenue increase by 16.1% to £1.1bn, with “spectacular growth” in Germany and a rebound in the UK offsetting a decline in France where its largest customer had a quieter start to the year.
Computacenter hiked its interim dividend by 2.8% to 7.4p from 7.2p.
“We remain on track for a record performance, and marginally ahead of the upgraded board expectation expressed at our trading update in April 2017,” said Norris.
At the April trading update, Computacenter said it expects to beat market expectations for 2017 after a strong first quarter performance, particularly in Germany.