Computacenter PLC (LSE:CCC) has forecast modest growth in adjusted pre-tax profit for 2022 after challenges caused by post-pandemic factors, cost inflation and supply chain issues.
The FTSE 250-listed company said it has seen a “substantial headwind” this year following the unwinding of the COVID-19 cost and utilisation benefits it received in 2020 and 2021.
Benefits from currency movements and contributions from acquisitions are “much smaller than the Covid headwinds”, the IT services group added in a trading update.
In the third quarter to September 30, 2022, all segments saw a strong performance in Technology Sourcing, Computacenter said.
However, its Services businesses were impacted by the post-COVID-19 effects as well as cost and inflationary pressures. However, recent contract wins, which have not yet contributed, “give us confidence”, the company said.
It noted that inventories remain higher than last year due to supply chain issues. Although these constraints and inventory levels are expected to unwind as the year progresses, they are not expected to be resolved until well into next year, the company added.
Computacenter said 2023 is expected to be another year of growth. It noted that increased investment in its IT roadmap and cyber security will continue to hold back short-term profitability, but stressed that these investments are “essential to secure our long-term success”.
Computacenter shares dropped 3.67% to 1,838.00p in opening trade on Friday.