London-listed tech company Computacenter has slashed its full year guidance after prudent corporate spending and slow completion of orders damaged its third quarter performance.
Although it expects to deliver a second half that is comfortably ahead of last year, Computacenter now expects its adjusted profit before tax for 2024 to be “modestly behind last year”, by around £7m to £8m.
It comes amid a softer than anticipated end to the third quarter due to “a more cautious corporate spending environment and slower completion of committed product orders in North America”.
Hertfordshire-based Computacenter, which helps businesses source and manage their computer and software systems, said some US shipments are now expected to be completed in the fourth quarter and early 2025.
Overall performance in Germany met expectations while the UK came in ahead of last year but below expectations, the FTSE 250 firm added in a trading update on Monday.
Last month, it posted a pre-tax profit of £84m for the first half of the year, down 31.6 per cent from £122.8m during the same period in 2023.
Computacenter warned that demand for hardware in the UK was weaker than expected at the start of 2024, a trend that has persisted throughout the year.
Today it also said it has made progress with its £200m share buyback programme, with £191.7m completed since it began in late July.
“Following the completion of the buyback we expect to maintain a strong balance sheet with positive adjusted net funds,” the company said.