Computacenter PLC on Wednesday said it was evaluating options for deploying its strong balance sheet, as it reported a ‘record’ adjusted pretax profit last year.

The Hatfield, England-based computer services firm said that 2023 will be ‘another record year of adjusted profit before tax’ despite facing uncertain macroeconomic conditions.

For 2022, Computacenter had reported adjusted pretax profit of £263.7 million, up 3.2% from £255.6 million in 2021.

The company added on Wednesday that it increased its level of investment in strategic initiatives.

Revenue on a gross invoiced income basis was up 12% year-on-year in 2023. For 2022, Computacenter had posted gross invoiced income of £9.05 billion, a 31% jump from £6.92 billion in 2021.

Adjusted net funds at year-end stood at an ‘extremely strong’ £450 million, ahead of its own expectations and surging from £244.3 million at the end of 2022.

Citing its strong balance sheet, Computacenter said it was evaluating its options, noting that it has a track record of returning surplus capital to shareholders when suitable acquisitions are not available.

‘Looking ahead to 2024, in the context of a continuing uncertain macroeconomic backdrop, the group is well positioned to continue to compete and gain further market share. As anticipated, we expect to see technology sourcing volumes normalise in 2024 as some of the high volume, low margin projects we delivered, especially in the first half of 2023, were completed. In services we expect continued growth while inflationary pressures are expected to moderate further,’ the company said.

Computacenter shares were 1.1% higher at 2,900.00 pence each on Wednesday morning in London.

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