Less than six weeks after IT reseller and services company Computacenter (CCC) reported a ‘substantial’ rise in annual profit, the company has done it again, shocking investors in the best possible way.
In a surprise, figure-free release, the FTSE 250 business told investors of continued positive momentum through the first two months of its second half.
FORECASTS SMASHED AGAIN
What this means is that the ‘likely outturn for the year as a whole will be materially above the board’s previous expectations’. The company’s full year runs through to 31 December.
‘The house broker has placed its 2020 forecasts under review, although it had previously raised forecasts by 11% to pre-tax profit of £155.5 million, 6% up on 2019’, analysts at the Megabuyte website said.
They believe that pre-tax profit of around £170 million now looks likely for 2020. For reference, 2020 market expectations had been pitched at £157.6 million on the pre-tax profit line.
WHAT SUMMER LULL?
‘The operational pause through the summer months that we expected has not materialised’, said Stifel’s George O’Connor. ‘We await the forthcoming results for the details - for now we say enjoy the rally and remind yourself why Computacenter is such a top performer’.
Half-year figures are due on 9 September.
O’Connor has upped his share price target from £20.94 to £23.43. Shares in Computacenter rallied more than 10% on Wednesday to £22.30, the biggest riser across the FTSE 350 universe.
Computacenter is a Shares investment Great Idea from May 2019 when the stock was trading at £12.10.
