Computacenter plc: history, ownership, mission, how it works & makes money

A Brief History of Computacenter plc

Founded in 1981, Computacenter plc has established itself as a leading independent provider of IT infrastructure services in Europe. Headquartered in Hatfield, United Kingdom, the company specializes in the supply and management of IT services and solutions, helping businesses optimize their IT environments.

Computacenter was initially launched by Philip Hulme and Peter Ogden with a focus on providing IT products and services. In its early years, the company mainly dealt with hardware sales; however, it quickly evolved into a comprehensive IT service provider.

In 1998, Computacenter went public, raising significant capital to expand its operations. The initial public offering (IPO) was priced at £1.50 per share, and the company was listed on the London Stock Exchange under the ticker symbol CCC.

Throughout the 2000s, Computacenter experienced notable growth. By 2005, the company had reported revenues of approximately £1.1 billion, showcasing a steady increase in demand for IT services. This trend continued, and by 2010, revenues had ascended to around £1.6 billion.

Expanding its geographical footprint, Computacenter opened several offices across Europe, including in France and Germany, where it strengthened its market position. In 2017, Computacenter acquired the IT services business of UK-based company, “SCC,” enhancing its portfolio and client base.

The company adheres to a strategy of organic growth complemented by selective acquisitions. For instance, its acquisition of the UK-based IT services provider "GSS" in 2018 added valuable capabilities to its offering.

Financially, Computacenter has consistently demonstrated strong performance. In the fiscal year 2022, the company reported revenues of £5.5 billion, a significant increase from £4.8 billion in 2021, representing a growth of **14.6%**.

Computacenter's robust growth can be attributed to its focus on high-margin services and its ability to adapt to the rapidly changing technological landscape. The increasing demand for cloud services, cybersecurity, and digital transformation initiatives has further fueled its expansion.

As of October 2023, Computacenter's stock is performing well, with a share price hovering around **£24.50**, reflecting an approximate **8%** increase year-to-date. The company continues to prioritize shareholder returns, maintaining a dividend yield of about **2.5%**.

With a strategic approach towards sustainability and innovation, Computacenter is poised to leverage its expertise in IT services to continue expanding its market presence, while also addressing the challenges posed by digital transformation in the corporate realm.

A Who Owns Computacenter plc

As of the latest available data, Computacenter plc is a leading technology services provider based in the UK, with significant ownership among institutional investors and key stakeholders. The shareholding structure reveals a diverse range of owners, from individual shareholders to major institutional investment firms.

According to the latest regulatory filings as of October 2023, Computacenter plc has seen substantial ownership from investment management companies. The top shareholders typically include asset management firms, pension funds, and other institutional investors.

As shown in the table, the largest institutional shareholder is Artemis Investment Management, holding a significant 10.1% stake in the company. This is closely followed by Baillie Gifford & Co, with an 8.5% ownership. Institutional investors collectively represent a substantial portion of Computacenter’s ownership.

The remaining shares are held by individual investors, reflecting strong retail interest in Computacenter plc, which represents approximately 40.0% of total shares. This diverse ownership structure allows for varied perspectives and influences on the company's strategic direction.

In the last fiscal year, Computacenter reported revenues of approximately £5 billion, a notable increase driven by demand for IT services and solutions. This financial performance further underlines the interest from both institutional and retail investors.

Moreover, Computacenter plc has consistently demonstrated a healthy dividend policy, with the latest dividend declared at 25 pence per share, reflecting a strong commitment to returning value to shareholders amidst growing revenues and profits.

Computacenter plc Mission Statement

Computacenter plc is a leading independent provider of IT infrastructure services, which focuses on helping organizations to improve their technology services and drive digital transformation. The company’s mission statement emphasizes its commitment to delivering high-quality, innovative solutions and services to its clients while fostering an environment of continuous improvement and sustainability.

The key components of Computacenter's mission can be summarized as follows:

• To be recognized as a trusted partner in IT services and solutions.
• To enable clients to achieve their business objectives through technology.
• To foster a culture of innovation and excellence in service delivery.
• To maintain a sustainable business model that benefits employees, clients, and stakeholders.

As of the latest financial reports, Computacenter's fiscal year 2022 indicated significant growth and performance metrics that align with its mission. The company reported a revenue of £5.3 billion, representing a growth of 7% compared to the previous year. The operating profit for the same period stood at £309.1 million, reflecting a margin of approximately 5.8%.

In terms of service offerings, Computacenter operates primarily in three segments: Technology Sourcing, Professional Services, and Managed Services. This diversified approach enables the company to address a wide array of client needs. The breakdown of revenue by segment for the year 2022 is as follows:

Computacenter's operational reach is extensive, as it serves clients in over 70 countries through its various offices and partnerships. The company employs around 17,000 employees globally, reflecting its strong commitment to workforce development and client service quality. Employee engagement initiatives and training programs form a crucial part of their strategy to enhance service delivery.

Moreover, Computacenter has been actively investing in sustainability practices. Their environmental initiatives include reducing carbon emissions and promoting responsible sourcing. In 2022, the company achieved a reduction of 15% in carbon emissions relative to the previous year, demonstrating their commitment to environmental responsibility.

The alignment of Computacenter's mission with its operational and financial performance exemplifies its effectiveness as a service provider. Notably, the company continues to receive accolades for its customer service, achieving a customer satisfaction score of 85% in client surveys conducted in 2022.

Overall, Computacenter plc's mission statement reinforces its dedication to providing exceptional IT services, facilitating technological advancements, and maintaining a strong focus on sustainability while delivering value to its stakeholders.

How Computacenter plc Works

Computacenter plc is a UK-based IT services and solutions provider that operates globally. The company focuses on delivering IT infrastructure services and solutions across various sectors, catering to both private and public enterprises. In 2022, Computacenter reported revenues of £5.2 billion, marking a growth of **5%** compared to the previous year.

The company's operations are divided into several key segments: Service Desk, Network & Security, Data Center, and End User Computing. Each segment offers tailored services designed to enhance business efficiency and security.

Financial Performance

For the first half of 2023, Computacenter reported the following financial metrics:

Operational Insights

Computacenter's strength lies in its holistic approach to IT services. The company employs over **16,000** staff members worldwide, with an emphasis on training and development. As of 2023, Computacenter operates in **14** countries, including Germany, France, and the USA, where it has established strong market presence.

The company’s Service Desk segment, which is crucial for customer support, achieved a contract renewal rate of **95%** in 2023. This reflects strong customer satisfaction and operational reliability. The Network & Security segment contributed significantly to the overall revenue, representing nearly **30%** of total sales.

Market Position

In the competitive landscape, Computacenter holds a leading position in the UK IT service market. According to industry reports, Computacenter is ranked among the top **15 IT service providers** globally. The company has consistently maintained a market share of approximately **4%** in the UK, competing with major players like Atos and Capgemini.

Recent Developments

In 2023, Computacenter announced a strategic partnership with Microsoft to enhance cloud solutions offerings. This collaboration aims to integrate Microsoft Azure services into Computacenter's portfolio, targeting an increase in cloud service revenue by **20%** over the next two years.

Investment and Valuation Metrics

As of October 2023, Computacenter's market capitalization stands at approximately **£3 billion**. The stock is traded on the London Stock Exchange under the ticker CCC. The company’s Price-to-Earnings (P/E) ratio is currently **22.8**, reflecting investor confidence in its growth potential.

According to analysts, the stock has a **12-month target price** of **£30**, indicating an upside potential of around **10%** from its current price of **£27.3**.

Future Outlook

The outlook for Computacenter remains positive, driven by the increasing demand for IT solutions and digital transformation across various sectors. The company has set ambitious targets to grow revenue by an additional **10%** annually over the next five years, with a major focus on expanding its cyber security services, projected to grow at a CAGR of **12%** through **2025**.

How Computacenter plc Makes Money

Computacenter plc generates revenue through a diversified business model that primarily encompasses IT services, technology sourcing, and consulting. The company's revenue streams can be categorized into two main segments: Technology Sourcing and IT Services.

Technology Sourcing

In 2022, Computacenter reported revenue from Technology Sourcing amounting to £3.19 billion, which constituted approximately 70% of its total revenue. This segment involves the procurement and resale of IT hardware and software solutions from major vendors like Microsoft, Cisco, and HP. For the first half of 2023, Technology Sourcing revenues were approximately £1.6 billion, reflecting a 5% increase year-on-year.

IT Services

The IT Services segment contributed around £1.37 billion in 2022, accounting for about 30% of the company's overall revenue. This segment encompasses managed services, professional services, and support services. In H1 2023, IT Services revenue amounted to £700 million, showing a growth of 8% from the previous year.

Revenue Breakdown

Geographical Performance

Computacenter operates primarily in the UK and continental Europe, with significant contributions from North America as well. For 2022, the revenue split was as follows:

• UK: £2.5 billion (approx. 55% of total revenue)
• Germany: £1.1 billion (approx. 25% of total revenue)
• Rest of Europe: £630 million (approx. 14% of total revenue)
• North America: £330 million (approx. 6% of total revenue)

Cost Structure

The company’s cost of sales for 2022 was approximately £4.1 billion, leading to a gross profit of around £460 million. The gross profit margin stands at about 10%. Operating expenses amounted to £350 million, resulting in an operating profit of £110 million, yielding an operating margin of 2.4%.

Market Trends and Future Outlook

The global market for IT services is projected to grow at a compound annual growth rate (CAGR) of 8% from 2023 to 2030, driven by increasing digital transformation initiatives across industries. Computacenter is well-positioned to capitalize on this growth, particularly in the areas of cloud services and cybersecurity, where demand is surging.

In its latest financial outlook, Computacenter anticipates a revenue range of £4.8 billion to £5 billion for the full year 2023, reflecting an expected growth rate of approximately 6%-10% over 2022.