Computacenter
Computacenter plc is a British multinational information technology services provider founded in 1981 by Peter Ogden and Philip Hulme, focusing on sourcing, transforming, and managing IT infrastructure for corporate and public sector organizations.[1][2] Headquartered in Hatfield, England, the company operates across Europe, including significant presence in Germany and France, as well as North America, delivering hardware, software, cloud services, data center solutions, and security to enable digital transformation.[3][4] Listed on the London Stock Exchange since 1998, Computacenter has grown into one of the world's largest value-added resellers of IT products, reporting £6.92 billion in revenue for 2024 amid a challenging market environment that prompted a profit warning due to subdued demand.[5][6][7]History
Founding and Early Development (1981–1990s)
Computacenter was founded in October 1981 in the United Kingdom by British entrepreneurs Peter Ogden and Philip Hulme, who had previously been classmates at Harvard Business School.[8][9][10] The timing aligned with the launch of the IBM Personal Computer, which standardized desktop computing and validated the independent dealer model for hardware distribution, enabling resellers like Computacenter to enter the market as intermediaries between manufacturers and end-users.[11] Ogden, with a background in finance, and Hulme focused initially on reselling personal computers and related hardware, establishing the company as a specialist in IT procurement and supply.[11][12] In its early years during the 1980s, Computacenter operated primarily as a value-added reseller, capitalizing on the rapid adoption of PCs in business environments amid falling hardware prices and increasing demand for standardized systems.[11] The firm built foundational partnerships with leading technology vendors, emphasizing reliable supply chains and customer service to differentiate from direct manufacturer sales.[8] Ogden served as chairman, guiding operational expansion while Hulme contributed to executive leadership, with both retaining principal ownership stakes.[13][12] This period saw steady growth through organic sales increases rather than aggressive acquisitions, supported by venture capital to scale inventory and distribution capabilities in a competitive landscape where many contemporaries struggled with thin margins.[11] By the early 1990s, Computacenter had matured into a significant player in the European IT distribution sector. In 1990, it opened what was then Europe's largest personal computer retail outlet, enhancing its visibility and capacity to serve corporate clients with bulk purchases.[9] The decade marked a shift toward broader service offerings, including basic integration and support, as the company navigated the transition from standalone hardware sales to more comprehensive IT solutions amid evolving industry standards.[11] This development positioned Computacenter for sustained profitability, with revenues driven by high-volume deals and vendor incentives, though exact figures from the era remain limited in public records.[12]Expansion and International Growth (2000s–2010s)
During the early 2000s, Computacenter consolidated its European footprint following challenges in Germany, where it had previously exited amid market difficulties. In November 2002, the company re-entered the German market through the acquisition of GE CompuNet, a provider of IT infrastructure services, and simultaneously expanded into Austria by acquiring GECITS, enhancing its capabilities in managed services and hardware deployment across Central Europe.[14] This move positioned Computacenter as the market leader in both the UK and Germany by 2003, while maintaining a top-five ranking in France.[15] Concurrently, Computacenter established operations in Belgium around 2000–2001 to support regional clients, contributing to international revenue growth amid a group-wide increase of 12.9% to £926.7 million in 2000, with international sales forming a rising portion.[1][16] In France, expansion accelerated with strong performance; revenues reached £262.5 million in 2001, reflecting 22.4% year-over-year growth driven by professional services contracts and infrastructure projects.[17] By the mid-2000s, Computacenter established Computacenter US Inc. in 2004 primarily to service global contracts for European clients, marking an initial North American toehold without full-scale operations. Further diversification included the 2006 acquisition of Digica in Cape Town, South Africa, to support African managed services, and the opening of a service center in Barcelona, Spain, bolstering Mediterranean presence.[1] During this period, international operations emphasized integration centers, such as the Gonesse facility near Paris opened between 2005 and 2011, which facilitated large-scale device deployments and contributed to growth in managed service contracts.[1] The 2010s saw broader international diversification beyond core European markets. Computacenter acquired Damax in Switzerland around 2005–2011, strengthening Alpine region capabilities in IT asset management.[1] In 2012–2015, it entered India to tap emerging markets for outsourcing and support services, while opening an international service center in Budapest, Hungary, to handle pan-European operations.[1] By 2013, the UK accounted for approximately 40% of total revenue, underscoring the growing international contribution, with Germany and France driving adjusted profit increases.[18] In the US, presence expanded significantly by 2016 to 600 employees focused on services, complemented by a Mexico City service center; this culminated in the 2018 acquisition of FusionStorm, a US-based IT solutions provider, enhancing cloud and security offerings.[1] Additional footholds included the establishment of operations in Ireland in 2018 and the acquisition of Misco Solutions in the Netherlands that year, further fragmenting reliance on mature markets.[1] These efforts supported consistent revenue expansion, with group adjusted profit before tax rising 16.6% to £21.3 million in the first half of 2010 alone, fueled by international contract wins.[19]Recent Milestones and Strategic Shifts (2020–Present)
In November 2020, Computacenter completed the acquisition of Pivot Technology Solutions, a Canadian IT solutions provider, for CAD 105.8 million, marking a significant expansion of its North American operations and integrating additional scale in endpoint, data center, and networking services.[20][21] This move contributed £232.6 million to 2020 revenues and laid the foundation for subsequent regional growth, with North America emerging as a key driver of overall performance.[22] Building on this, the company acquired Business IT Source, a U.S.-based value-added reseller with $245 million in annual revenue and a strong Midwest presence, in July 2022, further enhancing its U.S. footprint and capabilities in managed services and hardware sourcing.[23][24] These acquisitions reflected a strategic shift toward inorganic growth in high-potential markets, prioritizing integration to boost service revenues and customer base expansion, with major accounts (generating over £1 million in annual gross profit) rising to 192 by the end of 2024.[6] From 2023 onward, Computacenter emphasized organic advancements in professional and managed services amid a challenging IT hardware market, achieving 11.9% constant-currency growth in professional services revenue in 2024 and securing new hyperscale and enterprise contracts in North America.[6] The company invested £36.8 million in 2024 and £21.9 million in the first half of 2025 in strategic initiatives, including systems enhancements for productivity and AI-related infrastructure projects, signaling a pivot toward digital transformation and higher-margin recurring services.[6][25] This focus contributed to a record second-half adjusted operating profit of £165.6 million in 2024 (up 11.2% in constant currency) and a 28.5% revenue increase to £3,988.8 million in the first half of 2025, driven by North America's near-doubling of operating profit.[6][25] Operational refinements included the full integration of Belgium and the Netherlands into a unified structure by early 2025, aimed at streamlining European delivery.[26] Additionally, Computacenter completed a £200 million share buyback program by October 2024, reducing shares in issue by 6.9% and enhancing earnings per share.[6] Product order backlogs surged 116% year-on-year to £2,414.9 million by end-2024 and rose another 23.7% into 2025, underscoring sustained demand for technology sourcing amid strategic emphasis on long-term customer relationships and capability building.[6][25]Business Operations
Core Services and Offerings
Computacenter's core services revolve around three primary lines: technology sourcing, professional services, and managed services, which collectively enable clients to source, transform, and manage their IT infrastructure for digital transformation.[3] Technology sourcing encompasses procurement, integration, configuration, and global logistics for hardware and software, including sustainable practices such as circular services for asset reuse and recycling.[27] This service line supports efficient supply chain management, with capabilities extending to over 70 countries to ensure timely delivery and compliance with client specifications.[28] Professional services focus on strategic IT advisory, architecture design, integration, deployment, and support, helping organizations align technology with business objectives.[29] These offerings include management advisory to translate business goals into actionable IT strategies, as well as specialized deployment services like printer installations, cabling, remote support, and asset disposal.[30] By combining expertise in transformation with sourcing capabilities, Computacenter delivers end-to-end solutions tailored to sectors such as public and private enterprises.[3] Managed services provide ongoing maintenance, field and lifecycle support, remote user assistance, and digital operations to maintain secure, flexible, and efficient IT environments.[31] Global service desks handle over 1.1 million contacts monthly across 25 languages, emphasizing industrialized and innovative IT management.[32] These services extend to key technology domains including workplace modernization, cloud and applications transformation, data center sustainability, networking for connected outcomes, and security in volatile environments.[3]Global Footprint and Key Markets
Computacenter maintains a focused operational footprint centered on direct sales in eight countries: Belgium, Canada, France, Germany, the Netherlands, Switzerland, the United Kingdom, and the United States, while extending support services to customers in over 70 countries worldwide.[28] The company leverages regional headquarters, integration centers for technology deployment, and service desks for infrastructure management, with additional nearshore and offshore capabilities in Hungary, India, Malaysia, Mexico, Poland, Romania, South Africa, and Spain to handle remote support and cost efficiencies.[28] These facilities enable global sourcing, transformation, and management of IT solutions, including field services and professional hubs, particularly in technology-intensive regions like Silicon Valley.[28] In fiscal year 2024, North America emerged as Computacenter's largest market by revenue, generating £2,971.4 million, an 8.1% increase from £2,748.7 million in 2023, driven by demand from hyperscale and enterprise clients, including AI-related infrastructure.[6] Germany followed with £1,986.7 million in revenue, reflecting steady performance in public and corporate sectors despite a slight 2.0% decline year-over-year.[6] The United Kingdom contributed £1,158.1 million, down 4.6% amid softer market conditions, while Western Europe (encompassing France, Belgium, the Netherlands, and Switzerland) accounted for £819.3 million, a 9.1% decrease but with growth in technology sourcing activities.[6] Beyond core sales regions, Computacenter supports extended operations in areas such as Australia, Brazil, China, Hong Kong, Ireland, Japan, Singapore, and the Philippines through partnerships and localized resources, facilitating broader international delivery without direct sales dominance.[28] This structure underscores a strategic emphasis on mature European markets like Germany for profitability—yielding £156.9 million in adjusted operating profit—and high-growth opportunities in North America, where adjusted operating profit rose 11.2% to £72.3 million.[6]Partnerships and Supply Chain
Computacenter collaborates with over 200 technology vendors, holding accreditations such as Platinum status with Hewlett Packard Enterprise, Lenovo, Oracle, and Palo Alto Networks, positioning it among elite partners for these firms.[33][34] Its workforce maintains more than 13,000 individual vendor certifications, enabling specialized integration and support services.[33] Hardware partnerships include Titanium Black with Dell Technologies, Gold with Cisco, and Platinum with Intel, facilitating procurement and deployment of servers, storage, and networking equipment.[33] Software alliances encompass Gold status with Microsoft and Adobe, Platinum with Citrix and VMware, supporting enterprise licensing, cloud migrations, and application management.[33] Cloud providers like Amazon Web Services (Gold) and Google Cloud (Authorised) enable hybrid infrastructure solutions.[33] In June 2024, Computacenter partnered with HappySignals to embed employee IT experience analytics into its support offerings, aiming to enhance service outcomes through data-driven insights.[35] The company's supply chain comprises thousands of global suppliers, spanning hardware manufacturers, component distributors, and logistics providers, with Computacenter enforcing ethical procurement via due diligence policies aligned with regulations like the German Supply Chain Due Diligence Act.[36][37] It rationalizes supplier bases for clients through programs like Computacenter Selects, standardizing IT procurement to reduce complexity and costs while prioritizing best-in-class products.[38] Fulfillment services include inventory optimization, custom kitting, secure packaging, and tracked worldwide delivery, often integrated with vendor-direct models to minimize lead times.[39][40] Supply chain disruptions, particularly in semiconductors and data center components, constrained operations in 2021, prompting warnings of sales impacts from CEO Mike Norris.[41] By September 2023, easing constraints reduced inventory levels, boosting operating cash flow to £258 million for the half-year.[42] Computacenter integrates sustainability into supplier assessments, collaborating on carbon reduction and responsible sourcing, as evidenced by its 2025 Bosch Global Supplier Award for indirect purchasing excellence.[36][43] Since November 2020, it has served as a UK government Strategic Supplier, expanding access to public sector contracts through pre-vetted frameworks.[44]Financial Performance
Revenue Growth and Profitability Trends
Computacenter experienced a dip in revenue to £5,034.5 million in 2021 amid COVID-19 disruptions, following £5,441.3 million in 2020, before resuming growth to reach £6,964.8 million by 2024, representing a compound annual growth rate of approximately 6.5% from 2021 to 2024.[45] This expansion reflected the company's focus on technology sourcing and professional services in key markets like Germany and North America, though year-over-year growth decelerated to just 0.6% in 2024 from £6,922.8 million in 2023, attributed to softer demand in the UK and margin pressures in a challenging IT hardware market.[46] In constant currency terms, 2024 revenue growth was modestly higher at 2.9%.[46] Profitability trends showed resilience through 2023, with adjusted operating profit rising from £206.5 million in 2020 to a peak of £271.5 million in 2023, supported by operational efficiencies and service-led revenue streams.[45] However, adjusted operating profit declined 9.1% to £246.7 million in 2024, coinciding with a contraction in gross margin from 15.1% to 14.9%, driven by higher costs in supply chain and a shift toward lower-margin hardware sales.[46] Profit before tax followed a similar trajectory, increasing to £272.1 million in 2023 before falling to £244.6 million in 2024.[45] Despite the 2024 setback, the company achieved record adjusted operating profit in the second half of the year, up 11.2% in constant currency, signaling improved momentum.[46] The following table summarizes key financial metrics from 2020 to 2024:| Year | Revenue (£m) | Adjusted Operating Profit (£m) | Profit Before Tax (£m) | Diluted EPS (p) |
|---|---|---|---|---|
| 2020 | 5,441.3 | 206.5 | 206.6 | 133.8 |
| 2021 | 5,034.5 | 262.8 | 248.0 | 160.9 |
| 2022 | 6,470.5 | 269.1 | 249.0 | 159.1 |
| 2023 | 6,922.8 | 271.5 | 272.1 | 173.2 |
| 2024 | 6,964.8 | 246.7 | 244.6 | 152.9 |
Stock Performance and Market Valuation
Computacenter plc has been listed on the London Stock Exchange (LSE) under the ticker symbol CCC since its initial public offering in October 1998, when shares were priced at 110 pence.[47] The stock has exhibited long-term appreciation aligned with the company's expansion in IT services, with shares trading above £20 by the early 2020s amid sustained revenue growth and market demand for digital infrastructure.[48] Over the decade from 2015 to 2025, the stock delivered compound annual returns exceeding 15%, driven by operational efficiencies and international diversification, though subject to cyclical pressures in technology spending.[47] In recent years, Computacenter's share price has shown resilience amid economic volatility. The 52-week range as of October 2025 extended from £20.20 (reached on January 14, 2025) to a high of £28.30 (on October 8, 2025), reflecting recovery from early-year dips linked to macroeconomic uncertainties and a subsequent rebound fueled by robust half-year results.[49] On October 15, 2025, shares closed at £26.92, marking a 1.20% increase from the prior session and contributing to a one-year market capitalization growth of 10.45%.[50] [51] Trading volume averaged around 50,000 shares daily in late 2025, with approximately 106.24 million shares outstanding.[52] Key valuation metrics position Computacenter as reasonably valued relative to peers in the IT services sector. As of early October 2025, the trailing price-to-earnings (P/E) ratio stood at 18.78, while the forward P/E was 15.04, indicating market expectations of earnings expansion.[53] The enterprise value reached £2.77 billion, with a price-to-sales ratio of 0.38 and price-to-book of 3.43, underscoring asset-light operations typical of service providers.[53] Dividend yield hovered at approximately 2.66%, supported by a payout ratio of 48.26% and consistent distributions, including an ex-dividend date of September 25, 2025.[54] [53]| Metric | Value (as of October 2025) |
|---|---|
| Market Capitalization | £2.87–2.89 billion |
| Trailing P/E Ratio | 18.78 |
| Forward P/E Ratio | 15.04 |
| Dividend Yield | 2.66% |
| Price/Sales (TTM) | 0.38 |