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Computacenter surges as it upgrades full-year forecasts

The IT firm said that a “successful trading performance” seen in the first half of its current year has continued and as a result "the likely turn out for the year as a whole will be materially above the board’s previous expectations"

Computacenter PLC - Computacenter surges as it upgrades full-year forecasts

Computacenter PLC (LON:CCC) shares surged on Wednesday as the IT services group upgraded its full-year expectations ahead of interim results due next week.

In a brief trading update, the FTSE 250-listed firm said a “successful trading performance” seen in the first half of its current year has continued for the first two months of the second half, and that as a result it had “become clear … that the likely turn out for the year as a whole will be materially above the board’s previous expectations”.

READ: Computacenter higher as home working boom lifts demand for IT equipment

The upgraded forecasts follow a similarly upbeat trading update on July 22, when the company said it expected 2020 to be “a year of material progress” following a record-breaking 2019, adding that the boom in home working during the pandemic had “considerably helped” its sales in the first half of the year.

Shares in Computacenter jumped 6.6% to 2,148p in early deals.

Analysts at broker Peel Hunt noted that recent results from US hardware giants HP and Dell both pointed to the continued strength of tech spending in the post-Covid-19 world, indicating a second wave of tech spending following the immediate spending bump seen into the lockdown.

READ: Remote working stocks to back if Boris Johnson fails with his back-to-the-office campaign

The analysts said they believe a range of tech companies will "continue to surprise to the upside" driven by the improved outlook for tech budgets relating to the work-from-home trend becoming more widespread, including the likes of Softcat, Gamma and Peel Hunt clients NCC, Blancco and iomart.

   --Adds broker comment--

Quick facts: Computacenter PLC

Price: 2212 GBX

LSE:CCC
Market: LSE
Market Cap: £2.52 billion
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