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magazineComputacenter resilient but dividends are off the menu
Computacenter (CCC) £14.90
Gain to date: 23.1%
Original entry point: Buy at £12.10, 2 May 2019
IT re-selling outfit Computacenter (CCC) is navigating the coronavirus crisis well so far and we remain positive on the shares.
A first quarter update (23 Apr) saw the company pull its dividend but otherwise it was very reassuring with 2020 expectations unchanged (albeit with the caveat that the second-half is hard to predict) and first-half profit expected to be in line or slightly ahead year-on-year. In summary trading has not been as bad as feared.
The company enjoyed a boost to demand from the increase in working from home, reflecting its status as a provider of PCs, laptops and smartphones as well as software advice to millions of end-users and as a trusted partner for thousands of organisations.
On the flip-side the company saw demand drop off in the industrial sector and in Europe around 10% of its staff are on various state-backed furlough schemes.
In a sign of sound corporate governance, the company’s CEO Mike Norris and finance director Tony Conophy have announced they will reduce their salary to zero through to the end of June to show solidarity with their furloughed employees.
SHARES SAYS: While the end to a proud dividend track record is disappointing we remain fans of this resilient business.
Important information:
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Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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