International IT reseller Computacenter (CCC) has unveiled a new share buyback programme worth £200 million, larger than analysts had expected and worth about 7% of its issued share capital.

Buying back shares in the company when the stock is seen as discounted has been a regular feature of Computacenter’s investment modus operandi for years, a point noted by Liberum’s Harvey Robinson: ‘This continues the company’s exceptional track record of returning capital to shareholders with over £619 million in last 10 years.’

Computacenter has been investing in its overseas operations during the past 18-months or so, mostly in the US, yet management seems to have concluded that the emergence of several headwinds means pushing ahead with expansion may not be in the best interests of shareholders in the short-term.

This became apparent in a first-half trading update which showed adjusted pre-tax profit falling 29% to around £87 million. According to Megabuyte analyst Indraneel Arampatta, this reflected a tough comparable half-year 2023, which was boosted by major one-off hardware deals, longer fulfilment lead times as large orders (particularly in North America) got pushed into the second half, and a £2 million currency  translation impact.

Computacenter shares are currently trading at £26.83.

‹ Previous2024-08-01Next ›