Building long-term value
based on trust
Annual Report and Accounts 2023
“This Annual Report explains how we turn the resources and relationships provided by our key
stakeholders – our customers, people, technology vendors, communities and shareholders
– into the delivery of value for them.
It is a story of how we create, deliver and maintain that value. Most of all, it makes clear the
importance of our key stakeholders and why building long-term trust with them is fundamental
to our continued success.”
Peter Ryan
Chair
Our growth and development
2005–2016
Development of global Managed
Service capabilities
2018–2022
Acquisition of FusionStorm,
Pivot and BITS in North America
1994
Largest UK privately-owned
IT company
2001
Opening of Europe’s largest
Integration Center in Hatfield,
United Kingdom
2022
20,000 people
Successful flotation on the
London Stock Exchange
1998
Acquisition of GE CompuNet
in Germany
2003
Group Operating
Model introduced
2012
Updated Group Operating
Model introduced
2023
40th
anniversary
2021
Founded
1981
Y
E
A
R
S
1981-2021
Who we are
Our Purpose
Helping our customers change the world
Our customers are some of the world’s greatest organisations, in both the
corporate and public sectors. They make world-changing decisions and
investments and while we do not change the world ourselves, we enable
success for our customers so that they can realise the transformative
benefits of IT for their organisations, people, and the world. We work hard
to get to know our customers, understand their needs and put them at the
heart of everything we do.
What we do
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
Strategic Report
IFC Our growth and development
002 Performance in 2023
004 Chair’s statement
006 Creating long-term value
007 Computacenter at a glance – five key
differentiators
010 Our purpose-driven approach
012 Strategy
013 Market and customer trends:
Artificial Intelligence
014 Market and customer trends
016 Our business model
017 Our investments to create value
018 Chief Executive Officer’s Q&A
020 Our people and culture
022 Our integrated portfolio
026 Sustainability Q&A
028 Delivering long-term value
029 Business resilience
030 Chief Executive Officer’s performance review
032 Our track record
033 Key performance indicators
036 Our performance in 2023
048 Chief Financial Officer’s review
056 Maintaining long-term value
057 Stakeholder engagement
064 Principal risks and uncertainties
074 Managing our principal risks and uncertainties
076 Going concern and Viability Statement
078 Sustainability
094 Task Force on Climate-Related
Financial Disclosures
102 Ethics and compliance
105 Other non-financial disclosures
Building long-term value
based on trust
Governance Report
108 Chair’s governance overview
109 Promoting the long-term sustainable
success of the Group
110 Other Board activity and decision-making
112 Governance at a glance
114 Division of Responsibilities
116 Board of Directors
118 Executive team
120 Ensuring Board effectiveness
121 Measuring Board effectiveness
122 Compliance with the Code
124 Our purpose, strategy, values, and culture
126 Board Leadership and Company Purpose
127 Nomination Committee report
130 Audit Committee report
136 Directors’ Remuneration report
159 Directors’ report
164 Directors’ Responsibilities
Financial Statements
166 Independent Auditor’s report to the members
of Computacenter plc
176 Consolidated Income Statement
176 Consolidated Statement of
Comprehensive Income
177 Consolidated Balance Sheet
178 Consolidated Statement of Changes in Equity
179 Consolidated Cash Flow Statement
180 Notes to the Consolidated Financial Statements
232 Company Balance Sheet
233 Company Statement of Changes in Equity
234 Notes to the Company Financial Statements
240 Group five-year financial review
241 Financial calendar
241 Corporate information
242 Principal offices
Glossary
244 Alternative performance measures
246 Terminology
247 Disclaimer: forward looking statements
Contents
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 001
Performance in 2023
1. For details of our Alternative Performance Measures, including links to reconciliations, and other terms used in this
Annual Report and Accounts, please refer to our Glossary on page 244.
See our financial track record – p032
Financial highlights
Adjusted¹ profit before tax Adjusted¹ diluted earnings per share
+17.4%
Four-year annual compound growth rate
+17.2%
Four-year annual compound growth rate
Dividend per share (p)
+3.1%
70.0
2023
2022
2021
2020
2019
70.0
67.9
66.3
50.7
10.1
Return on capital employed
12.5pts
55.4%
2023
2022
2021
2020
2019
55.4
42.9
52.2
46.7
42.6
Gross invoiced income
1
(£m)
+11.4%
10,081.4
2023
2022
2021
2020
2019
10,081.4
9,052.2
6,923.5
5,441.3
5,052.8
Profit before tax (£m)
+9.3%
272.1
2023
2022
2021
2020
2019
272.1
249.0
248.0
206.6
141.0
Diluted earnings per share (p)
+8.9%
173.2
2023
2022
2021
2020
2019
173.2
159.1
160.9
133.8
89.0
Net funds (£m)
+193.2%
343.6
2023
2022
2021
2020
2019
343.6
117.2
95.3
51.1
20.3
Revenue (£m)
+7.0%
6,922.8
2023
2022
2021
6,922.8
6,470.5
5,034.5
Adjusted¹ profit before tax (£m)
+5.4%
27 8.0
2023
2022
2021
2020
2019
278.0
263.7
255.6
200.5
146.3
Adjusted¹ diluted earnings per share (p)
+3.0%
174.8
2023
2022
2021
2020
2019
174.8
169.7
165.6
126.4
92.5
Adjusted
1
net funds (£m)
+87.9%
459.0
2023
2022
2021
2020
2019
459.0
244.3
241.4
188.6
137.1
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023002
Operational highlights
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
Managed Services
We maintain and manage digital operations and
user support for our customers, to improve quality
and flexibility while reducing costs. Our revenue
under contract has high predictability and is
long term.
Revenue (£m)
+2.5%
957.7
2023
2022
2021
2020
2019
957.7
934.0
898.5
835.8
864.5
Professional Services
We provide structured solutions and expert
resources to help our customers to select, deploy
and integrate digital technology, to achieve their
business goals. Our revenue depends on our forward
order book, which contains a multitude of short-,
medium- and long-term projects.
Revenue (£m)
+6.6%
678.8
2023
2022
2021
2020
2019
678.8
636.6
552.4
425.4
366.1
Technology Sourcing
We help our customers to determine their
technology needs and, supported by our technology
vendors, we arrange the commercial structures,
integration and supply chain services to meet them
reliably. We earn revenue from large contracts, with
thinner margins and lower predictability than for
Services but with fantastic customer loyalty.
Revenue (£m)
+7.9%
5,286.3
Gross invoiced income (£m)
+12.9%
8 ,444 . 9
2023
2022
2021
2020
2019
5,286.3
4,899.9
8,444.9
7,481.6
5,472.63,583.6
4,180.1
3,822.2
• Nineteenth consecutive year of adjusted
earnings per share growth, showing the
resilience of our business
• Technology Sourcing revenue growth of
8.1% in constant currency, driven by resilient
large corporate spend and further market
share gains
• Strong growth in North America with adjusted
operating profit increase of 24.0% in constant
currency, demonstrating the scale of the
long-term growth opportunity
• Sustainable engagement score of 83%
in our 2023 Group Employee Survey, showing
the commitment of our people
• Significant increase in adjusted net funds
to £459m, demonstrating the highly cash
generative nature of our business
• Continued momentum in Germany with
adjusted operating profit increase of 13.8%
in constant currency demonstrating our
market leading position
• Continued significant programme of
investments to underpin our long-term
resilience, competitiveness and growth
• 2032 mid-term and 2040 Net Zero
targets approved by SBTi as part of our
sustainability roadmap
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
Our business portfolio
The three Service Lines within our
portfolio are Technology Sourcing
(Source), Professional Services
(Transform) and Managed Services
(Manage). We want to grow and build
scale in each part of the portfolio.
These complementary activities
allow us to maximise our value for
our customers.
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
Performance in 2023 continued
Source Transform Manage
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 003
Chair’s statement
Our focus on the long term is also reflected in our continued investment
in the business. Expanding our geographical reach and enhancing our
portfolio, systems and resources continues to reap rewards, facilitating
increased market share and establishing a strong platform for delivering
sustained value to our stakeholders.
Financial performance and dividend
Revenue for the full year increased by 7.0% to £6,922.8m (2022: £6,470.5m).
Gross invoiced income grew by 11.4% to £10,081.4m (2022: £9,052.2m).
The Group generated adjusted profit before tax of £278.0m (2022: £263.7m),
and adjusted diluted earnings per share (EPS) of 174.8p (2022: 169.7p).
On a reported basis, the Group saw profit before tax of £272.1m (2022:
£249.0m) and diluted EPS of 173.2p (2022: 159.1p).
The performance of our teams was particularly creditable given the
continued unpredictable macroeconomic conditions in our major
markets. The strong results of our businesses in Germany and North
America were pleasing both in terms of the in-year execution and the
validation of our long-term strategy.
The Group’s performance this year also reflects the importance of our
culture, which puts our customers at the heart of what we do, and our
Winning Together Values. The relentless pace of technological change
means our customers need a partner they can trust to help maximise the
value of their IT investment. We become their partner of choice by putting
our customers first, keeping our promises, employing and developing
great people, and focusing on building a long-lasting relationship with
them. The Board continues to pay close attention to our culture, which
we see as a competitive advantage for Computacenter.
2023 was another positive year for
Computacenter, with the business delivering
record revenue and profit together with
excellent cash generation.
“Long-term thinking and short-term
execution – both core strengths of
Computacenter – have been the foundation
of our progress in recent years.”
Peter Ryan
Chair
Delivering consistent financial
performance and value for our
stakeholders
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023004
Chair’s statement continued
We are proposing a final dividend of 47.4p per share. If approved by
shareholders at Computacenter’s 2024 Annual General Meeting, this will
bring the full-year dividend for 2023 to 70.0p per share. This represents
an increase of 3.1% over that paid for 2022 and remains in line with our
long-term dividend policy of paying a dividend that is covered between
2.0 and 2.5 times by adjusted diluted EPS.
The Group’s cash position finished strongly at the end of the year, with
adjusted net funds of £459.0m as at 31 December 2023 (2022: £244.3m).
The Board continues to review our approach to capital allocation, so that
it ensures balance sheet efficiency and appropriate returns for shareholders.
Our use of cash continues to prioritise organic growth, the development
of our business, and merger and acquisitions activity which aligns with
our strategy. Where available opportunities to invest in this way are limited,
the Board will consider returning value to shareholders.
The Board in 2023
During 2023, there was one change to the Board, as Chris Jehle was
appointed Chief Financial Officer (CFO) in June, as a result of our
comprehensive succession planning process. Chris is already making
a significant contribution to the Board and the Group.
While we meet the new Listing Rule requirement for a woman to hold at
least one of the senior board roles, with Ros Rivaz as our Senior Independent
Director, we do not meet the rule to have a minimum of 40% of women on
the board, with our current representation of 33%. We will continue to
look for opportunities during planned succession to become compliant
with this Listing Rule. We do consider, however, that the Board continues
to be effective, independent, and diverse, with 80% of our independent
Non-Executive Directors either gender or ethnically diverse.
Environmental, Social and Governance matters
The Company has continued to make meaningful progress on
sustainability, diversity and inclusion, and ensuring our governance
practices evolve. These subjects are regarded as very important by both
the Board and our people across Computacenter. You will find considerable
detail on our approach to sustainability (pages 078-101), diversity and
inclusion (pages 084-086) and governance (pages 107-164) in this report.
We continued to be carbon neutral for the second successive year and
have made good progress towards our corporate gender diversity
targets, both at leadership team level, and throughout the organisation.
We have also approved an important investment in our Circular Services
capability, where we can make a meaningful contribution, building upon
our RDC business in the UK. This is an attractive proposition for our customers,
to help them on their own sustainability journeys. More detail can be
found on pages 026-027 and 093.
The year ahead
We remain purposeful in our focus to strengthen and grow Computacenter
to enable the success of our stakeholders. I thank them all for their
continued trust and support.
The demand drivers for our business remain strong as we enter 2024.
Corporate and public sector organisations continue to have digital
technologies, solutions and capabilities at the heart of their efforts
to improve productivity, innovation and security. We feel we are well
positioned to make positive contributions to support their ambitions.
This will require a focus on short-term execution and long-term thinking
– both core strengths of Computacenter.
This makes us believe that 2024 will be another year of further progress.
Peter Ryan
Chair
19 March 2024
Promoting the Group’s long-term success
Each member of Computacenter plc’s Board of Directors is required
to act in a way that they consider, in good faith, would be most likely
to promote the success of the Company for the benefit of its
shareholders as a whole.
To understand how they have done so, please see our full Section 172
statement on page 105, which references where you can find the
principal decisions and activity of the Board in 2023, how the Company’s
key stakeholders have been taken into account, and the outcomes
that they have produced for the Group.
Fair, balanced and understandable
The Board confirms that it considers this Annual Report and Accounts,
taken as a whole, is fair, balanced and understandable, and provides
the information necessary for shareholders to assess the Group’s
position, performance, business model and strategy.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 005
Creating long-term value
We are trusted by large corporate and public sector organisations
to Source, Transform and Manage their technology infrastructure
to deliver digital transformation. Our purpose-driven approach
means that we work hard to get to know our customers,
understand their needs and put them at the heart of everything
we do, helping our customers change the world.
GOVERNANCE
FINANCIAL STATEMENTS
STRATEGIC REPORT
Computacenter plc Annual Report and Accounts 2023006
GLOSSARY
Computacenter at a glance – five key differentiators
Creating long-term value
Our business is about technology. But first of all, it’s about people.
We are a service company, and our customers depend on us to underpin
their own businesses. We could not be effective without the extraordinary
commitment and hard work of our people. We now employ over 20,000
people across 22 countries. Together, we’ve created a ‘can-do’, customer-
centric culture in which our people are empowered to make responsible
decisions that help us meet the needs of our customers faster. People
matter and are encouraged to thrive.
We work hard to maintain our culture and to attract, develop and reward
talent, which is essential to creating value and success for our customers.
Our people strategy is designed to help ensure we engage and motivate
our people throughout their careers. One of the ways that we help to
recognise our people is through our global recognition platform, ‘Bravo!’.
This allows our people from across the business to say ‘thank you’ and
recognise each other for their contribution to our customers, our
business and to each other. In mid-2021, we launched our ‘Bravo Stars’
programme which allows people to nominate their peers for bronze and
silver awards which carry a higher number of Bravo! points. During 2023,
we issued 150 bronze, 177 silver and 16 gold awards across 15 countries.
Here are a few of our gold award winners in 2023.
Read more about our people on pages 083 to 088.
Our Values
These are the values on which we built this Company and they are
the values on which we will continue to grow Computacenter.
1
In our 2023 Employee Survey, we achieved a score of 83% for
sustainable engagement, and 88% for inclusion. These scores help
to give us confidence that we have created a culture where people
want to stay with us, grow with us, and feel that they belong with us.
Sustainable engagement Inclusion score
83% 88%
Your
matters
feedback
Putting customers first
We work hard to get to know our customers, understand their
needs and put them at the heart of everything we do. This lets us
use our skills and experience to help them in the right way at the
right time.
Keeping promises
We’re straightforward, open and honest in all of our dealings.
We’re pragmatic and do our very best to keep our promises.
When that’s difficult, we help our customers find other ways
to solve their problems.
Understanding people matter
We’re committed to being diverse and inclusive. We build
supportive, rewarding relationships and celebrate success.
We’re proud of the people we work with and we treat people as
we expect them to treat us.
Considering the long term
We’re building a sustainable and efficient business for the long
term. This leads our decisions and actions and helps people
trust us.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 007
Creating long-term value
Computacenter at a glance – five key differentiators continued
75
awards received from
23 technology vendors in 2023
13,000
technical certifications
held by our people
We have built powerful partnerships with the world’s leading technology
vendors, who can rely on our reach and scale. We are among the top five
partners in EMEA for most of the major technology vendors and are
increasingly recognised for our achievements at a global level. We are
already among the top five partners globally for many of the major
technology vendors.
The increasing pace of technological change and the diversity of the
technology landscape has made our technology vendor independence
more critical to our customers. We are trusted to provide impartial and
knowledgeable advice and to integrate solutions comprising products
from multiple technology vendors.
Services breadth and scale
5,000
Service Center agents
5,000
Engineers and Technicians
1,800
Project, Service and
Delivery Managers
1,500
Consultants
We have the largest service capability of any VAR in the world, with over
13,400 billable people helping our customers. This allows us to support
our customers to Transform and Manage their digital technology at scale,
in addition to our Technology Sourcing activities. Additionally, our Services
scale provides our business with better resilience, as well as access to
broader growth opportunities.
Our people have a breadth of skills and experience across the key
technology areas. This is underpinned by the breadth and depth of our
technology vendor partnerships which allow us to help our customers
navigate the complexity and speed of change in the current market.
Breadth of skills and experience
Read more about our integrated portfolio on pages 022 to 025.
WorkplaceData Center SecurityNetworkingCloud &
Applications
2
Powerful partnerships
3
Procurement and logistical services
Configuration, lifecycle and circular services
IT strategy, advisory and application services
Integration, deployment and expert services
Maintenance, field and managed lifecycle services
Remote user support and digital operations
Source
Transform
Manage
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023008
Creating long-term value
Computacenter at a glance – five key differentiators continued
COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS
SERVICE CENTERS
INTEGRATION CENTERS
PROFESSIONAL SERVICES
DELIVERY CENTERS
LIVERMORE, CA, US
ALPHARETTA, GA, US
MOORDRECHT, NETHERLANDS
BRUSSELS, BELGIUM
BRAINTREE, UK
GUSTAVSBURG, GERMANY
GONESSE, PARIS, FRANCE
KERPEN, GERMANY
INDIANAPOLIS, IN, US
BUFFALO GROVE, IL, US
HATFIELD, UK
DALLAS, TX, US
MEXICO CITY, MEXICO
MARKHAM, ON, CANADA
BARCELONA, SPAIN
HATFIELD, MILTON KEYNES,
NOTTINGHAM, SHEFFIELD, UK
LYON, MONTPELLIER,
PARIS, PERPIGNAN, FRANCE
BUDAPEST, HUNGARY
CLUJ, ROMANIA
BERLIN, DRESDEN, ERFURT,
KERPEN, GERMANY
POZNAN, POLAND
CAPE TOWN, SOUTH AFRICA
KUALA LUMPUR, MALAYSIA
BANGALORE, INDIA
BANGALORE, INDIA
CIRCULAR SERVICES
CENTERS
BUFFALO GROVE, IL, US
SAN FRANCISCO, CA, US
ATLANTA, GA, US
HATFIELD, UK, EMEA
KUALA LUMPUR, MALAYSIA, APAC
BANGALORE, INDIA
COMPUTACENTER’S COVERAGE REGIONAL HEADQUARTERS
SERVICE CENTERS
INTEGRATION CENTERS
PROFESSIONAL SERVICES
DELIVERY CENTERS
CIRCULAR SERVICES
CENTERS
Market-leading international coverage
We have what we believe to be the best international capability of any VAR in the world.
This allows us to help customers to deploy and support IT standards consistently worldwide.
Resilient scale infrastructure
We have invested over many years to build resilient
and market-leading scale infrastructure, to meet
the demanding requirements of our customers.
We continue to invest for the long term.
Facilities
Our Integration Centers are among the largest and
most capable in each of our markets, providing
customers with the capability to deploy technology
at scale. Our Service Centers across the world provide
support for our customers’ IT infrastructure and users
24 hours a day, seven days a week. They can operate
independently or as a group, to provide both capability
and resilience as part of our Services business.
Systems
The systems underpinning our operations provide
flexibility for our customers. They have to be secure
to protect both us and our customers, while supporting
us to meet service level agreements through
automation and innovation. We continue to invest
in improving our platforms to provide improved
customer service, efficiency and innovation,
including Artificial Intelligence (AI), using technology
from among the world’s leading providers, including
Microsoft, SAP, ServiceNow and Salesforce.
We Source, Transform and Manage technology for our customers in over 70 countries worldwide
We sell to customers in eight countries We have nearshore and offshore operations
in another eight countries
We have support operations in another seven
countries/territories
Belgium Netherlands Hungary Poland Australia Ireland
Canada Switzerland India Romania Brazil Japan
France United Kingdom Malaysia South Africa China Singapore
Germany United States Mexico Spain Hong Kong (SAR)
Standards and certifications
Our systems and processes are certified to high
standards to underpin the consistency of our
service delivery.
ISO 20000-1
ISO 14001
ISO 9001
ISO 27001
ISO 45001
5
4
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 009
Our purpose-driven approach
Creating long-term value
Our purpose is helping our
customers change the world
How we measure our progress Our ambitions drive long-term
value for our stakeholders
We know that we do not change the world ourselves. But we enable success for some of the
world’s greatest organisations by helping them to realise the transformative benefits of IT –
for their organisations, people, and the world.
• Our customers will strongly recommend us
• We’ll be the preferred route to market for technology vendors
• People will want to join us, stay with us, and grow with us
• We’ll be a trusted, agile and innovative provider of technology and
services across the world
Our purpose
drives our
strategy
and business
model
Financial KPIs
Strategic KPIs
Sustainability KPIs
• Revenue (£m)/Gross invoiced income (£m)
• Gross profit (£m)
• Adjusted diluted EPS (p)
• Adjusted net funds (£m)
• Customer relationships
• Services growth
• Productivity
• Employee engagement
• Net Zero roadmap
• Devices recovered
See pages 034 to 035
See page 033
See pages 078 to 101
See pages 022 to 025
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023010
Creating long-term value
Our purpose-driven approach continued
Guided by our principlesShaped by our values
Our strategy
and business
model help
us to create
long-term
value
These foundations underpin our strategy and business model
Our strategy and business model respond to external opportunities and mitigate risks
Market and customer trends Principal risks and uncertainties
Governed with integrity
Strategy Business model
Focus on target market customers
Build Service Line scale and competitive advantage
Empower our people
Putting customers at the heart of everything we do
Sales is totally focused on their needs
Service Lines build scale capabilities to meet customer needs efficiently and consistently
Business Services functions maximise leverage, efficiency and compliance
See page 014
See page 012
See page 064
See page 016
Winning Together:
Putting customers first
Keeping promises
Winning together for our people and our planet:
We recognise that the long-term future of our company,
our people and our planet relies on an enduring
commitment to sustainability
A clear governance framework guides all decisions
We are a responsible business that believes in winning
together for our people and our planet
We’ll be the best we can be – a company that our people,
customers, partners and communities can be proud of
These are the values on which we have built this Company
and they are the values on which we will continue to
grow Computacenter
Understanding people matter
Considering the long term
See page 107
See page 078
See page 007
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 011
Strategy
Creating long-term value
Our strategy:
Focus on target market customers
We focus only on a target market of the largest 500-1,000 corporate
and public sector organisations in each of our Sales countries. These
target market customers require us to offer significant flexibility to
meet their specific needs while also being competitive in each part of
our portfolio. We invest in sales and customer engagement teams to
build long-term relationships which earn customer loyalty. We work
hard to get to know our customers, understand their needs and put
them at the heart of everything we do. Feedback from our customers
helps prioritise our decisions on investments in capability and their
loyalty underpins our growth and development.
Build Service Line scale and competitive advantage
We want to be the logical choice for our target market customers
in the activities on which we focus. Our Service Lines of Technology
Sourcing, Professional Services and Managed Services are focused
on building and leveraging capabilities to meet customer needs
efficiently and consistently and to build economic advantage. In
Technology Sourcing, we are one of the six largest value-added
resellers (VARs) by gross invoiced income in the world and the largest
headquartered outside the United States. We have the largest
Services business, and have built what we believe to be the best
international capability, of any VAR. By growing our Services, we aim to
build value for our customers and technology vendors, in addition to
scale leverage. We compete in Services with VARs, and small service
companies through breadth and scale, as well as systems integrators
who do not have competitive Technology Sourcing capability.
Empower our people
We work hard to understand the needs of our customers and allow
our customer-facing people to make responsible decisions that help
us meet the needs of our customers faster. This has always been and
remains a fundamental strategic pillar for Computacenter. It is an
essential part of our culture and helps to differentiate us from our
competition, ensuring that we are focused on the needs of our target
market customers and that our investments deliver an effective
return. We empower our customer-facing people, while ensuring
that all decisions are taken within a clear governance framework,
supported by strong customer profitability reporting and clear
remuneration plans.
Our purpose is helping our customers change the world
We help our customers to realise the transformative benefits of IT
for their organisations, people and the world.
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Market and customer trends: Artificial Intelligence
Creating long-term value
We are excited by the opportunities
that AI represents for our
customers and our business.
We believe that AI will be pervasive but is also a
continuation of existing digital transformation
trends. We are adapting our plans to maximise the
impact of AI on our business, based on the following
framework, and have established an AI Strategy
Board to help shape, drive and oversee the adoption
of AI, to ensure we deliver our AI vision and achieve
our goals.
Managed Services
Customer trend: Customers expect us to
continue to invest in AI to
make our Managed Services
more effective
Impact on
Computacenter:
AI is helping us to improve
the quality and efficiency
of our user and customer
experience
Our target: We optimise key AI
capabilities that are used to
deliver our Managed Services
and provide increased value
to our customers
Business Services
Customer trend: We already use AI solutions to
support our Business Services
and will continue to leverage
more over time
Impact on
Computacenter:
AI can help us to reduce costs
and improve productivity as well
as providing tangible use case
models to help build credibility
with customers
Our target: We will maximise the
adoption of AI internally and
across all customer-facing
processes and services
Policies and Governance
Ensuring that we adopt AI responsibly for the benefit of our customers, employees and other stakeholders.
The focus is on adoption, regulations, ethics and compliance.
Professional Services
Customer trend: Customers are asking us to
advise them on the best ways
to design and implement
their AI solutions
Impact on
Computacenter:
AI advisory and deployment
services build credibility
with our customers and
strengthen both new and
existing relationships
Our target: We have advanced AI
expertise in key areas to help
customers to plan their
strategies and leverage AI
Technology Sourcing
Customer trend: Customers will continue
to invest in additional
infrastructure to help
them leverage AI
Impact on
Computacenter:
AI implementation for
customers should help us
to grow and generate
additional revenue
Our target: We are market leaders
in infrastructure for AI
workloads at scale
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Computacenter plc Annual Report and Accounts 2023 013
Trends in our market
Our investment strategy is
informed by these trends,
helping us to be resilient and
responsive to the needs of our
target market customers.
Creating long-term value
Market and customer trends
Agility and speed Resilience and security People experience Value and efficiency Sustainability
Organisations rely on technology to drive the
efficiency and flexibility they need to bring new
capabilities to market for their own customers.
The challenging threat landscape is continually
evolving, while the demand for highly available and
responsive systems grows. Regulatory pressures
command greater visibility and control.
The hybrid working environment for employees
requires different forms of service delivery and
greater innovation to provide secure, engaging,
and flexible support.
Organisations seek to maximise the return on
investment and business efficiency they achieve
from their existing IT environments and from new
investments in technology and services.
With increased market and consumer pressure,
along with a rapidly expanding regulatory burden,
sustainability is becoming a more common factor
in strategic decision-making for our customers.
Computacenter impact
• Organisations are deploying standardised
infrastructure at scale globally, to allow them
to leverage hybrid and multi-cloud platforms
for application delivery.
• Our customers are demanding access to
broader sets of skills on a more flexible basis.
• Some services buying cycles are speeding up,
with contracted outcomes simplified to allow
for more competition.
• There is increased demand from certain
customer sectors for data center, cloud and
application services.
Computacenter impact
• Customers are investing more in their network
and security infrastructure, with a particular
focus on cyber-defence measures to protect
their business and reputation.
• Organisations demand high-performance
infrastructure, leveraging hybrid platform
designs and solutions.
• Regulatory changes introduce increased
oversight of our assurance measures, as well as
driving greater customer scrutiny in line with
their compliance needs.
Computacenter impact
• Our people continue to adapt to hybrid working,
evolving the way we interact and share.
• Continued demand from our customers for our
help to enable collaboration through systems,
tools, and facility upgrades.
• Increased demand for workplace Technology
Lifecycle solutions.
• Greater desire for flexible technology
provisioning solutions such as pre-
configuration, Tech Centers and lockers,
and consumer-like courier experiences.
Computacenter impact
• Customers are expecting value and competitive
pricing from suppliers
• Customers are extending the lifetime of some
IT asset investments
• Customers require highly efficient deployment
solutions.
• Continued pressure on customers to justify
their investment in IT.
Computacenter impact
• Our customers want to do business with
responsible suppliers who have the similar
sustainability commitments, and who can
help them to achieve their goals and meet
regulatory obligations.
• Forthcoming regulation increases the need
for transparency throughout the value chain,
increasing the demand for general and
contract-specific reporting.
• Supply chain transparency is becoming
increasingly important.
Our response
• Investments in our Integration and Service
Centers to allow standardised deployment and
support of technologies.
• Access to expert resources in near and
offshore Delivery Centers in Romania and India,
with flexible commercial terms to facilitate
agile contracting.
• Globally consistent best-of-breed tooling
infrastructure, including our upgrades to our
ERP and IT Service Management tools.
Our response
• Ongoing investment in our own networking and
security infrastructure to protect ourselves and
our customers.
• Delivering reliable outcomes through our
Technique Professional Services framework.
• Embedding improved security within our core
Managed Services offerings.
• Accelerating of development of networking
and security capabilities.
Our response
• Our own infrastructure upgrades in networking
and security facilitate remote and hybrid
working for our people.
• We continue to invest in leveraging the systems
that enable an Analytics, Automation and AI
approach, focused on user experience.
• Our IT Service Management upgrade
programme increases flexibility in our
support and engagement.
Our response
• Investments in our underpinning systems
infrastructure will provide greater global
standardisation and scalability, as well as
improved ability to support software and
technology vendor ‘as a service’ offerings.
• Circular Services helps customers extend the
life of assets or recover their residual value.
• Development of skills in our Sales & Customer
Engagement and Service Lines will enable
information-driven decision making and
business case achievement for our customers.
Our response
• Our SBTi approved targets and clear
social strategy help to give confidence to
all our stakeholders.
• Our investment in our Circular Services
business will help our customers make
a real difference in carbon avoidance and
sustainable IT use.
• We are driving sustainable procurement with
our vendors to help create the transparency
and choice our customers need.
The parts of the addressable business IT market
where Computacenter is active are expected to
grow at an average of over 5% (a) per annum in
2024-2027 in our Sales countries. This provides a
positive economic backdrop for Computacenter’s
growth and development.
Computacenter is focused on the largest corporate
and public sector organisations in our Sales
countries and this is a subset of the Computacenter
addressable business market. Based on an
estimate of this subset, we believe that we have an
overall market share in our target accounts of no
greater than 5% overall. In our most mature area of
Technology Sourcing, we estimate that our market
share in our target accounts is approximately 2%
in the United States, rising to approximately 15%
in Germany.
We believe we have substantial opportunity to both
grow with the market, as well as to take increased
market share in every one of our Sales countries.
2024-2027 average annual growth rate
of Computacenter’s addressable business market:
>5.0%
a
a. Source: Computacenter estimates based on available
market data.
b. Computacenter’s addressable business market represents
business spending in technologies relevant to our business.
It is broader than Computacenter’s target market.
c. Data includes only Computacenter Sales countries:
Belgium, Canada, France, Germany, Netherlands, Switzerland,
United Kingdom and United States.
Our market
Total IT market
in Computacenter
Sales countries
~£1,566bn
a,c
Computacenter’s
addressable business
market:
~£817bn
a,b,c
Computacenter
gross invoiced
income:
£10.1bn
a
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Computacenter plc Annual Report and Accounts 2023014
Creating long-term value
Market and customer trends continued
Agility and speed Resilience and security People experience Value and efficiency Sustainability
Organisations rely on technology to drive the
efficiency and flexibility they need to bring new
capabilities to market for their own customers.
The challenging threat landscape is continually
evolving, while the demand for highly available and
responsive systems grows. Regulatory pressures
command greater visibility and control.
The hybrid working environment for employees
requires different forms of service delivery and
greater innovation to provide secure, engaging,
and flexible support.
Organisations seek to maximise the return on
investment and business efficiency they achieve
from their existing IT environments and from new
investments in technology and services.
With increased market and consumer pressure,
along with a rapidly expanding regulatory burden,
sustainability is becoming a more common factor
in strategic decision-making for our customers.
Computacenter impact
• Organisations are deploying standardised
infrastructure at scale globally, to allow them
to leverage hybrid and multi-cloud platforms
for application delivery.
• Our customers are demanding access to
broader sets of skills on a more flexible basis.
• Some services buying cycles are speeding up,
with contracted outcomes simplified to allow
for more competition.
• There is increased demand from certain
customer sectors for data center, cloud and
application services.
Computacenter impact
• Customers are investing more in their network
and security infrastructure, with a particular
focus on cyber-defence measures to protect
their business and reputation.
• Organisations demand high-performance
infrastructure, leveraging hybrid platform
designs and solutions.
• Regulatory changes introduce increased
oversight of our assurance measures, as well as
driving greater customer scrutiny in line with
their compliance needs.
Computacenter impact
• Our people continue to adapt to hybrid working,
evolving the way we interact and share.
• Continued demand from our customers for our
help to enable collaboration through systems,
tools, and facility upgrades.
• Increased demand for workplace Technology
Lifecycle solutions.
• Greater desire for flexible technology
provisioning solutions such as pre-
configuration, Tech Centers and lockers,
and consumer-like courier experiences.
Computacenter impact
• Customers are expecting value and competitive
pricing from suppliers
• Customers are extending the lifetime of some
IT asset investments
• Customers require highly efficient deployment
solutions.
• Continued pressure on customers to justify
their investment in IT.
Computacenter impact
• Our customers want to do business with
responsible suppliers who have the similar
sustainability commitments, and who can
help them to achieve their goals and meet
regulatory obligations.
• Forthcoming regulation increases the need
for transparency throughout the value chain,
increasing the demand for general and
contract-specific reporting.
• Supply chain transparency is becoming
increasingly important.
Our response
• Investments in our Integration and Service
Centers to allow standardised deployment and
support of technologies.
• Access to expert resources in near and
offshore Delivery Centers in Romania and India,
with flexible commercial terms to facilitate
agile contracting.
• Globally consistent best-of-breed tooling
infrastructure, including our upgrades to our
ERP and IT Service Management tools.
Our response
• Ongoing investment in our own networking and
security infrastructure to protect ourselves and
our customers.
• Delivering reliable outcomes through our
Technique Professional Services framework.
• Embedding improved security within our core
Managed Services offerings.
• Accelerating of development of networking
and security capabilities.
Our response
• Our own infrastructure upgrades in networking
and security facilitate remote and hybrid
working for our people.
• We continue to invest in leveraging the systems
that enable an Analytics, Automation and AI
approach, focused on user experience.
• Our IT Service Management upgrade
programme increases flexibility in our
support and engagement.
Our response
• Investments in our underpinning systems
infrastructure will provide greater global
standardisation and scalability, as well as
improved ability to support software and
technology vendor ‘as a service’ offerings.
• Circular Services helps customers extend the
life of assets or recover their residual value.
• Development of skills in our Sales & Customer
Engagement and Service Lines will enable
information-driven decision making and
business case achievement for our customers.
Our response
• Our SBTi approved targets and clear
social strategy help to give confidence to
all our stakeholders.
• Our investment in our Circular Services
business will help our customers make
a real difference in carbon avoidance and
sustainable IT use.
• We are driving sustainable procurement with
our vendors to help create the transparency
and choice our customers need.
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Computacenter plc Annual Report and Accounts 2023 015
Creating long-term value
Our business model
Our resources
The skills and experience of our people
• Our business is about technology. But first of all,
it’s about people.
• 20,000 people across 22 countries
• 13,400 billable people
Digital technology from our technology vendors
• Powerful partnerships with 3,000 technology vendors
• 13,000 technical certifications held by our people
• 75 awards from 23 technology vendors in 2023
Resilient scale infrastructure
• Facilities: Integration and Service Centers across the world
• Systems: secure platforms that support scale, service,
efficiency and innovation
• Market-leading international coverage
Brand and reputation
• Long-term relationships with a diverse and high-quality
customer base
• Largest service capability of any VAR in the world
• Our Winning Together Values
• Winning together for our people and our planet
Financial strength and stability
• Strong cash generation underpinned by low capital
expenditure requirements
• Robust balance sheet with a historically net cash position
• Track record of growth and stability as a partner
Sales and Customer Engagement
Our Sales and Customer Engagement teams work hard to get to know our customers,
understand their needs and put them at the heart of everything we do.
Service Lines
Our Service Lines are focused on developing and leveraging capabilities to meet customer needs
efficiently and consistently while building economic advantage in the activities on which we focus.
Business Services
Our Business Services functions provide the underpinning business framework
to maximise leverage, efficiency and compliance across the Group.
Creating value for all
our stakeholders
Customers
Our customers will strongly recommend
us for the way we help them achieve
their goals
People
People will want to join us, stay with us
and grow with us
Shareholders
We will be an agile, innovative and
sustainable provider of technology
and services across the world –
creating, maintaining and delivering
long-term value
Technology vendors
We will be the preferred route to
market for technology vendors
Communities
We will create value for communities
by winning together for our people
and our planet
Our business model is known internally as the Group Operating Model. It was first introduced
in 2012 and has evolved since then with a major change in 2023 to introduce three Service
Lines with clearer end-to-end responsibility for the success of each respective unit.
EUROPE
TECHNOLOGY SOURCING
DEVELOPMENT,
STRATEGY &
MARKETING
INFORMATION
SERVICES
LEGAL &
COMPLIANCE
HUMAN
RESOURCES
FINANCE &
GOVERNANCE
PROFESSIONAL SERVICES MANAGED SERVICES
NORTH AMERICA
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Computacenter plc Annual Report and Accounts 2023016
Our investments to create value
Creating long-term value
Continued investment in our long-term SAP
ERP upgrade programme which underpins
our operations
ERP SYSTEMS MODERNISATION
Rollout of our IT Service Management (ITSM)
systems upgrade programme, centred on
ServiceNow. Deployed Genesys Contact
Center software globally
IT SERVICE MANAGEMENT
Significant investment in network and
security infrastructure globally to support
hybrid working and help to secure ourselves
and our customers
NETWORKING & SECURITY INFRASTRUCTURE
India offshore growth to 1,400 people
New building in Bangalore with capacity
to scale to 5,000 people
India and Romania Professional Services
Delivery Centers
Professional Services Standards
framework: Technique
Integration Center investments:
Kerpen, DE and Moordrecht, NL
Continued e-commerce deployment:
TechSource
MANAGED SERVICESPROFESSIONAL SERVICESTECHNOLOGY SOURCING
New Sales CRM and Quotation systems being
deployed globally to approximately
2,000 users
New Circular Services ERP system configured
for our specific needs (Microsoft Dynamics 365)
Opening of Gustavsburg Circular Services
Center in Germany
SALES & CUSTOMER ENGAGEMENT
Our new key platforms include AI capabilities:
e.g. ServiceNow, Salesforce, Genesys
Microsoft Copilot for Web (GenAI) and Copilot
M365 (internal search) being deployed
ARTIFICIAL INTELLIGENCE
CIRCULAR SERVICES
Long-term resilience and differentiation
The core of our business model has been in place for over a decade
and has helped us to grow and differentiate. We believe that we
will be able to continue to build resilience based on the following
differentiators which underpin our strategy:
1. Our business is about technology.
But first of all, it’s about people
Our people and culture, underpinned by our values and
principles.
2. Services breadth and scale
We have the largest services capability of any VAR in the world.
Our Services are a scale growth engine in themselves and, as
part of our integrated portfolio of Source, Transform and
Manage, add material incremental value for our customers.
3. Powerful Partnerships
We have built powerful partnerships with our technology
vendors, who can rely on our reach and scale.
4. Market-leading international coverage
We have what we believe to be the best international capability
of any VAR in the world.
5. Resilient scale infrastructure
We have invested over many years to build resilient and
market-leading scale infrastructure, to meet the demanding
requirements of our customers. We continue to invest for the
long term.
We continue to make long-term investments to enhance our
market-leading scale infrastructure. These investments support our
business model and help us to create value by allowing our operations
to scale and deliver efficiently and consistently for our customers.
Technique
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Creating long-term value
Chief Executive Officer’s Q&A
Q
Computacenter has grown substantially over the last five years.
What’s driven that growth?
A
Over the last five years, we’ve achieved a step-change in scale. We’re
now one of the six largest value-added resellers (VARs) of IT globally
and the largest headquartered outside the United States. We also
have the largest Services business and we’ve built what we think is
the best international capability of any VAR in the world.
Some of our success is because we’re in a growing sector but we’ve
been able to grow faster than our markets by staying faithful to the
principles that have driven our business for more than 40 years.
Namely, we focus on our customers, we earn their trust by working
hard to get to know them and we understand their needs in an
increasingly complex IT landscape. We’ve also made a consistent
strategic choice to focus our resources on large corporate and
public sector customers, operate at scale and empower our people.
This also helps explain why during the pandemic our customers
turned to us to help them at pace and at scale. We grew rapidly
during the pandemic but, importantly, we’ve grown further since.
We’ve grown the number of customers contributing over £1m of
gross profit from 119 in 2018 to 183 in 2023. This has enabled us to
increase revenue, profit and cash flow while investing in the business
to secure future growth. To achieve this growth we’ve added around
4,000 skilled people across the Group.
Most of our growth has been organic but we have expanded our
geographic footprint from Europe to North America through three
targeted acquisitions in 2018, 2020 and 2022, for an enterprise value
of approximately $350m. In 2023, North America accounted for 40%
of our revenue and 21% of our adjusted operating profit, before
central costs, and provides an excellent platform for further growth.
“IT spend continues to grow and is more critical than ever. We’re
extremely well placed to grow by focusing on our target market,
empowering our people and delivering at scale.”
Q&A
Mike Norris
Chief Executive Officer
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Creating long-term value
Chief Executive Officer’s Q&A continued
Q
What are the key challenges facing Computacenter’s customers
and how are you helping to address them?
A
Our customers face a myriad of challenges when it comes to realising
the benefits of IT. Change is a constant in technology and the pace
of that change and the demands it creates are ever increasing.
Exponential growth in data, the rise of AI and increased need for
cyber security all point to higher IT spend and more scrutiny on
return on investment. And of course, sustainability is also very high
up on our customers’ agenda.
Large enterprises or organisations are often complex and almost
without exception they’re constantly modernising their IT estates
and digitising their operations. It’s our role to simplify that process
and help them achieve the return on investment they need. Our
customers are looking to work with fewer suppliers, with a deep
understanding of their requirements and the ability to deliver at
scale. This puts us in a strong position to support them, as our three
core activities – Technology Sourcing, Professional Services and
Managed Services – are all critical for helping customers to achieve
their IT ambitions.
Q
What’s the benefit of having an integrated Technology Sourcing
and Services model?
A
We operate in competitive markets and the breadth of what we can
do for our customers is a clear differentiator. They value a partner
who can source, transform and manage at scale and our expertise
helps us to build deep, long-term relationships with them.
Our integrated offering provides three complementary entry points
for our customers, giving us a balanced business portfolio and helping
us to achieve sustained long-term growth. A customer relationship
that starts with just one service will often broaden to two or three
and when we’re working with them across all three parts of the
portfolio, that relationship becomes stickier as we become more
embedded in their organisation and more critical to their success.
Q
Computacenter’s people are clearly fundamental to its success.
How would you describe the culture at Computacenter?
A
We employ more than 20,000 fantastic people and they’re the bedrock
of the value we add for our customers. We encourage them to take
advantage of the many opportunities to develop their career at
Computacenter and to learn and apply their knowledge. This helps us
keep our talent for longer and our average length of service is over
nine years.
Our culture is a big part of why Computacenter is a great place to
work. We’re an entrepreneurial and customer-focused organisation
that fosters our Winning Together Values. Those values require us
to put our customers first, to always keep our promises, and to be
straightforward in our dealings with them. We empower our people
and support them with the tools they need to make good business
decisions and deliver for customers.
Q
How important is the Group’s environmental impact to your
overall strategy?
A
We’ve always been committed to running the Group responsibly,
which, after all, makes good business sense. We recognise we need
to play our part in reducing our impact on the planet and we’re
already making a difference. We’ve achieved our aim of becoming
carbon neutral for Scope 1 and 2 emissions. For Scope 3 emissions
we are targeting a 50% reduction by 2032 and to be Net Zero by 2040.
I’m also particularly excited about the opportunity to support our
customers’ environmental goals through our Circular Services
business. This year we remarketed, redeployed or recycled over
775,000 devices, mainly in the UK and Germany, and we believe we
can grow this significantly across our markets.
Q
What’s your approach to capital allocation?
A
As a highly cash-generative business with a strong balance sheet,
we can take a balanced approach to where we use our capital and
have always considered the long term.
We continue to prioritise organic growth and during 2023 we invested
more in our strategic initiatives, to help secure our long-term growth
potential. Most of this investment is in our systems, to ensure they
remain secure and supportable, and we retain our competitive edge.
We didn’t make any acquisitions in 2023, but we continue to look for
targeted acquisitions that will add to our existing footprint.
Computacenter has a track record of distributing surplus cash to
shareholders. Since flotation we have distributed £945m in dividends
and buybacks.
Q
How would you describe the growth outlook for Computacenter
in the coming years?
A
IT spend continues to grow and is more critical than ever. We’re
extremely well placed to grow by focusing on our target market,
empowering our people and delivering at scale. We’re well diversified
by geography, by service line and by technology area. Our markets
are highly fragmented and we expect to take share as we invest
organically and through targeted acquisitions.
North America is an exciting opportunity from a relatively low base
and we’re also pushing for continued growth in Europe. Our long-term
approach continues to serve us well and we remain confident in our
ability to deliver further profitable growth.
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Creating long-term value
Our people and culture
Our business is about
technology. But first of
all it’s about people.
We want every person who joins Computacenter
to feel highly engaged, and empowered to
reach their full potential.
Our people and our culture are core to our differentiation in our markets,
and underpin our customer value proposition. Our customers rely on our
peoples’ expertise to provide solutions that use our integrated business
portfolio in the most effective way possible to help them achieve their
goals. The trust placed in us requires our people to have a deep knowledge
of our customers’ business strategy and priorities, and how IT can be
used to underpin their success. With customers at the heart of our culture
and our values, we provide a clear framework through which our people
can operate with the speed, agility and flexibility required to address the
needs of our customers, and make efficient, responsible, decisions.
Recognising that our people are critical to our success, we invest in them
throughout the employment lifecycle. Our people policies and programmes
are all designed to identify, attract, retain and develop the best talent.
We want to ensure every person that joins Computacenter feels highly
engaged, empowered to reach their full potential, and able to deliver the
best-possible experience for our customers. The longer our people stay
with us, the more they understand our organisation and culture, how
their role contributes to our success, and what our customers and other
key stakeholders need from us. This means they can better utilise their
skills, develop their careers, and maximise their potential. As we invest in
our people, we create a culture where they feel invested in Computacenter.
Seven key pillars underpin our approach in this area, to ensure that our
people continue to create competitive advantage. These are:
1. Attracting talent – people are key contributors to our long-term
ability to compete on quality and cost, and the market for talent is
competitive across all of the countries in which we operate.
2. Learning and development – the technology landscape is
continually advancing, our customers’ changing needs mean we
have to evolve to compete by being ever-more productive, skilled and
engaged across our business. From our ability to understand and
advise our customers on the latest technology developments, and
the efficiency of our supporting functions, to our own capabilities in
disciplines such as cyber defence and AI, our peoples’ willingness to
learn, grow and develop is a critical priority.
3. Fostering engagement – high-quality and continual engagement
with our employees helps us to grow together as an organisation.
Understanding what is important to them and how we are meeting
their expectations are key aspects of people retention over the long
term. It also helps us to shape our people strategy, including in areas
such as diversity and inclusion.
4. Developing strong and consistent leadership – effective leadership
provides clarity and continuity for our people across the Group,
ensures we focus on the long term, makes us consistent in our
customer interactions and allows us to develop deeper relationships
with them.
Our culture
Our culture puts our customers at the heart of everything we do.
We are committed to delivering great results for our customers now
and for the long term, and we are open, honest and straightforward
in all our dealings. We are passionate about being an inclusive and
inspiring employer that supports, develops and values our people,
helping them to achieve their goals and supporting ours. We empower
our people to make responsible decisions that help to build trust with
our key stakeholders.
For more detail on our actions in these areas to support and develop our
employees, please see pages 083 to 088.
5. Building our talent pipeline – we design and deliver targeted
development programmes to maximise the potential of our talent.
This also helps us to develop under-represented groups within our
business to enable better diversity of leadership and thought
throughout Computacenter.
6. Ensuring we are a diverse and inclusive organisation – being
diverse and inclusive enables us to attract, retain and develop the
best talent, and helps our people to succeed by providing an
environment in which they can be themselves, and where they feel
comfortable, connected, heard and understood.
7. Embedding and maintaining our culture – across different offices
and countries, our culture and values provide us with consistency
and continuity when dealing with our stakeholders on a global basis.
This means that as we grow, embedding and maintaining our culture
becomes even more important. We strive to have a culture that
supports the execution of our strategy and the achievement of our
purpose, and for our stakeholders to see us as ‘One Computacenter’,
no matter when or where they interact with us.
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Creating long-term value
Our people and culture continued
Sarah Long rejoined the business in 2019 as Chief People Officer,
having previously been at Computacenter in sales, service delivery
and strategy roles.
Q
After 10 years away from Computacenter, what made you rejoin?
A
I spent 12 years in customer-facing roles at Computacenter. In the
ten years I was away I worked with, and for, many organisations in
our sector but none had Computacenter’s relentless focus on
customer outcomes, our highly empowered culture or our focus on
our people as a competitive advantage, which makes us an exciting
company to work for. My customer and market experience mean
that I can help drive our success by ensuring we attract, engage,
develop and retain the best people, in turn delivering success for
our customers.
Q
What are your priorities for 2024?
A
Our culture is an integral part of our success, so we need to continue
to work on maintaining it as we grow. As the people function, we are
on the front line in ensuring that our culture is embedded and
maintained effectively. Our other priorities include training our
people to meet customer demands and ensuring we have the right
people, with the right skills and experience in the right locations.
Q
What is the most challenging aspect of your role day-to-day?
A
We now have more than 20,000 people globally. That number, and
our geographic spread, has changed significantly even since I
rejoined Computacenter. The biggest challenge arising from that is
the volume and breadth of topics that I deal with, which means every
day is different. That can include Senior Executive remuneration,
interacting with Works Councils, optimising our organisational
structure, succession planning and, crucially, ensuring we are
supporting the business appropriately, through a period of rapid
change in technology and our customers’ needs. As we grow globally,
it changes our approach in these areas.
Q
Your remit as Chief People Officer includes diversity and inclusion
(D&I). What does success look like here and how important is it to
the business?
A
D&I is really important for our business. Our ambition is to create a
sense of belonging for all our people and ensure we give them every
opportunity to fulfil their potential with us. Being a more diverse
organisation helps us reflect and serve our customers better. While
we are pleased with our progress over the past few years, there is
always more to do. We have set several D&I-related goals and
objectives to help drive us in the right direction, incentivise action
and ensure we remain focused on meaningful progress. Since 2020,
our Executive Directors have been incentivised through their annual
bonus objectives to develop a diverse and inclusive workforce. Our
Group Executive Committee has also had a shared bonus-related
objective to improve gender diversity within our senior leadership
teams since 2021.
Q&A
Sarah Long
Chief People Officer
Q
How is D&I addressed through policies?
A
We have several D&I-related policies, such as those covering Equality
and Respect at Work, which underpin our D&I strategy. Our strategy,
policies and actions are all guided by the five pillars of diversity
developed by our people, and supported by our Employee Impact
Groups and Employee Networks, covering areas such as gender,
ethnicity, PRIDE and wellbeing.
Q
What measurable progress have you made around gender balance?
A
Since 2020, our publicly reported data shows clear progress in the
percentage of women in the Executive Team and their direct reports,
which has increased by 12.1%. This progress is replicated across all
levels at Computacenter, with the number of women across our whole
workforce having risen in that time. We now have around 1,400 more
women in our business than we did four years ago.
Q
What are you doing to continue D&I progress?
A
We have had programmes to develop female leaders for some time
and we can see their impact, building confidence, visibility and
empowering our female talent to develop their careers. Our Growing
Together Programme has been running for over five years, providing
development and coaching for women in mid-level roles who aspire
to leadership positions. In that time, over 36.7% of participants in
the programme have changed role or been promoted. Our Leading
Together Programme ran for its third year in 2023, with over 40
senior female leaders participating. They have the opportunity to
explore their personal development goals with an executive
development coach. Our programmes related to ethnic diversity
are in their earlier stages. We continue to review their impact and
feedback from participants and our Employee Impact Group, which
has helped us to understand how to make them more effective. We
participate and lead in industry communities that drive education
and awareness, helping us improve ethnic diversity within our
organisation and across the technology industry.
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Our integrated portfolio
Creating long-term value
UGAP
The procurement of digitalisation
As France’s leading public procurement agency, UGAP
helps public customers to make the right purchasing
choices for a competitive and sustainable economy.
The organisation offers high-performance solutions
and services to local authorities, government
departments, hospitals, and the social and welfare
sectors. As a player in the implementation of
responsible purchasing policies, UGAP stands out
for its objective and measurable CSR commitment.
“Computacenter has been a UGAP supplier for almost
20 years, offering technology sourcing services to
21,000 of the procurement agency’s French and
overseas territory customers spanning workplace,
data center, software solutions, and networking.”
Philippe Eychenne,
Head of IT Procurement
UGAP
SOURCE
Technology Sourcing
We help our customers to determine their
technology needs and, supported by our technology
vendors, we arrange the commercial structures,
integration and supply chain services to meet them
reliably. We earn revenue from large contracts, with
thinner margins and lower predictability than for
Services but with fantastic customer loyalty.
TRANSFORM
Professional Services
We provide structured solutions and expert
resources to help our customers to select, deploy
and integrate digital technology, to achieve their
business goals. Our revenue depends on our
forward order book, which contains a multitude
of short-, medium- and long-term projects.
MANAGE
Managed Services
We maintain and manage digital operations and
user support for our customers, to improve quality
and flexibility while reducing costs. Our revenue
under contract has high predictability and is
long term.
Computacenter has an integrated
offering which provides three
complementary Service Lines
for our customers, helping us to
create customer value and deliver
long-term growth
Computacenter’s strategy is centred on the
specific needs of our target market of the largest
corporate and public sector organisations in each
of the eight countries in which we sell. Our focus is
to build long-term relationships which earn
customer loyalty and underpin our growth and
development, while investing in building value to
deepen existing customer relationships and
develop new ones. We help our customers to
Source, Transform and Manage their technology
infrastructure to deliver digital transformation,
enabling people and their business.
Computacenter has an integrated offering, which
provides three complementary entry points for
our customers, helping us to achieve sustained
long-term growth. The three parts of our portfolio
are: Technology Sourcing (Source), Professional
Services (Transform) and Managed Services
(Manage). We want to build strength in depth across
all three parts of the portfolio.
We gain new customers through Technology
Sourcing, Professional Services and Managed
Services individually. However, we have greater
longevity in customer relationships when we work
across all three parts of the portfolio.
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
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Computacenter plc Annual Report and Accounts 2023022
Our integrated portfolio continued
Creating long-term value
Technology Sourcing
Procurement and logistical services
Configuration, lifecycle and circular services
Technology Sourcing is our traditional core business and we continue to
see it as both fundamental to our customers and a significant growth
driver. We help our customers to determine their technology needs and,
supported by our technology vendors, we provide the commercial
structures, configuration and supply chain services to meet these needs
reliably. We earn revenue from large contracts, with thinner margins and
lower visibility than for Services, but with fantastic customer loyalty,
which we earn through reliability, agility and scale.
We provide our customers with huge flexibility, adapting our processes
to fit their quotation, order management, shipment, receipt and
documentation requirements, which are often very specific. This
flexibility comes from our significant long-term investment in our people,
systems and Integration Centers. Our Technology Sourcing services
range from pre-configuration of all types of technology to end-of-use
management. Our customers value our ability to support them across
the entire hardware and software lifecycle, and to act as a partner who
can deliver at scale and, increasingly, globally.
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
Bosch
Partnership powered by trust
and quality
Computacenter has been supporting Bosch –
a leading global supplier of technology and services
– with IT solutions and services for more than 25 years.
We are the main provider of networking, security and
technology sourcing in 60 countries, and have been
awarded ‘Bosch Global Supplier of the Year’. We also
provide technology sourcing and onsite services at
440 Bosch locations in Germany.
12.0m
Items supplied
1.3m
Items configured in our Integration
Centers
3,000
Technology vendors
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Technique
Our integrated portfolio continued
Creating long-term value
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
Kingfisher
Upgrading technology across France
Computacenter helped Kingfisher – an international
home improvement company – upgrade its workplace
estate including 7,000 devices across 219 stores.
Working in partnership with Kingfisher, we provided
Professional Services to deliver the project, including
modern endpoint management, hardware, logistics,
onsite installation, and end-to-end project governance.
“This important project for Kingfisher was brilliantly
managed by the Computacenter teams in partnership.”
Xavier Llorens,
Project Manager – IT/Group Site Services
Kingfisher
Professional Services
IT strategy, advisory and application services
Integration, deployment and expert services
We provide structured solutions and expert resources to help our
customers select, deploy and integrate technology, so they can achieve
their business goals. Our revenue depends on our forward order book,
which contains a multitude of short-, medium- and long-term projects.
As the technology landscape has become more complex, our 1,600
consultants play an increasingly important role in advising our customers.
Our Professional Services and Technology Sourcing businesses have
always been linked and we see this increasing, as our customers need
our help to make wise choices in the complex technology landscape and
to then deploy and integrate these technologies.
Our Professional Services revenue also reflects some of our 5,000
engineers and 750 project managers, who are charged as part of
customer integration and deployment projects. These engagements
range from workplace rollouts to complex network and data center
solution integrations. Our Professional Services business continues to
be a major source of Services growth, as customers look to us for help
to deploy new digital technology.
1.5m+
Billed consultancy hours
2.5m
Billed project management
and engineering hours
4,000+
Completed projects
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Our integrated portfolio continued
Creating long-term value
CIO
PEOPLE
BUSINESS
SOURCE
TRANSFORM
MANAGE
gkv informatik
A healthy partnership
Computacenter has been partnering with gkv
informatik (GKVI) – an IT service for statutory health
insurance – for 10 years. We provide service desk,
field and break fix services to 36,000 users across
Germany. GKVI trusts us to deliver our workplace
services with quality and integrity, enabling its users
to deliver quality services to 17m customers.
“We have a very cooperative partnership which is
constructive and solution-oriented, with customer
orientation demonstrated across all divisions
and partners.”
Peter Neiße
Technical Alliance Manager
gkv informatik
Managed Services
Maintenance, field and managed lifecycle services
Remote user support and digital operations
We maintain, support and manage IT infrastructure and operations for
our customers, to improve quality and flexibility while reducing costs.
Despite competitive pricing in the market, our revenue under contract
has high visibility and is long term and stable. We see this recurring
income as a strategic means of balancing our business, as well as being
essential to our Source, Transform and Manage customer offerings.
Customers ask us to reduce their costs by managing some of their
support operations, as well as taking end-to-end responsibility for
sourcing, deploying, transforming and then providing the ongoing
managed support of digital projects.
We have continued to improve the predictability of our Managed Services,
to the benefit of our customers and our own business. As our customers’
businesses continue to evolve and face new challenges, we will continue
to adapt our offerings to remain relevant and competitive.
We see significant opportunities to add value to our customers. Our Service
Centers are the core of our Managed Services capability and we continue
to invest in improving and updating the technology underpinning them.
4.2m
Devices supported under
service-level agreements
3.5m
Incidents and requests managed
12.3m
Automated tasks completed
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Computacenter plc Annual Report and Accounts 2023 025
Sustainability Q&A
Creating long-term value
Q
Computacenter formalised its sustainability strategy in 2021.
What changes have you seen since then?
A
We’ve always been a responsible business, so bringing together our
ESG initiatives into a single strategy was really a means of being able
to be much clearer about what we’re focused on and the impact we
can have.
Since then, we’ve seen sustainability become a key theme up and
down the value chain, and it is now a significant consideration in
our choices and the choices of a lot of our customers and vendors.
Q
How is sustainability affecting your customers?
A
Our customers are major corporate and public sector organisations
around the world, and sustainability is definitely high on their agendas.
Their goals vary, but underlying all of them is the desire to protect
people and the environment. They want to work with suppliers that
share their sustainability goals, so our strategy, winning together for
our people and our planet, really resonates with them. We find a lot
of alignment in where we’re focused and what our customers are
trying to achieve.
Q
What are those focus areas?
A
Our strategy has three core pillars, which we underpin with a strong
governance and communications framework. The pillars are:
People – that’s our people, the people in our supply chain, and those
in our communities.
Planet – which encompasses environmental matters, with a particular
focus on maintaining our carbon neutral operations and achieving
our 2040 Net Zero target.
Solutions – which is how we deploy our three core service lines
to support the sustainability goals of our customers.
Sustainability is inherent in how technology is selected, deployed and
managed, and we use our expertise to bring that to the fore. But the
area where we’re starting to place more emphasis – because it’s
where we can make a real difference – is Circular Services.
Q
What is ‘Circular Services’ at Computacenter?
A
Circular Services, or IT Asset Disposition (ITAD), is about how a device
is handled at the end of its life, and for Computacenter, we see that
taking three forms; redeploying the device into the customer, selling
the device into another market to release its value back to the
customer, or extracting reusable materials as part of the asset
destruction and disposal process.
See page 093
A key differentiator for us is the environmental reporting we provide
to our customers, that helps them to understand the carbon and water
use avoided through our responsible processing. It’s a really powerful
way of demonstrating the environmental benefit of these services.
We have over 30 years of experience providing Circular Services to
our target market customers. Our track record, combined with our
investment in best-of-breed tools, facilities and accredited processes,
have seen us win awards for innovation and sustainability.
It’s a really strong foundation that we’re going to build and expand on
this year. We know it’s important to our customers, and we know that
our competition in both the VAR and system integrator space can’t
match our capability and track record.
Q
What are your growth plans?
A
We’re going to build a world-class scale business in Circular Services.
Today, we have established capability in two existing hubs in the
UK and Germany, but we provide these services to customers in over
40 countries already. We will invest in building further in-house
capability in the US and Europe as needed, and we intend to broaden
our Circular Services coverage to the 70+ countries that we offer
our other services in today.
We will be implementing our global control tower, a system
designed specifically for Circular Services, that enables us to provide
the same level of data control and reporting we currently offer to
our UK customers. And as part of this investment, our local brand
identities – RDC in the UK and ITL logistics in Germany – will be retired,
with the business being governed and operated under the
Computacenter brand.
“We’re proud of what we’ve achieved in
sustainability and we’ll continue to improve,
invest and innovate. We’ll be the best we
can be – a company that our people,
customers, partners and communities
can be proud of.”
Q&A
Mo Siddiqi
Group Development Director
Mo Siddiqi originally joined the business in 1997 and has held a
number of roles in Sales, Business Development and Operations.
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Computacenter plc Annual Report and Accounts 2023026
Sustainability Q&A continued
Creating long-term value
Circular Services is a core offering that’s adjacent to all of our other
Service Lines. It helps us to meaningfully contribute to our customers’
sustainability agenda, and we see significant growth potential in
this space.
Q
What is your ambition for Circular Services?
A
We’ve set ourselves a target of recovering a device for every device
we sell. We’re being specific here. We actually processed over 2m
items through our Circular Services business in 2023, of which about
775,000 were devices – PCs, tablets, switches, servers, monitors,
printers and routers. In that same period, we sold about 4.7m
new devices.
I want to be really clear that we don’t want to sell fewer devices to
hit our goal – we will keep growing our Technology Sourcing business,
and in parallel we will accelerate the growth of our Circular
Services business.
Q
Why is this important?
A
Based on our track record, skills and experience we believe we can
grow a profitable business division that helps us achieve our business
targets. In addition, we think this investment will help us to differentiate
our existing Service Lines – Technology Sourcing, Professional Services
and Managed Services – by adding ‘recovery’ formally to our technology
lifecycle proposition.
More importantly though, this will help us to make a faster impact on
helping our customers achieve their own sustainability goals, which
would be a great contribution to building long-term trust and loyalty.
We would do so while helping the planet at the same time. This is the
main reason that we will make progress towards this target a key
measure for senior leaders across the business.
Computacenter circularity
Our target:
Recover a device for every device we sell
2023:
775,000 4.7m
Devices recovered New devices sold
Circular Services Center – Braintree
Circular Services
Redeployment | Remarketing | Recycling
Integration Center – Hatfield
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Delivering long-term value
We have a long-term track record of delivering value for our stakeholders, including
through financial results. This is based on the execution of our strategy which includes
making the investments that underpin our strategy to maintain the long term loyalty
of our customers and people.
Computacenter plc Annual Report and Accounts 2023028
GLOSSARY
GOVERNANCE
FINANCIAL STATEMENTS
STRATEGIC REPORT
Delivering long-term value
Business resilience
Customer longevity – based on customers with greater than £1m of gross profit
in 2023
1. Over 10 years: 30%
2. 5–10 years: 24%
3. Under 5 years: 39%
4. Acquisitions: 7%
1
2
3
4
Total gross invoiced income by customer sector – based on customers with
greater than £1m of gross profit in 2023
1. Industrial, retail and
consumer: 25%
2. Public sector, education and
healthcare: 31%
3. Financial services, banking,
insurance and professional
services: 22%
4. Telecoms, media and
technology: 22%
1
2
3
4
Diversified across markets
We have a strong presence across the largest IT markets in Europe and
North America.
Diversified across technology areas
We have strength in multiple key technology areas.
Diversified across sectors
Our focus on the largest organisations in each of our markets gives us a
diversified and high-quality corporate and public sector customer base,
making the Group more resilient.
Customer focus and longevity
Our focus is to build long-term relationships with our customers in our
target market of the largest corporate and public sector organisations.
We earn incredible long-term customer loyalty, which underpins our growth
and development, while investing in building value to win new customers.
Of our 183 customers with greater than £1m gross profit in 2023, 54%
have provided above this level of gross profit for five years or more.
Growing with market evolution to software
Our position as trusted partners with our major customers makes us the
natural choice as they evolve their IT infrastructure to leverage more
software-based solutions.
Technology Sourcing gross invoiced income by product type
1. Hardware: 60%
2. Software: 26%
3. Resold Services: 14%
1
2
3
Technology Sourcing gross invoiced income by technology area
1. Workplace: 22%
2. Apps, Cloud & Data Center: 33%
3. Networking & Security: 45%
1
2
3
Gross profit by Segments
1. United Kingdom: 24%
2. Germany: 36%
3. France: 8%
4. North America: 26%
5. International: 6%
1
2
3
4
5
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Computacenter plc Annual Report and Accounts 2023 029
2023 was another record year for Computacenter, with further growth
in gross profit, adjusted profit before tax and adjusted earnings per
share. This reflects the strength and benefits of our integrated
Technology Sourcing and Services model, as well as our geographic
diversity. We achieved this result despite the uncertain macroeconomic
backdrop and elevated inflation, while increasing our investment in
strategic initiatives to secure future growth.
By staying faithful to our strategy and focusing on customer needs,
over the last five years we have grown organically and also significantly
expanded our geographic footprint through targeted acquisitions in
North America. This enlarged platform has delivered a step change in
profits, with adjusted profit before tax and adjusted earnings per share
more than doubling over the same period.
We now have more than 20,000 colleagues worldwide and their
commitment to our customers drives our success. We believe in
empowering our people and helping them to make good business
decisions. With an average service length of over nine years, many have
devoted significant parts of their careers to Computacenter and I thank
technologies, including AI. During the year, and notably in the first half of
2023, we benefited from exceptional demand from certain customers,
which we expect to normalise in 2024. Gross margin performance was
robust, reflecting our scale benefits and changes in product mix.
Industry supply chains and customer ordering behaviours have returned
to pre-Covid-19 normalised levels, with customers no longer placing long
lead-time orders due to the improved availability of product. Backlogs for
most of our geographies have therefore decreased and as a consequence
we responded by managing down our inventory position very effectively,
which has helped drive very strong cash generation.
We continue to invest in and develop our value-added services to ensure
our customers have consistently great experiences. Our Integration
Centers are benefiting from investment in greater automation to
improve efficiency and agility. Our international reach, which matches
the footprint of many of our large multi-national customers, is helping
us to win new business and is an ongoing source of differentiation.
Our Circular Services capability is also helping customers deliver on
their sustainability agendas.
them all for their contribution and agility, especially in navigating the
various significant unexpected events of recent years.
Outperforming our markets
In 2023, we grew faster than both the market and our major competitors
and have gained further market share as a result. We benefited from our
target market, the largest organisations, proving the most resilient and
continuing to invest in technology, combined with the breadth of our
capability across Technology Sourcing and Services. Notable features of
2023 have been the ongoing growth of our share with some existing large
customers, in addition to acquiring some strategically significant new
customers, with whom we expect to grow in the coming years. We are
grateful for their faith in us and look forward to supporting their ambitions.
Technology Sourcing
Technology Sourcing grew by 12.9% on a gross invoiced income basis and
by 13.1% in constant currency, fuelled by strong growth in networking
and data center. Workplace-related activity remained subdued following
the significant spend during the pandemic but will naturally recover as
customers refresh the workplace environment and implement new
Delivering long-term value
“In 2023 we have grown faster than the market
and our major competitors, and we have
gained market share as a result. ”
Mike Norris
Chief Executive Officer
Delivering growth while
investing for the future
Chief Executive Officer’s performance review
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Computacenter plc Annual Report and Accounts 2023030
Services
Services, which encompasses Professional and Managed Services, is
critical to our business model. In 2023 Services revenue increased by
4.2% and by 3.1% in constant currency. Our Services gross margin was
impacted by inflation during the year. However, it remains healthy versus
historical levels and improved as the year progressed, as we made
efficiencies and took advantage of contractual opportunities to recover
cost increases.
Customers value our highly skilled consultants, engineers and
programme managers across our Professional Services business, using
them to deploy new digital technology, from complex network and data
center integrations to workplace rollouts. Professional Services has been
a strong driver of growth for Services over the last five years, and we see
it as an important future revenue and profit-growth driver for the Group.
In 2023, we grew Professional Services revenue by 6.6% and by 5.7% in
constant currency, fuelled by another strong performance in Germany,
which reflects the strength and breadth of our capability and depth of
relationships with large corporate and public sector customers. We are
committed to growing and enhancing Professional Services by having a
broader and scalable portfolio across all countries, based on a common
operating framework and a strong sales approach.
Managed Services generates visible long-term contract revenue, as we
maintain, support and manage our customers’ IT infrastructure and
operations, to improve quality and flexibility while reducing costs. These
services are important to the longevity of our customer relationships,
with more than three-quarters of our major European headquartered
customers contracting with us, supported by our Service Centers globally.
In 2023, we grew Managed Services revenue by 2.5% and by 1.3% in
constant currency. Managed Services contracts generally have specific
cost of living adjustment clauses within them that enable us to increase
our rate card prices and recover increases in our costs at a later date
which helped our margin performance as the year progressed. Towards
the end of the year, we won some significant new contracts which will
contribute from 2024 onwards.
To offer increased value to our customers we continue to invest in new and
improved systems, greater automation and offshoring. We now have
nearly 1,400 colleagues in India versus 1,100 at the end of 2022, serving our
customers. The market opportunity for Managed Services is substantial
in our core areas of workplace, networking, infrastructure and cloud.
Diversified across markets
Germany had an excellent year, continuing its strong growth trajectory
in 2023 as it consolidated its market-leading position for large corporate
and public sector customers. Germany’s performance reflects our deep
capabilities in technology areas such as networking and cyber and our
ability to support customers at every stage of the IT lifecycle.
In North America, the largest market globally, we have a clear long-term
growth opportunity as we continue to leverage Computacenter’s
broader capability and resources. In 2023, we further integrated the
businesses we have acquired and at the same time delivered a strong
financial performance.
We are also pleased to see positive momentum in France, where our
enlarged business is starting to deliver on its potential, as well as strong
performances in Belgium and the Netherlands. Our UK performance was
disappointing, reflecting in part higher exposure to subdued workplace
demand. We responded by making changes to our UK leadership team
and our sales approach and saw the benefits start to come through at
the end of last year.
Investing to secure future growth
2023 has been a year of significant additional investment in critical
strategic initiatives, which will improve our capabilities and productivity,
enable us to further leverage AI solutions, and underpin our systems for
the future. This investment increased by £13m to £28m and we expect to
maintain our spending at this level in 2024. Most of the investment is
focused on our systems. We are not just upgrading but also moving to
new systems to obtain the security and support we need and to develop
competitive advantage through new toolsets and processes, all of which
will help secure future growth.
Cyber security remains one of the greatest risks to our business. It also
presents one of the greatest opportunities to differentiate ourselves
from our competitors, both through our own resilience and by helping our
customers to overcome the same challenges. We will continue to invest
significantly to mitigate cyber risks.
Strong inventory management driving excellent cash generation and
balance sheet strength
As noted above, the easing of supply chain challenges and better
availability of product in 2023 meant customers reverted to more normal
ordering patterns and we reduced our inventory significantly as a result.
Consequently we generated excellent levels of cash that exceeded our
expectations. The Group had £216.0m of inventory as at 31 December
2023, a decrease of 48.3% since 31 December 2022 (£417.7m). Adjusted
net funds increased by £214.7m to £459.0m at the year end.
The strength of our balance sheet provides us with significant optionality,
and we continue to evaluate a number of capital allocation options, including
potential inorganic growth and the return of surplus capital to shareholders.
Outlook
Looking ahead to 2024, in the context of a continuing uncertain
macroeconomic backdrop, the Group is well positioned to continue
to compete and gain further market share.
As anticipated, we expect to see Technology Sourcing volumes normalise
in 2024 as some of the high-volume, lower-margin projects we delivered,
especially in the first half of 2023, were completed. In Services we expect
continued growth while inflationary pressures are expected to moderate
further. We will continue to invest in strategic initiatives to enhance our
systems and improve our competitive position to sustain our long-term
performance. At the same time, we are increasingly focused on delivering
productivity benefits across the Group.
Overall we expect to make further progress in 2024 with growth weighted
to the second half of the year, reflecting a significantly more challenging
comparison in the first half of the year than in the second half.
Looking further ahead, we are excited by the pace of innovation and growth
in demand for technology. With our strength in Technology Sourcing,
Professional Services and Managed Services, and focus on retaining and
maximising customer relationships over the long term, we believe that we
are well placed to deliver profitable growth and sustained cash generation.
Mike Norris
Chief Executive Officer
19 March 2024
Delivering long-term value
Chief Executive Officer’s performance review continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 031
Delivering long-term value
Our track record
Computacenter has a long-term track
record of revenue and profit growth
combined with high levels of cash
generation. In 2023, gross invoiced income
exceeded £10bn for the first time and it
was our nineteenth consecutive year of
growth in adjusted earnings per share.
Our balance sheet is extremely strong,
with a record level of adjusted net funds.
Financial strength and stability
10,081.4
Gross invoiced income (£m)
1,044.0
Gross profit (£m)
459.0
Adjusted net funds (£m)
49.3%
Return on capital employed
(Four-year average)
Our financial track record
2019 2020 2021 2022 2023 2022 vs 2023
Gross invoiced income (£m) 5,052.8 5,441.3 6,923.5 9,052.2 10,081.4 11.4%
Revenue (£m)
*
5,034.5 6,470.5 6,922.8 7.0%
Gross profit (£m) 663.1 720.5 867.8 947.1 1,044.0 10.2%
Adjusted profit before tax (£m) 146.3 200.5 255.6 263.7 278.0 5.4%
Profit before tax (£m) 141.0 206.6 248.0 249.0 272.1 9.3%
Adjusted diluted EPS (p) 92.5 126.4 165.6 169.7 174.8 3.0%
Diluted EPS (p) 89.0 133.8 160.9 159.1 173.2 8.9%
Dividend per share (p) 10.1 50.7 66.3 67.9 70.0 3.1%
Net cash flow from operating activities (£m) 198.3 236.9 224.3 242.1 410.6 69.6%
Adjusted net funds (£m) 137.1 188.6 241.4 244.3 459.0 87.9%
Return on capital employed 42.6% 46.7% 52.2% 42.9% 55.4% 12.5 pts
Four-year annual compound growth rate
12.0%
Gross profit
17.4%
Adjusted profit before tax
17.2%
Adjusted diluted EPS
35.3%
Adjusted net funds
* Following an interpretation of the revenue accounting standard by the International Accounting Standards Board, we, and a number of our peer value-added resellers, have changed the
way we recognise revenues for standalone software and resold third-party services contracts and revised our accounting policies to reflect this change. This change has been applied
from 2022 and, retrospectively, we have restated our prior-year 2021 revenues. The equivalent adjustment is not available for years prior to 2021 as it is not practicable to calculate.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023032
Delivering long-term value
Key performance indicators
Revenue (£m)
+7.0%
6,922.8
Gross invoiced income (£m)
+11.4%
10,081.4
Gross profit (£m)
+10.2%
1,044.0
Adjusted diluted EPS (p)
+3.0%
174.8
Adjusted net funds (£m)
+87.9%
459.0
2023
2022
2021
2020
2019
6,922.8
6,470.5
10,081.4
9,052.2
6,923.55,034.5
5,441.3
5,052.8
2023
2022
2021
2020
2019
1,044.0
947.1
867.8
720.5
663.1
2023
2022
2021
2020
2019
174.8
169.7
165.6
126.4
92.5
2023
2022
2021
2020
2019
459.0
244.3
241.4
188.6
137.1
Gross invoiced income/revenue
Gross invoiced income and revenue measure our
growth with existing and new customers.
2023
We outperformed our markets, benefiting from our
focus on large organisations.
Gross invoiced income grew by 11.4% and by 11.3% in
constant currency. Revenue increased by 7.0% and by
6.9% in constant currency. Gross invoiced income
exceeded £10bn for the first time, driven by strong
growth in Technology Sourcing and solid growth
in Services.
Gross profit
Gross profit measures the conversion of revenue
into absolute profit, after deducting the cost of
goods sold.
2023
Gross profit increased by 10.2% and by 9.8% in
constant currency, reflecting strong revenue growth
and a robust gross margin performance.
Adjusted diluted EPS
Adjusted diluted EPS measures our net profit
generation after administrative costs, Group-wide
investment, net finance income and tax on a fully
diluted per-share basis.
2023
Adjusted diluted EPS grew by 3.0%, our nineteenth
consecutive year of growth. This result reflects
growth in adjusted
profit before tax and an increase
in the effective tax rate.
Adjusted net funds
Adjusted net funds or adjusted net debt includes cash
and cash equivalents, other short- or long-term
borrowings and current asset investments. Following
the adoption of IFRS 16, this measure excludes all
lease liabilities. Computacenter has a track record of
positive adjusted net funds and of distributing surplus
capital to shareholders and reducing the number of
shares in issue.
2023
Adjusted net funds increased by £214.7m to £459.0m
at 31 December 2023. This reflects excellent cash
generation during the year, driven by effective
inventory management.
Our financial KPIs
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 033
Delivering long-term value
Key performance indicators continued
In 2023, we finished with 183 of these customers,
a decline of five from the previous year. This decline
is unusual in a year in which we have maintained
positive performance momentum. It is due to a
diversity of performance from our customer base –
a small number of customers have contributed
significantly to our overall gross profit through
significant investment programmes, while others
have temporarily fallen below the £1m threshold,
although they have continued to spend with us.
While the decline is due to customer spending patterns,
we are not complacent about this measure and have
placed renewed focus on improvement in this KPI in
the years ahead, through both growth in spend with
existing customers as well as new customer
acquisition. At the same time, we are pleased that the
diversity and breadth of our customer base has
delivered resilience in our performance.
How we define customer accounts with gross profit
of over £1m
A customer account is the consolidated spend by
a customer and all of its subsidiaries. Where a customer
account exceeds £1m of gross profit, it is included
within this measure. The prior-year comparatives
are restated on a constant currency basis to provide
a better indicator of underlying growth.
Our strategic KPIs
Customer relationships
Retain and maximise the relationships with our large corporate and public sector
customers over the long term
The measures set out opposite address what
we believe to be the key drivers of successfully
delivering our strategy.
While our ‘Customer relationships’ and ‘Services
growth’ KPIs have remained unchanged, we have
made two changes to our strategic KPIs.
First, we have changed the measure for ‘Productivity’
from ‘services revenue generated per services
head’ to ‘operating profit as a proportion of gross
profit’. We believe that this new measure is a more
comprehensive reflection of productivity across
both our Technology Sourcing and Services
activities and better meets the needs of our
stakeholders in the long term.
Secondly, we have removed ‘Customer Value’, which
sought to measure the rate at which a blend of
products and services is consumed by our target
market customers, from our strategic KPIs. While
the typical customer uptake across our balanced
portfolio is an interesting metric, we felt that this
measure was too difficult to define sufficiently
clearly to reflect progress in line with our strategic
aims. We believe that Services growth reflects long
term value creation for our customers by itself.
We believe that the revised Strategic KPIs are a
simple and clear reflection of the metrics that
underpin the delivery of our strategy.
Number of customer accounts with gross profit
of over £1m
-2.7%
183
2023
2022
2021
2020
2019
183
188
165
156
134
Computacenter is focused on securing, growing and
maintaining our relationships with large corporate
and public sector customers. While our customers
which contribute more than £1m of gross profit are
not all of equal strategic importance, their overall
number is a key driver of our profitability. We focus
on understanding why customers have exceeded or
dropped below this £1m threshold, and the extent to
which this correlates with and is driven by our quality
of service, or wider market trends which are outside
of our control.
Customer relationships
Services growth
Productivity
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023034
Delivering long-term value
Key performance indicators continued
Productivity
Increase the adjusted operating profit we retain as a proportion of our gross profit
a benchmark for the levels of Professional Services
growth achievable, with an increase of 13.5% in
constant currency. We believe that we can grow
Professional Services across the Group significantly.
We have organised our previously disparate
Professional Services resources into a single Group
Service Line to provide the necessary focus and to
leverage our success in Germany across the Group.
Group Managed Services revenue grew by 1.3% in
constant currency. Our Managed Services business
has continued to make reasonable progress in
challenging market conditions. Despite the impact of
inflation, and resulting upward pressure on our cost
base, customers continue to expect productivity
gains through systems and automation, the
development of which requires sustained and
consistent investment. We are particularly pleased
with some new Managed Services contract wins
towards the end of 2023, which will support our
continued growth in the years ahead.
How we define Services revenue
Services revenue is the combined revenue of our
Professional Services and Managed Services business.
The prior-year comparatives are restated on a
constant currency basis to provide a better indicator
of underlying growth.
inflation increased selling, general and administrative
costs, resulting in a decline of gross profit conversion
to 28.4%.
At the end of 2022 and throughout 2023 we have
increased central corporate costs, primarily driven
by the increased spend in strategic initiatives,
resulting in a reduction in gross profit conversion to
26.0%. We believe this investment is essential to
underpin our long-term competitiveness and will
continue at an increased level in 2024.
We will focus on this KPI as the key productivity
indicator for our business.
How we define productivity
Adjusted operating profit (£m) divided by gross profit
(£m), expressed as a percentage. The prior-year
comparatives are restated on a constant currency
basis to provide a better indicator of underlying growth.
Services growth
Lead with and grow our Services
Services revenue (£m)
+3.1%
1,636.5
2023
2022
2021
2020
2019
1,636.5
1,587.5
1,474.0
1,246.4
1,231.0
We understand that having a significant Services
element within a customer engagement generally
increases the value to the customer and the longevity
of the relationship. Management is highly incentivised,
both in-year and through our long-term incentive
plans, to grow our Services revenue.
During 2023, we grew Services revenue in constant
currency by 3.1%, all organically. We are pleased with
this performance, especially in the context of a market
where some services competitors have been showing
revenue decline. However, we are not satisfied and
believe that we can grow faster.
Group Professional Services revenue grew by 5.7%
in constant currency, despite a decline in the UK.
Our German business, where we have built greater
scale and competitive advantage, continues to set
Adjusted operating profit as a percentage
of gross profit (%)
-2.4pts
26.0
2023
2022
2021
2020
2019
26.0
28.4
30.1
28.5
22.8
Productivity is an important driver of value for the
Group and we have broadened the way we measure
this KPI. We are using gross profit conversion as the
best overall productivity measure for our business
across all our activities. It measures how much of our
gross profit we convert into adjusted operating profit
and helps measure how effectively we use our scale
to improve operational leverage.
Management has already been incentivised on this
KPI internally for some years. Historically, gross profit
conversion increased in 2020 to 28.5% and in 2021
to 30.1%, as a result of both increased gross profit
generation and improved Services productivity as
a result of the Covid-19 pandemic. In 2022, Services
productivity returned to more normal levels while
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 035
In 2023, we continued to see strong demand for Technology Sourcing,
with our target market, the largest customers, proving the most
resilient and continuing to invest in technology. We grew our share within
existing customers and also acquired new customers. Our Services
business delivered solid growth during the year, with Professional
Services revenue growing faster than Managed Services.
Total gross invoiced income increased by 11.4% and by 11.3% in constant
currency and total revenue increased by 7.0% and by 6.9% in constant
currency. Gross profit increased by 10.2% on a reported basis and by
9.8% in constant currency, driven by the strength of Technology Sourcing.
Group gross margin increased by 44 basis points to 15.1%, reflecting a
74 basis points increase in Technology Sourcing and a 32 basis points
decline in Services.
Adjusted operating profit increased by 0.9% on a reported basis and by
0.6% in constant currency, largely reflecting the impact of inflation and
incremental investment in strategic initiatives. By geography, Germany
and North America delivered strong growth in adjusted operating profit,
more than offsetting a weaker performance in the UK.
Adjusted profit before tax increased by 5.4% on a reported basis and by
5.1% in constant currency, benefiting from higher net finance income.
Adjusted diluted EPS increased by 3.0%, reflecting an increase in the
adjusted effective tax rate to 27.6% (2022: 25.5%). Profit before tax
increased by 9.3%. The difference between profit before tax and adjusted
profit before tax relates to the Group’s net costs of £5.9m from exceptional
and other adjusting items mainly associated with the acquisitions of
Pivot and BITS. Diluted EPS increased by 8.9%.
Our cash performance was excellent as we reduced inventory, resulting
in an increase of adjusted net funds of £214.7m to £459.0m.
Technology Sourcing
Technology Sourcing achieved strong growth during the year, driven
by the spread of the customer base across multiple market segments,
technology lines and geographies, which create durability and sustainability
through diversification. After a very strong performance in the first half
driven by certain high-volume projects, as expected, the second half saw
more normalised activity levels as these were completed.
Gross invoiced income (£m) Revenue (£m)
+11.4% +7.0%
Adjusted operating profit (£m)
+0.9%
Gross invoiced income by business type
6,922.8
Revenue (£m)
+6.9% in constant currency
271.5
Adjusted operating profit (£m)
+0.6% in constant currency
1,044.0
Gross profit (£m)
+9.8% in constant currency
+3.0%
Adjusted earnings per share growth
1. Technology Sourcing:
83.8%
2. Professional Services:
6.7%
3. Managed Services:
9.5%
2023
2022
2021
2020
2019
6,922.8
6,470.5
10,081.4
9,052.2
6,923.55,034.5
5,441.3
5,052.8
2023
2022
2021
2020
2019
271.5
269.1
262.8
206.4
151.5
1
2
3
Our performance in 2023
Group
Delivering long-term value
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023036
solutions lines. This outweighed the weaker performance in the UK,
which reflected the softer environment for workplace.
Managed Services revenue grew by 1.3% in constant currency and
accounted for 59% of total Services revenue. Germany, our largest
source of Managed Services revenue, grew well during the year reflecting
contracts won in 2022.
The UK experienced a slight decline in revenue in 2023, although a number
of contract wins towards the end of the year are expected to support
growth in 2024 and beyond.
Our performance in 2023 continued
RESULTS
2023
£m
2022
£m Change
Change in
constant
currency
Technology Sourcing gross invoiced income 8,444.9 7,481.6 12.9% 13.1%
Services revenue 1,636.5 1,570.6 4.2% 3.1%
Professional Services revenue 678.8 636.6 6.6% 5.7%
Managed Services revenue 957.7 934.0 2.5% 1.3%
Total gross invoiced income 10,081.4 9,052.2 11.4% 11.3%
Technology Sourcing revenue 5,286.3 4,899.9 7.9% 8.1%
Services revenue 1,636.5 1,570.6 4.2% 3.1%
Professional Services revenue 678.8 636.6 6.6% 5.7%
Managed Services revenue 957.7 934.0 2.5% 1.3%
Total revenue 6,922.8 6,470.5 7.0% 6.9%
Gross profit 1,044.0 947.1 10.2% 9.8%
Adjusted administrative expenses (772.5) (678.0) 13.9% 13.5%
Adjusted operating profit 271.5 269.1 0.9% 0.6%
Net adjusted finance income/(costs) 6.5 (5.4)
Adjusted profit before tax 278.0 263.7 5.4% 5.1%
Gross profit 1,044.0 947.1 10.2%
Administrative expenses (783.3) (690.7) 13.4%
Other income related to acquisition of subsidiary 5.3 –
Gain on acquisition of subsidiary 2.8 –
Operating profit 268.8 256.4 4.8%
Net finance income/(costs) 3.3 (7.4)
Profit before tax
272.1 249.0 9.3%
Group Technology Sourcing gross invoiced income grew by 13.1% in
constant currency. Technology Sourcing gross margin increased by
74 basis points, reflecting broad-based improvements largely offsetting
the impact of certain projects with lower-margin volumes, and a
higher-software mix.
By technology area demand has been strongest in networking and data
center. Workplace has been subdued reflecting high levels of investment
during the pandemic. Customers continue to re-engineer IT structures
and employ digital transformation to cope with the ever-evolving
technology landscape and the need to reduce non-IT operating costs. The
heightened cyber threat landscape continues to drive demand in this area.
By geography, Germany and North America were the key drivers of
growth. North America benefited in particular from certain high-volume,
lower-margin projects which are expected to normalise in 2024.
Our product order backlog, which is the total value of committed
outstanding purchase orders placed with our technology vendors
against non-cancellable sales orders for delivery within 12 months,
as at 31 December 2023, is significantly lower than the prior-year
equivalent. The reduction largely reflects the completion of certain
high-volume projects in North America and the return to usual customer
ordering behaviour as industry supply chains returned to normal. The
product order backlog
1
at 31 December 2023 was £1,222.3m, on a gross
invoiced income basis, a 56.3% decrease since 31 December 2022
(£2,794.6m) in constant currency.
The Technology Sourcing backlog, alongside the Managed Services
contract base and the Professional Services forward order book, provide
visibility of future revenues in these areas.
Services
Our Services performance for the year was solid. Total Services revenue
grew by 3.1% in constant currency. Services gross margin decreased by
32 basis points during the year, mainly reflecting the impact of inflation
and some onboarding costs for contracts won in 2022. We managed our
margin recovery more effectively across the year, resulting in a better
margin performance in the second half.
Professional Services revenue grew by 5.7% in constant currency and
accounted for 41% of total Services revenue. Germany, our largest source
of Professional Services revenue, grew strongly during the year across all
Delivering long-term value
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 037
United
Kingdom
RESULTS
2023
£m
2022
£m Change
Technology Sourcing gross invoiced income 1,938.1 1,864.2 4.0%
Services revenue 441.9 460.3 (4.0%)
Professional Services revenue 132.2 147.5 (10.4%)
Managed Services revenue 309.7 312.8 (1.0%)
Total gross invoiced income 2,380.0 2,324.5 2.4%
Technology Sourcing revenue 771.8 809.1 (4.6%)
Services revenue 441.9 460.3 (4.0%)
Professional Services revenue 132.2 147.5 (10.4%)
Managed Services revenue 309.7 312.8 (1.0%)
Total revenue 1,213.7 1,269.4 (4.4%)
Gross profit 250.8 259.2 (3.2%)
Adjusted administrative expenses (192.0) (178.7) 7.4%
Adjusted operating profit 58.8 80.5 (27.0%)
Gross invoiced income (£m)
2.4%
Adjusted operating profit (£m)
-27.0%
Revenue (£m)
-4.4%
Gross invoiced income by business type
1. Technology Sourcing:
81.4%
2. Professional Services:
5.6%
3. Managed Services:
13.0%
2023
2022
2021
2020
2019
2,380.0
2,324.5
2,063.7
1,773.4
1,597.0
2023
2022
2021
1,213.7
1,269.4
1,425.4
1
2
3
2023
2022
2021
2020
2019
58.8
80.5
102.9
90.3
64.5
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023038
The UK delivered a weaker result in a soft market, especially for
workplace activity. Total gross invoiced income increased by 2.4%
reflecting growth in Technology Sourcing, partly offset by a 4.0% decline
in Services revenue. Total revenue decreased by 4.4% reflecting a higher
mix of software. Gross profit decreased by 3.2% with gross margin
increasing by 24 basis points. Administrative expenses increased by
7.4% largely reflecting inflation and higher people costs, resulting in
adjusted operating profit decreasing by 27.0%.
The UK market softened during the year due to unsettled economic
conditions, with businesses and organisations delaying project
implementations and investment decisions.
Early in the year, we implemented new leadership followed by significant
structural changes, to enhance our focus on our target market of large
corporate and public sector organisations and maximise growth. As part
of this, we expanded our sales sectors from four to five, allowing us to get
closer to our customers, better understand their needs and preferences,
and ultimately drive increased sales opportunities. While near-term
demand remains uncertain, we are encouraged by some significant
Services contract wins towards the end of the year.
Technology Sourcing
Technology Sourcing gross invoiced income increased by 4.0%. Volumes
started the year strongly but softened as the year progressed. Gross
margin increased by 31 basis points.
Demand for hardware was subdued, particularly in the workplace,
although we increased share with our key vendors. This follows customers’
significant investments through the pandemic to support home and
hybrid working and the completion of a number of large Windows 10
rollouts. As anticipated, this has led to a lag in customer adoption of
Windows 11. Workplace activity is an important driver of utilisation at
our Integration Centers, where our costs remain largely fixed. Software
demand was stronger in areas such as data center and cloud.
We expect the adoption of Windows 11 to gain momentum during the
second half of 2024. This will likely drive increased demand for new
hardware, as customers upgrade their systems to align with the new
operating system.
The product order backlog at 31 December 2023 was £364.3m.
This represents a 10.1% increase since 31 December 2022 (£331.0m).
Services
Services revenue declined by 4.0%, with Managed Services decreasing
by 1.0% and Professional Services by 10.4%. Gross margin increased by
11 basis points, reflecting good recovery of cost inflation.
The lower demand in Technology Sourcing has had a ripple effect in
Professional Services, which led to lower demand for workplace-related
activities. This outweighed the significant growth achieved in supporting
customers’ adoption of public cloud and expanding and securing
their networks.
In Managed Services, we concluded a large number of contract renewals
during the year. Encouragingly, towards the end of the year we secured
a large public sector contract as well as a number of smaller corporate
contracts, all of which also provide growth opportunities in Technology
Sourcing and Professional Services.
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 039
Germany
RESULTS
2023
£m
2022
£m Change
Change in
constant
currency
Technology Sourcing gross invoiced income 2,111.5 1,704.7 23.9% 21.7%
Services revenue 765.7 690.4 10.9% 8.7%
Professional Services revenue 365.4 315.7 15.7% 13.5%
Managed Services revenue 400.3 374.7 6.8% 4.7%
Total gross invoiced income 2,877.2 2,395.1 20.1% 17.9%
Technology Sourcing revenue 1,261.8 1,153.1 9.4% 7.5%
Services revenue 765.7 690.4 10.9% 8.7%
Professional Services revenue 365.4 315.7 15.7% 13.5%
Managed Services revenue 400.3 374.7 6.8% 4.7%
Total revenue 2,027.5 1,843.5 10.0% 8.0%
Gross profit 374.5 325.1 15.2% 13.1%
Adjusted administrative expenses (211.5) (184.2) 14.8% 12.5%
Adjusted operating profit 163.0 140.9 15.7% 13.8%
Gross invoiced income (£m)
+20.1%
Adjusted operating profit (£m)
+15.7%
Revenue (£m)
+10.0%
Gross invoiced income by business type
1. Technology Sourcing:
73.4%
2. Professional Services:
12.7%
3. Managed Services:
13.9%
2023
2022
2021
2020
2019
2,877.2
2,395.1
2,050.1
1,876.3
1,887.2
2023
2022
2021
2,027.5
1,843.5
1,565.0
2023
2022
2021
2020
2019
163.0
140.9
137.8
112.6
79.5
1
2
3
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023040
Germany delivered another strong year of growth, reflecting the depth
and breadth of our capabilities and customer relationships. Total gross
invoiced income increased by 17.9% in constant currency, driven by very
strong growth in Technology Sourcing and strong growth in Services
revenue. Gross profit increased by 13.1% in constant currency with gross
margin increasing by 84 basis points, largely reflecting the strength of
the Technology Sourcing performance. Administrative expenses
increased by 12.5% in constant currency reflecting higher commissions
and inflation, resulting in adjusted operating profit growth of 13.8% in
constant currency.
We are benefiting from our strong focus on public sector and corporate
business. We significantly broadened our portfolio with existing
customers and expanded our customer base. Our investments in the
salesforce and broadening the technology and skills base are showing
clear benefits and creating the basis for further growth.
The breadth of our portfolio is a key driver of our growth. For example,
we concluded the largest Cisco Whole Portfolio Agreement contract in
Europe, with a major international industrial technology group
headquartered in Germany. This contract will run for five years. We will
continue to equip, modernise, and operate IT infrastructure in all schools
for a large southern German state capital in the coming years. This is an
important milestone as we develop our offer to the German education
market. In the transport sector, we expanded our scope with the largest
German transport company and we will now provide a large part of its
personal computer client infrastructure from next year onwards.
Towards the end of the year, we won a significant IT infrastructure
framework agreement with one of Germany’s largest airports. In chemical
and pharmaceuticals, we won Managed Services business with a global
producer and will be responsible for the Global Service Desk. In addition,
we significantly expanded our app development and cloud management
business following investment in developers based in Cluj, Romania,
to support our solution designers and project managers in Germany.
Technology Sourcing
Technology Sourcing gross invoiced income increased by 21.7% in
constant currency, well ahead of market growth. This was driven by
networking and security but data center and workplace also showed
good growth. Technology Sourcing gross margin was very strong,
increasing by 255 basis points over the period due to strong product
mix and increased share of software volumes.
In addition to the increasingly strong software demand, we are seeing
greater customer demand to bundle procurements in bigger framework
contracts. This particularly applies to the global requirements of large
international customers and to the high demand for infrastructure from
our major public sector customers at state and federal level.
We also see demand for the combination of innovative and flexible
financing solutions with asset management, deployment and
maintenance services. The first international implementation of
Computacenter’s Device as a Service (DaaS) solution went live for
a large German financial institution during the year.
The product order backlog at 31 December 2023 was £234.9m, a 25.6%
decrease in constant currency since 31 December 2022 (£315.6m). This
decrease largely reflects customer ordering patterns returning to normal.
Services
Services revenue increased by 8.7% in constant currency, with 13.5%
growth in Professional Services and 4.7% growth in Managed Services.
Services gross margin declined by 205 basis points as Managed Services
experienced an increase in costs, most of which was inflation-related.
In addition, there were one-off costs for onboarding new service
contracts won in 2022 and technology refreshes of existing contracts
that were up for renewal. Not all of these cost increases could be passed
on to customers or offset by cost-reduction measures.
Professional Services saw continuing strong demand from public sector
customers for support, engineering and consultancy services. We are
excellently positioned here, with a broad base of framework agreements
and a very good customer structure, primarily with federal and state
authorities and larger local country departments and cities. We expect
demand to be robust in the coming years and these areas will remain our
focus. We also see a continuing need for project support and skills in our
corporate customer segment, especially in networking and security,
data center consolidation and cloud management, as well as for expanding
modern workplace infrastructures. Our application development business,
which we have grown organically, continues to be in high demand with
our customers.
In Managed Services we are working hard to mitigate cost inflation by
passing on the higher costs to our customers, where contractually
appropriate, and by achieving additional savings, for example by using more
automation. Our second challenge was to complete the transformational
activities and technology refresh at a small number of customers in
2023. We have a very solid pipeline particularly in workplace and
networking, where we are very well positioned. An increasing number
of our international customers are looking for IT infrastructure service
providers with a global capability for these services to improve quality
and flexibility while reducing costs.
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 041
France
RESULTS
2023
£m
2022
£m Change
Change in
constant
currency
Technology Sourcing gross invoiced income 728.5 606.7 20.1% 18.2%
Services revenue 183.6 178.1 3.1% 1.0%
Professional Services revenue 50.8 41.7 21.8% 19.2%
Managed Services revenue 132.8 136.4 (2.6%) (4.6%)
Total gross invoiced income 912.1 784.8 16.2% 14.3%
Technology Sourcing revenue 479.9 435.8 10.1% 8.3%
Services revenue 183.6 178.1 3.1% 1.0%
Professional Services revenue 50.8 41.7 21.8% 19.2%
Managed Services revenue 132.8 136.4 (2.6%) (4.6%)
Total revenue 663.5 613.9 8.1% 6.2%
Gross profit 87.3 76.7 13.8% 12.3%
Adjusted administrative expenses (78.6) (69.6) 12.9% 10.9%
Adjusted operating profit 8.7 7.1 22.5% 26.3%
Gross invoiced income (£m)
+16.2%
Adjusted operating profit (£m)
+22.5%
Revenue (£m)
+8.1%
Gross invoiced income by business type
1. Technology Sourcing:
79.9%
2. Professional Services:
5.6%
3. Managed Services:
14.5%
2023
2022
2021
2020
2019
912.1
784.8
653.4
672.8
625.0
2023
2022
2021
663.5
613.9
555.2
2023
2022
2021
2020
2019
8.7
7.1
3.5
13.0
17.3
1
2
3
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023042
France continued its momentum into 2023 and delivered further strong
growth during the period. Total gross invoiced income increased by 14.3%
in constant currency, driven by strong growth in Technology Sourcing and
a slight increase in Services revenue. Gross profit rose 12.3% in constant
currency with gross margin increasing by 66 basis points, largely due to
higher infrastructure and software mix. Administrative expenses
increased by 10.9% in constant currency, reflecting targeted investment
in sales headcount and inflation, resulting in adjusted operating profit
increasing by 26.3% in constant currency to £8.7m.
Demand for Technology Sourcing was stronger than for Managed Services,
where decision-making was slower. During the year we continued to
strengthen our position in networking and data center, aided by the full
integration of CCNS, the business we acquired towards the end of 2020.
Technology Sourcing
Technology Sourcing gross invoiced income increased by 18.2% in constant
currency with a strong performance across both our corporate and
public sector businesses. Technology Sourcing gross margin increased
by 111 basis points, largely reflecting a higher-margin product mix.
The public sector remains the biggest contributor and this is mainly
related to growth in multi-year framework agreements. We increased
our presence in this area and were successful in winning new software
and networking contracts, which we expect to drive growth. We continue
to invest in our technical skills and are committed to maintaining the
highest levels of accreditations for our priority technology vendors,
especially in networking.
The product order backlog at 31 December 2023 was £124.1m
representing a 7.9% increase in constant currency since 31 December
2022 (£115.0m).
Services
Services revenue increased by 1.0% in constant currency with 19.2%
growth in Professional Services offset by a 4.6% decline in Managed
Services. Services gross margin decreased by 87 basis points, reflecting
volume declines in Managed Services and the impact of inflation.
Growth in Professional Services was mainly driven by large workplace
and data center projects in the public sector.
Our Managed Services contracts are predominantly with corporate
customers. We saw a decrease in volume reflecting the lack of significant
new contract wins in 2022. It was a good year for contract renewals in
2023, and in many instances, we have been able to expand our scope
of work. However, decisions on new contract awards are taking longer,
with some larger outcomes now expected in 2024.
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 043
North
America
RESULTS
2023
£m
2022
£m Change
Change in
constant
currency
Technology Sourcing gross invoiced income 3,454.4 3,131.7 10.3% 11.8%
Services revenue 146.1 149.4 (2.2%) (0.9%)
Professional Services revenue 118.7 122.5 (3.1%) (1.7%)
Managed Services revenue 27.4 26.9 1.9% 2.7%
Total gross invoiced income 3,600.5 3,281.1 9.7% 11.2%
Technology Sourcing revenue 2,602.6 2,357.9 10.4% 11.8%
Services revenue 146.1 149.4 (2.2%) (0.9%)
Professional Services revenue 118.7 122.5 (3.1%) (1.7%)
Managed Services revenue 27.4 26.9 1.9% 2.7%
Total revenue 2,748.7 2,507.3 9.6% 11.0%
Gross profit 267.5 238.3 12.3% 13.7%
Adjusted administrative expenses (202.5) (185.3) 9.3% 10.7%
Adjusted operating profit 65.0 53.0 22.6% 24.0%
Gross invoiced income (£m)
+9.7%
Adjusted operating profit (£m)
+22.6%
Revenue (£m)
+9.6%
Gross invoiced income by business type
1. Technology Sourcing:
95.9%
2. Professional Services:
3.3%
3. Managed Services:
0.8%
2023
2022
2021
2020
2019
3,600.5
3,281.1
1,965.3
944.5
750.6
2023
2022
2021
2,748.7
2,507.3
1,322.4
2023
2022
2021
2020
2019
65.0
53.0
31.0
14.0
9.1
1
2
3
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023044
North America delivered a strong performance for the year. Gross
invoiced income increased by 11.2% in constant currency and by 10.2%
on an organic basis, driven by excellent growth in Technology Sourcing,
with Services slightly down.
Gross profit increased by 13.7% in constant currency with gross margin
increasing by 23 basis points, reflecting an underlying improvement
across most of the business, offsetting the impact of high-volume
lower-margin business. Administrative expenses increased by 10.7%
in constant currency driven by higher commissions and wage inflation,
resulting in adjusted operating profit increasing by 24.0% in constant
currency and by 22.3% on an organic basis.
During the year, we significantly simplified the way that we go to market
in North America. We have reduced the number of customer sectors we
work in from 13 to seven, to ensure that we are targeting markets with
appropriate sizes and that we can support them effectively. We continue
to expand the number of salespeople to support our growth.
At the beginning of the year, we identified a number of prospective
customers that we consider to be strategic for us in the long term.
We received orders from 24 of these organisations during 2023 and
we expect them to become significant customers for us in the future.
We continue to focus heavily on operational improvements within the
North American business and consolidated our CRM system in 2023.
Implementing our Group ERP system remains a top priority.
Technology Sourcing
Technology Sourcing gross invoiced income grew by 11.8% in constant
currency and by 10.8% on an organic basis, reflecting exceptional growth
with a hyperscale customer. Our gross margin in Technology Sourcing
increased by 23 basis points, with the underlying margin improvement
across most of the business outweighing the impact of the growth in the
hyperscale customer noted above, which commands a lower margin.
We continued to see a higher level of ‘drop-ship’ revenue driven by
hyperscale customers, where products are delivered directly from the
vendor rather than passing through our Integration Centers. Utilisation
has however improved across the year and we have a significant pipeline
of opportunities to grow Integration Center volumes.
We have continued to increase the number of technology vendors we
work with and our US presence is helping to strengthen our relationships
and programmes with existing vendors globally.
BITS, which we acquired in July 2022, delivered good growth for the year,
with a large customer order that was deferred in the first half of the year
fulfilled in the second half.
The product order backlog at 31 December 2023 was £487.1m, a 75.8%
decrease in constant currency since 31 December 2022 (£2,009.0m).
This decrease largely reflects the completion of certain high-volume
lower-margin projects.
In 2024, we expect Technology Sourcing volumes to normalise, following
the exceptionally strong growth we achieved with certain high-volume,
lower-margin customers in 2023. We believe we are well positioned to
manage this over time given the structural improvements we have made
and our progress with other large corporate customers.
Services
Services revenue declined by 0.9% in constant currency, reflecting a 1.7%
decline in Professional Services and 2.7% growth in Managed Services.
Services gross margin increased by 23 basis points. Services revenues
are currently small but we are excited by the opportunity to expand and
leverage our Group-wide tools and systems, in both Professional and
Managed Services.
Professional Services was impacted by unsatisfactory returns from one
large customer, which has now been addressed. We continue to focus on
efficiency to drive margin improvement.
The Managed Services business continues to execute our slow-and-
steady growth plan. We went live with a large new customer in the US and
won two new contracts in Canada, including one to provide helpdesk,
asset and software license management services to a healthcare
customer. We also secured a contract to provide a multi-year storage and
backup service for a large government entity, which will allow us to sell to
a broad range of public sector and non-profit organisations. Towards the
end of the year we won a contract with a global automotive customer
which will start in 2024, through successful collaboration with our
German business.
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 045
International
RESULTS
2023
£m
2022
£m Change
Change in
constant
currency
Technology Sourcing gross invoiced income 212.4 174.3 21.9% 19.5%
Services revenue 99.2 92.4 7.4% 5.8%
Professional Services revenue 11.7 9.2 27.2% 21.9%
Managed Services revenue 87.5 83.2 5.2% 3.9%
Total gross invoiced income 311.6 266.7 16.8% 14.8%
Technology Sourcing revenue 170.2 144.0 18.2% 15.9%
Services revenue 99.2 92.4 7.4% 5.8%
Professional Services revenue 11.7 9.2 27.2% 21.9%
Managed Services revenue 87.5 83.2 5.2% 3.9%
Total revenue 269.4 236.4 14.0% 12.0%
Gross profit 63.9 47.8 33.7% 34.8%
Adjusted administrative expenses (44.1) (36.5) 20.8% 20.8%
Adjusted operating profit 19.8 11.3 75.2% 81.7%
Gross invoiced income (£m)
+16.8%
Adjusted operating profit (£m)
+75.2%
Revenue (£m)
+14.0%
Gross invoiced income by business type
1. Technology Sourcing:
68.1%
2. Professional Services:
3.8%
3. Managed Services:
28.1%
2023
2022
2021
2020
2019
311.6
266.7
191.0
174.3
193.0
2023
2022
2021
269.4
236.4
166.5
2023
2022
2021
2020
2019
19.8
11.3
11.3
3.6
8.2
1
2
3
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023046
The International Segment comprises a number of trading entities,
nearshore and offshore Service Center locations and countries in which
we have other support operations.
The trading entities include Computacenter Switzerland, Computacenter
Belgium and Computacenter Netherlands. As in other markets, we focus
on working with the largest corporate and public sector customers.
Our target corporate customers in these geographies typically have an
international footprint and we are well placed to support them outside
their domestic markets. We have a small number of important Managed
Services customers that are managed from our International Segment
and delivered using our Group Managed Services capability.
Emerge 360 Japan k.k (Emerge), which we acquired in May 2022, has
Services delivery locations in Japan, Australia, Singapore and Hong Kong.
These trading entities are joined in the Segment by the offshore Group
Service Center entities in Spain, Malaysia, India, South Africa, Hungary,
Poland, China and Mexico, and the Professional Services Delivery Center
in Romania, which have limited external revenues as they charge the
relevant Group subsidiaries for the services provided. We established
further delivery locations in the Philippines and Brazil during the year.
Financial performance
Total gross invoiced income increased by 14.8% in constant currency,
with strong growth in both Technology Sourcing and Services revenue.
Gross profit increased by 34.8% in constant currency with gross margin
up 350 basis points. Technology Sourcing gross margin increased by
72 basis points and Services gross margin grew by 972 basis points.
Administrative expenses increased by 20.8% in constant currency,
resulting in adjusted operating profit rising 81.7% in constant currency.
Belgium delivered a strong performance, driven primarily by growth
in Technology Sourcing, especially networking, outweighing weaker
demand for workplace. Managed Services also performed strongly
helped by new business with existing customers and a new multi-year
outsourcing contract with a global customer in the financial settlement
services industry.
The Netherlands achieved strong growth and made good progress with
new business targets. However, one of the largest public sector Technology
Sourcing contracts was not renewed in the second half, which is expected
have an impact on 2024 performance.
Switzerland had a challenging year, as customers reviewed their hybrid
working approach following the pandemic, resulting in a significant
decline in volumes in our main Services contracts. We have taken action
including increasing our sales activity for national and international
opportunities, while resizing our delivery teams. In Technology Sourcing,
we have won some significant public sector contracts, especially in the
education sector, and won new business by working closely with our
preferred technology vendors.
The combined product order backlog at 31 December 2023 was £12.0m,
a 50.3% decrease in constant currency since 31 December 2022 (£24.1m)
in constant currency.
Delivering long-term value
Our performance in 2023 continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 047
2023 was another record year for Computacenter, with growth in gross
invoiced income, revenue and all adjusted profit measures. Our cash
performance was excellent, driven by strong inventory management,
resulting in adjusted net funds of £459.0m at the end of the year. These
strong results have been achieved while continuing to invest in the
business to secure future growth.
Gross profit
Gross profit grew by 10.2% in the year reflecting strong growth in gross
invoiced income and revenue and a robust gross margin performance.
Group gross margin increased by 44 basis points with an increase in
Technology Sourcing gross margin outweighing a slight decline in Services,
as we managed inflationary pressures effectively.
Overall, Group gross margin, expressed as gross profit as a percentage
of revenue, increased to 15.1% (2022: 14.6%).
Profit before tax
The Group’s profit before tax for the year increased by 9.3% to £272.1m
(2022: £249.0m). Adjusted profit before tax increased by 5.4% to £278.0m
(2022: £263.7m) and by 5.1% in constant currency.
The acquisitions of BITS and Emerge, completed in 2022, added £221.4m
of revenue (2022: £187.1m) and £9.3m of adjusted profit before tax (2022:
£7.1m) to the Group’s reported results.
The difference between profit before tax and adjusted profit before tax
relates to the Group’s net costs of £5.9m (2022: net costs of £14.7m) from
exceptional and other adjusting items, associated with the acquisitions
of Pivot and BITS and the amortisation of acquired intangibles as a result
of these and other North American acquisitions. Further information on
these items can be found on page 050.
Operating profit
Operating profit grew by 4.8% to £268.8m (2022: 256.4m). Adjusted
operating profit grew by 0.9% to £271.5m (2022: £269.1m), and by 0.6%
in constant currency.
Administrative expenses increased by 13.4% to £783.3m (2022: £690.7m).
We continue to monitor cost-management initiatives across the Group to
drive unnecessary cost out of the business. However, we have balanced
this with the need to invest to ensure future growth is protected. During
the year we increased our spend on strategic corporate initiatives by
89.8% to £28.1m (2022: £14.8m). Adjusted administrative expenses
increased by 13.9% to £772.5m (2022: £678.0m), and by 13.5% in
constant currency.
Group gross profit conversion, expressed as adjusted operating profit as
a percentage of gross profit, fell to 26.0% (2022: 28.4%) partly reflecting
the increase in investment during the year.
“We increased our spend on strategic
initiatives in 2023 that improve our
capabilities, productivity and underpin
our systems of the future.”
Chris Jehle
Chief Financial Officer
Continued growth and
excellent cash generation
Delivering long-term value
Chief Financial Officer’s review
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023048
Net finance income
Net finance income in the year amounted to £3.3m (2022: £7.4m charge).
The main items included within the net income for the year were £4.7m
of interest charged on lease liabilities recognised under IFRS 16 (2022:
£4.9m) and exceptional interest costs of £3.2m relating to the unwinding
of the discount on the contingent consideration for the purchase of BITS,
which was excluded on an adjusted basis (2022: £2.0m). Outside of the
specific items above, net finance income of £11.2m was recorded (2022:
net finance costs of £0.5m). On an adjusted basis, the net finance income
was £6.5m during the year (2022: net finance cost of £5.4m).
Taxation
The tax charge was £72.7m (2022: £64.8m) on profit before tax of £272.1m
(2022: £249.0m). This represented a tax rate of 26.7% (2022: 26.0%).
The tax credit related to the amortisation of acquired intangibles was
£4.0m (2022: £2.3m). The £10.8m of amortisation of intangible assets
was almost entirely a result of the North American acquisitions (2022:
£10.9m). As the amortisation is recognised outside of our adjusted
profitability, the tax benefit on the amortisation is also reported outside
of our adjusted tax charge.
The adjusted tax charge for the year was £76.7m (2022: £67.3m), on
an adjusted profit before tax for the year of £278.0m (2022: £263.7m).
The effective tax rate (ETR) was therefore 27.6% (2022: 25.5%) on an
adjusted basis.
Overall, the adjusted ETR, is continuing to trend upwards due to an
increasing reweighting of the geographic split of adjusted profit before
tax away from the United Kingdom to Germany and the United States,
where tax rates are higher. Further, a substantively enacted tax increase
has taken effect in the United Kingdom from 1 April 2023, with a rise from
19% to 25%.
The adjusted ETR is therefore within the full-year range that we indicated
at the time of our 2023 Interim Results, which showed an expected ETR
for 2023 of 27% to 29.5%. We expect that the full year ETR in 2024 will be
subject to increasing upwards pressure, due to the changing mix in where
profits are earned geographically to where tax rates are higher, as noted
above, and also as governments across our primary jurisdictions come
under fiscal and political pressure to increase corporation tax rates.
Reconciliation to adjusted measures for the year ended 2023
Reported
full-year
results
£m
Adjustments
Adjusted
full-year
results
£m
Principal element
on agency
contracts
£m
Amortisation
of acquired
intangibles
£m
Exceptionals
and others
£m
Revenue 6,922.8 3,158.6 – – 10,081.4
Cost of sales (5,878.8) (3,158.6) – – (9,037.4)
Gross profit 1,044.0 – – – 1,044.0
Administrative expenses (783.3) – 10.8 – (772.5)
Other income related to acquisition of subsidiary 5.3 – – (5.3) –
Gain related to acquisition of subsidiary 2.8 – – (2.8) –
Operating profit 268.8 – 10.8 (8.1) 271.5
Finance income 13.8 – – – 13.8
Finance costs (10.5) – – 3.2 (7.3)
Profit before tax 272.1 – 10.8 (4.9) 278.0
Income tax expense (72.7) – (4.0) – (76.7)
Profit for the year 199.4 – 6.8 (4.9) 201.3
Reconciliation to adjusted
measures for the year ended 2022
Reported
full-year
results
£m
Adjustments
Adjusted
full-year
results
£m
Principal element
on agency
contracts
£m
Amortisation
of acquired
intangibles
£m
Exceptionals
and others
£m
Revenue 6,470.5 2,581.7 – – 9,052.2
Cost of sales (5,523.4) (2,581.7) – – (8,105.1)
Gross profit 947.1 – – – 947.1
Administrative expenses (690.7) – 10.9 1.8 (678.0)
Operating profit 256.4 – 10.9 1.8 269.1
Finance income 2.4 – – – 2.4
Finance costs (9.8) – – 2.0 (7.8)
Profit before tax 249.0 – 10.9 3.8 263.7
Income tax expense (64.8) – (2.3) (0.2) (67.3)
Profit for the year 184.2 – 8.6 3.6 196.4
Delivering long-term value
Chief Financial Officer’s review continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 049
The Group Tax Policy was reviewed during the year and approved by the
Audit Committee and the Board, with no material changes from the prior
year. We make every effort to pay all the tax attributable to profits earned
in each jurisdiction that we operate. We do not artificially inflate or reduce
profits in one jurisdiction to provide a beneficial tax result in another and
maintain approved transfer pricing policies and programmes, to meet
local compliance requirements. Virtually all of the tax charge in 2023 was
incurred in either the United Kingdom, Germany or United States tax
jurisdictions, as it was in 2022. Computacenter France, which includes the
Computacenter NS acquisition within a tax group, has returned to being
in a profit-making position, increasing the amount of tax paid locally.
There are no material tax risks across the Group. Computacenter will
recognise provisions and accruals in respect of tax where there is a
degree of estimation and uncertainty, including where it relates to
transfer pricing, such that a balance cannot fully be determined until
accepted by the relevant tax authorities. For 2023, the Group Transfer
Pricing policy implemented in 2013 resulted in a licence fee of £36.9m
(2022: £38.7m), charged by Computacenter UK to Computacenter
Germany, Computacenter France and Computacenter Belgium. The
licence fee is equivalent to 1.0% of revenue and reflects the value of the
best practice and know-how that is owned by Computacenter UK and
used by the Group. It is consistent with the requirements of the
Organisation for Economic Co-operation and Development (OECD)
base erosion and profit shifting. The licence fee is recorded outside
the Segmental results found in note 4 to the Consolidated Financial
Statements, which analyses Segmental results down to adjusted
operating profit.
At acquisition, contingent consideration was agreed which required the
Group to pay former owners of Business IT Source Holdings, Inc. (BITS),
two earn-out payments based on BITS’s 2022 and 2023 earnings before
interest, taxation, depreciation and amortisation (EBITDA) and indebtedness.
During the year, and in accordance with the share purchase agreement,
the Group made its first earn-out payment amounting to £17.4m ($21.2m)
which was broadly in line with the estimate made as at 31 December 2022.
On 30 June 2023, a renegotiated agreement was signed with the former
owners following which, the second earn-out is now based on BITS’s 2023
EBITDA, H1 2024 EBITDA, and indebtedness over these periods. Having
considered a range of possible earn-out scenarios, Management has
determined that a gross liability of £21.2m under the revised agreement
should be recorded as contingent consideration of £20.2m on a discounted
basis as at 31 December 2023. The impact of changes to the payment
structures under the renegotiated agreement has resulted in a release
during the year of £2.8m. This release related to the acquisition is
non-operational in nature, significant in size and has therefore been
classified as an exceptional item.
A further £3.2m relating to the unwinding of the discount on the
contingent consideration for the purchase of BITS has been removed
from the adjusted net finance expense and classified as exceptional
interest costs.
During 2022, an exceptional loss during the year of £1.8m resulted from
costs directly relating to the acquisitions made during the year of BITS
and Emerge. These costs include professional advisor fees and seller’s
fees that were paid on completion of the transaction. These costs are
non-operational in nature, significant in size and unlikely to recur and have
therefore been classified as outside our adjusted results. A further £2.0m
relating to the unwinding of the discount on the contingent consideration
for the purchase of BITS has been removed from the 2022 adjusted net
finance expense and classified as exceptional interest costs.
We have continued to exclude, as an ‘other adjusting item’, the
amortisation of acquired intangible assets in calculating our adjusted
results. Amortisation of intangible assets is non-cash, does not relate
to the operational performance of the business, and is significantly
affected by the timing and size of our acquisitions, which distorts the
understanding of our Group and Segmental operating results.
The table below reconciles the tax charge to the adjusted tax charge for
the years ended 31 December 2023 and 31 December 2022.
2023
£m
2022
£m
Tax charge 72.7 64.8
Items to exclude from adjusted tax:
Tax credit on amortisation of acquired
intangibles 4.0 2.3
Tax on exceptional items – 0.2
Adjusted tax charge 76.7 67.3
Effective tax rate 26.7% 26.0%
Adjusted effective tax rate 27.6% 25.5%
Profit for the year
The profit for the year increased by 8.3% to £199.4m (2022: £184.2m).
The adjusted profit for the year increased by 2.5% to £201.3m (2022: £196.4m)
and by 1.8% in constant currency.
Exceptional and other adjusting items
The net loss from exceptional and other adjusting items in the year was
£1.9m (2022: loss of £12.2m). Excluding the tax items noted above, which
resulted in a gain of £4.0m (2022: gain of £2.5m), the profit before tax
impact was a net loss from exceptional and other adjusting items of
£5.9m (2022: loss of £14.7m).
A $9.3m (£7.4m) settlement was received on 8 May 2023 from the
Washington State Department of Revenue. The settlement related to
litigation contesting a historic, pre-acquisition, sales tax assessment
that was paid by antecedent companies related to the acquired Pivot
group of companies. Of this amount, $6.7m (£5.3m) has been recognised
as other income relating to the acquisition of a subsidiary for the refunded
sales tax amount. Further amounts of $1.6m (£1.3m) and $1.0m (£0.8m)
have been credited to adjusted interest income, for the refund of statutory
overpayment interest receivable on the original payment, and adjusted
administrative expenses, to reimburse legal expenses incurred since
acquisition, respectively. The element related to the refunded sales tax
amount is non-operational in nature, significant in size and unlikely
to recur and has therefore been classified as exceptional.
Delivering long-term value
Chief Financial Officer’s review continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023050
The amortisation of acquired intangible assets was £10.8m (2022: £10.9m),
primarily relating to the amortisation of the intangibles acquired as part
of the recent North American acquisitions.
Earnings per share
Diluted EPS increased by 8.9% to 173.2p per share (2022: 159.1p per
share). Adjusted diluted EPS increased by 3.0% to 174.8p per share
(2022: 169.7p per share).
2023 2022
Basic weighted average number of
shares (excluding own shares held) (m) 112.9 112.8
Effect of dilution:
Share options 1.2 2.1
Diluted weighted average number
of shares 114.1 114.9
Profit for the year attributable to equity
holders of the Parent (£m) 197.6 182.8
Basic earnings per share (p) 175.0 162.1
Diluted earnings per share (p) 173.2 159.1
Adjusted profit for the year attributable
to equity holders of the Parent (£m) 199.5 195.0
Adjusted basic earnings per share (p) 176.7 172.9
Adjusted diluted earnings per share (p) 174.8 169.7
Dividend
The Board recognises the importance of dividends to shareholders and
the Group has a long track record of paying dividends and other special
cash returns. Computacenter’s approach to capital management is to
ensure that the Group has a robust capital base and maintains a strong
credit rating, whilst aiming to maximise shareholder value. The Group is
highly cash generative enabling organic and inorganic investment in
recent years to be funded from cash reserves.
Dividends are paid from the standalone balance sheet of the Parent
Company and, as at 31 December 2023, the distributable reserves were
£474.1m (31 December 2022: £257.4m). The distributable reserves have
increased as a result of the capital restructure described on below.
The Board is pleased to propose a final dividend for 2023 of 47.4p
per share (2022: 45.8p per share). Together with the interim dividend,
this brings the total ordinary dividend for 2023 to 70.0p per share,
representing a 3.1% increase on the 2022 total dividend per share
of 67.9p.
The Board has consistently applied the Company’s dividend policy, which
states that the total dividend paid will result in a dividend cover of 2 to 2.5
times based on adjusted diluted EPS. In 2023, the cover was 2.5 times
(2022: 2.5 times).
Subject to the approval of shareholders at our Annual General Meeting
on 14 May 2024, the proposed dividend will be paid on Friday 5 July 2024.
The dividend record date is set as Friday 7 June 2024 and the shares will
be marked ex-dividend on Thursday 6 June 2024.
As a business that has returned £945m through a combination of
dividends and share buybacks since flotation, with no additional
investment required from shareholders over that time, we are committed
to managing the cash position for shareholders. The strength of our
balance sheet provides us with significant optionality, and we continue
to evaluate a number of capital allocation options, including potential
inorganic growth and the return of surplus capital to shareholders.
Capitalisation issue and capital reductions
The Company’s cash generation over recent years has enabled it to have
a strong dividend policy and to periodically return additional value to its
shareholders, most recently by way of a tender offer in 2018. While the
Company has sufficient profits available for distribution (also known as
‘distributable reserves’) to fund its projected distributions in the immediate
future, the Board recently undertook an assessment of the balance sheet
to identify any reserves that were not distributable, and which could be
converted into distributable reserves to provide flexibility for future
returns of value to the Company’s shareholders.
Following that assessment, the Board identified certain reserves and
commenced a programme of reductions of capital during the first half
of 2023 (each a ‘capital reduction’ and together the ‘capital reductions’).
In order to achieve this, it was necessary first to convert certain of these
reserves into share capital by issuing New Deferred Shares (the ‘Capitalisation
Issue’), and then cancelling those shares as part of the first capital
reduction. The second capital reduction involved the cancellation of the
Company’s capital redemption reserve. The capitalisation issue, the
changes to the Company’s articles of association required in order to
effect it, and the subsequent capital reductions were each approved at
the Company’s Annual General Meeting held on 17 May 2023. The capital
reductions were then confirmed by the court in order to become effective.
The capitalisation issue and capital reductions did not result in any
change to the nominal value of the Company’s ordinary shares, had no
impact on the Company’s cash position or on its net assets, did not
involve any repayment or distribution of capital by the Company, and did
not result in any changes to the Company’s existing dividend policy.
The capitalisation issue and capital reductions should not result in any
UK tax charge for the shareholders.
As a result of the capitalisation issue and capital reductions, the
distributable reserves of the Company have been increased by £183.9m
as at 31 December 2023.
Delivering long-term value
Chief Financial Officer’s review continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 051
Cyber risk remains one of the greatest risks to our business, but also
presents one of the greatest opportunities to differentiate from our
competitors through our internal resilience and by helping our customers
to overcome these same challenges. We will continue to invest heavily in
cyber resilience.
Whilst cyber risk forms part of the Group’s overall Principal Risks, as
detailed on pages 064 to 073, it could be argued that cyber risk is the
single major risk facing large corporates today.
Cash flow
The Group delivered a substantial increase in net cash flow from operating
activities, which totalled £410.6m for 2023 (2022: £242.1m inflow).
During the year, net operating cash inflows from working capital,
including inventories, trade and other receivables, and trade and other
payables, were £136.7m (2022: £60.8m outflow).
Throughout 2022, customers placed advance orders of product, due
to the significant product shortages seen during the 18 months to
31 December 2022, to ensure continuity of supply. Additionally, inventory
increased as we deliberately invested in working capital by pre-ordering
inventory, once a committed purchase order had been received from
the customer, using the strength of our balance sheet to support our
customers during product shortages. During 2023, supply chains
returned to more normal conditions and, as a result, customers have
returned to normal purchasing patterns. This has naturally led to both
reduced levels of inventory and product order backlogs. Our focus on
inventory control has delivered substantial reductions in both Germany
and North America, the two Segments where we experienced the greatest
inventory accumulation through 2022.
The implementation of additional inventory holding approval controls in
the final quarter of 2022, the continued focus from the Group Technology
Sourcing and Finance teams, and the re-implementation of internal
inventory holding charges across the sales teams from April 2023, have
also all contributed to this improvement in our overall working capital
balance sheet position.
After interest, tax and gross capital expenditure cashflows, our free cash
flow was £339.9m (2022: £150.9m).
Central corporate costs
Certain expenses are not specifically allocated to individual Segments
because they are not directly attributable to any single Segment. These
include the costs of the Board itself, related public company costs, Group
Executive members not aligned to a specific geographic trading entity
and the cost of centrally funded strategic initiatives that benefit the
whole Group. Accordingly, these expenses are disclosed separately as
central corporate costs, within the Segmental note. These costs are
borne within the Computacenter (UK) Limited legal entity and have been
removed for Segmental reporting and performance analysis but form
part of the overall Group adjusted administrative expenses.
Total central corporate costs were significantly increased on last year
with an 84.8% increase to £43.8m (2022: £23.7m). Within this:
• Board expenses, related public company costs and costs
associated with Group Executive members not aligned to a specific
geographic trading entity, increased to £12.8m (2022: £7.2m) due
to certain project costs, the dual running of several Group Executive
members handing over portfolios during the year, and the increase
in headcount aligned with central corporate costs;
• share-based payment charges associated with Group Executive
members as identified above, including the Group Executive
Directors, increased from £1.7m in 2022 to £2.8m in 2023, due
primarily to the value of Computacenter plc ordinary shares, the
overall outlook for the vesting of in-flight PSP awards and the
increase in management personnel aligned with central corporate
costs; and
• strategic corporate initiatives are designed to increase capability
and therefore competitive position, enhance productivity or
strengthen systems which underpin the Group. During the year this
spend was £28.1m, up 89.9% over 2022 (£14.8m), in line with forecasts,
as the Group increases the pace of its investment in new systems,
toolsets and cyber resilience.
Investments
In 2023 we nearly doubled our spend on strategic corporate initiatives
to £28.1m, all of which was recognised through the income statement.
This spend was spread across projects that will improve our capabilities,
productivity and underpin our systems of the future.
Computacenter resells, deploys and manages vendor technology for
customers. This means we are fundamentally a people-centric business.
Customers remain loyal to Computacenter because of the quality of our
people and service and this will always be the case. However there are a
number of other assets that we employ to deliver to our customers such
as our Service and Integration Center facilities, methodologies, best
practices and, in particular, great systems. We invest consistently to
improve and support these systems, which give us a competitive
advantage in a business which is about scale, repeatability and agility.
Most of the spend is focused on our systems to ensure that they continue
to be secure and supportable. We are not just upgrading, but also moving
to new systems in order to obtain the security and support we need and
develop competitive advantage through continued operational leverage
of these new toolsets and processes. We have continued to refine our
systems investment roadmap through to the end of 2027, with a
programme to replace legacy systems that enable our Technology
Sourcing and Services businesses. Investing in best-of-breed tools will
lower cost to serve, improve the quality of our offerings and enhance
our relevance to customers in the marketplace
Our systems need to be robust, secure and able to handle large volumes.
They also have to be simple to use and adaptable to most customer
eventualities. We prioritise our plans for systems development, and other
investments in time and capital, in response to the ever-changing
environment in which we operate.
Delivering long-term value
Chief Financial Officer’s review continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023052
Delivering long-term value
Chief Financial Officer’s review continued
31 December
2023
£m
31 December
2022
£m
Adjusted operating profit 271.5 269.1
Adjusting items (2.7) (12.7)
Operating profit 268.8 256.4
Other non-cash items and adjustments 47.3 49.4
Change in working capital 136.7 (60.8)
Change in pensions and provisions (0.8) (0.7)
Depreciation of right-of-use assets 41.4 50.5
Cash generated from operations 493.4 294.8
Interest and payments related to lease
liabilities
(46.1) (55.2)
Adjusted operating cash flow 447.3 239.6
Net interest received/(paid) 10.5 (0.5)
Tax paid (82.8) (52.7)
Gross capital expenditure (35.1) (35.5)
Free cash flow 339.9 150.9
Dividends paid (77.3) (80.5)
Purchase of own shares net of proceeds
of exercise of employee share options (28.8) (28.2)
Acquisition of subsidiaries, including
contingent consideration and purchase
of non-controlling interests (19.3) (28.3)
Disposal of assets – 1.1
Net cash flow 214.5 15.0
Net debt repayment (6.9) (16.6)
Increase/(decrease) in cash and
cash equivalents 207.6 (1.6)
Effect of exchange rates on cash and
cash equivalents (0.8) (7.2)
Cash and cash equivalents at the
beginning of the year 264.4 273.2
Cash and cash equivalents at the
year end 471.2 264.4
31 December
2023
£m
31 December
2022
£m
Opening net funds 117.2 95.3
Increase/(decrease) in cash and cash
equivalents including impact of
exchange rates 206.8 (8.8)
Movements in borrowings 7.9 11.7
Movements in lease liabilities 11.7 19.0
Closing net funds 343.6 117.2
Opening adjusted net funds 244.3 241.4
Increase/(decrease) in cash and cash
equivalents including impact of
exchange rates 206.8 (8.8)
Movements in borrowings 7.9 11.7
Closing adjusted net funds 459.0 244.3
The Group had £216.0m of inventory as at 31 December 2023, a decrease
of 48.3% on the balance as at 31 December 2022 of £417.7m. The closing
balance was materially lower than the high point of £532.6m as at
30 September 2022, with a reduction of £316.6m since that time. We expect
that levels of inventory will remain near the levels seen in the second half
of 2023, in-line with historical operational norms. Whilst inventory has
materially improved, working capital cash flows during the year were still
impacted by the strong growth in revenue seen as the business
continues to expand.
Capital expenditure in the year was £35.1m (2022: £35.5m) representing,
primarily, investments in IT equipment and software tools, to enable us
to deliver improved service to our customers.
The Group’s Employee Benefit Trust (EBT) made market purchases of the
Company’s ordinary shares of £38.0m (2022: £34.4m) to satisfy maturing
PSP awards and Sharesave schemes and to reprovision the EBT in
advance of future maturities. During the year the Company received
savings from employees of £9.2m to purchase options within the
Sharesave schemes (2022: £6.2m).
During the year the Group made two additional payments related to
previous acquisitions. The first was for BITS where, in accordance with
the share purchase agreement, the Group made its first earn-out
payment amounting to $21.2m (£17.4m) which was broadly in line with the
estimate made as at 31 December 2022. The second was on 7 June 2023,
where the remaining 5.0% of the voting shares in R.D. Trading Limited
(RDC) were acquired for a cash consideration of £1.9m. This completes
the acquisition of RDC, which is a central component of our Circular Services
offering to customers where we repurpose or recycle end-of-life IT
equipment and a key element of our sustainability strategy.
The Group reduced loans during the year by a net £6.9m (2022: £16.6m).
We made regular repayments towards the loan related to the construction
of the German headquarters in Kerpen and the customer financing
facility in Pivot.
The Group continued to manage its cash and working capital positions
appropriately, using standard mechanisms, to ensure that cash levels
remained within expectations throughout the year. From time-to-time,
some customers request credit terms longer than our typical period of
30-60 days. In certain instances, we will arrange for the sale of the
receivables on a true sale basis to a finance institution on the customers’
behalf. We would typically receive funds on 45-day terms from the
finance institution, which will then recover payment from the customer
on terms agreed with them. The cost of such an arrangement is borne by
the customer, either directly or indirectly, enabling us to receive the full
amount of payment in line with our standard terms.
The benefit to the cash and cash equivalents position of such arrangements
as at 31 December 2023 was £33.8m (31 December 2022: £45.1m).
The Group had no other debt factoring at the end of 31 December 2023,
outside this normal course of business.
During December 2022, the Group engaged in a limited factoring programme
of trade receivables within the German business, on a non-recourse basis, to
provide assurance against unforeseen liquidity issues which did not, in the
event, arise due to the continued aforementioned strength of cash receipts
in the final weeks of 2022. This factoring was for £46.1m or 2.7% of the trade
receivables before provisions balance as at 31 December 2022, the
comparative balance sheet date. The Group had no other debt factoring
at the end of 31 December 2022, outside this normal course of business.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 053
Cash and cash equivalents and net funds
Cash and cash equivalents as at 31 December 2023 were £471.2m,
compared to £264.4m at 31 December 2022. Net funds as at 31 December
2023 were £343.6m (31 December 2022: £117.2m).
The Group excludes £115.4m, as at 31 December 2023 (31 December
2022: £127.1m), of lease liabilities from its non-GAAP adjusted net funds
measure, to allow an alternative view of the Group’s overall liquidity
position excluding the effect of the lease liabilities required to be
capitalised the under the IFRS 16 accounting standard.
Adjusted net funds as at 31 December 2023 were £459.0m, compared
to adjusted net funds
of £244.3m as at 31 December 2022.
Net funds as at 31 December 2023 and 31 December 2022 were as follows:
31 December
2023
£m
31 December
2022
£m
Cash and short-term deposits 471.2 264.4
Bank overdraft – –
Cash and cash equivalents 471.2 264.4
Bank loans – Pivot customer specific
facility (4.5) (7.7)
Bank loans – BITS facility – (2.0)
Bank loans – Kerpen building facility (7.7) (10.4)
Total bank loans (12.2) (20.1)
Adjusted net funds (excluding lease
liabilities) 459.0 244.3
Lease liabilities (115.4) (127.1)
Net funds 343.6 117.2
For a full reconciliation of net funds and adjusted net funds, see note 31
to the Consolidated Financial Statements.
The Group had five specific credit facilities in place during the year and
no other material borrowings.
The Group entered into a multi-currency revolving loan committed
facility of £200m on 9 December 2022. This facility had a term of five
years plus two one-year extension options exercisable on the first and
second anniversary of the facility and was due to expire on 8 December
2027. The Group has exercised the extension option on the first
anniversary of the commencement of the facility, extending the term
to six years with a revised expiry of 8 December 2028. A further term
extension option of one additional year remains available. The Group is
subject to certain key financial covenants under this syndicated facility
with Barclays, Lloyds, HSBC, BNP Paribas, JPMorgan Chase and PNC Bank.
These covenants, as defined in the agreement, are monitored regularly to
ensure compliance. As at 31 December 2023, the Group was in compliance
with all covenants. To improve short-term liquidity, £60m was drawn
down on Friday 6 April 2023 and was repaid in full on Tuesday 9 May 2023.
April is typically the lowest point of the cash cycle for the Group and
cash can be impacted, from time-to-time, by individual large deals with
hyperscale customers depending on the payment terms specific to that
deal or customer. This facility is undrawn as at 31 December 2023.
The Group also has a specific term loan for the build and purchase of our
German office headquarters and fit out of the Integration Center in Kerpen,
which stood at £7.7m at 31 December 2023 (31 December 2022: £10.4m).
Pivot had £4.5m (31 December 2022: £9.7m) financed with a major
technology partner for hardware, software and resold maintenance
contracts that the Company had purchased as part of a contract to lease
these items to a key North American customer.
Computacenter India Private Limited has a local facility with HSBC India
for local cash liquidity to facilitate the continued growth of our operations
in the country. There was no interest-bearing debt drawn under this
facility as at 31 December 2023.
The BITS subsidiary maintains a ringfenced accounts receivable and
inventory flooring arrangement facility with Wells Fargo of up to $100m,
secured on the assets of that subsidiary. The facility is provided on a
rolling basis and the latest amendment was signed on 20 July 2023. There
was no interest-bearing debt drawn under this facility as at 31 December
2023 (31 December 2022: £2.0m).
There were no other interest-bearing trade payables as at 31 December
2023 (31 December 2022: nil).
For further information on these facilities, see note 27 to the Consolidated
Financial Statements.
The Group’s adjusted net funds position contains no current asset
investments (31 December 2022: nil).
Trade creditor arrangements
Computacenter has a strong covenant and enjoys a favourable credit
rating from technology vendors and other suppliers. Some suppliers
provide standard credit directly on their own credit risk, whereas other
suppliers decide to sell the debt to banks, which offer to purchase the
receivables and manage collection. The standard credit terms offered by
suppliers are typically between 30 and 60 days, whether provided directly
or when sold to a third-party finance provider. In the latter case, the cost
of the free-trade credit period is paid by the relevant supplier, as part
of the overall package of terms provided by suppliers to Computacenter
and our competitors.
Capital management
Details of the Group’s capital management policies are included in note
28 to the Consolidated Financial Statements.
Financial instruments
The Group’s financial instruments comprise borrowings, cash and liquid
resources, and various items that arise directly from its operations. The
Group’s policy is not to undertake speculative trading in financial instruments.
The Group enters into hedging transactions, principally forward exchange
contracts or currency swaps, to manage currency risks arising from
the Group’s operations and its sources of finance. As the Group continues
to expand its global reach and benefit from lower-cost operations in
geographies such as South Africa, Poland, Mexico and India, it has entered
into forward exchange contracts to help manage cost increases due to
currency movements.
Delivering long-term value
Chief Financial Officer’s review continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023054
Credit risk
The Group principally manages credit risk through customer credit limits.
The credit limit is set for each customer based on its creditworthiness,
using credit rating agencies as a guide, and the anticipated levels of
business activity. These limits are determined when the customer
account is first set up and are regularly monitored thereafter. There are
no significant concentrations of credit risk within the Group. The Group’s
major customer, disclosed in note 4 to the Consolidated Financial
Statements, is a hyperscale North American technology company which
typically settles outstanding amounts on shorter-than-average payment
terms. The maximum credit risk exposure relating to financial assets is
represented by their carrying value as at the balance sheet date.
Fair, balanced and understandable
The Board confirms that the Annual Report and Accounts, taken as a
whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group’s position and performance,
business model and strategy. Management undertakes a formal process
through which it can provide comfort to the Board in making this statement.
The main risks arising from the Group’s financial instruments are interest
rate, liquidity and foreign currency risks. The overall financial instruments
strategy is to manage these risks in order to minimise their impact on the
Group’s financial results. The policies for managing each of these risks
are set out below. Further disclosures in line with the requirements of
IFRS 7 are included in the Consolidated Financial Statements.
Interest rate risk
The Group finances its operations through a mixture of retained profits,
bank borrowings, leases and loans for certain customer contracts. The
Group’s general bank borrowings, other facilities and deposits are at
floating rates. No interest rate derivative contracts have been entered
into. The undrawn committed facility of £200m is at floating rates.
However, the borrowing facility for the operational headquarters in
Germany is at a fixed rate.
Liquidity risk
The Group’s policy is to ensure that it has sufficient funding and facilities
to meet any foreseeable peak in borrowing requirements. The Group’s
positive net cash was maintained throughout 2023 and at the year end
was £471.2m, with net funds of £343.6m after including the Group’s two
specific borrowing facilities and lease liabilities recognised under IFRS 16.
Excluding lease liabilities, adjusted net funds was £459.0m at the year end.
Due to strong cash generation over many years, the Group can currently
finance its operational requirements from its cash balance, and it
operates an informal cash pooling arrangement for the majority of Group
entities. The Group has a committed facility of £200m, as noted on the
previous page.
The Group has a Board-monitored policy to manage its counterparty risk.
This ensures that cash is placed on deposit across a range of reputable
banking institutions.
Foreign currency risk
The Group operates primarily in the United Kingdom, Germany, France
and the United States, with smaller operations in Australia, Belgium,
Brazil Canada, China, Hong Kong, Hungary, India, Ireland, Japan, Malaysia,
Mexico, the Netherlands, the Philippines, Poland, Romania, South Africa,
Singapore, Spain and Switzerland. The Group uses an informal cash
pooling facility to ensure that its operations outside the United Kingdom
are adequately funded, where principal receipts and payments are
denominated in euros and US dollars. For countries within the Eurozone,
the level of non-euro denominated sales is small and, if material, the
Group’s policy is to eliminate currency exposure through forward
currency contracts. For our North American operations, most
transactions are denominated in US dollars.
For the UK, the majority of sales and purchases are denominated in
pounds sterling and any material trading exposures are eliminated
through forward currency contracts.
The Group has been successful in winning international Services
contracts, where Services are provided in multiple countries. We aim
to minimise currency exposure by invoicing the customer in the same
currency in which the costs are incurred. For certain contracts, the
Group’s committed contract costs are not denominated in the same
currency as its sales. In such circumstances, for example where contract
costs are denominated in South African rand, we eliminate currency
exposure for a foreseeable period on these future cash flows, through
forward currency contracts.
In 2023, the Group recognised a gain of £2.8m (2022: loss of £2.5m)
through other comprehensive income in relation to the changes in fair
value of related forward currency contracts, where the cash flow hedges
relating to firm commitments were assessed to be highly effective.
The Group reports its results in pounds sterling. The Group has seen
relatively minor currency translation movements, as the pound sterling
fluctuations against other currencies, particularly the US dollar and the
euro, which impacts us the most, largely offset each other.
The impact of restating 2022 results at 2023 exchange rates would be
an increase of £5.0m in 2022 revenue and an increase of £0.5m in 2022
adjusted profit before tax.
Delivering long-term value
Chief Financial Officer’s review continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 055
Maintaining long-term value
We are a responsible business that believes in winning
together for our people and our planet, supported by
strong governance to maintain long-term value for all
our stakeholders.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023056
GLOSSARYGLOSSARY
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Maintaining long-term value
Stakeholder engagement
Engaging with our stakeholders is key to building trust in our
relationships with them.
When we first engage, it allows us to understand their needs and
expectations and, in line with our Winning Together Values, be open,
straightforward and realistic about whether we can meet these. Where
we can’t, it allows us to explore whether there are alternative solutions,
common ground or areas of compromise that will allow us to build
a mutually beneficial relationship.
As our relationship develops, ongoing engagement helps us to demonstrate
consistency in our behaviours and decision-making, meaning that our
stakeholders build up an understanding of what they can and should
expect from us. With every interaction, we also develop a clearer picture
of their business, technology and wider objectives, the journey that they
are on to achieve them, and the role we can play in helping them do so.
Collectively, our key stakeholders are an indispensable part of how we
do business. We understand their importance and know we have to keep
working hard every day to earn and retain their trust and loyalty.
Building trust with our
stakeholders
We want long-term, sustainable and
increasingly productive relationships with
each of our stakeholders. Understanding
and addressing their views, interests and
concerns helps us achieve this aim.
Our customers
Our customers place their trust in us to Source,
Transform and Manage their digital technology
to help them change the world.
Our people
The calibre and capabilities of our employees
drive our business forward and we recognise the
importance of attracting, developing and retaining
the best people.
Our shareholders
Our shareholders provide capital support that
allows us to build a sustainable business for the
long term.
Our technology vendors
Our technology vendors provide us with expertise
and leading digital technology that underpins the
competitiveness of our customer offering.
Our communities
The communities in which we operate support the
social, economic and personal interests of our
other key stakeholders.
Our key stakeholders enable Computacenter to create value for them
High quality, cost-competitive offering
Trust and long-lasting relationships
Career development opportunities
Skills, loyalty and value creation
Additional route to market
Leading digital technology
Sustainable growth and shareholder value
Investment and valuable feedback
Local support and value creation
Strong community relationships
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 057
Stakeholder engagement continued
Maintaining long-term value
Why we engage
Our Winning Together Values are clear. We put our customers first,
keep our promises to them and always prioritise the long term in our
dealings with them. This makes Computacenter a deeply customer-
centric organisation.
Our collaboration with customers requires continuous two-way
engagement across all levels of our organisation. This ensures we are
aware of their needs and values, allowing us to create customer intimacy
and serve them effectively, by adapting as their digital environments
and technology needs evolve.
What matters to them
Our customers expect us to be flexible, commercial and creative in
responding to their requirements. While they have different individual
priorities, they want us to add value through a deep understanding of
their IT strategy and requirements, and through operational excellence
delivered through our people and systems. They also expect us to
deliver services to them in a way which reflects agreed terms, and is
safe and sustainable.
How we engage
Our day-to-day customer engagement generally covers commercial
opportunities, relationship development and our service delivery and
performance. Engagement mechanisms include face-to-face meetings
with our sales or delivery functions, customer training and workshops,
and ongoing dialogue through client directors and account managers,
our service support functions and, where necessary, our management
teams. We use regular customer surveys and other structured
mechanisms to obtain feedback on our operational performance.
How we reported their views to the Board
Customer feedback is reported up through Management levels. The CEO
reports any material customer issues as part of his operational performance
update at each scheduled Board meeting, which also includes significant
contract bids and wins. Our North American and European management
leaders also presented to the Board and covered customer feedback,
metrics and trends.
Outcomes of the engagement and impact on Board decision-making
The Board discussed key feedback from customers, including how their
short- and medium-term buying behaviour was likely to be impacted by:
technology trends enabling efficiency and automation for themselves or
their own customers; the global macroeconomic outlook, including in
some of our core European markets; the unwinding of global IT supply
chain issues; and ongoing geopolitical uncertainty.
Customer feedback was important for the Board in discussing and
approving the Group’s strategy and related investments for 2024-2026,
including in which areas Computacenter should focus its investment to
develop its customer value proposition and gain market share. Related
strategic discussions included customer appetite for artificial intelligence,
automation and offshoring, and their carbon reduction objectives. As a
result, the Board approved material investment in the Group’s customer
IT Service Management platforms and its Circular Services proposition.
Information from customers on their likely ongoing IT spend also helped
the Board to assess the reliability of financial forecasts, allowing it to
approve trading outlook updates during the year, and to set realistic but
stretching financial targets for 2024.
Customer-value proposition
We maximise the value of customer relationships by selling to our
customers across each of our three business services lines:
1. Leading digital technology through Technology Sourcing
2. Deploying technology solutions through Professional Services
3. Supporting customer IT operations and infrastructure through
Managed Services
Our customers
Our customers
“Effective communication with our
customers is key, allowing us to
create customer intimacy and serve
them effectively.”
John Beard
Managing Director, Europe
Professional Services
4,000+
completed projects for
our customers
Technology Sourcing
12m
items supplied to our customers
Our integrated portfolio
case studies
See pages 022 to 025
Managed Services
3.5m
customer incidents and
requests managed
Maximising our relationships
183
customer accounts with gross
profit of over £1m per annum
Market and Customer Trends
See page 014
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023058
Maintaining long-term value
Our people
Stakeholder engagement continued
Our people
Why we engage
Our people are at the centre of what we do and are essential for our
growth. They implement and promote our culture and represent
Computacenter with our other key stakeholders, building relationships,
generating long-term trust, and learning about their requirements and
preferred ways of operating.
Clear, consistent and frequent engagement with our people, and the
groups that represent them, helps us to understand their key challenges
and concerns, and what they think these are for the Group.
What matters to them
Our people expect us to provide fair and safe working conditions, and an
environment where they can get the best from themselves. Engagement
allows us to understand how we can continually strive to do this better.
How we engage
We engage at all levels across Computacenter, through our management
teams, Group HR’s supporting activities, frequent employee surveys, and
formal interactions with employee representative bodies. Our nominated
Non-Executive Director for Workforce Engagement, Ros Rivaz, also
undertakes an engagement programme.
We frequently communicate with our people, either individually, at
departmental level or on a Group-wide basis. This includes the CEO’s
‘This Week’ email to all employees, covering topics such as sector
performance and trends, or significant geopolitical or macroeconomic
events, often explaining how the Board and Management think these
during the year, which informed the Board’s assessment that
Computacenter’s culture remains well understood and embedded
across the Group, and the Board’s approval of the Group’s environmental
strategy, including carbon reduction targets. Wider engagement with
employee representative bodies made clear the continued impact of
inflation and general macroeconomic conditions on employees across
the Group. This was fed back to the Board as part of updates from the
Chief Executive Officer and Chief People Officer. Following these updates,
the Board approved improved terms on which eligible employees can
participate in the Group’s Sharesave Schemes.
“Clear and frequent engagement with
our people across the Group helps us
to understand what’s working well and
which areas need our focus.”
Sarah Long
Group Chief People Officer
might affect Computacenter. Employees can provide their feedback
to the CEO via a dedicated email address.
How we reported their views to the Board
Employees’ views, including material issues they raised, were
communicated to the Board through the CEO’s general business updates,
the Workforce Engagement Director’s reports on her engagement
programme, and the Chief People Officer’s presentations on the 2023
Group Employee Survey results and Management’s interactions with
employee representative bodies.
Outcomes of the engagement and impact on Board decision-making
The 2023 Group Employee Survey was completed by 81% of our
employees, which was over 7 percentage points higher than for the
previous survey in 2021 which had a 74% response rate. Over 16,000
responses and 22,000 employee comments were received and reviewed.
The Group’s sustainable engagement score is a key measure of how
connected to the Company employees feel and their general wellbeing
at work. At 83%, this was comparable to the wider IT sector and a slight
improvement on the last survey in 2021. In most areas, the results were
significantly stronger than in 2021, outperforming the sector norm in
areas such as inclusion, growth, manager support, and health and
wellbeing. Employees also noted substantial improvement in the Group’s
promotion of environmental responsibility, but thought the Group could
make further progress here.
Areas for Management consideration included: enhancing some internal
processes to improve efficiency and effectiveness; providing continued
education on the Group’s strategy and how employees’ roles contribute,
especially at more junior levels; and improved internal communication,
particularly when executing internal change.
Ros Rivaz met employee representative bodies such as ‘My Forum’ in
the UK, with whom she discussed post-Covid-19 working arrangements;
and the Group’s Climate Change Committee, which provided insight into
stakeholder expectations in this area and its importance to current and
potential employees. She also met with representatives of our US and
Romanian subsidiaries, which are two of the more recent additions to the
Group, to understand their views of Computacenter’s culture. Feedback
indicated that Computacenter’s values are clear, are lived on a day-to-
day basis and that employees see them as a competitive differentiator.
Ros presented employee feedback to the Board on several occasions
Supporting our growth
24.7%
increase in our global workforce
since 2018
Group Employee Survey response
16,016
survey responses received
Our people and culture
See page 020
Employee connection & wellbeing
83%
employee sustainable
engagement score
Group Employee Survey feedback
22,000
additional employee comments
received and reviewed by the
Company
Sustainability – people
See page 083
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 059
Our shareholders
Earnings per share growth
18.2%
compound annual growth in
adjusted diluted earnings per share
from 2018-2023
Shareholder distributions
£401m
amount returned to shareholders
through dividends and capital
returns since 2018
CEO’s performance review
See page 030
Generating returns
55.4%
return on capital employed
in 2023
Total shareholder return
179%
growth in market capitalisation,
dividend and capital returns
since 2018
Our track record
See page 032
Maintaining long-term value
Stakeholder engagement continued
Our shareholders
Why we engage
As shareholders own the Company, it is essential for the Board and
Management to understand their views on key topics such as our strategy
and priorities for investment, as well as their expectations of us in evolving
areas such as sustainability. Two-way engagement also allows current
and potential shareholders to make informed decisions concerning
investment in Computacenter.
What matters to them
Our shareholders want an appropriate return from their investment
in Computacenter. To help them make effective investment decisions,
they want to understand our strategy, our current or projected financial
performance, and our approach to ESG matters.
How we engage
The Executive Directors meet shareholders following the release of
the Group’s full-year and half-year results, which they also present to
sell-side analysts. Following these meetings, the Group’s brokers obtain
feedback. The Chair and the Company Secretary undertake a governance
roadshow with significant shareholders following the release of the
Annual Report. The Company also offers shareholders the opportunity
to meet with the Directors and ask questions at the annual general
meeting (AGM).
The Group also communicates with its shareholders through its
regulatory announcements and our Annual Report, updating them
on strategy, performance and governance.
Group’s dividend policy, which the Board decided to leave unchanged.
As in previous years, there was also significant interest in the Company’s
share valuation against its peers. The Board considered an action plan to
respond in the Company’s and shareholders’ interests.
How we reported their views to the Board
The CEO updates the Board on shareholder and analyst interactions twice
per year, supported by detailed reports from the Group’s brokers and
communications advisory firm on those interactions. The Board reviews
and discusses these reports. The Board also requested a presentation
from one of the Group’s newly appointed brokers, to enhance its
understanding of institutional investors’ views of Computacenter and
the factors that influence the Company’s share price. The Board directly
interacts with shareholders at the AGM.
Outcomes of the engagement and impact on Board discussions
and decision-making
Feedback from our institutional investors focused on a number of areas.
These included the long-term sustainability of the Group’s success in
Germany; the capacity for substantial organic and inorganic growth in
the US over differing time horizons; the importance of geographic and
business line diversity to the Group’s consistency of performance; the
prospects for the UK business recovery, following weaker performance in
2022 and 2023; the Group’s ability to maintain Services margins, in a cost
and wage inflationary environment; and progress with reducing the Group’s
increased inventory held at the end of 2022 and the impact on the
Group’s forecast cash position. The Board has ensured that explanations
and progress on these issues were included when approving the Group’s
performance updates to the market during the year.
Shareholders continued to show significant interest in the Group’s
priorities for its use of cash. This included a range of views around
the attractiveness of share buybacks, dividend payouts and further
acquisitions, and the need for strategic investment to increase the
Group’s long-term operational reliability and efficiency, which reduced
short-term profitability in 2023.
This was all reflected in the Board’s reviews, discussions and/or
approvals during the year concerning: mergers and acquisitions
opportunities; further IT services management programme spend; the
creation of additional distributable reserves through a shareholder-
approved share capital reorganisation; the quantum of dividend
declarations (which the Board considered against other stakeholder
interests concerning our balance sheet strength, investment requirements
and long-term viability), resulting in a 2022 final dividend of 45.8p per
share and a 2023 interim dividend of 22.6p per share; and approval of the
“Two-way engagement with our
shareholders allows them to make
informed decisions about their investment
in Computacenter, and helps us understand
their views in key areas such as strategy,
performance and governance.”
Christian Cowley
Group Head of Investor Relations
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023060
Our technology vendors
Powerful partnerships
58
technology vendors represented
at the Group’s most recent
sales conference
Technology vendor engagement
1,291
Computacenter employees who
attended the Group’s most recent
sales conference and heard from
our key technology vendors
Our integrated portfolio –
Technology Sourcing
See page 023
Engagement impact
163%
absolute growth in our
Technology Sourcing gross
invoiced income since 2018
Technology vendor recognition
20+
technology vendors recognised us
as their partner of choice across
different geographies and sectors
during the year
Our Performance
See page 036
Maintaining long-term value
Stakeholder engagement continued
“Powerful partnerships are forged
through mutual understanding and
shared ambition to deliver outstanding
customer experience. Our Global
Alliances strategy focuses on future
advancement and alignment.”
Sarah Shields
Group Alliances Director
Our technology vendors
Why we engage
Our technology vendors are critical for us. We aspire to be their preferred
route to market for our chosen customer sectors and they benefit from
our customer intimacy, which comes from our focus on long-term,
multi-level strategic customer relationships.
To enable us to grow together, we need strong and sustainable working
relationships with our technology vendors, at both a day-to-day and
strategic level, covering operational, engagement and commercial support.
What matters to them
Our technology vendors want us to add value and drive customer
satisfaction with their products. This requires us to understand their
products’ capabilities in detail and to leverage our deep customer
relationships and technological expertise, to determine how these
capabilities support our customers’ IT requirements.
How we engage
Our sales, technical and services teams engage regularly with our
technology vendors’ customer-aligned sales and technical personnel,
to ensure strong working partnerships on a customer-by-customer
basis. The Group Technology Sourcing Team formally engages with our
vendors day-to-day, as well as at management and executive level.
Technology vendors also share product and strategy information at
multiple formal and informal events during the year, to enable us to fully
support our customers’ initiatives and business planning.
How we reported their views to the Board
The Board received updates from the Chief Executive Officer, Chief
Commercial Officer and other members of the senior Management team
on our technology vendors’ views, and reviewed the Group’s technology
strategy and tooling capabilities. Board members also heard directly
from senior representatives of several of our technology vendors who
presented at our annual Group-wide sales event, where they described
their latest technical innovations, their view of how our organisations
can most effectively work together and their areas of focus for the year.
Outcomes of the engagement and impact on Board discussions
and decision-making
Following engagement and feedback from our technology vendors, we
launched a Global Alliances function in 2023 to further strengthen our
partnerships with them. We now have representatives on global, regional
and country advisory boards for all our strategic technology vendors,
which help us to maximise synergies, align strategy and drive growth
opportunities with them.
The pace of technology change makes ongoing engagement critical.
Our engagement in 2023 made clear that our technology vendors are
particularly focused on AI and want to engage with partners who understand
and can communicate the opportunity effectively. The Board considered
this when discussing and approving the three-year strategy plan for
2024-2026, and related investments.
Engagement at all levels has also played a material role in the continued
growth of our Technology Sourcing business, with revenue increasing by
7.9% in 2023. Reflecting the value we deliver, over 20 technology vendors
recognised us as their partner of choice through awards across different
geographies and sectors during the year.
Engagement has also made clear that security remains at the forefront
of vendor priorities, particularly enhancing and improving end-point
resilience, in response to an ever evolving threat landscape. On device AI
capabilities at both hardware and software layers will continue to enhance
cyber protection. Our vendors are also focused on sustainability goals
that support the global drive for Net Zero. By working collaboratively with
the world’s leading technology vendors, Computacenter remains focused
on and committed to our 2040 SBTi-validated goals.
STRATEGIC REPORT GOVERNANCE
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Computacenter plc Annual Report and Accounts 2023 061
Stakeholder engagement continued
Maintaining long-term value
Stakeholder engagement continued
Our communities
Why we engage
We seek to build long-term trust with our stakeholders. These include
the communities in which we, and our other stakeholders, live and work.
Our communities support our ability to do business and supporting them
in return is a responsibility. By doing so, we aim to inspire our people,
to illustrate our commitment to understanding people matter (one of
our core values), and to maintain and enhance our corporate reputation.
What matters to them
Our communities are interested in ensuring that our operations are safe
and sustainable, so that the positive economic and social impact that
Computacenter has on them is protected over the long term and increases
over time. They expect us to engage with them on social and environmental
issues that matter to them, including areas such as D&I, and the
sustainable use of resources within our operations. They also expect
us to act ethically, to treat our stakeholders fairly and, where possible,
to support them financially or with our time.
How we engage
Our activities are focused on attracting diverse talent to our organisation,
promoting the awareness of women in technology, as well as supporting
those with disabilities and young people from disadvantaged
backgrounds. Our core engagement is primarily focused on school,
community and university outreach programmes. Over 200 employee
volunteers supported our flagship educational outreach programme,
Bright Futures, during 2023, completing over 1,000 hours of outreach
activity, and reaching over 21,000 students and young adults, often in
a mentoring capacity. The Bright Futures mission is to support the next
generation of young people by inspiring them to follow a career in
technology, and the programme was shortlisted for the Chartered
Institute of Personnel and Development (CIPD) People Management
Awards Best CSR/ESG initiative in 2023. For further information on
engagement with our communities, please see page 087.
How we reported their views to the Board
The Board received updates from the Group Development Director on
our commitments and reporting related to the environment and climate
change, and from the Chief People Officer on our activities to engage with
and support our local communities.
Outcomes of the engagement and impact on Board discussions
and decision-making
Our engagement in schools and university continues to make clear the
importance that a significant proportion of student and young adults
place on preventing climate change, including through the reduction of
carbon emissions. Many thought this would be an important differentiator
for them in making employment decisions when they left education.
There was also interest in ensuring continued progress on social issues,
such as encouraging and increasing diversity and ensuring equality in
society and fair treatment for all in the workplace.
Feedback from this engagement was considered by the Board when
reviewing the Group’s Environmental Strategy, including its priorities
and objectives, and endorsing the Group’s existing environmental targets
and commitments, such as being Net Zero by 2040, as well as approving
incremental investment to develop and grow the Group’s Circular Services
capability and integrate it into our core VAR and Services operations.
The environmental and social objectives set for the Executive Directors
as part of their 2023 annual bonus targets include a corporate objective
to increase gender diversity across Computacenter, and also continued
progress against our climate change related targets and objectives.
The Board also considered the interests and expectations of our
communities when reviewing and approving the Group’s Modern
Slavery Act statement and Gender Pay Gap reporting during the year.
“Our Bright Futures programme reached
over 21,000 students and young adults
during the year, supporting the next
generation of young people by inspiring
them to follow a career in technology.”
Craig Cobb
Future Talent Manager, UK
Our communities
Employee engagement with
our communities
200+
Computacenter employees
who volunteered as part of
the Bright Futures programme
in 2023
Considering social impact
Carbon
neutral
in our operations for the second
successive year
Sustainability – planet
See page 089
Community outreach activity
1,072
employee volunteering hours
completed in the UK
Community outreach recognition
Award
nomination
Bright Futures programme
short listed for the CIPD People
Management Awards Best
CSR/ESG initiative
Sustainability – solutions
See page 092
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023062
Maintaining long-term value
Listening to our employee
representatives
Myforum is made up of employee representatives
from across the UK business, who meet with
members of Management on a number of occasions
through the year. As a result of direct interaction with
myforum representatives, the Company introduced
an updated Sickness Policy in the UK in August 2023.
This included a new absence management process,
designed to help Managers track, monitor and
manage absence, the creation of an income
protection guide for those on long-term sick leave,
and an increase in the length of time for which
employees were entitled to sickness related pay
in any 12-month period.
7
Meetings between Computacenter
Management and formal employee
representative bodies in 2023
Engaging with our stakeholders
Our Group Sales Conference
Our Group Sales Conference was attended by
members of the Board, the Group Executive
Committee, other senior Management, our sales
force, and representatives from a wide range of our
technology vendors. The range of mutual engagement
is extensive, often taking place within our technology
vendor village (pictured below), where vendor
representatives are able to discuss and illustrate
their latest technology offerings with members of
our sales force. Those representatives also heard
from our Executive Directors and the leaders of
our three business lines on Computacenter’s areas
of business focus, and financial and operational
objectives for 2024.
“Our Group Sales Conference
provides an opportunity for
our sales force to speak with
our technology vendors and
understand in detail the latest
range of technology options
available for our customers.”
Lieven Bergmans
Chief Commercial Officer
LISTENING TO OUR TECHNOLOGY VENDORS
UNDERSTANDING PEOPLE MATTER
Maintaining long-term value
Stakeholder engagement continued
Computacenter plc Annual Report and Accounts 2023 063
GLOSSARY
STRATEGIC REPORT
FINANCIAL STATEMENTS
GOVERNANCE
Principal risks and uncertainties
We manage risks to
support our Group
strategy in delivering
long-term value
We do this through a well-established
risk and control framework, enabling
management to consider our main risk
areas – Strategic, Contractual and
Operational, Infrastructure, Financial
and People.
Risk identification and impact
Risk assessment and reporting are designed to provide the Board with
a Group-wide perspective of key risks.
The Group Risk Committee, which reports to the Audit Committee, meets
four times per year and reviews our principal risks, which are the main
barriers to meeting our strategic goals, on an ongoing basis. This
top-down approach includes assessing whether emerging risks are
sufficiently significant to warrant inclusion in the Group Principal Risk
Log, with potential emerging risks included as an agenda item at each
Group Risk Committee meeting. If so, the likelihood of occurrence and
potential impact are considered, and the risk is subject to regular review.
Regular reporting to the Group Risk Committee by the respective risk
owners includes an assessment of the likelihood and cost impact of
each risk, a consideration of non-financial impacts, risk appetite, key risk
indicators, potential risk triggers and an assessment of mitigating controls.
The Group Principal Risk Log is reviewed by both the Audit Committee and the
Board. The key risks are considered further in relation to the long-term
Viability Statement (see pages 076 to 077).
Other lower-level risks outside the principal risks are identified and
analysed in two ways. These are:
1. Through the bottom-up Group Operating Business Risk Assessment
process (GOBRA), which is completed by managers across the
business. The results of this process are reviewed by the Group Risk
Committee. This includes validating these risks against the principal
risks, to ensure that all potential threats are considered and any
emerging risks are identified. Lower-level risks are often triggers for
crystallising principal risks, so their careful management remains an
important consideration.
2. Via the Group Compliance Steering Committee (see risk governance
model) which assesses reports from the Compliance Management
System for the areas under its remit.
Risk overview
Our long-term success is built on a clear strategic direction, contractual
and operational excellence and effective business services functions,
such as Finance, Human Resources, and Legal and Compliance, which
support customer-facing employees to fulfil their obligations effectively.
All of this is underpinned by an advanced IT infrastructure, hosting both
internal and customer platforms. Our strategic, contractual and
infrastructure risks are largely determined by the industry in which we
operate and our long-term approach to adding value. Our financial and
people risks are defined by the wider economic environment, the way
we run our business day-to-day and our long-term employee needs.
While outside factors such as geopolitical risk, market trends and
macroeconomic factors are beyond our control, our risk management
approach is committed to managing the impact of these influences,
while controlling the internal elements vital to our success.
Risk appetite
Our Group-level overall risk appetite is strongly influenced by our experience
in our industry sector. At an operational level, we have a higher risk appetite
for business development where we have experience of the risks and
a lower risk appetite where we have less experience. This is supported
day-to-day by our operating policies and governance processes, which
include decision-making support and authority over new contracts and
contract changes.
Risk culture
Risk management and governance processes are well established and
understood within the business and operate at all levels. Strategic-level
risks are monitored by the Risk and Audit Committees, as well as by the
Board. Lower-level operational risks are identified, analysed and mitigated
at a functional level on an ongoing basis, using well-embedded processes.
Maintaining long-term value
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023064
Maintaining long-term value
Principal risks and uncertainties continued
THE BOARD
• Group Legal & Compliance
• Group Information Assurance
• Country-specific Take-on
• Group Quality Management
& Assurance
• Group Opportunity Governance
• Anti-bribery & corruption
• Competition law
• Export control
• Whistleblowing
• Data protection
• Environmental
• Health and safety
FIRST LINE OF DEFENCE
Risk ownership and application
of internal controls
• Country-specific Management
• Group Managed Services
• Group Professional Services
• Group Technology Sourcing
• Group Finance
• Group Information Services
• Group Human Resources
Group Risk Committee
Group Compliance Steering
Committee
NOMINATION COMMITTEE
REMUNERATION COMMITTEE
EXECUTIVE COMMITTEE
AUDIT COMMITTEE
SECOND LINE OF DEFENCE
Compliance, oversight and
assurance functions
THIRD LINE OF DEFENCE
Independent assurance
Group Internal Audit
Our risk governance model
STRATEGIC REPORT GOVERNANCE
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Computacenter plc Annual Report and Accounts 2023 065
Maintaining long-term value
Principal risks and uncertainties continued
Risk management framework
THE BOARD
• Sets strategic KPIs
• Defines risk appetite
• Has overall responsibility for the Group’s
risk management process
and internal control systems
• Monitors risk exposure in pursuit of
our strategic KPIs
• Group-wide risk identification
and assessment
• Ongoing monitoring of mitigations
performed across the Group through
management, key performance
indicators and review by the
appropriate Risk Manager
• Internal controls embedded across
the Group
OPERATIONAL LEVEL
• Reviews the effectiveness of
our risk identification and risk
management process
• Reviews the effectiveness of
internal control systems
• Supports the Board in monitoring
risk exposure
AUDIT COMMITTEE
• Sets the risk management process
• Provides oversight and challenge on
the effectiveness of risk mitigation
for our principal risks
• Considers emerging risks and also
high-impact/low-likelihood risks
GROUP RISK COMMITTEE
• Internal Audit plans are focused on
providing assurance on our principal
risks to assist the Audit Committee
in its review of the effectiveness of
the risk management process and
of our internal control systems
INTERNAL AUDIT
TOP DOWN
Identification and assessment of risk by
senior Management
BOTTOM UP
Identification, assessment and mitigation of risk for
business and functional areas, delivered through our
Group Operating Model and GOBRA
STRATEGIC REPORT GOVERNANCE
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Computacenter plc Annual Report and Accounts 2023066
Principal risks and uncertainties continued
Maintaining long-term value
Risk trends
The overall risk landscape has changed due to specific threats and our
response to them as discussed below.
We use the three lines of defence model with regards to the assurance
over key risks. This includes a mapping exercise which considers the level
of assurance afforded by each of the compliance and oversight functions
when considering the overall level of assurance provided over each risk.
To aid the appreciation of the risks facing the Group, we have categorised
them into five main areas.
Strategic: The strategic-level risk profile is one of long-term risk due
to technological change, including Computacenter’s ability or otherwise
to innovate effectively, and the global nature of our operations exposing
us to specific political and economic influences. Our response continues
to mature in line with market and customer changes.
The gross risk profile relating to geopolitical threat has increased with
conflict in the Middle East, the ongoing war in Ukraine and continuing
US-China tensions coupled with upcoming elections in both the UK and US.
However, we continue to monitor developments that could impact our
customers and supply chain to ensure an appropriate response, keeping
the net potential impact unchanged from last year.
Contractual/Operational: Our main focus remains on the effective
governance of contracts, both in the pre-deal phase and in delivery.
We continue to extend the use of our Service Quality Management
framework to improve the underlying quality of sales, bid governance
and operations. We also continue to recognise the need for effective
acquisition integration, and compliance and reputational risks in relation
to data privacy and ESG matters as principal risks. We have recognised
the potential breakdown of strategic vendor relationships as a principal
risk for the first time this year but we have well-embedded controls in
place to combat this and, overall, we believe the main contractual and
operational risks have remained at the same level, underlined by our
robust governance structures.
These economic headwinds are counterbalanced by well-established
internal processes such as careful cost and working capital management
and effective and transparent forecasting and reporting. The main
mitigating control is to minimise fixed-cost growth, which includes
actively moving resources to nearshore and offshore locations and
increasing the levels of automation. In the Technology Sourcing business,
we sell on a cost plus basis in general so there is minimal impact from
inflation on the gross margin. In Professional Services (PS), the key
inflation impact is our ability to pass on salary and other cost increases
to customers. A large portion of our PS billing is based on employee time
sheets so cost increases can be passed on in the majority of cases,
although there are some PS frameworks where we cannot increase
prices immediately. In Managed Services, in the UK, we have cost of living
adjustment (COLA) clauses in place in many contracts allowing cost
increases to be passed on, although we recognise that these need
careful negotiation with customers. More careful negotiation is also
required in France, where the position is more mixed, and in Germany,
where COLA clauses are less common. Further detail on working capital
management can be found in the Chief Financial Officer’s review on
page 052.
People: Our people remain integral to the continued success of our
business. The risks reflect the importance we place on experience,
inclusivity, openness and collaboration. We believe our risk profile has
reduced following the CFO’s succession being successfully completed
during the year.
Infrastructure: Cyber security remains at the forefront of discussions
for the Board and at both the Risk and Audit Committees. Cyber security
risks are increasing due to the greater activity of a range of cyber threat
actors, including nation states, worldwide. This greater activity has
resulted in more sophisticated and more frequent cyber attacks against
IT infrastructure. Computacenter, along with other companies of a
similar size and profile that operate within our sector, has been the target
of cyber attacks in recent years. We have continued to invest significantly
in our defensive systems, organisation and people which has ensured,
to date, that these attacks have been identified and mitigated without
any material impact on our financial or operational performance.
As disclosed last year, the need to update some of our core systems in
the coming years has increased the gross risk profile, with this being
mitigated by ongoing planning.
Financial: We continue to concentrate on the fundamentals for our
business, including the effective management of working capital.
The current volatile macroeconomic situation, especially in relation to
inflation, interest rate increases and potential recession, continues to be
a cause for concern although inflation rates have reduced over the year
in our main markets. The main impact of inflation on our business is that
we may be unable to pass on the cost increases we incur in full. To the
extent that we cannot recover cost inflation, there is a risk that we will not
meet earnings expectations which could impact our financial reputation
with shareholders. The central banks’ approach to taming inflation is to
increase interest rates with the danger that this could cause a recession
and, combined with a profit squeeze due to inflation, could reduce
demand for IT projects and implementation.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 067
Maintaining long-term value
Principal risks and uncertainties continued
The risks presented below are the principal risks that existed during 2023, as reported in the Annual Report and Accounts 2022, and were modified during the year through
the risk identification and impact process.
Our three strategic KPIs Customer relationships
Retain and maximise the
relationships with our large
corporate and public sector
customers over the long term
Services growth
Lead with and grow our Services
Productivity
Increase the adjusted operating
profit we retain as a proportion
of our gross profit
RISK CATEGORIES:
Strategic risks
Market shift in technology usage
Increasing global nature of operations
Contractual and operational risks
Contracting risk
Vendor relationships/supply chain risk
Acquisition integration
Compliance/reputational risk
Infrastructure risks
Cyber threat
Integrity failure of critical systems
Financial risks
Ineffective working capital management
Heightened macroeconomic factors
People risks
Poor employee recruitment and retention
Inadequate succession planning
Group risk heat map 2023 (showing risk net of
mitigating actions)
LIKELIHOOD OF RISK
IMPACT ON BUSINESSLOW HIGH
UNLIKELY LIKELY
1. Strategic risks Unchanged risk
2. Contractual and
operational risks
Unchanged risk
3. Infrastructure risks
Unchanged risk
4. Financial risks
Unchanged risk
5. People risks
Reduced risk
3
4
1
3
5
2
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023068
1. Strategic risks
Alert status
Our response continues to mature in line with market and customer changes. Increased geopolitical
volatility is offset by well-managed internal responses.
Appetite
Our risk appetite relating to geopolitical risk and our location strategy is balanced. By utilising multiple
locations we increase the likelihood of an event or events occurring, but we reduce the impact that an event in
any one location would have on the business, coupled with our business continuity strategy.
Risks
• Market shift in technology usage, making what
we do less relevant or superfluous and we fail to
invest appropriately to defend our competitiveness
• The increasingly global nature of our operations
exposes us to additional and specific political
and economic influences, such as geopolitical
risk relating to our operational base and
changes in the competitive landscape for
certain business activities which attract large
global competitors
Principal impacts
• Reduced margin
• Excess operational employees
• Contracts not renewed
• Missed business opportunities
1. Strategic risks continued
Mitigation
• Well-defined Group strategy, backed by an
annual strategy process that considers our
offerings against market changes
• New Group Portfolio Board which meets
quarterly to align and define our go-to-market
strategy by Service and by business line/
solution area
• In the Managed Services Service Line, the
Capabilities and Innovation function reviews the
Service Line’s specific needs and strategy for
competitiveness and growth
• Location strategy coupled with well-defined
business continuity processes
• Regular location risk monitoring covering
political, economic, social, technological, legal
and environmental risks
• Group Investments and Strategy Board, which
considers strategic initiatives
• Additional measures including CEO-led country,
sector and win/loss reviews
Risk owners
• Group Development Director
• Managing Director Managed Services
Principal risks and uncertainties continued
Maintaining long-term value
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 069
Maintaining long-term value
Principal risks and uncertainties continued
2. Contractual and operational risks continued
Mitigation
• Mandatory governance processes relating
to bids and new business take-ons, including
risk-based decision-making assessments and
new tooling
• Focus on service excellence underpinned by
associated processes such as the Deal Lifecycle
Framework and Deal Assurance
• Board oversight of significant bids
• Early warning system and assurance provided
by the Group Quality Management & Assurance
function over key bids and delivery programmes
• Delivery Management Framework to monitor
customer relationship status, obligation
compliance and service level agreement
(SLA) performance
• Regular commercial ‘deep dives’ into
troubled contracts and challenging
transformation projects
• Close working relationship with key vendors
• Working closely with customers to stabilise
scheduled deliveries
• Data privacy audit programme
• Security controls as described in the
Computacenter Technical and Organisational
Measures
• Focus on data deletion to minimise storage
of personal data
• Appropriate due diligence and acquisition
integration plans in place, with ongoing
monitoring of key risks to ensure success
• Board-endorsed sustainability strategy
• Climate Change Committee oversees initiatives
to reduce environmental impact (see page 095)
• TCFD disclosure (see pages 094 to 101)
• Strong Company culture and values (see pages
007 and 020)
• Oversight by the Compliance Steering
Committee including a compliance
maturity project
• Strong corporate governance, risk management
and ethics, including policies and/or training for
anti-bribery and corruption, export compliance,
competition law, health and safety environment
and human resources, in addition to a
whistleblowing hotline
Risk owners
• Managing Director Managed Services
• Group Legal & Compliance Director
• Group Development Director
• Chief Commercial Officer
2. Contractual and operational risks
Alert status
The main contractual and operational risks have remained at the same level, underlined by our robust
governance structures.
Appetite
We operate in a competitive services marketplace and normally compete for business with other market
participants. Our risk appetite is therefore expressed in the price/margin we bid and any specific risk
provision/contingency that is identified. Risk appetite is therefore specific to a deal/client and is controlled
through governance processes. The risk appetite from a pure compliance perspective is very low, however
we focus on ensuring that this risk is managed in a manner that reflects business needs, efficiency and
effectiveness, driving compliance.
Risks
• Lack of effective pre-contract processes
relating to design, costing and pricing and lack
of effective post-contract management and
delivery, both leading to loss-making contracts,
problems with service delivery and inability to
win new contracts
• Failure to comply with applicable laws and
regulations, including contractual obligations,
or to meet our commitments in relation to the
protection of employees and customers’
personal data, and in relation to environmental,
social and governance matters, leading to
potential litigation, fines and/or reputational
damage with customers and other stakeholders
• Breakdown of strategic vendor relationships
and supply chain shortages leading to excessive
working capital investment and potential
customer dissatisfaction
• Lack of effective acquisition integration and
failure to deliver on acquisition objectives
Principal impacts
• Customer dissatisfaction
• Financial penalties
• Contract cancellations
• Reputational damage
• Reduced margins
• Loss-making contracts
• Reduced service and technical innovation
• Loss of employees
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023070
3. Infrastructure risks
Alert status
While cyber security risks are increasing due to the greater activity of a range of cyber threat actors,
this is mitigated by significant investment in our defensive systems, organisation and people. The risks
involved with the need to update some of our core systems in the coming years is being mitigated by
ongoing planning.
Appetite
We have a very low appetite for risk relating to cyber security and availability of our core and customer-facing
systems, given the impact such issues would have on our reputation in our core markets.
Risks
• Cyber threat to Computacenter’s networks and
systems, arising from either internal or external
security breaches, leading to system failure,
denial of access or data loss. In addition,
cyber threats introduced by Computacenter
to its customers’ networks and systems,
for whatever reason
• Major failure(s) leading to unacceptably long
outages or regular short outages of our
customer-facing systems, leading to customer
dissatisfaction, financial penalties or contract
cancellations, damaging our reputation and
ability to win business
• Failure to plan and execute effectively the
replacement of our core internal systems,
leading to loss of growth opportunities and
business control
Principal impacts
• Inability to deliver business services
• Reputational damage
• Customer dissatisfaction
• Financial penalties
• Contract cancellations
3. Infrastructure risks continued
Mitigation
• Well-communicated Group-wide information
security and virus protection policies
• Specific inductions and training for employees
working on customer sites and systems
• Specific policies and procedures for employees
working behind a customer’s firewall
• Ongoing and regular programme of external
penetration testing
• Policies ensuring Computacenter does not run
customer applications or have access to
customer data
• Regular review of cyber security controls and
threat analysis by Computacenter’s Group
Information Assurance team
• Increased Board scrutiny of cyber resilience
maturity and plans
• Availability reporting, capacity reporting and
operational monitoring in place, including cyber
monitoring and management
• Improved patching and vulnerability processes
• Long-standing design principles underpin all
core and customer-facing systems, designed
to mitigate the risks to system and service
availability
• All centrally hosted core systems are built
and operated on high-availability data center
infrastructure, clustered across two data
centers in Hatfield, with disaster recovery
capabilities provided in Germany. The two
Hatfield data centers run on separate
infrastructure and environment systems,
and are powered by separate energy
sources providing resilience across our
data center estate
• Ongoing work on our perimeter defences to
help minimise the risk that any attack on our
non-core systems poses an additional threat
to our central infrastructure
Risk owners
• Chief Information Officer
Principal risks and uncertainties continued
Maintaining long-term value
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 071
Maintaining long-term value
Principal risks and uncertainties continued
4. Financial risks continued
Mitigation
• Implementation of debt management best
practice, after centralising Europe-wide
collection functions at the Budapest finance
Shared Service Center (excluding the most
recent North American acquisition)
• Group Credit Assessment function using
improved and consistent data
• Group standard contract terms with departure
only authorised by senior Finance management
• Setting of cash and working capital targets
monthly and detailed monthly monitoring by
senior Management, including the review of key
risk indicators
• Inventory management controls and monitoring
including an approved authorisation matrix for
the purchase of inventory, with more rigid
controls when the inventory is purchased
without a back-to-back customer order
• Increasing use of direct delivery
• Minimisation of fixed-cost growth
• Careful management of contract margins
including COLA clauses where applicable
• More active approach to moving resources
offshore
Risk owners
• Chief Financial Officer
4. Financial risks
Alert status
Economic headwinds are counterbalanced by well-established internal processes, such as careful cost
and working capital management and minimising fixed cost growth.
Appetite
In relation to working capital management, given the expectation of shareholders, suppliers and customers,
our risk appetite is low and strong operating policies and procedures are in place to monitor and take action
to address challenges. In relation to macroeconomic risk, we aim to minimise the impact as far as possible.
Although it could benefit our Managed Services business as customers decide to outsource to save cost,
should the impact continue for a prolonged period this will not offset the effect on Technology Sourcing and
Professional Services demand.
Risks
• Failure to manage working capital effectively • Heightened macroeconomic factors specifically
related to inflation, interest rate increases and
potential recession, including energy shortages,
leading to reduced demand for our products
and services and/or margin erosion
Principal impacts
• Financial impact through bad debts, obsolete
inventory and/or other working capital
movements, and reduced margins
• To the extent that we cannot recover cost
inflation, there is a risk that we will not meet
earnings expectations, which could impact our
financial reputation with shareholders and
reduce the share price
• Inflation and prolonged recession could reduce
demand for IT projects and implementation and
affect internal utilisation rates of Professional
Services employees
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023072
5. People risks
Alert status
Our risk profile has reduced following the CFO succession being successfully completed during the year.
Appetite
This succession risk will crystallise and as such the appetite is driven by the strategy and process adopted to
find replacements for the CEO and CFO positions. Our talent acquisition and retention strategy is based on our
workforce planning, location strategy, customer demand, business needs and general talent market trends.
Risks
• Failure to recruit, develop and retain the right
calibre of people, which includes acting as an
inclusive employer, with a focus on positions
in sales, services and projects and senior
leadership positions
• Inadequate succession planning, management
integration and execution and failure to keep
the Management team current and fresh
Principal impacts
• Lack of adequate leadership
• Customer dissatisfaction
• Financial loss
• Contract cancellations
• Reputational damage
5. People risks continued
Mitigation
• Succession plan in place for the Board and
two levels down in the management structure.
CFO succession successfully completed during
the year
• Succession plan matrix in place
• Development programme in place for
identified successors
• Regular remuneration benchmarking
• Incentive plans to aid retention
• Investment in management development
programmes
• Group Talent Acquisition function in core
countries with a clear strategy and focus on
talent analytics
• Group leadership framework and development
structure to strengthen engagement with our
leaders and potential leaders
• Regular employee surveys to understand and
respond to employee issues
• Specific diversity projects in place relating
to accessibility and wellbeing, life balance,
LGBT+ and allies, future talent, focus on women
and culture
• Consistent performance management
processes
Risk owners
• Group Chief People Officer
• Chief Executive Officer
Principal risks and uncertainties continued
Maintaining long-term value
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023 073
Maintaining long-term value
Managing our principal risks and uncertainties
Risk and internal control
Risk management
The Board is responsible for establishing a framework of prudent and
effective controls, which enable the Company’s risks to be assessed and
managed. The Board has carried out a robust assessment of the principal
and emerging risks facing the Group, including those that threaten its
business model, future performance, solvency or liquidity. Please refer
to pages 064 to 073 for further information on the Group’s principal risks
and uncertainties, what procedures are in place to identify emerging
risks, and how these are being managed and mitigated.
Executive and senior Management have primary responsibility for
identifying and managing the risks the Group faces. A comprehensive risk
management programme has been developed and is monitored by the
Group Risk Committee, which was chaired by the Group Legal & Compliance
Director during 2023 and whose members include the Group Head of
Internal Audit and Risk and senior operational managers from across
the Group.
The Board sets the Group’s risk appetite and, through the Audit Committee,
reviews the operation and effectiveness of the Group’s risk management
activities. The Board periodically reviews the Group’s strategic risks and
its key mitigation plans and, through the Audit Committee, receives
regular reports from the Group Risk Committee. Effective risk
management processes are vital to the Group’s continued success.
Therefore, the Board continues to apply a robust risk management and
governance model to provide assurance over the principal risks that
might affect the achievement of the Group’s strategic KPIs. These
strategic KPIs are focused on our target market customers, scaling
our key activities and empowering our people.
The Group’s risk management approach recognises this, ensuring that
risks are identified and mitigated at the appropriate level, leaving
individuals empowered to make their vital contributions. The Group’s
model uses the well-defined three lines of defence methodology:
• The first line of defence consists of operational management,
who own the risks and applies the internal controls necessary
for managing risks day-to-day.
• The second line of defence comprises functions such as internal
compliance and assurance, who offer guidance, direction,
oversight and challenge at the appropriate level.
• The third line of defence, provided by Group Internal Audit, gives an
independent view of the effectiveness of the risk management and
internal control processes. It reports to the Audit Committee to
ensure independence from Management.
The Board reviews the operational effectiveness of the risk management
model by directing the reinforcement of the processes that underpin it
and by making sure it is embedded across all levels of the organisation.
For example:
• The Schedule of Matters Reserved for the Board ensures that the
Directors properly address all significant factors affecting Group
strategy, structure, financing and contracts.
• The Board and Executive Committee consider the principal risks,
which are the barriers to achieving the Board’s strategic KPIs.
• The Group Risk Committee challenges the effectiveness of the
principal risk mitigations.
• The Group Risk Committee considers each principal risk in-depth
at least once a year, by receiving reports from the risk owner.
• The Group Risk Committee’s deliberations, along with the current
status of each principal risk, are reported to the Audit Committee
and the Board.
• The principal risk list is reviewed once a year and leverages a
bottom-up annual operational risk review, where operational
management identify their everyday risks.
• The Group Compliance Steering Committee assesses observance
of laws and regulations, and reports to the Group Risk Committee.
• The bid governance process reviews bids or major changes to
existing contracts, and aligns with the Group’s risk appetite and
risk management process.
The model and process comply fully with the UK Corporate Governance
Code and the Financial Reporting Council’s Guidance on risk management,
internal control and related financial and business reporting. Important
elements of our risk framework and processes include:
• Ensuring that risk owners consider risk appetite, non-financial
risks and potential risk triggers when reporting to the quarterly
meetings of the Group Risk Committee.
• All principal risks are reviewed at least annually by the Group Risk
Committee. Higher-level or more immediate risks are considered
more frequently, which has included cyber threat, contracting risk
and acquisition risks during 2023.
• The Compliance Steering Committee, which reports to the Group
Risk Committee, has completed the rollout of a Compliance
Management System to assess and manage compliance risk
more thoroughly.
The Group has detailed business interruption contingency plans for
all key sites which are regularly tested, in accordance with an agreed
schedule, while improvements to the Information Services disaster
recovery processes are in progress to enhance control in this area.
Internal control
The Board has overall responsibility for maintaining and reviewing the
Group’s systems of internal control, and ensuring that the controls are
robust and enable risks to be appropriately assessed and managed.
The Group’s systems and controls are designed to manage risks,
safeguard the Group’s assets and ensure information used in the
business and for publication is reliable. This system of control is designed
to reduce the risk of failure to achieve business objectives to a level
consistent with the Board’s risk appetite, rather than eliminate that risk,
and can provide reasonable, but not absolute, assurance against
material misstatement or loss.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023074
Managing our principal risks and uncertainties continued
Maintaining long-term value
Throughout the year, the Board receives reports which enable it to
consider the Group’s significant risks, how they are identified, evaluated
and managed, and the effectiveness of the internal control system in
managing those significant risks. The Board also carries out an annual
review of the effectiveness of the internal control and risk management
systems, covering all material controls, including financial, operational
and compliance controls.
This formal process consists of a presentation to the Audit Committee by
Management which provides the detailed evidence necessary to support
its recommendation to the Board on the effectiveness of the systems
of risk management and internal control. The evidence from which the
Board draws its conclusions includes reports and other relevant
information received, the results of an annual risk and internal controls
questionnaire completed by senior Management and how any significant
control weaknesses are followed-up and mitigated. In the Board’s
opinion, the system of risk management and internal control has
operated effectively during the year and the Group has also complied
with the Code’s internal control requirements throughout the year.
All systems of internal control are designed to continuously identify,
evaluate and manage significant risks faced by the Group.
The key elements of the Group’s controls are detailed below.
Responsibilities and authority structure
As discussed above, the Board has overall responsibility for making
strategic decisions. There is a written Schedule of Matters Reserved for
the Board.
The Group Executive Committee meets formally on a quarterly basis and,
more informally, on a fortnightly basis, to discuss day-to-day operational
matters. With the Group Operating Model in place across all of the Group’s
main operating entities, ultimate authority and responsibility for
operational governance sits at Group level. The Group operates defined
authorisation and approval processes throughout its operations. Access
controls continue to improve, where processes have been automated to
secure data. The Group has developed management information systems
to identify risks and enable the effectiveness of the systems of internal
control to be assessed. Linking employee incentives to customer
satisfaction and profitability reinforces accountability and encourages
further scrutiny of costs and revenues.
Proposals for capital expenditure are reviewed and authorised, based on
the Group’s procedures and documented authority levels. The cases for
all investment projects are reviewed and approved at divisional level.
Major investment projects are subject to Board approval, and Board input
and approval is required for all merger and acquisition proposals.
Financial planning and reporting processes
Each year, senior Management prepares or updates the three-year
strategic plan, which the Board then reviews. The comprehensive annual
budgeting process is subject to Board approval. Performance is monitored
through a rigorous and detailed financial and management reporting
system, through which monthly results are reviewed against budgets,
agreed targets and, where appropriate, data for past periods. The results
and explanations for variances are regularly reported to the Board and
appropriate action is taken where variances arise. Management and
specialists within the Finance Department are responsible for ensuring
that the Group maintains appropriate financial records and processes.
This ensures that financial information is relevant and reliable, meets
applicable laws and regulations, and is distributed internally and
externally in a timely manner. Management reviews the Consolidated
Financial Statements, to ensure that the Group’s financial position and
results are appropriately reflected. The Audit Committee reviews all
financial information that the Group publishes.
Centralised Treasury function
The Board has established and regularly reviews key treasury policies,
which cover matters such as counterparty exposure, borrowing
arrangements and foreign exchange exposure management. The Group
Treasury function manages liquidity and borrowing facilities for customer-
specific requirements, ongoing capital expenditure and working capital.
The Group Treasury function reports to the Chief Financial Officer, with
regular reporting to the Audit Committee.
The Group Treasury Committee enhances Management oversight. It is
chaired by the Chief Financial Officer and also comprises the Group
Financial Controller, the Group Head of External Reporting and the Group
Head of Tax and Treasury. It is responsible for the ongoing review of
treasury policy and strategy, and for recommending any policy changes
for Board approval. The Committee approves, on an ad hoc basis, any
treasury activities which are not covered by existing policies or which
are Matters Reserved for the Board, and also monitors hedging activities
for effectiveness.
Compliance policies
The Group has a number of compliance policies, including those relating
to the General Data Protection Regulation, Business Ethics and Anti-
Bribery and Corruption. Any breach of these policies by an employee is
a disciplinary matter and is dealt with accordingly. The internal control
regime is supported by a whistleblowing function, which is operated by
an independent third party.
Audit Committee and the auditor
For further information on the Company’s compliance with the Code’s
provisions relating to the Audit Committee, Group auditor and Internal
Audit, please refer to the Audit Committee report on pages 130 to 135.
STRATEGIC REPORT GOVERNANCE
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Computacenter plc Annual Report and Accounts 2023 075
Maintaining long-term value
Going concern and Viability Statement
Going concern
Computacenter’s business activities, business model, strategic KPIs
and performance are set out within this Strategic Report from the inside
front cover to page 106. The financial position of the Group, its cash flows,
liquidity position and borrowing facilities are set out within the Chief
Financial Officer’s review on pages 052 to 054. In addition, notes 27 and
28 to the Consolidated Financial Statements include Computacenter’s
objectives, policies and processes for managing its capital, its financial
risk management objectives, details of its financial instruments and its
exposures to credit and liquidity risk. The Directors have, after due
consideration, and as set out in note 2 to the Consolidated Financial
Statements on page 180 of this Annual Report and Accounts, a reasonable
expectation that the Group has adequate resources to continue in
operational existence for a period of at least 12 months from the date of
approval of the Consolidated Financial Statements, as set out on pages
176 to 231 of this Annual Report and Accounts. Thus, they continue to
adopt the Going concern basis of accounting in preparing the
Consolidated Financial Statements.
Viability Statement
In accordance with provision 31 of the UK Corporate Governance Code,
the Directors have assessed the Group’s prospects over a longer period
than the 12 months required by the going concern basis of accounting.
Viability timeframe
The Directors have assessed the Group’s viability over a period of three
years from 31 December 2023. This period was selected as an appropriate
timeframe for the following reasons, based on the Group’s business model:
• the Group’s rolling strategic review, as considered by the Board,
covers a three-year period;
• the period is aligned to the length of the Group’s Managed Services
contracts, which are typically three to five years long;
• the short lifecycle and constantly evolving nature of the
technology industry lends itself to a period not materially longer
than three years; and
• Technology Sourcing has seen greater recent growth than the
Group’s Services business, increasing the revenue mix towards
the part of the business that has less medium-term visibility and
is therefore more difficult to forecast.
Further, the Directors monitor conditions in the environment external
to the Group and have concluded that the following factors continue to
support the timeframe selected:
• the continuing macroeconomic, diplomatic and trade environment,
following the departure of the UK from the European Union,
introduces greater uncertainty into a forecasting period longer
than three years; and
• the prolonged macroeconomic impact of a series of recent
external shocks including the Russian invasion of Ukraine, and
the ongoing conflict in the Middle East, on both supply-side and
demand-side dynamics within our industry. These events manifest
over the short term, in particular the effect on certain customers
from the worsening global economic outlook, and the pace of
change of technology adoption as a result.
While the Directors have no reason to believe the Group will not be viable
over a longer period than three years, we believe that a three-year period
presents shareholders with a reasonable degree of confidence, while
providing a longer-term perspective.
With regard to the principal risks set out on pages 064 to 073, the
Directors remain assured that the business model will be valid beyond
the period of this Viability Statement. There will continue to be demand
for both our Professional Services and Managed Services businesses, and
Management is responsible for ensuring that the Group remains able to
meet that demand at an appropriate cost to our customers. The Group’s
value-added, product reselling Technology Sourcing business only
appears vulnerable to disintermediation at the low end of the product
range, as the Group continues to provide a valuable service to customers
and technology vendors alike, as described on pages 022 to 023. The
Group has seen significant business growth due to the end-to-end
Technology Sourcing and Professional Services capability that it can
deliver from its Integration Centers, which is a significant differentiating
factor in this market.
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Computacenter plc Annual Report and Accounts 2023076
Going concern and Viability Statement continued
Maintaining long-term value
Prospects of the Group assessment process and key assumptions
The assessment of the Group’s prospects derives from the annual strategic
planning and review process. This begins with an annual away day for the
Board, where Management presents the strategic review for discussion
against the Group’s current and future operating environments.
High-level expectations for the following year are set with the Board’s
full involvement and are delivered to Management, which prepares the
detailed bottom-up financial target for the following year. This financial
target is reviewed and agreed by Management before presenting to the
Board for approval at the December Board meeting.
On a rolling annual basis, the Board considers a three-year business plan
(the Plan) consisting of the detailed bottom-up financial target for the
following year (2024) and forecast information for two further years
(2025 and 2026), which is driven by top-down assumptions overlaid on
the detailed target year (2024). Key assumptions used in formulating the
forecast information include organic revenue growth, margin impacts
and cost control, continued strategic investments through the Consolidated
Income Statement, and forecast Group effective tax rates, with no
changes to dividend policy or capital structure beyond what is known
at the time of the forecast. The financial target for 2024 was considered
and approved by the Board on 7 December 2023, with amendments and
enhancements to the target as part of the full Plan considered and
approved by the Board on 18 March 2024.
Impact of risks and assessment of viability
The Plan is subject to rigorous downside sensitivity analysis, which
involves flexing a number of the main assumptions underlying the
forecasts within the Plan. The forecast cash flows from the Plan are
aggregated with the current position, to provide a total three-year cash
position against which the impact of potential risks and uncertainties
can be assessed. In the absence of significant external debt, the analysis
considers access to available committed and uncommitted finance
facilities, the ability to raise new finance in most foreseeable market
conditions and the ability to restrict dividend payments.
The potential impact of the principal risks and uncertainties, as set out
on pages 064 to 073, is then applied to the Plan. This assessment includes
only those risks and uncertainties that, individually or in plausible
combination, would threaten the Group’s business model, future
performance, solvency or liquidity over the assessment period and which
are considered to be severe but reasonable scenarios. It also takes into
account an assessment of how the risks are managed and the
effectiveness of any mitigating actions.
The combined effect of the potential occurrence of several of the most
impactful risks and uncertainties is represented by a large adjustment
to the cashflows over the assessment period, which is then compared
to the cash position generated by the Plan, throughout the assessment
period, to model whether the business will be able to continue in operation.
This application of the risk impact adjustment is performed under two
sensitivity scenarios.
For the current period, the primary downside sensitivity relates to
a modelled, but not predicted, severe downturn in Group revenues,
beginning in 2024, simulating a continued impact for some of our
customers from a reduction in customer demand due to the current
economic crisis, and ongoing impact on the Group’s revenues from
this macroeconomic instability, with slower than predicted recovery.
The second sensitivity scenario includes a further extreme, but not
predicted, downturn in Group revenues and margins leading to a
substantial loss-making position over the assessment period. Included
within this sensitivity scenario is the modelled lack of access to our
committed facility.
Under both scenarios, the business demonstrates modelled solvency
and liquidity over the assessment period, where the supporting models
were tested with rigorous downside sensitivity analysis, which involved
flexing a number of the main assumptions underlying the forecasts.
Conclusion
Based on the period and assessment above, the Directors have
a reasonable expectation that the Group will be able to continue in
operation and meet its liabilities, as they fall due, over the three-year
period to 31 December 2026.
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Maintaining long-term value
Sustainability
Winning together for our
people and our planet
Our Purpose is helping our customers
change the world, and to support this we
build long-term trust with our customers,
our partners, our people and our communities.
Our environmental, social and governance
(ESG) approach, ‘winning together for our
people and our planet’ underpins our
Purpose and supports our business model.
The long-term future of our Company, our
people and our planet, relies on an enduring
commitment to sustainability, making
it a fundamental part of how we work
day-to-day.
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Sustainability continued
Maintaining long-term value
Sustainability strategy framework
We focus on the areas that are most important to our
stakeholders and our business, and where we can
make the biggest difference. The strategy has three
pillars (people, planet and solutions) and is underpinned
by communication, governance, standards and
frameworks. Each pillar is owned by a member of
the Group Executive, which ensures alignment and
accountability across the organisation, engaging
and empowering our people to achieve our
sustainability goals.
COMMUNICATION
Sharing our strategy with our stakeholders.
Executive owner: Mo Siddiqi, Group Development Director
GOVERNANCE
Underpinning accountability, investment plan, compliance and reporting.
Executive owners: Chris Jehle, Chief Financial Officer, and Mike Norris, Chief Executive Officer
STANDARDS AND FRAMEWORKS
Planet
Ensuring sustainable operations, and delivering
our Net Zero 2040 plan
Executive owner: Mo Siddiqi,
Group Development Director
People
Creating positive impact for our people,
customers and communities
Executive owner: Sarah Long,
Chief People Officer
Solutions
Offering sustainable solutions for
our customers
Executive owner: Mo Siddiqi,
Group Development Director
“Considering the long-term
is one of the values on which
Computacenter was built,
it’s a part of everything we do,
and lies at the heart of our
Sustainability strategy.”
Mike Norris
Chief Executive Officer
See page 089
See page 083
See page 092
Winning together for our people and our planet
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Sustainability continued
Winning together for our people and our planet
The way in which we conduct our business has always been as important
as what we do, which is why we have always been shaped by our values
and guided by our principles. When it comes to sustainability, our values
and principles drive our strategy of winning together for our people and
our planet.
Each pillar of our sustainability strategy is owned and led by an Executive
team member, reflecting our focus and commitment to achieving our
sustainability goals.
People
Our people workstream is led by Sarah Long, Chief People Officer, and
houses our social strategy. Our goals in this pillar focus on our people and
the people in our communities – both in the places that we operate and
up and down our value chain.
We are committed to being a company that offers fair and equal access
to everyone and where every person feels engaged, included and able to
fulfil their potential. We drive initiatives that foster employee engagement
and contribute to diversity and opportunity throughout every stage of
the career lifecycle.
Our social strategy also addresses how we engage with the communities
around us, including social and charitable initiatives, and the rights of
people within our supply chain. See page 083.
Planet
Our planet pillar is led by our Group Development Director, Mo Siddiqi, and
addresses our direct and indirect environmental impact. See page 089.
Within this workstream we focus on our Sustainable Operations Strategy
– which considers the overall impact of our activities throughout the
value chain, recognising the critical importance of topics such as
emissions, biodiversity and waste in the preservation and protection
of the environment.
Our Net Zero transition plan also forms part of the planet pillar, with
initiatives across the value chain to drive down emissions in line with
our SBTi-approved 2040 Net Zero goal.
Solutions
Mo Siddiqi, Group Development Director, is also responsible for leading our
solutions pillar. Underpinned by our Sustainable Operations Strategy, the
solutions pillar focuses on delivering solutions and services that help our
customers to achieve their sustainability goals. See page 092
Developing sustainable solutions is reliant on collaboration up and down
the value chain – from how a product is manufactured to how it is used
and ultimately how it is handled at the end of its usable life. We support
our customers at every stage of this process, with a particular focus on
leveraging our expanding Circular Services.
Governance
We govern our business with integrity, ensuring we have clear policies,
decision-making frameworks and risk management processes. Our
commitment to ethics and compliance supports all of our sustainability
commitments. See page 107.
Maintaining long-term value
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Maintaining long-term value
Sustainability continued
2023 HIGHLIGHTS
Targets approved by SBTi
We were amongst the first in our industry to have our near-term, long-term and Net Zero targets approved by SBTi.
2023
We sustained carbon neutrality for our Scope 1 and Scope
2 GHG emissions
2032
Target to reduce Scope 3 emissions by 50% from
2021 baseline
2040
Target to be Net Zero
Group emissions performance over time (metric tonnes)
Total Scope 1 and 2 emissions
-9.4%
Per £1m of gross invoiced income
-18.4%
Per employee
-16.7%
2023
2022
2021
2020
2019
4,001
4,416
5,210
13,856
19,808
2023
2022
2021
2020
2019
0.40
0.49
0.75
2.55
3.92
2023
2022
2021
2020
2019
0.20
0.24
0.30
0.83
1.25
PEOPLE HIGHLIGHTS
3,300
new starters from 100,000+ applicants
88%
inclusion score Employee Survey 2023
24.3%
most senior leaders are women
PLANET HIGHLIGHTS SOLUTIONS HIGHLIGHTS
SBTi
approval for our
Net Zero targets
>2.5m kWh
of electricity generated
by our own solar farms
>75%
of Group energy usage is
from renewable sources
>2m
items processed
through our Circular
Services division
117,156
tonnes carbon avoided
through reuse of assets
(redeployment and
remarketing)
748
tonnes of reusable
raw materials
generated through
industrial recycling
“We’re proud of what we’ve
achieved together, and we
are committed to continued
investment, innovation and
improvement. We are building
for the long term to be a company
that our people, customers,
partners and communities
can be proud of.”
Mo Siddiqi
Group Development Director
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Sustainability continued
Maintaining long-term value
Standards and frameworks
We align with the standards and frameworks that support our sustainability strategy, are essential for compliance, or are important to our stakeholders.
Other standards and initiatives are adopted as appropriate in specific countries.
United Nations Global Compact (UNGC)
Computacenter has been a proud signatory of the UNGC since 2007
and we are committed to supporting its 10 core principles and
embedding them within our supply chain.
Ecovadis
This sustainability framework is frequently selected by our customers
and partners, and we have also chosen to use it as one of our
benchmarks within selected countries.
Task Force on Climate-Related Financial Disclosures (TCFD)
This is a mandatory reporting requirement and is covered in detail
on pages 094–101.
Science Based Targets initiative (SBTi)
Computacenter has committed to this standard for carbon reduction
plans aligned to the Paris Agreement, committing to limit the global
temperature rise to 1.5°C above pre-industrial levels. We are proud to
be amongst the first in our industry to obtain SBTi approval for our
near-term, long-term and Net Zero targets.
Carbon Disclosure Project (CDP)
This is a global disclosure system for organisations to share their
environmental impact. We participate annually as some of our
stakeholders use CDP.
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Maintaining long-term value
Sustainability continued
People
Creating positive impact
for our people, customers,
and communities
88%
inclusion score
Employee Survey 2023
>1,000
volunteer hours in the UK alone
24.3%
most senior leaders
are women
9 years
average length of service
OUR MATERIAL SDGs
Ensure healthy lives and promote wellbeing for
all at all ages
We support the mental and physical wellbeing of our
employees by ensuring that our people have quality
working lives and feel safe to be themselves.
Promote sustained, inclusive, and sustainable economic
growth, full and productive employment, and decent
work for all
We maintain high standards of employment for our people
and work with our supply chain to build resilience and
decent work.
Ensure inclusive and equitable quality education
and development and promote lifelong learning
opportunities for all
We work to remove barriers that exist in our local societies,
creating employment, training and educational
opportunities, particularly in IT careers.
Reduce inequality within and among countries
We continue to foster an environment that enables our
people to speak openly and ensure they have the
knowledge they need to promote a positive and inclusive
environment for all.
Achieve gender equality and empower all women
and girls
We continue to work towards achieving a better gender
mix in a male-dominated industry.
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Sustainability continued
Maintaining long-term value
Attracting, developing and retaining the best talent to build a highly
engaged, inclusive and ethical workforce.
With over 20,000 employees, and an average length of service of over
nine years across the Group, our ambition as an employer is to attract,
retain and develop the best talent in the market, to deliver service
excellence for our customers.
What our people tell us
Our comprehensive Group Employee Survey reviews all aspects of
how our people feel about working at Computacenter. The survey is
undertaken every two years, most recently at the end of 2023.
We are proud that our sustainable engagement and Inclusion scores
place us ahead of industry benchmarks, reflecting our values and
principles that help our people feel they can be themselves at work,
and are motivated and enabled to deliver their best performance.
Group participation Sustainable engagement Inclusion score
81% 83% 88%
We strive to create a culture where everyone feels that they belong and
can be themselves. We are an organisation where people are valued,
respected, and supported to reach their full potential.
At Computacenter we define our approach to Diversity and Inclusion (D&I)
in the following way:
• Diversity: Making sure that all our systems and processes, and our
organisational culture, allow us to attract, retain and promote
diverse talent.
• Inclusion: Creating a working culture where everyone can be
themselves, and where they are valued, respected, supported to
reach their full potential, and have a sense of belonging.
We are committed to creating a positive impact for our people, our customers and our communities, by building an engaged and inclusive
workforce and delivering social value through meaningful action.
Creating positive impact for our people, customers and communities
Enabling our people to use their passion to create positive and impactful
change within Computacenter, our customers, and our communities
Attracting, retaining and developing the best talent in the
market to deliver service excellence for our customers
Delivering social value through:
Building a highly engaged, inclusive and ethical workforce
Creating a working environment which our people
and our customers are proud of
Focus on where we can take meaningful action aligned to five
of the UN Sustainable Development Goals (see previous page)
OUR PEOPLE OUR CUSTOMERS AND COMMUNITIES
Leveraging
technology
vendor networks
Charity partners
Schools and
university
outreach
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Maintaining long-term value
Sustainability continued
Fundamentally, D&I at Computacenter is about ensuring that everyone
feels that they are included and are given equal opportunity in every
respect, throughout their whole career. Underpinning our D&I approach,
our Equality and Respect at Work policies set out our commitment to zero
tolerance of discrimination relating to someone’s personal attributes,
including race, colour, religion, sex, sexual orientation, gender identity
or expression, national origin, age, disability, marital status, pregnancy,
citizenship, genetic information, socio-economic status, caste, or any
other personal characteristic, trait or status that is protected by law.
Any concerns can be raised through our in-country grievance processes
or in accordance with the Group Speak Up (whistleblowing) policy.
Equal opportunity at Computacenter extends to all aspects of the
employment relationship, including hiring, promotions, working conditions,
compensation, and benefits, and is a principle reflected in our people
policies and upon which our decisions are made.
We have dedicated D&I managers in the UK and North America who work
closely with our HR managers and business partners to embed D&I into
our people plans.
We are committed to ensuring that our disabled employees have equal
access to opportunities. We have improved our data systems, enabling
us to analyse disability related recruitment trends in each location and
identify areas for improvement.
• We are a Disability Confident Employer in the UK. Our recruitment
process is inclusive and accessible, and we support people with
disabilities throughout their career with us.
• In France, we work with the Association de Gestion du Fonds pour
l’Insertion Professionnelle des Personnes Handicapées (AGEFIPH),
which promotes the employment of people with disabilities in
France, to improve our disability policy.
• In Germany, we work with the Federal Employment Agency to
ensure that all open vacancies are posted on its job board and
are accessible to disabled people. Our internal severely disabled
committees (SBV) are informed and involved in the application
process for candidates with disabilities.
To play our part in increasing diversity in the technology industry, we are
committed to supporting women to reach their goals and role model the
possibilities for future generations.
We have developed specialist personal and leadership development
programmes for women, including our Growing Together programme for
our mid-level women employees that focuses on networking, engagement,
and education, and our Leading Together programme, supporting our
most senior women (those that operate at either of two levels below the
Group Executive). Nearly 50 women from across the Group participated
in these programmes during 2023.
We are building a strong pipeline of women talent empowered and
equipped to play a significant role in the leadership of our business.
2023 2022
Women Men Women Men
Board 3 6 3 6
Senior
Managers 27 66 34 83
Other
Employees 5,579 14,341 5,495 14,476
Total 5,609 14,413 5,532 14,565
Our D&I actions are guided not just by our policies, but by the things
that matter most to our people. Our Employee Impact Groups, Forums
and Networks help us to bring our D&I topics to life, with collaboration,
learning opportunities and events in areas such as gender, culture,
wellbeing, and PRIDE. Some of our 2023 D&I highlights include:
• Continuation of our ‘Inclusion Series’ webinars where we shared
and learned about PRIDE, disability, neurodiversity, and generations.
• Finalisation of our new Group-wide Inclusive Leadership
Programme designed to help build and foster an inclusive culture.
• Our first Group-wide information and engagement campaign
to mark World Autism Acceptance Week, which helped to raise
awareness of neurodiversity and was met with overwhelmingly
positive feedback.
Our Equality and Respect at Work, and talent management policies help
ensure that we identify and develop the best talent regardless of gender,
ethnicity, or social background, or any other personal attributes. As people
join us we ask them to provide us with diversity-related data (where
permitted), which is used to identify trends in line with our aims and
ambitions. An example of an outcome from this is that we track the
improved gender mix within our business. We have seen an increase in
women in our organisation from 2018, where 24.27% of employees were
women, to 2023 where the proportion had grown to 28.09%. The proportion
of women in our senior leadership team has increased by over 11.4%
since 2020 (as reported in the FTSE Women Leaders public reporting).
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Sustainability continued
Maintaining long-term value
Prior to offering a prospective employee a role with Computacenter,
we conduct due diligence including previous employment referencing,
interviewing and other checks as mandated by role type or location.
Our recruitment policies ensure that we are focused and consistent in our
processes to bring people into the organisation, and that the assessment
of their talent is objective and merit based. The selection process applied
depends on the nature of the role and its seniority. In 2023, we enhanced
the way that we assess both internal and external candidates for leadership
roles, with a standardised global approach covering both key leadership
behaviours and situations.
We have built a Group-wide interviewing skills learning programme that
supports our recruitment practices.
We are dedicated to creating a workplace that promotes positive
physical, mental, financial and social wellbeing.
Our strategy for wellbeing encompasses immediate support as well as
long-term positive and preventative approaches, to help our people at
work and at home, and is focused on four key areas: physical, mental,
financial and social wellbeing.
We have an Employee Assistance Programme in each country, enabling
our people to access specialist wellbeing support, underpinned by the
Humanoo ‘Be Well’ mobile app which offers over 3,000 wellbeing courses.
Our Healthy Leadership training programmes for managers provides
expert advice and guidance on how to identify signs of individual and
team stress and look after the wellbeing of their team.
Computacenter is also part of the National Forum for Health and Wellbeing,
a UK charity that specialises in helping local communities take more
responsibility for protecting and managing their own health.
Pay for performance is at the heart of our reward philosophy, and we
align remuneration with each employee’s contribution while meeting
applicable legislative requirements, including national minimum wages
and equal pay. Pay reviews are undertaken annually for all Group
employees, as detailed in our Pay Policies.
The Remuneration Committee reviews our workforce remuneration
and related policies, helping to ensure that we align our incentives and
rewards with our culture and strategic imperatives. Some examples
of this are:
Investing in our people
• Future talent programmes that provide guided roles and training
for the younger generations beginning their careers with
Computacenter.
• Bespoke, targeted development programmes.
• Learning and development opportunities, including externally
recognised technical accreditations, Computacenter best
practices, and soft skills.
Rewarding our people
• Annual pay reviews that align pay with each person’s contribution
to their job and to the market rate, using competitive market data
and functional benchmarks.
• Where applicable, variable pay models that reflect organisational
performance and individual contribution.
• Commission schemes aligned to growth.
The gender and ethnicity of our Board and Executive team, as at 31 December 2023 and the date of this report is set out below. The information was
collated on a self-reporting basis. The Board and the Group Executive Committee were provided with the table, and asked to complete how they identify.
Further information on our approach to diversity, and its outcomes can be found on pages 020 to 021 and 127 to 129.
Number of Board
members
% of the
Board
Number of Senior
Positions on the
Board (CEO, CFO,
SID and Chair)
Number in
Executive
Management
% of Executive
Management
Gender
Male 6 67% 3 7 78%
Female 3 33% 1 2 22%
Other categories – 0% – – 0%
Not specified/prefer not to say – 0% – – 0%
Ethnicity
White British or other (including minority-white groups) 8 89% 4 8 89%
Mixed/multiple ethnic groups – 0% – – 0%
Asian/Asian British – 0% – 1 11%
Black/African/Caribbean/Black British 1 11% – – 0%
Other ethnic group including Arab – 0% – – 0%
Not specified/prefer not to say – 0% – – 0%
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Maintaining long-term value
Sustainability continued
Our global recognition tool ‘Bravo!’ helps us to foster a high-performance
culture through recognising and rewarding one another’s great
performance. Alongside instant peer-to-peer recognition, employees can
nominate colleagues for awards, recognising exceptional performance.
The scheme also allows employees to donate the value of their rewards
to one of our chosen charities.
From attraction and throughout the whole employee journey, we focus
on our people having the best employee experience they can.
In a competitive talent marketplace, we hired over 3,300 new starters
during 2023, from more than 100,000 candidate applications.
Our recent external recognition includes:
• Top Employer 2024 in UK and Germany
• Great Place to Work 2023 in UK and India
• Investors in People Silver 2023 in the UK
We know that engagement is key to our success and that highly engaged
employees help us deliver better outcomes for our customers. Our
forums for engaging with our people include Works Councils covering
seven countries across Europe, a UK National Forum, 13 recognised
trade unions, and over 200 elected employee representatives. In other
countries the employee voice is represented by people panels and
employee groups.
Our Employee Impact Groups (EIGs) give employees the opportunity to
help shape and drive sustainable change, with country-specific EIGs
focusing on in-country priorities such as ethnic diversity, climate change,
gender, and wellbeing. Each group has an Executive sponsor aligned with
representation from all areas of the business.
Ros Rivaz is our nominated Non-Executive Director aligned to our people
and regularly engages with employee groups from across the business,
reporting feedback and insight directly to the Board.
Our learning culture means that we ensure our people have access
to and engage in continuous, career-long development, starting with
developing our next generation through early careers in science,
technology, engineering and mathematics (STEM).
Our Future Talent programmes develop the next generation of
professionals through an innovative, focused and flexible approach to
apprenticeships, industrial placements and graduate programmes.
In 2023, a total of 667 new starters joined these important early-
career programmes.
Talent management and the learning and development of our people
is always an investment focus. We ensure we provide continuous
growth opportunities.
Career pathways provide guided learning, built around the skills and
competencies required for each role, allowing our people to grow
individually as they develop their careers.
Our values underpin our leadership behaviours and guide our leadership
recruitment and development. In 2023, a total of 353 of our leaders
participated in our flagship leadership programmes which support them
in role modelling and growing our business for the long term. This was
further supported by the rollout of our new Inclusive Leadership
programme and our new global approach to leadership development.
We inspire the next generation to follow a career in STEM through
educational outreach.
Our outreach and mentoring programmes with schools, universities and
charities help to promote STEM career opportunities for all including;
women in technology, attracting talent from ethnic minorities, people
with disabilities, and young people from disadvantaged backgrounds.
During 2023, in the UK alone our employees gave 1,072 hours to
community outreach programmes.
We enable our people to positively contribute to the communities that
we are a part of to help drive forward our sustainability focus areas,
including working with our technology vendors and the wider industry
to drive change around topics that are important our business, our
customers, and our people.
We are proud to work in our local communities, often alongside our
customers and partners, to drive change and make a real impact. In
2023, our community activities across our various locations included
forest, city, and beach clean ups in our communities, as well as collection
drives, crafting and sales and auctioning for local community-based
charities. We have donated 700kgs of items in partnership with charities
and NGOs in the UK and India, and our volunteer schemes in North America
and Germany have seen over 180 people, including customers and
partners, supporting local community clean-ups.
Our community work is guided by our sustainability strategy and our
ethics-related policies, which set out how we should interact with the
communities and environment around us. Local teams are responsible
for ensuring community work aligns with our policies and values, and
they are supported by representatives from HR and the sustainability
team where needed.
We work with charities that align to our wider sustainability focus
areas within the communities we are part of and across the Group.
We support initiatives to raise money for charities, including activities
proposed and run by our employees. We fundraise through donations,
events and Give as You Earn options. Our people help us to choose the
charities that we support each year. Nominated charities are reviewed
by an HR-led panel in accordance with our guidelines. During 2023,
together with our people, we supported over 40 charities.
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Sustainability continued
Maintaining long-term value
Human rights
We understand our responsibility to respect and support human rights.
We have adopted the principles of the leading international standards
and conventions on human rights across our business dealings, in
particular the UN Global Compact (signatories since 2007), the Universal
Declaration of Human Rights, the UN Guiding Principles on Business and
Human Rights, the UN Conventions on Rights of the Child, and fundamental
conventions of the International Labour Organization (ILO). For Computacenter,
our human rights considerations fall within two areas: (i) protecting the
rights of our employees and, (ii) ensuring that we are not complicit in
human rights abuses within our supply chain.
The human rights of our employees are addressed by our people policies
and our understanding of and compliance with local labour laws wherever
we do business. This includes our Health and Safety, Respect and Equality
at Work policies and our disciplinary and grievances processes. Our Group
Ethics Policy sets out our commitment to observing the highest ethical
standards in our business conduct, as these relate to the rights and
treatment of individuals.
Our Group Speak Up (whistleblowing) policy explains how our people and
anyone in our supply chain can report any concerns they may have through
the independent provider Safecall. The details of Safecall are publicised
internally through an annual, multi-channel communications campaign,
and are included in all of our compliance training. Any concerns raised are
fully investigated, with oversight from the Director of Group Legal and
Compliance and Chief People Officer.
In 2023, there were no issues raised within the Company that related to
human rights breaches.
Human rights in the supply chain
We work with a diverse set of suppliers, who play a key part in the success
of our business. When selecting suppliers, we ensure that our terms of
engagement are clear and that they support both our Group values and
our wider sustainability objectives.
Onboarding of suppliers for most countries is managed by the Supplier
Advisory and Monitoring team. The team uses a standardised onboarding
process, which is underpinned by a supplier management platform to
drive greater consistency, automation, visibility, and risk management.
Our approach ensures that each supplier self-assesses on several topics,
including sustainability issues, and accepts the standards set by key
Computacenter policies, such as IT Security, Anti-Bribery and Corruption,
through our Supplier Code of Conduct. This code of conduct sets out the
10 principles in the UNGC, which include human rights, modern slavery,
anti-bribery and corruption, and environmental matters. Suppliers are
asked to adhere to our Supplier Code of Conduct prior to their inclusion
within our supply chain. Any issues arising through our onboarding
process are reported to Group Compliance.
Those within our supply chain are informed of Safecall and the requirement
to report any concerns they may have, via our Supplier Code of Conduct.
Our Group Speak Up (whistleblowing) policy is also published on our
company website to ensure that it is easily accessible to anyone within
our supply chain.
In 2023, there were no issues raised within the Company that related
to modern slavery or human trafficking in our supply chain.
We remain committed to our obligations for transparency in our
approach to combatting modern slavery and upholding human
rights. Our full Modern Slavery Statement as required under Section 54
(Transparency in supply chains) of the Modern Slavery Act 2015 for
the period of 1 January 2023 to 31 December 2023 can be found on
our website.
Health and safety
We are committed to providing safe and healthy workplaces. Our policy
is that, so far as is reasonably practicable, we will create and maintain
an environment that is committed to eliminating or reducing health and
safety risks to employees, customers, suppliers, contractors, visitors,
and members of the public.
Our approach to health and safety is based on identifying and controlling
hazards and preventing incidents, particularly those involving personal
ill-health, injury and damage to equipment or property. We also investigate
near misses, as an essential part of preventing future incidents.
It is vital that everyone concerned is made aware of their responsibilities
for implementing our health and safety policy. All line managers are
required to ensure that the policy is implemented within their areas of
responsibility and employees must take reasonable care of their own
health and safety, and that of others who may be affected by what they
do. Failing to observe the policy can result in disciplinary action.
The table shows the health and safety performance of our United
Kingdom, Germany, and France businesses. The Accident Incident Rate
(AIR) is the number of accidents per 1,000 employees and the Accident
Frequency Rate (AFR) is the number of accidents per 100,000 working
hours. Following the continued return of increased numbers of employees
to the offices, there has been a corresponding increase in on-site
accidents that resulted in minor injuries.
AIR AFR
2023 2022 2023 2022
UK 1.53 1.05 0.19 0.19
Germany 3.83 2.69 0.31 0.16
France 2.92 2.45 0.54 0.45
We offer health and safety training, for example covering display screen
equipment, manual handling, environmental awareness, and safe
driving. The Group has continued to comply with all relevant health and
safety legislation in all the countries in which we operate. This is monitored
using appropriate tools, controls, and measures, which form part of our
overall compliance management system.
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Computacenter plc Annual Report and Accounts 2023088
Sustainability continued
OUR MATERIAL SDGs
Build resilient infrastructure, promote inclusive and
sustainable industrialisation and foster innovation
We act responsibly as a business to make a positive
impact within our industry and wider communities.
Ensure sustainable consumption and
production patterns
We will work with our technology vendors and customers
to promote sustainable technology sourcing, supported by
our own Circular Services solutions.
Take urgent action to combat climate change and
its impacts
We continue to take action to reduce our climate impacts,
both direct and indirect, aligned to Science Based Targets.
OUR TARGETS
Target Status
Carbon neutral
for Scope 1 and 2
Timing
2022
Complete
Achieved through increases in our own renewable
energy generation, continued investment in energy
efficient solutions, increasing the use of renewable
energy sources and carbon offsetting credits.
50% reduction
in Scope 3
emissions
from 2021
baseline
Timing
2032
On track
Scope 3 emissions include all other indirect
emissions, such as our business travel and
transportation, as well as those from sources that
we do not own or directly control, including our
supply chain, which constitutes most of our Scope 3
emissions. See page 094 for TCFD.
Net Zero for
Scope 1, 2, and 3
Timing
2040
On track
Computacenter has committed to this standard
for carbon reduction plans aligned to the Paris
Agreement, committing to limit the global
temperature rise to 1.5°C above pre-industrial levels.
Planet
Ensuring sustainable
operations and delivering
our Net Zero 2040 plan
We have a longstanding commitment to
sustainable operations and take a responsible
approach to reducing our direct and indirect
environmental impacts.
Net Zero
goal for 2040
>2.5m kWh
of electricity generated by our own
solar farms
CO neutral
for second year
SBTi
approval for our emissions reduction
targets
>75%
of Group energy usage is from
renewable sources
Maintaining long-term value
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Computacenter plc Annual Report and Accounts 2023 089
Our Responsible Operations Strategy underpins our Net Zero transition
plan, which aims to achieve our SBTi-approved Net Zero target in 2040.
Net Zero 2040
Our near-term, long-term and Net Zero targets were approved by SBTi
in June 2023, making us amongst the first in the industry to publish
comprehensive, validated science-based emissions-reduction targets.
Our targets are described in detail on page 089.
On our journey to Net Zero, we achieved our first goal of becoming carbon
neutral for Scope 1 and 2 emissions in 2022, and we maintained this for
2023. To achieve this, we offset the small amount of residual emissions
that could not be removed using accredited Gold Standard (GS) carbon
removal schemes. The GS is a voluntary carbon offset programme
focused on progressing the United Nation’s Sustainable Development
Goals and ensuring that projects benefit their neighbouring communities.
Energy usage
In 2023, the Group consumed 9m kWh of Scope 1 energy (United Kingdom
operations: 1.96m kWh), and 40.5m kWh of Scope 2 energy (United
Kingdom operations: 17.5m kWh). In 2022, the Group consumed 9.7m kWh
of Scope 1 energy (United Kingdom operations: 2.8m kWh), and 35.8m
kWh of Scope 2 energy (United Kingdom operations: 16.2m kWh).
We benefit from electricity generation from our solar panel installations
in Hatfield, United Kingdom, Kerpen, Germany, Livermore, California,
and, most recently, Moordrecht, Netherlands.
In total we have the capacity to generate over 4m kWh of our own
electricity, avoiding up to 1,994 tonnes of annual COe.
In addition to generating our own electricity, we source renewable energy
for our operations in multiple countries, including across Europe and the
US. In total, we consumed 30.4m kWh of renewable energy in 2023,
avoiding 11,958 tonnes of annual COe.
Maintaining long-term value
Sustainability continued
Emissions performance over time (metric tonnes)
Results 2016 2017 2018 2019 2020 2021 2022 2023
Total Scope 1 and 2 emissions 25,518 22,662 19,741 19,808 13,856 5,210 4,416 4,001
Per £1m of gross invoiced income 6.94 5.97 4.54 3.92 2.55 0.75 0.49 0.40
Per employee 1.68 1.62 1.31 1.25 0.83 0.30 0.24 0.20
Core to our planet pillar is our Responsible Operations Strategy, which sets out our areas of focus in which we will invest and innovate to achieve
our environmental goals. The Responsible Operations Strategy has three key topics:
1.
Energy & Natural Resources
2.
Travel & Operations
3.
VAR Supply Chain
Scope Scope Scope
The energy we use at our facilities, and the
energy we purchase.
Our business travel, commuting, IT operations,
capital goods, and downstream transportation.
Our purchased and resold products and
services, use and end-of-life treatment of
sold products, and upstream transportation.
Priority initiatives
• Renewable energy
• Solar farms
• Lower-carbon footprint facilities
• Energy-efficient lighting
Priority initiatives
• Carbon travel levy
• IT infrastructure
• Hybrid working
• Company vehicles
• Downstream transportation
Priority initiatives
• Technology vendor Net Zero plans and
sustainability initiatives
• Customer collaboration
• International capabilities
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Computacenter plc Annual Report and Accounts 2023090
Travel
We have a target to reduce emissions from business travel by up to 35%
by 2025, compared to the baseline in 2019. While the target remains
challenging to achieve given the Group’s growth, we continued to develop
initiatives, including our carbon travel levy, to support this ambition.
Materials usage and waste
Materials include the packaging we use in our Integration Centers and the
packaging our technology vendors use when transporting goods to us.
This category also includes items we mail and our use of single-use
plastics. Initiatives to drive efficient material use and minimise landfill
are part of our Responsible Operations Strategy.
Nearly all plastic bags are now either retained to be reused or separated
and collected for dedicated plastics recycling. We send as little waste as
possible to landfill and closely monitor recycling performance for materials
such as plastics, paper and cardboard.
Greenhouse gas (GHG) emissions
The Group is required to state the annual quantity of emissions from its
activities, in tonnes of carbon dioxide equivalent, which can be found below.
Further details of our environmental policies and programmes can be
found on our Company’s website: computacenter.com.
Scope 1 emissions
Includes: combustion of fuel and refrigerants loss.
Metric tonnes of COe
2023
2022
2021
2020
1,747
1,979
1,908
5,640
Scope 2 emissions
Includes: electricity, heat, steam and cooling purchased for our own use.
Metric tonnes of COe
2023
2022
2021
2020
2,254
2,437
3,302
8,216
The Group’s UK operations accounted for 21% of the Group’s Scope 1
carbon emissions (365 tonnes), and 0% of the Group’s Scope 2 carbon
emissions in 2023.
The Group’s chosen intensity measurements for emissions as reported
above are:
• 0.40 metric tonnes per £m of gross invoiced income (2022: 0.49
metric tonnes).
• 0.20 metric tonnes per Group employee (2022: 0.24 metric tonnes).
The slight decrease in our Scope 2 emissions relates to reductions in
emissions factors across the majority of our locations.
Methodology
This activity has been conducted as part of our UK EMS ISO 14001:2015
standard (EMS 71255). We have used the main requirements of the GHG
Protocol Corporate Accounting and Reporting Standard (revised edition).
Emission factors used are from the UK Government’s Conversion Factors
supplied by Department for Environment, Food & Rural Affairs (DEFRA).
We have different factors for each country, as electricity generation and
COe efficiency vary by country. External consultants assisted with the
implementation of our methodology which we continue to further refine
and develop internally, to include the full requirements to collate the
additional emissions, such as refrigerants.
We have reported on all the emission sources required under the
Companies Act 2006 (Strategic Report and Directors’ Reports) Regulations
2013. Group properties included in this report are all current locations in
the United Kingdom, Germany, France, Belgium, Spain, South Africa,
United States, Canada, Switzerland, Malaysia, Hungary, Mexico, India,
Poland, and the Netherlands.
Limitations to data collection
Less than 5.0% of emissions were estimated or based on an average
energy usage per square foot of space occupied.
Environmental policy
The Group has an environmental policy, which we enact through an
Environmental Management System (EMS) certified to International
Management standard BS EN ISO 14001:2015. The environmental
policy requires us to identify our significant environmental impacts
and provides the framework for setting targets and objectives.
It is supported by a manual that sets out the roles and responsibilities
and actions we undertake with respect to our environmental policy,
including our approach to due diligence.
The due diligence process addresses direct and indirect environmental
aspects:
• Direct aspects are those that Computacenter can control and
can be expected to have an influence.
• Indirect aspects are those where Computacenter is one of many
stakeholders and may not have the ability to influence.
For each Computacenter environmental aspect identified, an objective
and systematic evaluation of the significance of the aspect is made,
assessing it against criteria rated according to their perceived severity
of impact – the higher the impact, the greater the rating. A procedure,
‘Environmental Aspect Significance’, sets out how Computacenter’s
Environmental Aspects are assessed and determined, and the Site
Profiles Procedure describes how each of the sites has been assessed.
The results of these due diligence assessments are recorded in the
Register of Environmental Impacts.
The environmental management of suppliers and contractors is set
out in the Computacenter Management System Vendor Assessment
procedure. We check suppliers of waste and recycling services to ensure
that only those with permits and licences appropriate to the work
required are used. Where necessary, those suppliers who may have
a significant impact on our activities may also have an environmental
audit from Computacenter.
There have been no recorded breaches of the environmental policy in 2023.
Computacenter UK is registered as a distributor of product via the
compliance company Paperpak, ensuring we have fully complied with
packaging waste regulation since 2000.
Computacenter complies with Energy Savings Opportunity Scheme
(ESOS) by submitting its energy report each year.
Sustainability continued
Maintaining long-term value
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Maintaining long-term value
Sustainability continued
Solutions
Offering sustainable
solutions for our
customers
Sustainability relies on collaboration up
and down the value chain. Our customers
trust us to be a responsible business,
and they rely on our technology and
services expertise to help them to achieve
their own sustainability goals.
>2m
items processed through the
Circular Services division
117 ,156 tonnes
carbon avoided through reuse
of assets (redeployment
and remarketing)
748 tonnes
of reusable raw materials generated
through industrial recycling
OUR MATERIAL SDGs
Promote sustained, inclusive, and sustainable economic
growth, full and productive employment and decent
work for all
We maintain high standards of employment for our people.
and work with our supply chain to build resilience and
decent work.
Ensure sustainable consumption and
production patterns
We will work with our technology vendors and customers
to promote sustainable technology sourcing, supported
by our own Circular Services solutions.
Build resilient infrastructure, promote inclusive and
sustainable industrialisation and foster innovation
We act responsibly as a business to make a positive
impact within our industry and wider communities.
Take urgent action to combat climate change and
its impacts
We continue to take action to reduce our climate impacts,
both direct and indirect, aligned to Science Based Targets.
Reduce inequality within and among countries
We continue to foster an environment that enables
employees to speak openly and ensure they have the
knowledge they need to promote a positive and inclusive
environment for all.
Promote peaceful and inclusive societies for
sustainable development, provide access to justice
for all, and build effective, accountable and inclusive
institutions at all levels
We will continue to be an ethical business while
being mindful of the impact we can have on people
and communities.
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Computacenter plc Annual Report and Accounts 2023092
Sustainability continued
Maintaining long-term value
We categorise our sustainable solutions into three main areas:
Circular Services, Technology Advisory and Technology Lifecycle.
Circular Services
In a traditional linear economy, goods are made, used and then disposed
of. The circular economy means that we keep resources in use for as long
as possible, extract the maximum value from them while they’re in use
and then recover and regenerate products and materials at the end of
each service life.
We have been pleased with the performance of our UK subsidiary RDC
which has been offering circular services in the technology industry for
over 30 years. We have decided to integrate RDC’s Circular Services
offering into the core Computacenter portfolio as a separate business
division and incorporate elements of Circular Services that we already
have in different regions into this division.
Our new offering has three components:
Redeployment – where we collect a customer’s device that is no longer
needed in its current setting and redeploy it into the same customer,
either in a similar setting or to be used for a new purpose. We redeployed
78,000 devices in 2023 through Circular Services.
Remarketing – where a customer has finished using a device, but it still
has a use in another market. When we remarket, we make sure the device
is data cleansed and has a residual value. Any proceeds from the sale of a
device into another market are returned to the customer for reinvestment.
We remarketed over 420,000 devices for our customers in 2023.
Recycling – probably the most familiar of these types of activity. We recycle
when a device no longer has a useful life or resale value. When we recycle,
the device is broken down to extract materials that can be reused, with
the unusable materials then being responsibly disposed. We recycled
over 277,000 devices in 2023.
When we redeploy, remarket or recycle a device, we are reducing the
environmental impact that would have occurred in manufacturing a new
one, which enables us to calculate the carbon avoidance and water
savings, incorporating these savings into ‘carbon avoided’ reporting for
our customers.
By significantly scaling our Circular Services business we believe we can
make a positive impact on the environment faster.
We have agreed a target of recovering a device for every device
we resell
‘Recovery’ means redeployment, remarketing or recycling through
Circular Services. ‘Devices’ include PCs, monitors, printers, switches,
routers and servers.
In 2023, we recovered 775,000 devices while we sold 4.7m new devices,
a ratio of approximately 16.5%.
To achieve our target, we don’t want to reduce the number of new
devices we sell but want instead to significantly grow the number of
devices we recover.
Technology Advisory
As one of the world’s largest VARs, we work closely with our technology
vendors to understand their sustainability strategies and help our
customers to make informed decisions.
Selection of the most sustainable technology products
We make available the Electronic Product Environmental Assessment Tool
(EPEAT) and EnergyStar energy usage ratings for the products we supply
to our customers and identify other sustainability metrics that help to
contribute to each customer’s specific goals. We also work with customers
to help quantify the carbon footprint of their existing IT estate, enabling
them to understand and address the environmental impact as part of
future change initiatives.
Sustainable supply chain options
We are the VAR with what we believe to be the best international capability
in the world, and this allows us to help both our customers and technology
vendors to leverage our Integration Centers in different regions for local
supply rather than export, where possible. We still have work to do with
both our customers and technology vendors to further minimise the need
for export solutions, and we continue to build the local capabilities to
support this objective.
Technology Lifecycle
By combining our Service Lines (Technology Sourcing, Professional
Services and Managed Services) with Circular Services, we are in a strong
position to help customers throughout the technology lifecycle: inform,
procure, deploy, support and recover.
Ways of working for people
Technology creates new ways of working for our customers. We provide
workstyle analysis to support the design of optimum solutions, which
include the use of our Tech Centers and secure locker collection to minimise
travel, logistics and field force deployment. These approaches can all
contribute to a sustainable hybrid working strategy and reduce the
environmental impact of IT service support.
Sustainable deployment
We offer a range of services to allow customers to deploy technology with
the minimum environmental impact. These include our trolley and flight
case services, used to deploy at scale in offices but remove packaging
from technology (laptops, network devices and servers) at our Integration
Centers. These services increase efficiency, reduce local engineering
effort, and provide environmentally friendly waste disposal at scale.
Asset management
Using our SmartHub platform, we provide customers with better data
about their assets including length of life, configuration and update
status. This information enables customers to make more informed
choices about redeployment and replacement, helping to extend the
usable life of assets.
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Maintaining long-term value
Task Force on Climate-Related Financial Disclosures
Computacenter supports the aims of the
Task Force on Climate-Related Financial
Disclosures (TCFD). In this section, we have
made climate-related financial disclosures
which are consistent with the TCFD
recommendations and the TCFD
Recommended Disclosures.
The following statement sets out Computacenter’s approach to climate
change, including the risks and opportunities, the potential impact on our
business, and the mitigations and actions we have taken and will take to
respond. We have also included further climate-related disclosures in the
sustainability pages of this Annual Report and Accounts on pages 078 to 093.
Our roadmap for defining our climate-related plans continues to be
developed in line with our SBTi approved targets and will drive ongoing
improvement in our alignment to TCFD. This roadmap includes:
• The definition of further KPIs that we will use to monitor progress
in respect of our targets. The KPIs currently used are carbon
emissions and carbon avoidance. We plan to develop more specific
KPIs in line with our Net Zero transition activities.
• Future publication of our Scope 3 emissions. Our 2023 Scope 3
emissions are currently being compiled and validated.
• Further analysis of climate scenarios over the medium- and long
term to enable additional consideration in respect of our strategy
and financial planning. We have currently used two scenarios:
<2°C and >2°C.
A breakdown of our Scope 1 and Scope 2 emissions can be found on page 091.
Reports twice
per year
Reports twice
per year
Reports
quarterly
Reports
quarterly
Audit Committee
members
regularly attend
GRC meetings
Delegated
authority
THE BOARD
CLIMATE CHANGE COMMITTEE GROUP RISK COMMITTEE
AUDIT COMMITTEEEXECUTIVE TEAM
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Maintaining long-term value
Governance and risk management
The overall governance structure for climate-related risks and
opportunities is the same as for any of Computacenter’s other key risks
and opportunities, with the Board having overall responsibility for managing
risks and opportunities.
The Board delegates specific climate-related matters to the Climate
Change Committee, which oversees the development and execution of
climate-related targets, metrics, policies, and actions.
The Climate Change Committee
Chaired by the Group Development Director, the Climate Change
Committee comprises representation from Group Business Services and
Service Lines members including the Head of Facilities, the Managing
Director of our Circular Services business, Head of Insurance, Climate &
Property, as well as representatives from Group Service Lines, Human
Resources and Sustainability Reporting. Regional representatives attend
as required.
The Climate Change Committee was founded in 2020 with the aim of
debating and proposing initiatives to continue to reduce our environmental
impact, with some material investments to be approved at Group
Executive level. The focus of the Climate Change Committee has evolved
as our Net Zero transition plan has matured. The Climate Change
Committee now considers four key pillars of climate-related activity
– targets, metrics, policies, and actions.
Roles and responsibilities
Target Timing Status
The Board • Meets with the Climate Change Committee at least
once each year
• Discusses climate-related activities at least twice
each year
• Overall responsibility for managing risks and
responsibilities
• Endorses the sustainability strategy
• Reviews material climate-related actions and metrics
• Approves material climate-related targets, policies,
and investments
Executive team • Meets with the Climate Change Committee at least
once each year
• Discusses climate-related activities at least twice
each year
• Reports to the Board on climate-related activities at
least twice each year
• Ratifies and approves climate-related targets and
investments
• Provides data to support climate-related metric
measurements
• Implements climate-related actions and policies
• Discusses material climate-related actions and policies
with the Board
Climate Change
Committee
• Meets at least three times each year
• Reports to the Board and to the Executive team twice
per year
• Monitors climate-related regulation and assesses the
impact on Computacenter
• Reviews climate-related risks and opportunities
• Develops risks management strategies to manage,
mitigate, accept, or defer climate-related risks,
including making recommendations to the Executive
team for investment
• Establishes and reviews climate-related targets, metrics,
actions, and policies
• Communicates climate-related initiatives and
achievements to the sustainability communications
function
Two of our Independent Non-Executive Directors have current and prior experience of chairing and participating in ESG committees, as well as
participating in climate-related risk management oversight in a variety of sectoral settings.
Task Force on Climate-Related Financial Disclosures continued
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Maintaining long-term value
Task Force on Climate-Related Financial Disclosures continued
Strategy
We supply technology products and services to our customers that
help them to reduce their own environmental impact by reducing
business travel and increasing the flexibility of their workforce. This is
supported by our Technology Sourcing infrastructure and through
investments in Integration Centers across Europe and North America.
These investments enable us to deliver products more locally, and to
centralise configuration activities to reduce engineering effort and travel.
Computacenter’s exposure to climate-related risks and opportunities
can be seen through the lens of our position as one of the world’s leading
VARs. Our ability to procure technology products through leading
technology vendors, add value for our customers through our Services
expertise, and then ship or hold that product depends on:
• the resilience of our technology vendors;
• their ability to efficiently manufacture the product on a timely
basis; and
• their ability to send it to our customers or to us, in a timely and
cost-efficient manner.
Our Services business depends on our people being able to access our
service delivery locations and our customers’ locations, as well as the
uninterrupted functioning of our operational infrastructure, such as our
principal offices, Integration Centers, Delivery Centers, and Service Centers.
Any physical or transitional climate-related risk which disturbs the
equilibrium of our value chain could impact the execution of our strategy,
our levels of customer service and satisfaction, and ultimately our financial
performance. We do not recognise climate change as a principal risk to
the business, and do not therefore recognise it in our financial planning
process due to its financial immateriality in the timescales we use.
Nevertheless, we have assessed and describe those climate-related
risks that we think could reasonably result in an impact, although for
many of these their frequency and severity is difficult to predict. We have
therefore based our analysis on certain assumptions, which we have
also explained.
During 2023, the Climate Change Committee considered the
following topics:
Targets
• Near-term, long-term and Net Zero Targets, including approval
by SBTi in June 2023
Metrics
• Physical exposures of buildings and infrastructure
• Voluntary standards submissions, which include but are not
limited to:
– CDP
– Regional Ecovadis submissions
– Self-generated power
• Fleet CO emissions
Policies
• Internal carbon levies for business travel and accommodation
• Carbon-neutral travel initiatives – encouraging rail versus air
travel in Germany
Actions
• Carbon offsetting proposals
• Net Zero strategy, transition plan and Sustainable
Operations priorities
• Circular Services ambitions and growth plan
• Technology Sourcing initiatives, including approach
to sustainable sourcing with our vendors
• Renewable energy purchases
• Planning for forthcoming regulation
In previous years, reporting from the Climate Change Committee to
Management and the Board has been undertaken by the Chair, who
is a member of Management. From 2024, the Climate Change
Committee will start to meet with Management and the Board at
least once per year, and report to Management and the Board at least
twice per year.
Risk management
Our risk management and control framework enables us to effectively
identify, assess and manage climate-related risks. Risk identification is
both bottom-up – through the Group Operating Business Risk Assessment
process (GOBRA), which is completed by managers across the business
– and a function of the Climate Change Committee.
Risk materiality is assessed in both financial and impact terms. A principal
risk would exceed a financial risk threshold of £10m. The impact would
materially disrupt one or more business functions or capabilities
resulting in large-scale failure.
The Board has considered the climate-related risk to the business and
does not believe it to be sufficiently material as to be classed as a
principal risk.
The Board continues to monitor climate-related risk. It does so through
its review of the Group’s principal risks in relation to any failure to meet
our commitments or comply with applicable laws and regulations in
relation to ESG matters.
Day-to-day oversight of climate-related risks and opportunities has been
delegated to the Climate Change Committee. Additionally, each large Sales
country (Segment) has an appointed sustainability champion to ensure
that sustainability is embedded in our customer engagement activities,
and that sustainability-related risks and opportunities are reflected in
local and regional planning activities.
The Group Risk Committee (GRC) considers emerging risks, such as
climate change, when required. The Audit Committee is updated
quarterly on discussions and outcomes from the GRC meetings, and the
Board is formally updated at least annually on all risk matters through a
review of the Group Principal Risk Log and related discussion, including
climate-related issues where relevant. The Board has also endorsed the
Group’s sustainability strategy, of which risk management and reporting
form a part.
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Task Force on Climate-Related Financial Disclosures continued
Maintaining long-term value
Our initial assessment indicates that transition risks associated with the
shift to a low-carbon economy are more likely to have an impact on our
business in the short term, while physical risks (both acute and chronic)
may become a greater issue in the longer term, if global temperature
increases are not held within the 2°C limit envisaged by the Paris Agreement
or we see the impacts of global warming of 1.5°C above pre-industrial
levels, envisaged in the Intergovernmental Panel on Climate Change
‘Special Report’. More detail on the risks and opportunities arising from
climate change, and the mitigating actions we are taking to address
them, are shown below. The time periods align with the targets approved
by the SBTi and reflect our view that transition risks are a more likely
impact on our business in the short term, while physical risks may
become more consequential in the long term.
The scenarios we have chosen reflect the TCFD requirement for a 2°C or
lower scenario and a higher carbon scenario that is more likely to result
in higher physical risks to the business. In the near- to medium-term at
least, the resilience of our business to transition risks, which are well
managed, mean they will not impact our strategy. Physical risks will be
unlikely to materially affect our business model until the longer term,
but this will be kept under review.
Physical risk: extreme weather events and long-term changes
in climate patterns
Significant changes in weather patterns in the medium to long term,
both acute and chronic, could result in interruptions in our technology
vendors’ ability to manufacture and distribute on a timely basis, and
could cause damage to our service delivery locations, including our
Service Centers, Integration Centers, and Data Centers, affecting our
ability to run an uninterrupted service for our customers.
Most of our technology vendors are substantial international businesses,
which have the size, resilience, technological capability, and investment
capacity to mitigate the future risk of climate-related damage to their
manufacturing and distribution process. We work with multiple technology
vendors, which mitigates against one organisation, area or region being
impacted by extreme weather.
We carry out a physical assessment of our service delivery locations
across the globe as part of our insurance risk assessment process and
retain the services of one of the foremost global engineering and
risk-based insurers. We have business contingency planning, so we can
move our service delivery to alternative locations with minimal impact
to service levels. None of our service delivery locations are at material
risk of flooding from rivers or sea level rises, from wind or wildfire risk.
Like many organisations, we have reduced our reliance on physical
offices, a model proven successful during the Covid-19 pandemic.
Transition risk: compliance and reputational risk
As we move towards a low-carbon economy, we face increasing
compliance requirements. These requirements emanate from several
sources including the UK Government, regulatory authorities, and
standard setters, such as additional FCA Listing Rules, the International
Sustainability Standards Board (ISSB) disclosure requirements, and the
Corporate Sustainability Reporting Directive (CSRD). We also face
pressure from business stakeholders and market initiatives related to
sustainability reporting, such as the TCFD, and from customers faced
with similar pressures.
If we fail to meet these requirements and expectations, or if we fail to set
and achieve our climate impact reduction targets, this is likely to harm our
reputation and could cause customers to reduce their business with us.
We take our climate-related responsibilities seriously, which helps to
mitigate this risk. We have had a Climate Change Committee in place
since 2020, and have driven successful initiatives that include:
• The installation of solar panels at facilities in the UK, Europe and
the United States, creating the capacity to generate more than
4m kWh of electricity per annum.
• Sourcing renewable energy for our operations in the United
Kingdom, Germany, Spain, and the United States.
These and other initiatives have contributed to a reduction in our Scope 1
and 2 emissions of 80% since 2019 (see page 084) and supported our
endeavours to be carbon neutral for our Scope 1 and 2 emissions – a
target that we achieved on time in 2022 and have maintained in 2023.
We have set near-term, long-term and Net Zero targets for which we
obtained SBTi approval in June 2023. We are proud to be amongst the
first in our industry to have such comprehensive validation of our goals.
Our SBTi-approved targets are:
• Near-term targets – we have committed to reduce absolute Scope
1 and 2 GHG emissions by 82.1% by 2032 from a 2019 base year, and
to reduce absolute Scope 3 GHG emissions from purchased goods
and services, capital goods, fuel and energy related activities,
upstream transportation and distribution, waste generated in
operations, business travel, employee commuting and upstream
leased assets by 50.4% by 2032, from a 2021 base year.
• Long-term targets – we have committed to reduce absolute
Scope 1 and 2 GHG emissions by 90% by 2040 from a 2019 base
year, and to reduce absolute Scope 3 GHG emissions by 90% by
2040, from a 2021 base year.
• Overall Net Zero target – we have committed to reach Net Zero
GHG emissions across the value chain by 2040.
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Maintaining long-term value
Task Force on Climate-Related Financial Disclosures continued
Climate Scenario <2°C
Our analysis of this scenario indicates transition risks associated with moving to a low-carbon economy, with fewer physical risks.
Risk or opportunity type Description Timing Our strategic mitigation or capitalisation
Transition risk Reputational risk with shareholders, customers, and
employees if we do not adequately address our key climate-
related targets and actions.
Near term and medium term • We have established SBTi-approved emissions reduction targets for the near term
and long term, and a Net Zero target of 2040.
• We proactively engage our stakeholders in understanding our climate-related action
plans, engendering collaboration where possible.
Compliance risk if we fail to meet regulatory requirements,
including emissions reporting obligations.
Near term and medium term • We monitor sustainability and climate-related regulations to ensure we understand
their implications and establish corresponding action plans.
Increased cost of climate-related levies/increased pricing of
greenhouse gas (GHG) emissions.
Near term and medium term • We monitor climate-related levies and resource pricing which is reviewed through
our Climate Change Committee.
• We have invested in our own energy generation solutions at key Integration
Center locations.
Changing customer behaviour. Near term and medium term • We build long-term, trusted relationships with our customers and closely monitor
market trends and themes to maintain adaptability in the services we provide.
Travel curbs. Near term and medium term • Our hybrid-working model is proving successful, facilitating more virtual collaboration.
• Our underpinning infrastructure is scalable and designed to facilitate remote working.
Physical risk Continued isolated extreme weather events causing
manageable business disruptions.
Long term • Continued assessment of climate-related risk in the execution/evolution of our
location strategy.
Higher summer temperatures and rapid changes in
temperature and humidity causing challenges for
data center cooling.
Long term • Continued investment in appropriate cloud-based solutions from leading global
suppliers will mitigate our reliance on high-risk facilities.
Opportunity Customers will continue to invest in their IT infrastructure, to
enable hybrid working practices which are carbon-reducing,
and to reduce the carbon footprint of their IT infrastructure.
We will therefore continue to see high demand for modern,
lower-carbon footprint technology products, strengthening
the resilience of our business model and contributing to our
continued growth.
Near term • We are actively engaging with customer and vendor sustainability programmes, ensuring
the technologies and services we provide align with their sustainability ambitions.
Customers will increasingly require our advice on the selection
and deployment of technology products, to help them achieve
their carbon reduction strategies.
Near term • We are working closely with vendors to improve the availability of emissions data for
their products through our technology advisory and technology lifecycle services.
Our Circular Services (redeployment, remarketing, and
recycling of technology products) will become increasingly
important to our customers and partners.
Near term, medium term
and long term
• We are building on our strong foundations to expand our Circular Services offering
across key geographies and setting ambitious targets to grow the volume of devices
recovered through our Circular Services business.
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Computacenter plc Annual Report and Accounts 2023098
Task Force on Climate-Related Financial Disclosures continued
Maintaining long-term value
Climate Scenario >2°C
Our analysis suggests a slight increase in transition and physical risks in the near term, with increased physical risks over the medium and long term.
Risk or opportunity type Description Timing Our strategic mitigation or capitalisation
Transition risk Isolated and manageable business disruptions caused by
extreme weather events, such as flooding or drought.
Near term and medium term • We will continue to maintain operational resilience through the geographical
dispersion of our Service Centers and versatility of our underpinning infrastructure.
Ad-hoc supply chain interruptions. Near term and medium term • As a vendor-agnostic technology provider, we will seek to balance across multiple
vendors and Original Equipment Manufacturers (OEMs) to mitigate material disruption
to customer supply.
Physical risk Increased insurance costs due to natural disasters. Near term and medium term • Our location strategy will continue to consider the environmental risks associated
with our premises.
Power, telecoms and internet disruptions. Near term and medium term • We will continue to maintain operational resilience through the geographical
dispersion of our Service Centers and versatility of our underpinning infrastructure.
Increasing cost of power. Near term and medium term • We will continue to execute our own power generation initiatives building on the solar
arrays already implemented across key UK, Europe, and US locations.
Flooding due to increased sea level (no strategic locations
are at material risk).
Near term and medium term • Continued assessment of climate-related risk in the execution/evolution of our
location strategy.
Pandemics due to new diseases caused by climate and
population changes.
Long term • We have resilience and recovery plans to maintain service continuity during a
pandemic event, which were used during the Covid-19 pandemic.
Population changes – due to things such as controls on
population growth, increasing migration, and the need
for automation.
Long term • We will continue to maintain operational resilience through the geographical
dispersion of our Service Centers.
Opportunity Our ability to supply technology products locally in multiple
regions (UK, EU, North America and APAC) will help large
international customers to reduce shipment costs and the
associated carbon footprint. This international coverage will
also increase our resilience and help us provide greater supply
chain resilience to our customers.
Near term • Continued investment in our international capability to meet the needs of our
target market customers.
Our existing strength as one of the world’s most international
and Services-led VARs give us the opportunity to establish a
leadership position in helping both customers and technology
vendors to achieve their sustainability goals.
Medium term • Continued investment in capabilities that align with the sustainability needs
of our customers.
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Maintaining long-term value
Task Force on Climate-Related Financial Disclosures continued
Metrics and targets
In line with our current risk assessment and mitigation plan, we continue to largely concentrate on transition risks and our commitment to becoming a Net Zero business, as outlined above.
We have considered the cross-industry metric categories defined in the TCFD’s guidance on metrics, targets, and transition plans (October 2021) in monitoring our transition to a low-carbon economy and the risks involved with it.
Metric category Target
GHG emissions We have set near-term, long-term and Net Zero targets for which we obtained SBTi approval in June 2023.
Our SBTi-approved targets are:
• Near-term targets – we have committed to reduce absolute Scope 1 and 2 GHG emissions by 82.1% by 2032 from a 2019 base year, and to reduce absolute Scope 3 GHG emissions
from purchased goods and services, capital goods, fuel and energy related activities, upstream transportation and distribution, waste generated in operations, business travel,
employee commuting and upstream leased assets by 50.4% by 2032 from a 2021 base year.
• Long-term targets – we have committed to reduce absolute Scope 1 and 2 GHG emissions by 90% by 2040 from a 2019 base year, and to reduce absolute Scope 3 GHG emissions
by 90% by 2040 from a 2021 base year.
• Overall Net Zero target – we have committed to reach Net Zero GHG emissions across the value chain by 2040.
(See page 091 for details of our GHG emissions).
To achieve our Scope 1 and Scope 2 reduction target, we will continue to invest in increasing energy efficiency in our facilities, to decrease our energy consumption. Where feasible, we will
continue to install on-site renewable electricity systems, such as the photovoltaic systems already in place in the United Kingdom, Germany, Netherlands, and the United States.
Where we are unable to generate our own, we will seek to source our electricity from renewable sources.
To achieve our Scope 3 targets, we’re working closely with customers and vendors to improve transparency and support carbon-aware decision-making.
We will continue decreasing the percentage of waste sent to landfill, helping to reduce emissions from the treatment and disposal of waste.
We are encouraging employees to, first, limit journeys for business travel purposes, and secondly if journeys are necessary, encouraging lower-emitting forms of transport, such as rail
rather than air.
Transition risk We have considered transition risks to achieving our strategic KPIs across the Group as a whole; they are not considered material at this stage.
Physical risk We have assessed the Group’s locations close to water sources at risk of flooding or at risk of sea level change. No strategic operations are close to water sources. No location has been
identified as being at major risk of wind or wildfire. We retain the services of one of the foremost engineering and risk-based insurers in the world, which assists us in our assessments, and we
are integrating locations that are not part of our Group Insurance Programme.
Climate-related opportunities Customers will need us to:
• supply and deploy modern, lower-carbon footprint technology products.
• provide Circular Services for their technology estate.
• provide local supply solutions, to minimise the shipment-related carbon footprint.
• advise on selecting and deploying lower-carbon IT infrastructure, to help them meet their sustainability goals.
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Task Force on Climate-Related Financial Disclosures continued
Maintaining long-term value
Metric category Target
Capital deployment We do not have targets in relation to capital deployment, but we continue to make expenditure necessary to meet our commitments in terms of climate change. In recent years we have made
significant investments to reduce our carbon footprint. These include the following initiatives:
• Installing solar panels at four Integration Centers in the UK, Europe, and the United States, at a total cost of over £2m. Combined, these have resulted in annual power generation
capability of approximately 4m kWh and the reduction in Scope 2 emissions of approximately 1,100 tonnes, based on a combination of the United Kingdom and Germany
conversion factors.
• Purchasing ‘green’ electricity across our UK and German businesses at an incremental cost of more than £200,000, resulting in emissions reductions of 11,958 tonnes.
• Introducing electric vans in some of our logistics business areas and electric cars. In the United Kingdom, we have increased the proportion of non-internal combustion engine
(non-ICE) cars (mild hybrid, PHEV and EV) from 64% to 78%, which is a 35.6% increase in non-ICE cars on prior year. In Germany, the percentage of non-ICE fleet has increased
from 30% to 33%.
• Acquisition of RDC, our Circular Services subsidiary, with plans for further investment to extend our Circular Services reach under the Computacenter brand and service
governance model.
Internal Carbon prices Since October 2021, we have applied an internal levy of £10/€12/$14 per flight or hotel booking for the United Kingdom, France, Germany, Spain, Belgium, and the United States, to purchase
carbon credits each year to offset the CO emissions generated from these activities. The total levy generated during the 12-month period to 31 December 2023 is circa £420,000.
The levy will be revised in line with our carbon reduction ambitions during 2024, aligning cost more closely with the carbon impact of each journey.
Remuneration For the year ended 31 December 2023, the discretionary bonuses of the Chief Executive Officer and the Group Development Director were linked to climate-related change management
and communication.
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Maintaining long-term value
Ethics and compliance
Ethics and compliance continue to play a key role in shaping our journey
and safeguarding our future.
Our commitment to ethics
Ethics and compliance is a fundamental consideration when executing
our strategy and growing a sustainable business that focuses on the
long term. Our commitment to conducting business in an ethical and
compliant manner not only reinforces our commitment to the long term
but strengthens our relationship with our employees, customers,
and partners.
Our commitment to trust
Our commitment to ethics and compliance is aligned to our Winning
Together Values. We believe that a culture of ethical behaviour and
compliance must be embedded at every level within the organisation
to support the trust that our people and our customers place in us.
In this way, we not only strengthen our existing relationships, but also
continue to build new relationships with those who share similar values
and commitments.
Our Group Compliance Framework
Our Group Compliance Framework has been intentionally designed to address
our legal obligations and to reflect our values and our customer requirements
and expectations. The approach is a proportionate, people-led design
that allows us to protect the organisation in a way that leverages our
values and culture. The Group Compliance Framework empowers our
people and enables our business, providing the knowledge to maintain
an agile, customer-focused but overall compliant business environment.
Fraser Phillips
Group Legal & Compliance Director
“As a leading independent technology
and services provider, our people and our
customers trust us to comply with the
law and behave consistently in a way
that reflects our ethical standards and
our values.”
Navigating compliance regulations
We have established an adaptable and comprehensive compliance
framework against the requirements of an expanding compliance
landscape, which ensures that we are conducting ourselves in accordance
with the laws and regulations in the jurisdictions in which we operate.
The standardised approach within the framework allows us to quickly
and effectively adapt to changes within our business and the legal and
regulatory environment. This framework not only safeguards our
company but empowers our employees with the knowledge to make
sound, ethical decisions efficiently and effectively.
Our Group Ethics Policy and Code of Business Conduct
Our Group Ethics Policy and Code of Business Conduct is the cornerstone
of our Group Compliance Framework, seamlessly integrating with our
Winning Together Values. Together, they set the standard across our
business to provide uniformity and clarity and ensure that each of our
employees understands both our expectations and how to apply them
to their day-to-day role at Computacenter. The Board has endorsed the
Group Ethics Policy, and agrees that it aligns with our values, strategy,
and purpose.
Knowledge and training
We recognise that a culture of compliance and ethics is cultivated
through communication and training. To achieve this, we provide a
combination of policies and procedures, comprehensive training, and
multi-channel communications campaigns. All our compliance collateral
and training content can be found on our internal Group Compliance page,
with details of who to contact should our people have any questions.
We also track feedback and engagement with this platform, and continuously
build on the way in which we engage with the business when delivering
key compliance messaging. Our focus remains on delivering engaging
content in a way that resonates with our culture, bringing compliance to
life in an accessible way.
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Computacenter plc Annual Report and Accounts 2023102
Ethics and compliance continued
Maintaining long-term value
Communications and awareness
Our Group Compliance Framework is supported by an annual
communications plan, which emphasises the key messages of our core
compliance areas. The plan adopts a diverse, multi-channel approach to
cater for different audience groups and risk profiles, to maximise reach
and impact.
Led by our Group Legal and Compliance Director, each campaign is a
collection of engaging tools, including concise video clips that distil key
takeaways and informative news articles prominently featured on our
company intranet homepage. Our communications strategy seamlessly
integrates each message with our central Group Compliance page.
This intentional design fosters a sense of confidence and self-reliance
amongst our people, encouraging them to actively seek and navigate
this content.
To ensure that our communications efforts resonate effectively, we
rigorously evaluate each campaign’s success. Engagement metrics are
recorded, and comprehensive evaluations are conducted. This approach
not only gauges the current impact of our communications, but also
serves as a cornerstone for continuous improvement, shaping more
effective and resonant strategies for our future plans. This cycle of
evaluation and enhancement is fundamental to fostering an
environment of proactive engagement and sustainable awareness
within our organisation.
Cultural reach
We make our Group Compliance policies accessible by publishing them
in all the core languages in which we operate, accompanied by guidance
documents and ‘golden rules’. The compliance area golden rules act
as a concise summary of the key requirements contained within the
policies, as we recognise the benefit that straightforward guidance can
provide. This also allows for the varying ways in which people prefer to
engage with compliance content.
Whilst we communicate this content at a Group level, we consider
local culture and communication styles to effectively convey our
core messages.
Regular assessment and continuous improvement
We continuously assess and evaluate the success of our framework,
monitoring engagement metrics with our compliance collateral both
before and after communications campaigns to refine our strategies.
Our centralised compliance function also allows us to identify trends
and react accordingly, bolstering compliance workshops and collateral
where we identify possible areas for improvement. Additionally,
e-learning completion rates are monitored and reported, and feedback
is actively sought and incorporated into our initiatives.
All compliance collateral is subject to regular review, alongside routine
horizon scanning, ensuring we align with best practice and any change
in regulations.
Supplier Code of Conduct
Our commitment to compliance extends to our suppliers, whether they
are providing goods or services directly to us, or as part of a customer
transaction or offering, to ensure the integrity of our supply chain. We
require our suppliers in our core countries to adhere to our Supplier Code
of Conduct, which mirrors the ethical standards that we uphold and
provides clear guidance for our suppliers as to our expectations. The
Supplier Code of Conduct is subject to regular review and updates to stay
aligned with evolving regulations.
Due diligence
We screen our suppliers in our key geographies, including where
appropriate for details of their ultimate beneficial ownership. Our due
diligence includes leveraging industry recognised platforms to maintain
transparency in our supply chain. Significant preparation has been
undertaken in our non-core countries ahead of the planned implementation
of the platform in these countries in 2024.
Further detail on our due diligence processes relating to modern slavery,
human rights, anti-bribery and corruption and our supply chain can be
found on page 088.
Oversight and reporting
The oversight of our ethics and compliance programme is the responsibility
of our Group Legal and Compliance Director, and our Compliance Steering
Committee. Risks and issues are reported to the Group Risk Committee
and to the Audit Committee, and we actively work to mitigate and
remediate any concerns.
Whistleblowing hotline
To uphold transparency and provide a secure channel for reporting
concerns, we offer a confidential whistleblowing hotline. This service,
managed externally by Safecall, is available to our people and everyone in
our supply chain, enabling them to report any suspicions of wrongdoing.
We actively encourage our people to ‘Speak Up’ through an annual
multi-channel communications campaign. In addition, we support our
managers by providing them with tailored guidance, to help them
understand their obligations when approached directly with a concern.
ETHICS AND COMPLIANCE CASE STUDY:
Following a recent anti-bribery and corruption communications
campaign, we saw a 15% uptick in employee engagement with the
Group Compliance platform. We also recorded a 57% increase in
the average time spent engaging with the core anti-bribery and
corruption content.
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Computacenter plc Annual Report and Accounts 2023 103
DATA PRIVACY CASE STUDY: COMPUTACENTER DATA
PROTECTION CONFERENCE
During 2023 the Computacenter data protection officers hosted
an inaugural internal data compliance conference. Managers and
champions for data protection from across all the Computacenter
jurisdictions were invited to attend a range of sessions including
panel discussions, presentations and talks from external experts.
Areas of focus included: hot topics and trends in data protection in
2023 and beyond, the interplay between data protection compliance
and security of data, contracting for data protection compliance,
the data privacy by design principles and how AI and AI standards and
frameworks from across the world impact data privacy compliance.
Good feedback was received following the conference, meaning that
we will organise further events.
Anti-bribery and corruption
We are firmly committed to complying with all applicable anti-bribery and
corruption laws in all jurisdictions in which we operate, including the UK
Bribery Act. We uphold a strict zero-tolerance stance against any form
of bribery or corruption. Our Group Anti-Bribery and Corruption Policy
prohibits offering, accepting, or soliciting bribes, and we remain vigilant
to ensure that such conduct does not infiltrate our practices, regardless
of the jurisdiction.
Our policies clearly state that no employee or associate is to engage
in any activity that could be construed as a bribe or corrupt practice.
The policy addresses not only the exchange of money but also gifts,
entertainment, or other benefit or advantage that could improperly
influence a decision. To reinforce this principle, any exchange of gifts or
hospitality beyond a nominal value requires prior written approval and
must be recorded in the official Gifts & Hospitality Register, with these
registers checked periodically. Our policies also include clear rules and
direction surrounding interactions with government officials, charitable
contributions, and political activities.
To ensure full understanding and compliance with these standards,
our employees are required to acquaint themselves with our Group
Anti-Bribery and Corruption Policy and the accompanying Golden Rules
to Anti-Bribery and Corruption and complete regular training. With these
measures, we aim to not only abide by the law but also to fortify the trust
that our stakeholders place in our ethical business conduct, which
reflects our corporate values.
Our due diligence process and accompanying Supplier Code of Conduct
extends the ethical standards that we uphold to our supply chain and is
designed to set a high level of expectations and a modicum of defence.
It ensures that the vendors who act on our behalf within our core
geographies are both aware of their obligations to comply with
applicable anti-bribery and corruption laws and validates that they do
not have a history of non-compliance, untoward behaviour, or criminal
sanctions. A planned implementation of the screening platform in all
countries in which we operate is scheduled in 2024.
Ethics and compliance continued
In accordance with our commitment to continuous improvement of our
anti-bribery and corruption framework, we are currently implementing
audit recommendations, having conducted both our regular internal audit,
and an external audit in accordance with our Sapin II obligations in France.
Also, in 2023, we launched a campaign to enhance awareness of our
whistleblowing hotline, a critical component of our compliance framework,
which reported no significant policy breaches throughout the year.
Data privacy
Robust compliance with data privacy laws and regulations is fundamental
to all Group operations throughout the jurisdictions that we and our
customers operate in. Data protection compliance is a centralised and
global function led by the Group Data Protection Officer, reporting into
the Group Legal and Compliance Director. The Group Data Protection
Officer is supported by a team of experienced and qualified specialists
across our key geographies, who work closely with key stakeholders
across the business, including the Computacenter information
security team.
Data privacy compliance is operated in alignment with good industry
practice, with oversight provided by both the Risk and Audit Committees.
Priority areas of compliance focus for us include training and awareness
and it is required that all employees complete mandatory online training
as a baseline. To date, almost 18,000 Computacenter employees have
completed this training successfully. In addition to the mandatory
training the data protection officers also provide regular data compliance
bulletins, deliver additional training specific to individual business areas
and recently hosted an internal global data privacy conference. To
ensure compliance with the applicable laws and regulations, the data
protection officers also conduct data privacy compliance audits.
Maintaining long-term value
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Computacenter plc Annual Report and Accounts 2023104
Maintaining long-term value
Other non-financial disclosures
Section 172 factors Relevant information Page
The likely consequences of any
decision in the long-term
• Chair’s statement 004 to 005
• Our strategy, business model and investments 012 to 017
• Delivering long-term value 028 to 055
• Principal risks and uncertainties 064 to 075
• Board decision-making 109 t o 111
The interests of the Company’s
employees
• Our people and culture 020 to 021
• Sustainability – people 083 to 088
• Stakeholder engagement – our people 059
• Board decision-making 109 t o 111
• Directors’ Remuneration report 136 to 158
The need to foster the Company’s
business relationships with suppliers,
customers and others
• Delivering long-term value 028 to 055
• Stakeholder engagement 057 to 063
• Board decision-making 109 t o 111
The impact of the Company’s
operations on the community
and the environment
• Sustainability Q&A 026 to 027
• Sustainability – planet and solutions 089 to 093
The desirability of the Company
maintaining a reputation for high
standards of business conduct
• Ethics and compliance 102 to 104
• Governance report 107 to 164
The need to act fairly between
members of the Company
• Stakeholder engagement – our shareholders 060
• Board decision-making 109 t o 111
Section 172 Statement
When conducting any activity in his or her role as a Computacenter plc
Director, our Board members must act in a way that they consider is
most likely to promote the success of the Company for the benefit of its
members as a whole, having regard to a number of factors set out in
section 172 of the Companies Act 2006. These include the interests of
our employees, importance of fostering business relationships with our
suppliers and customers, impact of our operations on the community
and environment, likely consequences of any decision in the long term,
desirability of the Company maintaining a reputation for high standards
of business conduct and the need to act fairly between the members of
the Company. Each Director considers that they have acted in a manner
consistent with his or her section 172 duty throughout the year.
The Board understands that without our key stakeholders, the Company
would not be able to successfully implement its strategy, and our Purpose
would be unachievable. Understanding their interests, views and concerns,
and considering these when reviewing and discussing matters put before
it for review or approval as part of its annual programme, is critical to
enabling the Board to make informed decisions, and for each Director
to discharge their duty under section 172. In some cases, stakeholder
engagement directly involves the Board or its members, and this is
almost exclusively how engagement with our shareholders takes place.
Given the size and geographic diversity of our business, the majority of
engagement with our customers, technology vendors, people and
communities takes place at an operational level across the organisation.
Where this was the case, the Board ensured that it had been updated on
the nature and outcomes of this engagement during the year.
We have also set out the factors listed under section 172 which the Board
considered when reviewing Board-level matters or making decisions
during the year. These can be found on pages 109 to 111. The results of
the Board’s decision-making, and the outcomes produced by each
Director discharging their section 172 duty can be found throughout this
Annual Report and Accounts. Therefore, the following sections have been
incorporated by reference into this section 172 statement and, where
necessary, the Strategic Report.
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Computacenter plc Annual Report and Accounts 2023 105
This Strategic Report was approved by the Board on 19 March 2024
and was signed on its behalf by:
MJ Norris MC Jehle
Chief Executive Officer Chief Financial Officer
Non-financial and sustainability information statement
Computacenter needs to comply with section 414 of the Companies Act 2006, which includes requirements for non-financial and sustainability reporting.
We have therefore set out in our Annual Report certain information on the non-financial and sustainability matters listed below, including related policies,
due diligence and outcomes for those matters listed at sections 3-7.
Reporting requirement Relevant information Page
1. Business model and non-financial
key performance indicators
• Our business model 016
034 to 035• Our strategic KPIs
2. Principal risks • Principal risks and uncertainties 064 to 073
3. Employees • Our people and culture 020 to 021
• Stakeholder engagement – our people 059
• Sustainability – people 083 to 088
4. Social matters and
community issues
• Sustainability – people and planet 078 to 088
• Stakeholder engagement – our communities 062
5. Human rights • Sustainability – people 083 to 088
6. Anti-bribery and corruption • Ethics and compliance 102 to 104
7. Environmental matters/Climate-
related financial disclosures
• Sustainability Q&A 026 to 027
• Sustainability – planet and solutions 089 to 093
• Task Force on Climate-Related Financial Disclosures 094 to 101
Maintaining long-term value
Other non-financial disclosures continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS GLOSSARY
Computacenter plc Annual Report and Accounts 2023106
Governance
report
Contents
Chair’s governance overview 108
Promoting the long-term sustainable success of the Group 109
Other Board activity and decision-making 110
Governance at a glance 112
Division of Responsibilities 114
Board of Directors 116
Executive team 118
Ensuring Board effectiveness 120
Measuring Board effectiveness 121
Compliance with the Code 122
Our purpose, strategy, values, and culture 124
Board Leadership and Company Purpose 126
Nomination Committee report 127
Audit Committee report 130
Directors’ Remuneration report 136
Directors’ report 159
Directors’ Responsibilities 164
Computacenter plc Annual Report and Accounts 2023 107
GLOSSARYFINANCIAL STATEMENTS
GOVERNANCESTRATEGIC REPORT
Chair’s governance overview
UK Corporate Governance Code Compliance
As a premium listed company on the London Stock Exchange, Computacenter
reports in accordance with the 2018 UK Corporate Governance Code (the
Code). I am pleased to report that, in 2023, we complied fully with the
provisions of the Code. You can find further detail on how we have applied
the principles of the Code on pages 122 to 123.
Board changes and succession planning
Chris Jehle’s appointment as an Executive Director and Chief Financial
Officer, with effect from June 2023, was reported on in last year’s Annual
Report. There were no other Board appointments during the year. The
Nomination Committee’s focus on succession planning over recent years
has ensured that the Board has an appropriate mix of skills, experience,
diversity and independence. We continue to review Board membership to
ensure that we retain fresh perspective and thought in Board discussions.
The report of the Nomination Committee sets out the work that it has
done during the year to ensure the orderly and planned evolution of the
Board moving forward.
Internal Board evaluation
As we explain on page 121, we have undertaken an internal Board
evaluation during the year. Following consideration of its outcomes by the
Nomination Committee, I am pleased to report that the review concluded
that the Board and its Committees continue to operate effectively.
AGM
This year’s AGM will take place at 11.30am (BST) on Tuesday 14 May 2024.
Further information can be found in the Company’s 2024 Notice of Annual
General Meeting. We hope that you feel we have appropriately represented
your interests during the year, and look forward to hearing your thoughts
and feedback at the meeting.
Peter Ryan
Non-Executive Chair
19 March 2024
Our governance approach is aligned with the Group’s Winning Together
Values, in placing significant focus on its long-term sustainable success.
This underpins our approach to strategy, performance, governance,
and risk. On pages 109 to 111, we have set out a number of the Board’s
decisions during the year to illustrate this for you in more detail.
In what continues to be a challenging and volatile macroeconomic and
geopolitical environment, our emphasis on the long term acts as a
primary constant and guide for all of our workforce. The Group’s 19 years
of uninterrupted adjusted earnings per share growth has taken place
across a wide spectrum of economic conditions, and changes in
technology and the competitive landscape. In navigating these challenges,
we have found that an approach of substantive continuity mixed with
an ability to evolve with our stakeholders has served us well. We aim to
retain this approach moving forward.
Stakeholder engagement
It takes time to build deep trust with stakeholders and no time to lose
that trust if it is taken for granted. As a Board, we strive to put in place the
conditions to ensure that the organisation maintains this trust over the
long term. It remains critical that the Board understands the views and
interests of our key stakeholders – our customers, employees, technology
vendors, shareholders and the communities in which we operate – and
that we consider them in our decision-making process.
Further detail on how the Company and the Board engaged with our key
stakeholders, why that engagement is important, and how the Board
considered their interests and other section 172 factors in its decision-
making is set out on pages 057 to 062 and 109 to 111.
Board and Board Committees
The Board’s annual agenda is set so as to use the Board’s time most
effectively. To allow the Board to concentrate on areas of strategic,
operational, financial or reputational importance to the Group, it
delegates a number of responsibilities to its Committees. The reports
of the Board’s Committees are set out for you on pages 127 to 158.
Our Committee Chairs regularly report back to the Board to ensure
consideration of important and significant matters at that level. I would
like to thank them for the diligence they have shown in leading the
Committees during the year.
Dear Shareholder,
On behalf of the Board, I am pleased to introduce Computacenter’s
Corporate Governance Report for 2023.
Our governance framework
The Board believes that strong and effective corporate governance
practices are fundamental to creating and maintaining shareholder
value. They allow us to develop the trust and confidence of our stakeholders
and provide the organisation with strong leadership and effective
oversight. They also give our senior leaders clear instruction on their
responsibilities and accountabilities and, importantly, set out how we
want our colleagues to represent Computacenter, both internally and
externally, in conducting the Group’s business.
Peter Ryan
Non-Executive Chair
“Computacenter’s governance approach is
aligned with our Winning Together Values,
given its principal objective is the long-term
sustainable success of the Group.”
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023108
GLOSSARY
Promoting the long-term sustainable success of the Group
KEY DECISIONS OF THE BOARD INCLUDING STAKEHOLDER CONSIDERATIONS
DECISION TAKEN PRINCIPAL
STAKEHOLDER(S)/SECTION
172 FACTORS CONSIDERED
HOW WAS THIS INFORMED BY STAKEHOLDERS FEEDBACK OR INTERESTS? WHAT ELSE DID THE BOARD CONSIDER IN ITS DECISION-MAKING PROCESS?
Recommendation of 2022 final
dividend of 45.8p per share
and approval of 2023 interim
dividend of 22.6 per share.
Re-approval of the Group’s
Dividend Policy.
S
CU
TV
LT
AF
In deciding the quantum of dividends declared and paid, the Board considered
shareholders’ feedback that they were generally comfortable with the Group’s
existing dividend policy, and the level of historic dividends paid by the Company,
given its performance.
The Board also reflected on varying shareholder views of alternative uses of the Group’s
cash in order to generate returns and drive value. These included opportunities for
investment in organic growth, and mergers and acquisitions, and the necessary capital
requirements to pursue these.
Alongside the Group’s liquidity position and requirements, and its capital allocation
priorities, the Board considered interests that compete with income-based returns
to shareholders. These included our customers’ interest in the Group’s investment
capacity being sufficient to deliver for them over the long term, and the importance
of the Group’s creditworthiness to our technology vendors. The Board also considered
the interests of each key stakeholder in the strength of the Group’s balance sheet,
which the Group views as a competitive advantage in some geographies, and as a point
of difference for some customers. The Board also reviewed dividend yield and cover
against the Group’s peers, and the market consensus forecast for the dividend prior
to its final decision.
Approval of the Group’s
three-year strategy plan for
2024-2027. It remains largely
unchanged and is focused on
maximising our customer
relationships over the long term.
CU
TV
S
P
CO
LT
SP
Senior Management presentations to the Board from our three business service line
leaders, as well as the Group Development Director, identified the latest technology
trends, and the importance of these to our customers and technology vendors. Alongside
regular updates from the Executive Directors, these made clear the relevance of areas
such as automation, offshoring, Circular Services and artificial intelligence to those
stakeholders. Again, the Board considered shareholder views on their degree of appetite
for investment, organic growth and further acquisitions, particularly in the US, and its
view on the projected return on investment for each of these options.
The Board held a dedicated strategy day, at which it reviewed the Group’s customer
propositions, competitive positioning and differentiation; assessed Management’s
recommendations relating to growth potential and opportunities; and future strategic
investment requirements. The Board also reviewed the Group’s strategic KPIs and
associated key performance indicators, resulting in the 2022 KPIs related to Customer
Value being retired, and our new Gross Profit Conversion KPI being added for 2023.
All three current KPIs are now aligned to our executive remuneration structure.
Extension of the Group’s
committed bank facility by
one year to 2028.
S
CU
TV
P
LT
SP
All key stakeholders have an aligned interest in the extra financial flexibility and visibility
that this extension provides. It maintains the Group’s liquidity over a longer period and
allows it to strengthen its balance sheet on short notice by drawing down on the facility.
The Board considered the arrangement fee and the overall competitiveness of the
arrangement, including its interest rate and other available funding options. The Board
agreed that the facility pricing was competitive and that there were no structural
reasons why the facility would not be the right debt structure for the Group for the rest
of the facility term (inclusive of the extension).
Approval of the 2024 budget and
related performance targets.
S
P
CU
LT
HS
The Board received feedback from shareholders and analysts on market expectations
for 2024, particularly in respect of adjusted profit before tax, and also the Group’s
cash position. It also considered presentations from our senior Management on our
customers’ likely future buying behaviour, and their general ongoing appetite for
investment in IT infrastructure, including the level of priority that customers assign
to this against their other competing investment and spending requirements.
The Board’s consideration balanced continued growth in adjusted profit before tax
and adjusted earnings per share, with the macroeconomic outlook and the Board’s risk
appetite, as well as the level of investment needed to pursue opportunities and mitigate
risk in 2024, including in cyber security capability and internal and customer-serving IT
programme development and updates.
Approval of investment into and
development of Circular Services
capability and services offering
across the Group.
CU
S
CO
P
LT
ENV
SP
The Group Development Director presented to the Board on customer appetite for
sustainable solutions, particularly to help reduce Scope 3 emissions as part of their Net
Zero targets. Customers’ interests include ensuring that no data remains on equipment
they no longer need, reusing and redeploying equipment, and maximising the value of
any equipment that is remarketed. Communities have a significant interest in the
circular economy, which ensures the sustainable use of resources. Many institutional
and retail shareholders want to invest in companies who contribute to society through
their business operations, whilst Circular Services also demonstrates to our own people
that Computacenter is committed to being a responsible business.
Senior Management reviewed with the Board a roadmap for growth, barriers to market
entry, Computacenter’s ability to scale its business, the competitive landscape, and
projected global market growth in this area from 2023-2027.
See key on page 111
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 109
GLOSSARY
Other Board activity and decision-making
BOARD ACTIVITY IN 2023
The Board held eight scheduled
meetings during 2023 to cover
its annual agenda of activities,
through which it provides the
Group with leadership and
promotes its long-term
sustainable success. Whilst the
list of Board activities and
decisions set out from page 109
to 111 is not exhaustive, it
provides an understanding of
the Board’s main areas of focus,
the decisions it has made, and
the section 172 factors that it
considered in its discussions and
decision-making. These included
the views and interests of our
stakeholders, and the Group’s
appetite for risk, as set by the
Board. This section, as well as
the Board’s Principal Decisions
section on page 109, is
incorporated by reference into
the Board’s section 172 statement
for 2023, as set out on page 105.
ACTIVITY OR DISCUSSION UNDERTAKEN OUTCOMES OR DECISIONS STAKEHOLDERS AND S172
FACTORS CONSIDERED
Strategy
Conducted seven strategy related deep dives across the year on topics of
material importance to achieving progress against the Group’s strategic KPIs.
Within the 2023 and 2024 financial budgets, approved continued investment in: the
Group’s internal and customer-facing IT systems and capabilities; and the Group’s cyber
security capabilities. Challenged senior Management on the Group’s strategic approach
where appropriate.
CU
P
S
TV
CO
LT
SP
Held specific discussion and debate as to whether very early-stage acquisition
opportunities were aligned with the Group’s strategy, including customer target
market, geographic location and synergies available post-acquisition.
Approved the pursuit of certain acquisition opportunities. Noted the ongoing
Management resource required to fully integrate recent acquisitions in the US and Asia.
Balanced differing stakeholder priorities around the Group’s use of cash, such as
preference for organic growth, existing Group investment requirements and quantum
of shareholder returns through dividends or share buyback programmes.
CU
P
S
TV
LT
Received regular updates on the status of our environmental, social and
governance (ESG) strategy, including increased focus on and investment in the
Group’s Circular Services capability. Further information on the Group’s areas
of ESG focus can found on pages 078 to 101.
Approved the Group’s updated Social pillar strategy, delivering social value through our
people and communities. Reaffirmed the Group’s target of being Net Zero for Scope 1, 2
and 3 carbon emissions by 2040, and specifically considered the role of our technology
vendors with respect to our Scope 3 emissions. Reviewed Net Zero targets against
related financial costs and benefits for stakeholders, including the cost of ESG-related
investment. Through the work of the Remuneration Committee, approved bonus
objectives in 2024 for the CEO related to the Company’s progress towards Net Zero,
and the development of the Circular Services business.
CU
P
S
TV
CO
LT
ENV
HS
SP
Reviewed the Group’s financing, cash deposit and cash reserve strategy. Approved the Group’s tax and treasury policies. Decided to retain the Group’s existing
Treasury Shares for future use.
S
LT
HS
Our people and culture
Conducted a deep dive into Computacenter’s culture. Highlighted the work required to maintain the Group’s culture as the size of its workforce
and its geographic footprint increase. Re-approved our Purpose and the Group’s Winning
Together Values as set out on pages 001 and 007.
CU
P
S
TV
CO
LT
HS
SP
Reviewed Non-Executive Director remuneration, considering the limits set in
the Company’s Articles of Association, and relevant benchmarking data.
Approved an increase of 3.8% for all Non-Executive Director, Board and Committee roles
in 2024 (with no individual being involved in decisions relating to their own remuneration).
P
S
LT
HS
Received regular updates from the Group’s designated Non-Executive Director
for Workforce Engagement, highlighting matters of concern and importance
to employees.
Helped to inform the Board of employee views of its decision-making in areas such as
strategy, diversity, culture and ESG, and understanding of cultures within businesses
relatively recently acquired by the Group. Commentary on the outcomes of our
engagement with our people can be found on page 059. Approved the Workforce
Engagement Schedule for 2024.
P
LT
HS
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023110
GLOSSARY
ACTIVITY OR DISCUSSION UNDERTAKEN OUTCOMES OR DECISIONS STAKEHOLDERS AND S172
FACTORS CONSIDERED
Financial and operational performance
Received regular reports from the Chief Executive Officer and Chief Financial
Officer. Considered performance against Board and market expectations,
material issues impacting our key stakeholders, and progress against the
Group’s strategic KPIs. For further detail on the Group’s performance during
2023, please see pages 036 to 047.
Approved the Group’s half-year and full-year results announcements, as well as the
first- and third-quarter trading updates. Approved the Group’s Viability Statement and
going concern basis of accounting as set out on pages 076 to 077. Approved the Group’s
Annual Report and Accounts.
CU
P
S
TV
LT
HS
SP
Assessed the Company’s balance sheet to identify any reserves that were not
distributable, and which might be converted into distributable reserves to
provide flexibility for future returns of value to the Company’s shareholders.
Recommended to shareholders that a capital reorganisation be completed. Approved
by shareholders at the Company’s 2023 AGM and completed by the Company later in the
year, creating over £183m of additional distributable reserves.
S
LT
AF
Reviewed senior Management presentations from each of the in-country and
Group function leadership teams, including a Q&A dinner event with the Group’s
Management team for Europe.
Provided the Board with insight into financial performance, customer trends and
behaviour, and the outcomes of in-country stakeholder engagement.
CU
P
S
TV
LT
HS
Governance, compliance and risk management
Reviewed and discussed regulatory and compliance matters with the Legal &
Compliance Director, the Company Secretary and the Chief People Officer, both
at Board and Audit Committee meetings.
Approved and endorsed an updated version of the Group’s Code of Ethics and Business
Conduct, as well as an updated Group Disclosure Policy and Group Rules on Share
Dealing, the Group’s Modern Slavery Statement and Gender Pay Gap Reporting.
P
S
CO
HS
On the recommendation of the Nomination Committee, it was agreed that an
internally facilitated Board evaluation be conducted for the performance of the
Board, its Committees and each Director in 2023.
Reviewed the evaluation findings and outcomes and agreed future areas of focus. The
evaluation process and its findings and outcomes can be found on page 121. Concluded
that throughout the year, the Board, its Committees and individual Directors continued
to operate effectively.
S
LT
HS
Periodically reviewed corporate governance matters including Directors’
conflicts of interest and external appointments, the Board’s Matters Reserved
and Delegated Authorities documents and the terms of reference for the
Board’s Committees.
Approved revised delegated authorities document, and Audit Committee Terms of
Reference, which can be found at investors.computacenter.com. Reviewed and
approved the external appointment of Ros Rivaz as the Chair of Anglian Water.
P
S
LT
HS
Considered the Group’s principal and emerging risks and the effectiveness
of the risk and internal control system.
Approved the Group’s Principal Risks, as set out on pages 064 to 073.
CU
P
S
TV
LT
ENV
HS
SP
CU
Customers
CO
Community
LT
Long-term consequences of decision making
P
People
S
Shareholders
ENV
Considering the environment
TV
Technology vendors
HS
Maintaining a reputation for high standards of business conduct
AF
Acting fairly between members of the Company
SP
Suppliers (excluding our technology vendors)
Key to stakeholders and section 172
factors considered
How the Board spent its time
1
2
3
4
1. Business performance oversight
25%
2022: 24%
2. Strategy and delivery of strategy
29%
2022: 33%
3. Financial performance and risk
24%
2022: 22%
4. Governance and stakeholder
management
22%
2022: 21%
Other Board activity and decision-making continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 111
GLOSSARY
Governance at a glance
Role of the Chair includes:
• Leadership of the Board, ensuring its
effectiveness in all aspects of its role and
setting its agenda
• Chairing Board, Nomination Committee
and general meetings
• Promoting a culture of openness and
debate and ensuring the effective
engagement of all Board members
• Demonstrating objective judgement
• Ensuring that the performance of the
Board, its Committees and individual
Directors is evaluated annually
• Ensuring that the Directors receive
accurate, timely and clear information
• Facilitating constructive Board relations
and the effective contribution of all
Non-Executive Directors
Role of the Chief Executive
Officer includes:
• Developing the Group’s strategy for
approval by the Board, and ensuring the
execution of that strategy by Management
• Providing leadership to the senior
Management team in the day-to-day
running of the Group’s business
• Ensuring that appropriate internal controls
are in place throughout the Group
• Setting the ‘tone from the top’ by
establishing the Group’s guiding values,
for approval by the Board
• Providing a means for timely and accurate
disclosure of information to the Board,
including effective escalation of issues
where required
• Ensuring effective communication
with shareholders
Role of the Senior Independent
Director includes:
• Providing a sounding board for the Chair
and serving as a trusted intermediary for
other Directors, when necessary
• Meeting with the Non-Executive Directors
at least once a year to appraise the
Chair’s performance
• Providing support for the Chair in the
delivery of his/her objectives
• Ensuring that the Chair pays sufficient
attention to succession planning
• Ensuring that the views of the other
Directors are conveyed to the Chair
• Being available to shareholders, if they have
concerns and the normal channels of Chair,
Chief Executive Officer or other Executive
Director has failed to resolve issues
Role of the Non-Executive
Directors includes:
• Providing an external perspective,
constructively challenging the Executive
Directors and senior management
• Monitoring and scrutinising the Group’s
performance against agreed goals
and objectives, and holding Management
to account
• Being appointed as members of the
Board’s Committees
• Offering strategic guidance and
specialist advice
• Playing a prime role in appointing and
removing the Executive Directors
SHAREHOLDERS
Own the Company and provide capital support. Appoint the Directors and auditors,
and consider resolutions put forward by the Company at shareholder meetings.
THE BOARD
Directs the Company’s affairs, whilst considering the interests of shareholders and other stakeholders.
Oversees engagement with these parties. Further information on the role of the Board can be found on page 112.
DIVISION OF RESPONSIBILITIES
BOARD COMMITTEES
The Board’s Committees address matters delegated to them by the Board under their terms of reference, which
can be found at investors.computacenter.com. The key responsibilities of each Committee are set out below.
CHIEF EXECUTIVE OFFICER
*
Responsible for running the Group on a day-to-day basis, and accountable to the Board for the performance
of the Group and the delivery of value to key stakeholders.
GROUP EXECUTIVE TEAM
Supports the Chief Executive Officer in his duties, and accountable to him for the performance of the business.
* The Board delegates authority for managing the Group on a day-to-day basis to the Chief Executive Officer.
REMUNERATION COMMITTEE
Approves the Directors’
Remuneration Policy, as well as the
remuneration outcomes for the
Executive Directors and Group
Executive Committee.
Chair: Ros Rivaz
Committee report
on pages 136 to 158
AUDIT COMMITTEE
Oversees financial reporting
and the effectiveness of
external and internal audit
processes.
Chair: Pauline Campbell
Committee report
on pages 130 to 135
NOMINATION COMMITTEE
Keeps the composition of the Board
and its Committees under review,
and ensures orderly succession
planning for both the Board and
Senior Management.
Chair: Peter Ryan
Committee report
on pages 127 to 129
Our Corporate Governance Framework
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023112
GLOSSARY
BOARD INDUSTRY SKILLS AND EXPERTISE
Our Board offers a wide range of skills, experience and diversity of thought.
Peter
Ryan
Mike
Norris
Philip
Hulme
Chris
Jehle
Peter
Ogden
Pauline
Campbell
Ros
Rivaz
Ljiljana
Mitic
René
Carayol
Accounting/Finance
Business Operations
CEO/CFO Experience
ESG
Executive Remuneration
Governance
International
IT Sector
Legal/Regulatory
M&A/Corporate Finance
Risk
Strategy
Technology/Digital
BOARD COMPOSITION
* Excludes the Chair who was independent on appointment.
BOARD MEETING ATTENDANCE
97%
Attendance
Board member and title Attendance record
Peter Ryan
Non-Executive Chair and Chair of the Nomination Committee 8/8
Mike Norris
Chief Executive Officer 8/8
Philip Hulme
Founder Non-Executive Director 8/8
Tony Conophy
Former Chief Financial Officer 4/4
*
Chris Jehle
Chief Financial Officer 4/4
*
Peter Ogden
Founder Non-Executive Director 6/8
Pauline Campbell
Independent Non-Executive Director and Chair of the Audit Committee 8/8
Ros Rivaz
Senior Independent Non-Executive Director, Chair of the Remuneration
Committee and Workforce Engagement Director 8/8
Ljiljana Mitic
Independent Non-Executive Director 8/8
René Carayol
Independent Non-Executive Director 8/8
* Chris Jehle joined the Board with effect from 1 June 2023. Tony Conophy retired from the Board with effect
from 1 June 2023.
Board independence
*
Women representation on Board
1
2
1
2
1 Non-Independent
Directors
50%
2 Independent Directors
50%
1 Women
33%
2 Men
67%
Governance at a glance continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 113
GLOSSARY
Division of Responsibilities
Leadership positions on our Board of
Directors are held by different individuals.
These include the roles of Chair, Senior
Independent Director, Chief Executive
Officer and the Chairs of the Board’s Audit,
Remuneration and Nomination Committees.
Our Board has an appropriate combination
of Executive and Non-Executive Directors,
such that no individual or group dominates
its decision-making, and there is a clear
division of responsibilities between the
leadership of the Board and the executive
leadership of the Group’s business.
Chair’s role in leading the Board
The Chair, Peter Ryan, met the Code’s independence criteria on
appointment in 2019. The Company has implemented processes that
support him in leading the Board effectively. In 2023, these included
holding regular one-to-one sessions with the Executive Directors, and the
wider Group Executive Committee, to ensure that issues of importance
to Management and the business are incorporated in the Board’s annual
agenda. They also provide an avenue, alongside the Chief Executive Officer,
through which issues which are financially, operationally or reputationally
material to the Group and its interests, are escalated to Board level.
Peter also held regular discussions with each Director as to their ongoing
contributions to Board discussions, interactions with other Directors
outside of meetings, as well as their development and training needs,
identifying potential areas for Board training (including on cyber security
and Artificial Intelligence) and Board site visits (including to the Group’s
UK Circular Services facility). He also had regular discussions concerning
the Group’s governance arrangements during the year with the Company
Secretary, including the Group’s view on proposals put forward in relation
to the revised Corporate Governance Code, as well as providing feedback
from Board members on the quality and consistency of papers provided
by Management for Board review.
Peter led the process by which items for Board discussion were allocated,
ensuring an appropriate balance of review for strategic, performance
and governance related items, through regular calls with the CEO,
CFO and Company Secretary. He completed a preliminary review of the
internal evaluation of the Board prior to wider Board discussion, and
completed a review of the performance of individual directors. He also
held a number of meetings with the Group’s largest shareholders to take
their feedback on the Group’s performance, and to discuss any questions
they had or points that they wanted to raise.
The Senior Independent Director completed a review of the Chair’s
performance in 2023, which included input and feedback from members
of the Board. It specifically confirmed that he had demonstrated objective
judgement during the year and promoted a culture of openness and
debate, where each Director was given an equal opportunity to participate
in Board discussion. He also facilitated constructive Board relations and
the effective contribution of all Non-Executive Directors.
Board composition and independence
The membership of the Board as at 31 December 2023 is set out on pages
116 and 117. On that date, the Board included seven Non-Executive Directors
and two Executive Directors. The diversity and experience of the Board
enables it to discharge its functions effectively. The Board Is comfortable
that each Director makes a valuable contribution in their role. There was
one change to the Board during the year, with Chris Jehle joining as CFO
on 1 June 2023.
The Board has considered the independence of each Director, taking
into account the guidance provided by the Code. The Board considered
that each of Pauline Campbell, Ros Rivaz, Ljiljana Mitic and René Carayol
are independent in their character and judgement. Philip Hulme and Peter
Ogden, the founder Non-Executive Directors, are not considered to be
independent, having started the Company in 1981 and having remained
on the Board in either an Executive or Non-Executive capacity since that
time. As a result, half of the Board, excluding the Chair, are Non-Executive
Directors whom the Board considers to be independent.
Our Corporate Governance Framework, including the Matters Reserved
for the Board, and Committee Terms of Reference (the matters contained
in which are only considered by the Chair and independent directors),
and the balance of our Board’s Executive, Non-Executive and independent
Non-Executive Directors ensures that there is no dominant individual or
group on the Board influencing its decision-making. Only independent Non-
Executive Directors and the Chair are members of the Board’s Committees.
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Division of Responsibilities continued
Non-Executive Directors
The Non-Executive Directors met several times during the year without
the Executive Directors being present, often prior to or after meetings
of the Board’s Committees, and then additionally at a Non-Executive
Director dinner. As members of the Board and each of its Committees, the
independent Non-Executive Directors and the Chair are able to scrutinise
Management’s performance across a wide range of areas, including
strategy, financial performance, risk and internal control and governance,
and to hold them accountable, including through setting remuneration
objectives, and assessing performance against them when determining
variable remuneration outcomes for the Executive Directors and Group
Executive Committee members. In addition to their attendance at Board
and Committee meetings, the Non-Executive Directors hold separate
meetings with the Executive Directors and senior Management team,
often where they have particular experience or expertise which can be
passed on, or as part of fulfilling their oversight responsibilities following
discussions at Board or Committee level.
External appointments and time commitment
The Non-Executive Directors’ letters of appointment set out the expected
time commitment required to execute their duties. Although the nature
of the roles makes it difficult to be specific about the maximum time
required, a commitment of up to two days per month is expected, including
attendance at and preparation for regular Board meetings.
In certain circumstances, for instance when the Company is engaged in
acquisitions, restructuring or other corporate transactions, there may
be additional Board meetings, and Non-Executive Directors are expected
to attend these where possible. Each Director’s external commitments
are monitored on an ongoing basis to ensure that they have sufficient
time to devote to their role at Computacenter.
Following the internal Board evaluation completed for 2023, the Board
is satisfied that each Director is able to allocate sufficient time to the
Company to discharge his or her responsibilities effectively, and that no
external appointments of our Board Directors have any impact on their
independence or responsibilities to the Company.
The Board specifically approved the appointment of Ros Rivaz as Chair
of Anglian Water during the year, considering her Board responsibilities to
Computacenter and her time commitment to other existing Board roles.
Provided the time commitment does not conflict with the Directors’
duties to the Company, the Board may authorise the Executive Directors
to take non-executive positions in other companies and organisations,
as this helps to broaden their experience. The Board would not agree to
a full-time Executive Director taking on more than one non-executive
directorship of a FTSE 100 company or becoming the Chair of such a
company. No such positions have been taken by the Executive Directors.
Information and support
The Chair, with assistance from the Company Secretary and through
discussion with the Executive Directors, approves the agenda for each
Board meeting, as well as the time allocated for each agenda item.
Attention is given to ensuring that adequate time is available to
accommodate Board discussion, commensurate with the importance
and materiality of the item being discussed. This ensures that the areas
of focus for the Board, and the balance of time related to reviewing
strategy, performance and governance, enable it to operate effectively
and efficiently.
To enable the Directors to discharge their duties, they receive accurate,
timely and clear information at least a week in advance of each scheduled
Board and Committee meeting, including detailed briefings on all
matters. At meetings, it is assumed that all papers have been read by
Directors, allowing more time for interactive discussion with members
of Management on specific points or areas of importance.
There are policies and processes to support the work of the Board,
including those relating to meeting preparation and attendance. The
Company Secretary advises the Board on all corporate governance
matters and advises the Chair to ensure that all Board procedures are
correctly followed. All Directors have access to the advice and services
of the Company Secretary.
Directors can obtain independent professional advice, at the Company’s
expense, where they believe it is necessary to discharge their responsibilities.
The Company Secretary ensures that the Board’s Committees are provided
with sufficient resources to undertake their duties. Where Directors have
concerns which cannot be resolved, whether about the running of the
Company or a proposed action, their concerns will be recorded in the
Board’s minutes. On resignation, a Non-Executive Director would be
required to provide a written statement to the Chair, for circulation to
the Board, if they had any such concerns.
Board induction
Upon joining the Board, all Directors receive a comprehensive induction
programme organised by the Company Secretary, tailored to their specific
background and requirements. New Directors receive an induction pack
which contains information on the Group’s business, its structure and
operations, Board procedures, corporate governance matters and
details of Directors’ duties and responsibilities. All new Directors are
introduced to the Group’s Executive Management team and given the
opportunity to meet with major shareholders.
In 2023, René Carayol continued his induction process, which included
a meeting with the Remuneration Committee Chair and the Group’s
Remuneration consultants, Deloitte, to further his understanding of
market practice and expectations for Executive Remuneration
structures and outcomes in listed companies.
Chris Jehle, who joined the Group as CFO in June 2023, completed a
detailed and thorough induction which involved meeting with all senior
members of Management, and each of the Group’s principal advisers,
including the Group’s brokers, lawyers, remuneration consultants and
auditors. Chris also received a presentation from the Group’s corporate
lawyers, Linklaters, on his obligations under the Market Abuse Regulations
and Listing Rules, both in his capacity as a Director and also given his
responsibilities relating to the Group’s external disclosures as CFO.
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GLOSSARY
Board of Directors
Peter Ryan
Non-Executive Chair and Chair of the
Nomination Committee
Committee membership
N
R
Experience
Peter has had a successful international
career in technology since 1980,
encompassing all dimensions of the
industry, including software, SaaS,
services, systems integration,
outsourcing and infrastructure. Peter
has held roles such as Chief Sales Officer
with Hewlett Packard Enterprise, Chief
Client Officer at Logica plc and Executive
Vice President, Global Sales and Services
with Sun Microsystems Inc. Peter is also
Chairman of privately held Ocean
Technology Group.
Philip Hulme
Founder Non-Executive Director
Experience
Philip founded Computacenter with
Peter Ogden in 1981 and worked for the
Company on a full-time basis until stepping
down as Executive Chairman in 2001.
He was previously a Vice President and
Director of the Boston Consulting Group.
Chris Jehle
Chief Financial Officer
Experience
Chris joined Computacenter on
1 June 2023.
He graduated with a degree from
Augsburg University and holds a dual
MBA from Mannheim Business School in
Germany and ESSEC in France. He was
previously at Experian where he was the
CFO for the UK&I region and the Global
Software Business. Chris has more than
25 years in the IT and software industry
in Europe, Japan, Singapore, US and the UK
and has held various senior finance and
consulting positions in Fujitsu-Siemens,
Accenture and SAP.
Mike Norris
Chief Executive Officer
Experience
Mike graduated with a degree in
Computer Science and Mathematics from
East Anglia University in 1983. He joined
Computacenter in 1984 as a salesman in
the City office. Following appointments
in senior roles, he became Chief Executive
in December 1994, with responsibility for
all day-to-day activities and reporting
channels across Computacenter. Mike
also led the Company through flotation
on the London Stock Exchange in 1998.
Mike was awarded an honorary Doctorate
of Science from the University of
Hertfordshire in 2010.
Committee membership
Only the Chair and Independent
Non-Executive Directors are members
of the Board’s Committees.
Key:
A
Audit Committee
N
Nomination Committee
R
Remuneration Committee
Denotes Chair of Committee
“The Board has an
excellent mix of members
with varying backgrounds
and experience, all of
whom bring different
perspectives to
decision-making.”
Peter Ryan
Non-Executive Chair
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GLOSSARY
Board of Directors continued
Peter Ogden
Founder, Non-Executive Director
Experience
Peter founded Computacenter with Philip
Hulme in 1981 and was Chairman of the
Company until 1998, when he became a
Non-Executive Director. Prior to founding
Computacenter, he was a Managing
Director of Morgan Stanley and Co.
Pauline Campbell
Independent Non-Executive Director and
Chair of the Audit Committee
Committee membership
A
N
R
Experience
Pauline is a former
PricewaterhouseCoopers (PwC) Audit
Partner who brings over 30 years of
experience in the profession. She has
worked internationally across a broad
range of sectors including IT services and
support services. Pauline also served on
the Governance Board of the UK firm
including the Public Interest Body and the
equivalent body at PwC’s Global Network,
so brings a wealth of governance
experience. Pauline was a Non-Executive
Director of Micro Focus International plc
until its sale on 31 January 2023.
Ros Rivaz
Senior Independent Director, Workforce
Engagement Director and Chair of the
Remuneration Committee
Committee membership
A
N
R
Experience
Ros is the Senior Independent Director at
Victrex plc, Lead Independent Director at
Aperam SA and Chair of Anglian Water. She
is a Board Committee Chair or member at
each of her current portfolio companies,
including membership of two ESG
Committees. Ros’s prior roles include
Chair of the Nuclear Decommissioning
Authority, Non-Executive Director of the
Ministry of Defence – Defence Equipment
and Support Board, ConvaTec plc, RPC
Group plc, CEVA Logistics AG and Rexam
plc, and Deputy Chair of the University of
Southampton. Ros was previously Chief
Operating Officer of Smith & Nephew plc
and held senior management positions
in global companies including Exxon,
Diageo, ICI and Tate & Lyle Group.
Ljiljana Mitic
Independent Non-Executive Director
Committee membership
A
N
R
Experience
Ljiljana has more than 25 years’
experience in the IT industry. She was
Global Head of financial services and a
member of the executive committee at
Atos SE, following its takeover of Siemens
IT Solutions and Services GmbH, where
she headed the worldwide banking and
insurance sales business. Ljiljana has
also held senior roles at Hewlett-Packard
and WestLB AG. Since 2016, she has
focused on technology start-ups as a
Senior Partner of Impact51 AG. Ljiljana is
a Non-Executive Director of Grenke AG,
a global financing partner for small- and
medium-sized companies. She is also
Non-Executive Chair of Grenke Bank AG.
René Carayol
Independent Non-Executive Director
Committee membership
A
N
R
Experience
After leaving university, René joined
Marks & Spencer where he worked for
10 years, including as a Senior IT Manager,
before moving to join PepsiCo as IT
Systems Director. He subsequently
moved to IPC Magazines as CIO, staying
with the business until it was sold to AOL
Time Warner. René is now an experienced
Executive Leadership Coach and
broadcaster, with much of his recent
work focusing particularly on areas such
as diversity and inclusion, inclusive
leadership and cultural transformation
across large organisations.
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GLOSSARY
Executive team
Chris Jehle
Chief Financial Officer
Experience
Responsible for all Group
financial activities, Chris Jehle
joined Computacenter on 1 June
2023. For further details on
Chris’s skills and experience,
please see page 116.
Reiner Louis
Managing Director,
Professional Services
Experience
Since 2023, Reiner Louis has led
the global Professional Services
organisation at Computacenter.
In this role, he is responsible for
the expansion of the Group-wide
Professional Services business.
From 2013 Reiner was
responsible for the entire
business in Germany as Country
Head Germany and Spokesman
of the Management Board. Reiner
joined Computacenter in 1994 as
Head of Customer Services and
held various management
positions in subsequent years.
Julie O’Hara
Managing Director,
Managed Services
Experience
Julie is responsible for the delivery
of Services to Computacenter’s
customers worldwide. Rejoining
Computacenter in 2014, Julie
was responsible for all services
delivered to UK customers,
extending her scope globally in
2017. Julie spent two years at Colt
as VP for Services and Solutions,
where she ran Service
Management, Contract
Management, Consultants and
Architects across Europe. Prior to
this, she worked at Computacenter
and IBM in a number of technical
service and sales-related
positions and has been in the IT
industry for almost 30 years.
Lieven Bergmans
Chief Commercial Officer
Experience
Lieven is responsible for the
Group’s Technology Sourcing.
He joined Computacenter in 2000
as Head of the Consulting Division
of the Belgian subsidiary. In 2008,
he was appointed Managing
Director of Computacenter
Benelux. He was responsible for
aligning the local business with
the Company’s portfolio of
services and Group solutions
and increasing market share.
From 2015 to 2018, he brought
stability and growth to the
French entity, before taking on
broader responsibilities.
Mike Norris
Chief Executive Officer
Experience
Mike Norris has been
Computacenter’s Chief Executive
since 1994. For further details on
Mike’s skills and experience
please see page 116.
The Group Executive Team
supports the Chief Executive
Officer in the day-to-day
management of the business,
and provides high-level
leadership for our operations
across Computacenter.
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GLOSSARY
Executive team continued
Mo Siddiqi
Group Development Director
Experience
Mo is responsible for
Computacenter’s strategy,
marketing, corporate
development initiatives and
sustainability strategy. Since
originally joining Computacenter
in 1997, Mo has held a number
of senior sales and operational
roles, notably leading the
Company’s international
development through a mixture
of organic growth, customer
wins, business start-ups
and acquisitions.
John Gibbs
Chief Information Officer
Experience
Responsible for all of
Computacenter’s systems and
infrastructure, John joined
Computacenter in July 2023.
He has over 30 years’ experience
in Information Technology, most
recently as the Group CIO of
Rolls-Royce and International
Airline Group. In addition to his IT
experience, he has also previously
been a customer of Computacenter
and an advisor to the Company.
Sarah Long
Chief People Officer
Experience
Sarah has over 25 years’
experience in the technology
industry. She originally joined
Computacenter in 1996 and
spent 12 years in various Sales
and Service Leadership roles.
Between 2008 and 2018 she
consulted to a number of
technology organisations across
Europe, advising on strategic
growth and organisational
change. Sarah rejoined
Computacenter in March 2019 to
lead the Group People Strategy
and in-country Human Resources
functions. Sarah graduated from
Manchester University with a
degree in Technology and Design.
Neil Hall
President, North America
Experience
Neil leads Computacenter’s North
American business. Neil joined
Computacenter in 2001 with the
acquisition of GE-CITS UK, and has
held leadership positions in the
UK and Germany for more than
15 years. From 2013 to 2016,
Neil led the Group’s strategic
development in contractual
services, including architecture,
commercial offerings and
customer engagements.
Between 2016 and 2022, he
successfully led our UK & Ireland
business as Managing Director.
Fraser Phillips
Group Legal & Compliance
Director
Experience
As Computacenter’s Group Legal
& Compliance Director, Fraser
advises on large Services
engagements, particularly those
involving multiple partners.
He took on his current role in 2013
after a six-year tenure as Head of
Legal in the UK. Fraser qualified as a
barrister in 1997 and has extensive
experience in structuring,
negotiating and drafting
commercial agreements.
John Beard
Managing Director, Europe
Experience
John leads Computacenter’s
business across Europe and is
accountable for all customer
engagement in the region.
He joined Computacenter’s
inaugural graduate scheme in
1995 and held various Sales and
Sales leadership roles in the UK
business (as well as a year as
Chief Commercial Officer) before
moving into his current role of
Managing Director for Europe.
John graduated from
Loughborough University with
a degree in Mathematics.
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Ensuring Board effectiveness
GETTING AN EXTERNAL PERSPECTIVE
Listening to our stakeholders
To provide effective leadership for the Group, and
oversight of the Group’s management, the Board needs
to hear the views and feedback of Computacenter’s
key stakeholders. This helps it to develop a view on
how the organisation can evolve and do things better,
understand the external impact of its decision-
making, identify future risks and opportunities that
may impact the Group, and fulfil any regulatory or
legal stakeholder responsibilities that the Group
may have.
A full explanation of how the Board heard and
considered the view of the Group’s key stakeholders,
and how these were applied in its decisions during
the year, is set out on pages 057 to 063 and pages
109 t o 111.
CONSIDERING THE LONG-TERM IN DECISION-MAKING
Promoting the Group’s long-term
sustainable success
The Board places significant emphasis on the long
term in its decision-making, prioritising continuity
and consistency wherever possible. In assessing its
performance, the Board considers whether it has,
over time, created the right conditions to allow the
Group to grow sustainably. Detail on our track
record for delivering sustainable value, including
19 years of uninterrupted adjusted EPS growth, as
well as our significant investment into our IT systems
and capabilities in 2023, which will underpin our
future growth and competitiveness, can be found
on pages 028 to 055.
FOCUSING ON THE RIGHT THINGS
Matters Reserved for the Board and
Delegation of Authority
Our Corporate Governance Framework ensures that
the Board gives sufficient consideration to those
matters which are financially, reputationally,
or operationally material to the Group. Our Matters
Reserved document, which was reviewed and
approved by the Board during the year and can be
found at www.computacenter.com, contains a list
of matters that can only be approved by the Board.
Matters not included in this list can be delegated to
the Board’s Committees, or to the CEO and Senior
Management team, as set out on page 112.
Through the appropriate delegation of authority,
the Board’s principal Committees are enabled to help
support the successful execution of our strategy.
The responsibilities of the Nomination Committee
include ensuring that the Board and its Committees,
the Chief Executive Officer and the senior Management
team have the right skills and strength in depth to set
an effective strategy and successfully deliver it. The
Remuneration Committee’s work ensures that key
individuals are appropriately incentivised to achieve
the Board’s strategic objectives, whilst ensuring that
decisions taken are aligned with the Board’s risk
appetite. The Audit Committee independently
assures the processes and information which
underpin and measure the delivery of strategy.
COLLECTIVE DIVERSITY AND EXPERIENCE
Board composition and skills
Through its programme of meetings in 2023, the
Nomination Committee assessed that the Board had
an appropriate combination of skills, experience and
knowledge, given the Company’s size, profile and
sector in which it operates. The factors it considered
included the Board’s independence, its diversity of
gender, ethnicity and thought, length of tenure and
the Board’s collective industry skills and experience.
Its ongoing and frequent assessment, including its
comprehensive succession planning discussions, are
reflected in the consistent and progressive evolution
of the Board to ensure balance in these areas. In four
of the previous five years, with the exception of 2020
when Covid-19 placed particular importance on
Board continuity, there has been at least one planned
change to the Board to ensure an ongoing balance
between knowledge of the Group and a freshness
of perspective and approach.
The diversity of our Board, its entrepreneurial
leadership, as well as its breadth of collective
experience and areas of expertise can be seen within
the ‘governance at a glance’ section on page 113,
and the ‘Members of our Board’ section on pages
116 and 117.
Board training also helps to ensure that members
develop their knowledge in areas which are of
particular importance to the Group, or to their
specific role. The Board has received recent training
sessions on the latest trends and developments
across both cyber security and artificial intelligence
from the Group’s Chief Information Officer, which
involved detailed Q&A discussion.
Our Corporate Governance
Framework is designed to
ensure that our Board remains
effective at all times. It ensures
that the Board understands its
role and responsibilities clearly,
has the right skills, capabilities,
and leadership to address its
annual agenda constructively,
uses its time productively in
focusing on those matters
of particular significance or
importance to the Group, and
listens to feedback from the
Group’s stakeholders, factoring
this into its discussions and
decision-making.
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GLOSSARY
Measuring Board effectiveness
Following the external third-party review completed by Board Excellence
in 2022, this year’s evaluation was run internally, facilitated by the Company
Secretary, and ensured that assessment and feedback provided by
individual Board members was given on an anonymised basis. Areas
covered by the evaluation included: strategy and risk management;
leadership and accountability; succession planning oversight; Board
composition, dynamics, culture and diversity; and the ability of members
to work together to achieve objectives.
The evaluation also covered wider Board processes including: the quality
of information provided to members; how well its annual agenda covers
key issues; the way in which the Board makes decisions through effective
and constructive discussion and debate; and how the Non-Executive
Directors constructively challenge and scrutinise the performance of
the Executive Directors, amongst others.
The review took the form of a series of tailored online questionnaires,
covering the Board and each of its Committees. The Chairs of the Board and
the Committees were able to review and shape the questionnaires, to make
best use of the process. The questionnaire responses were collated and
analysed before inclusion in a report to the Board. In March 2024, the Chair
presented the results of the evaluations and led a discussion of the key
findings and the implications for the Board’s development. In addition, the
Chair’s performance was considered by the Senior Independent Director,
following discussions with Board directors. Her report was shared with the
Company Secretary, and the feedback provided to the Chair for consideration.
The Chair considered the performance of each Director, and the contribution
that they made to Board activities, including its discussions and decision-
making during the year. The evaluation concluded that:
• the Board, its Committees and individual Directors were performing
effectively, within a meeting environment that enabled and
encouraged constructive debate and challenge between members;
• a sound and constructive relationship existed between the
Non-Executive Directors and senior Management team, based on
good levels of access and communication between individuals
within those two groups;
• succession planning work has been dealt with thoroughly, having
been a key focus given the length of tenure of the Chair and Senior
Independent Director, and the departure of the former CFO during
the year;
• the Board’s composition, including good levels of diversity, and an
appropriate mix of industry and functional skills, allowed it to
discharge its duties effectively;
• members work together well to achieve objectives, made easier by the
collective breadth of skills and differences of background of members,
resulting in complimentary skills and areas of expertise; and
INTERNAL EVALUATION OF THE BOARD
Nomination Committee
review and discussion
Board and Committee
approval of process
Completion of
questionnaires
Preliminary review
of results
Final results report
reviewed by Board
Post-evaluation
actions agreed
November 2023
The Committee took the lead in
assessing whether an external
evaluation of the Board was
required. It recommended to the
Board that an internal evaluation
was appropriate, following the
independent review by Board
Excellence in 2022.
December 2023
An overview of the proposed
process was given to the Board
by the Chair and the Company
Secretary, with feedback and
suggestions from members
incorporated. The process was
approved by the Board and
each Committee.
December/January 2024
Detailed evaluation
questionnaires were circulated
to the Board and Committees by
the Company Secretary. These
were completed and returned on
an anonymised basis by each
Board member.
February 2024
Results of evaluation
questionnaire were reviewed by
the Company Secretary and the
Chair, as well as the Committee
Chairs in respect of information
on the Committees that they lead.
March 2024
Final results report was drafted
by the Chair, with support from
the Company Secretary, and
submitted to the Board, which
reviewed and discussed it at its
March 2024 meeting.
March 2024
Action plan for implementation
was approved by the Board,
which instructed the Company
Secretary to oversee
implementation during 2024.
• the quality of interaction between Management and Directors at
Board meetings has become increasingly effective, with discussion
being almost wholly focused around interactive Q&A and related
discussion of key points.
The Board identified a small number of areas for development and
continued progression in 2024, which included that:
• whilst Board papers had reduced in length, senior Management paper
producers should provide greater clarity on the purpose of their
papers and recommended outcomes, as well as providing succinct
and focused analysis supporting their recommendations; and
• there remains scope to increase the frequency of deep dive reviews
of the Company’s principal risks within the Board’s annual agenda.
In response to suggested actions arising from the Board’s 2022 evaluation,
as part of its 2023 annual agenda the Board undertook a thorough review
of the Group’s ESG related objectives, reaffirming these and satisfying
itself that these were aligned with and supported the Group’s purpose.
It also conducted deep dive reviews on the planet and people pillars with
the Group Development Director and the Chief People Officer.
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GLOSSARY
Compliance with the Code
“The Board is pleased to confirm
that the Company has complied
with the provisions of the
Corporate Governance Code
throughout 2023.”
Peter Ryan
Non-Executive Chair
Our approach to compliance
As a company with a premium listing on the London Stock Exchange,
Computacenter plc (the Company) is required to report on how it has
applied the principles of the UK Corporate Governance Code (the
Code), published by the UK Financial Reporting Council. A description
of how it has done so is set out on pages 107 to 164, which includes
the reports of the Board’s Committees and the Directors’ Report.
A copy of the Code can be found at www.frc.org.uk.
The pages that follow aim to provide our stakeholders with an
understanding of how our Corporate Governance Framework
operated during the year, and the outcomes that it produced during
that time.
This framework is in place to ensure that our organisation is
appropriately led, directed, and controlled. It gives our people clarity
on their responsibilities and accountabilities, and our decision-
making authorities, restrictions and processes, helping to ensure
that decisions are properly made and then implemented throughout
the Group.
Statement of Compliance
The Company has complied with the provisions of the Code
throughout the year ended 31 December 2023.
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Compliance with the Code continued
Statements and confirmations
The Directors are required to include the following statements or
confirmations within the Annual Report and Accounts:
Corporate governance overview
The schedule below provides an overview of where the application of Principles (A-R) and associated provisions of the Code have been reported in the
annual report.
• An explanation of the sustainability of the Group’s
business model, the strategy for delivering the Group’s
objectives, and how opportunities and risks to the future
of the business have been considered and addressed
004 to 106
109 to 111
126
• Group Viability Statement 076 to 077
• Statement on risk and internal control including
confirmation that the Directors have carried out
a robust assessment of the principal and emerging
risks facing the Group
074 to 075
• Description of the Group’s principal risks, what procedures
are in place to identify emerging risks, and an explanation
of how these are being managed or mitigated
064 to 075
• Status of the Group as a going concern 076
• Explanation of how the Board monitored and assessed
the Group’s culture
125
• The Group’s approach to investing in and rewarding
its workforce
059
083 to 088
136 to 158
• Board statement on the Annual Report being fair, balanced
and understandable and providing the information
necessary for shareholders to assess the Group’s
position and performance, business model and strategy
005
133
164
• Explanation of how governance contributes towards
the delivery of the Group’s strategy
120
126
• Section 172 statement 105
• Description of the Board’s principal decisions during
the year and how the interests of Computacenter’s
key stakeholders and the matters set out in section
172 of the Companies Act 2006 were considered in
Board discussions and decision making
058 to 062
109 to 111
Board Leadership and Company Purpose
A Promoting the long-term sustainable success of the Company:
• Ensuring and measuring Board effectiveness 120 to 121
• Board leadership 126
• Board activities 109 to 111
• Section 172 statement 105
• Stakeholder engagement 058 to 062
B Purpose, values, strategy and culture:
• Creating long-term value 006 to 027
• Our purpose, strategy, values and culture 124 to 125
C Resources, performance oversight and controls:
• Risk management and internal control 074 to 075
• Board leadership 126
D Engagement with stakeholders:
• Stakeholder engagement 058 to 062
• Section 172 statement 105
E Oversight of employment policies and practices:
• Our people and culture 020 to 021
• Sustainability – people 083 to 088
• Board leadership 126
• Audit Committee Report 130 to 135
Division of Responsibilities
F Role of Chair
• Division of responsibilities section 112 to 114
G Division of responsibilities
• Division of responsibilities section 112 to 115
H External commitments and conflicts of interest
• Division of responsibilities section 114 to 115
I Role of Company Secretary
• Division of responsibilities section 115
Composition, succession and evaluation
J Appointments to the Board and succession planning
• Nomination Committee Report 127 to 129
K Board composition and length of tenure
• Governance at a glance 113
• Ensuring Board effectiveness 120
• Nomination Committee Report 127 to 129
L Board evaluation
• Measuring Board effectiveness 121
Audit, risk and internal control
M Financial reporting – independence of auditors
and integrity of financial narrative statements
• Risk management and internal control 074 to 075
• Audit Committee Report 130 to 135
N Fair, balanced and understandable assessment
• Audit Committee Report 133
• Directors’ responsibility statement 164
O Risk management and internal controls framework
• Risk management and internal control 074 to 075
Remuneration
P Reward structure alignment with strategy and values
• Remuneration Committee Chair’s Statement 136 to 138
• Director’s Remuneration Report 139 to 158
Q Remuneration Policy
• Directors’ Remuneration Policy Summary 141 to 144
R Independent judgement and alignment
• Remuneration Committee Chair’s Statement 136 to 138
• Annual Report on Remuneration 145 to 158
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Computacenter plc Annual Report and Accounts 2023 123
GLOSSARY
Our purpose, strategy, values, and culture
Our purpose, strategy, values and culture put
our customers at the heart of everything we
do at Computacenter.
Following changes to our purpose and values in 2022, which were reported
in last year’s annual report, the Board was able to confirm in 2023 that
each of these four elements were aligned, and that they supported and
reinforced each other.
During the year, the Board also approved and endorsed a revised Group
Ethics Policy which, for the first time, made specific reference to how
each of its requirements were linked to the Group’s values and culture,
communicating this to all levels of the organisation.
For further information on:
Our Purpose – see page 001
Our strategic KPIs – see pages 034 to 035
Our culture – see page 020
Our values – see page 007
Focusing on our
CUSTOMERS
OUR CULTURE:
Our culture is aimed at
delivering great results for our
customers, within an
environment that prioritises
long-term decision-making and
the development of our people.
It empowers us to react
decisively and responsibly to
the needs of our customers on
a day-to-day basis.
OUR PURPOSE:
Our customers are some
of the world’s greatest
organisations. Our Purpose
is to help them change the
world. We work relentlessly to
build their long-term trust, so
they can rely on us in a complex
and ever-changing world.
OUR WINNING
TOGETHER VALUES:
Require us to work hard to get
to know our customers,
understand their needs and
put them at the heart of
everything we do.
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OUR STRATEGY AND
STRATEGIC KPIS:
Our strategic KPIs reflect the
relationships that we want to
have with our customers, both
in respect of retaining and
maximising their value
(Customer Relationships KPI),
and our view that this is most
effectively done when we
deliver a significant Services
element to the customer
(Services Growth KPI).
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Computacenter plc Annual Report and Accounts 2023124
GLOSSARY
Our culture
Through its own work, and that of its Committees, the Board has assessed
and monitored the Group’s culture throughout the year. It received a
number of presentations from senior Management members, which
included employee-related key performance indicators, such as
employee engagement scores, training completion statistics, perceptions
of leadership and management, attrition rates and length of tenure.
In response to a presentation from the Chief People Officer, the Board
completed a deep dive on the Group’s culture, with a particular emphasis
on how this would be impacted by the changes in Group Executive
Committee membership in 2023, which included a new externally recruited
CFO and CIO, and changes to the organisational structure at an Executive
level. The Board’s discussions recognised the ongoing work required to
embed and then maintain the Group’s culture as it continues to grow its
workforce, customer base and geographic footprint.
The Board also recognised the importance of a Group culture in delivering
a consistent approach which best supports the execution of our strategy,
regardless of where we are operating or who we are doing business with.
It also understands that, across geographies and functions, there will be
cultural practices that differ.
The Board considered the results of the biennial Group Employee Survey,
which confirmed a positive trend in the Group’s sustainable engagement
score, covering how employees feel about their connection with the
Company. It also reviewed and discussed metrics related to culture,
trust, management support and innovation. Given the relatively recent
integration of the North American business into the Group, the Board was
particularly pleased to note the progress made following Management
focus on driving the Group’s culture and strengthening engagement there.
The Board also received frequent updates from the designated
Non-Executive Director for Workforce Engagement, Ros Rivaz, utilising
her expertise in employee-related areas such as remuneration, and her
experience and knowledge of the Company, having joined the Board in 2016.
The focus of her engagement programme in 2023 was on representative
groups of those parts of the business that were relatively new to
Computacenter, including the Computacenter US People Panel and the
Computacenter Romania People Forum. Through this she was able to
provide the Board with insight into the view of the Computacenter culture
from these newly assimilated parts of the business, as well as their
concerns and priorities.
The activities of the Board’s Committees helped it assess whether the
culture and values set by the Board for the organisation were embedded
across the Group and reflected in the way it conducts business on a
day-to-day basis.
Reports from the Audit Committee on potential breaches of the Group’s
Code of Ethics and Business Conduct and associated compliance
policies illustrated behaviours inconsistent with our culture and values,
and provided information around training requirement completion,
and monitoring and communications programmes. They also aided the
Board’s assessment of how effectively related policies and processes
had been embedded within the organisation, including by geography and
business function.
The Audit Committee also reviewed the speed at which the organisation
responds to external and internal audit findings, which provided insight
to the Board on Management’s attitude to risk and governance. The Head
of Internal Audit and Assurance regularly presents the results of internal
audits across our business areas to the Audit Committee.
Our purpose, strategy, values, and culture continued
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Board Leadership and Company Purpose
The Board provides the Group with leadership
and oversight across all areas of business
performance and conduct. It has responsibility
for promoting the Group’s long-term
sustainable success.
Leading by example
The high standards of behaviour that we expect from our people who
represent us in the day-to-day conduct of our business also apply to the
Board of Directors, who are subject to the Group’s Ethics Policy. The terms
of their appointment letters, as well as the legal duties that they owe to
the Company, require that they act with integrity. Each of the Directors
has confirmed to the Company that they have understood and complied
with the terms of those Group policies which apply to them specifically
as a result of being a member of the Board. These include the Group’s
Related Party Policy, Share Dealing Policy, and Disclosure Policy, as well as
confirming information relating to their Company shareholding, external
appointments, and potential conflicts of interest, which were reviewed
twice by the Board during the year.
Reflecting and promoting the Group’s culture
As well as through their own individual behaviour, the Directors were also
able to promote the Group’s desired culture through their 2023 Board
activities and decision-making which, as set out on pages 109 to 111, saw
a focus on the long term; placed our customers at the centre of Board
discussion, including the approval of the strategy and related long-term
investments; ensured that the Board was aware of and understood the
views of its people; and furthered the Group’s commitment to acting
responsibly through the approval of increased investment in its Circular
Services capability and through its oversight of Group systems of risk
management, governance and internal control.
Through its approval and endorsement of a revised Group’s Code of Ethics
and Business Conduct in 2023, the Board also made clear its instruction
that the Group continue to be open, honest and straightforward in all of
its dealings.
Workforce policies and practices
On behalf of the Board, the Remuneration Committee reviewed the
Group’s workforce policies and practices, to ensure that these were
aligned to and consistent with the Group’s values and supported its
long-term success. In 2023, the Committee received a presentation from
the Chief People Officer and reviewed metrics, initiatives and policies
relating to pay, wellbeing, and diversity and inclusion. The Committee was
satisfied that the Group’s philosophy of pay for performance, as well as
the Group’s workforce policies and practices, were consistent with and
supported the Group’s Winning Together Values.
The Board and Remuneration Committee also considered items related
to the Group’s Modern Slavery Act reporting, Gender Pay Gap reporting
and the CEO pay ratio as part of its oversight in this area.
Our workforce can raise any matters of concern through an independent,
third-party, anonymous reporting helpline, run by Safecall. Through
updates from the Audit Committee, the Board reviews this and the
reports arising from its operation. There are also Management structures
in place throughout Computacenter to ensure that individuals can report
any concerns to their line manager should they wish to do so.
Risks, opportunities and resources
The Strategic Report, from the inside front cover to page 106, explains
how the Group generates and preserves value over the long term,
describes how opportunities and risks to the future success of the
business have been considered and addressed, and sets out our sustainable
business model. The Executive Directors, and the wider Group Executive
Committee, have responsibility for developing the Group’s strategic
proposals, which are put forward to the Board for review and approval.
Through its annual agenda, the Board’s principal consideration of
opportunities for business growth, and associated investment, takes
place at its dedicated strategy day and through its review of matters
related to the achievement of our strategic KPIs at every scheduled Board
meeting. Through its review of these opportunities, and its approval of
the business plans and budgets submitted by the Executive Directors,
including the assumptions underlying them, the Board ensures that
adequate resources are available to meet related objectives.
The Board reviews the performance of the Executive Directors and the
Group Executive Committee against targets related to agreed objectives,
including a monthly review of the financial performance of each of the
Group’s segments.
Stakeholder engagement
Details of the Group’s engagement with its key stakeholders, including
our customers, employees, technology vendors, communities and
shareholders, and how its outcomes were considered by the Board in its
discussions and decision-making, are set out on pages 057 to 063, and
pages 109 to 111.
Risk management
The Board is responsible for establishing a framework of prudent and
effective controls which enable the Company’s risks to be assessed and
managed. Please refer to pages 064 to 073 for further information on the
Group’s principal risks, the procedures in place to identify emerging risks,
and how these are being managed or mitigated. This also includes a
description of the Group’s risk and internal control framework, and how
this operated throughout the year. As required by the Corporate Governance
Code, pages 074 to 075 are incorporated into this Corporate Governance
Report by reference.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023126
GLOSSARY
Nomination Committee report
Current members Role
Attendance
record
Peter Ryan (Chair) Non-Executive Chair of
the Board 3/3
Pauline Campbell
Non-Executive Director 3/3
René Carayol
Non-Executive Director 3/3
Ljiljana Mitic Non-Executive Director 2/3
Ros Rivaz Non-Executive Director 3/3
1. Board composition
Reviewing the existing composition of the
Board, to identify current or future skills gaps
on the Board or its Committees.
2. Succession planning
Ensuring that there are appropriate processes
in place to develop our leaders of the future.
3. Board effectiveness
Reviewing the results of the internally
facilitated Board evaluation process.
Concluding to the Board that it continued
to function effectively, as did each of
its Committees.
How the Nomination Committee spent its time
“The Committee continued to prioritise
succession planning for both the Board
and Group Executive Committee, and
overseeing the development of a diverse
pipeline for succession to both.”
Peter Ryan
Chair of the Nomination Committee
Committee highlights
• Reviewing succession planning for each of the Board and Group
Executive Committee
• Leading the Board evaluation process, and discussing its results
Board and Executive succession planning – see page 128
Board Evaluation Process – See pages 121 and 129
1
2
3
Membership and attendance
The members of the Committee are the independent Non-Executive
Directors and the Chair of the Board.
The Company Secretary is the secretary to the Committee. The Chief
Executive Officer and Chief People Officer attend meetings by invitation.
Responsibilities of the Nomination Committee
The Committee’s key responsibilities are to:
• lead the process for Board appointments;
• ensure that the Board and its Committees have a combination
of skills, experience, diversity, knowledge and independence
appropriate for leading the Group, given its size and the markets
in which it operates;
• review the structure and size of the Board and its Committees
to ensure they can function effectively; and
• review succession planning for the Board and senior
Executives, including ensuring the development of a diverse
pipeline for succession.
The Committee’s full terms of reference are available at
investors.computacenter.com. No changes have been made to its terms
of reference since the Committee’s last report to shareholders.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 127
GLOSSARY
Nomination Committee report continued
Composition and Succession
The Committee’s main activities in 2023
The Nomination Committee met three times during 2023, and its
work included:
Succession planning and Board changes
The Committee spent much of its time considering succession planning
for the Board and Group Executive Committee and overseeing the
development of a diverse pipeline for succession to both.
To inform its discussions of Board succession, members reviewed its
existing composition and that of its Committees, and the skills, diversity
and knowledge that each Director brings. This included considering the
Board skills matrix set out on page 113, which was updated to show
experience in ESG matters, following shareholder engagement in the first
half of the year. The Committee considered how the Group’s leadership
needs may change over time, influenced by factors including its strategy,
Services Lines and the operating geographies which are integral to future
growth, as well as likely future corporate governance requirements.
In 2023, the Committee’s discussions on Board succession planning
centred on the Chair and Senior Independent Director (SID) having now
both served for more than six years, meaning they are into what is
expected to be their final three-year term in office. These are key
leadership roles, with the incumbents also chairing the Nomination
and Remuneration Committees, and the SID acting as the Workforce
Engagement Director.
We continue to plan to ensure that any Board changes are controlled
and orderly, especially for leadership positions, so the Board retains
an appropriate balance of company knowledge, independence, skills,
experience and different elements of diversity, through any period
of transition.
The Board’s progressive evolution continued during the year, with
Chris Jehle joining the Group as an Executive Director and Chief Financial
Officer. The Committee described the search process that led to Chris’s
appointment in its 2022 report to shareholders. Chris’s appointment
continued to diversify the Board’s collective background and experience,
and we were delighted to add Executive Director representation from
Germany, given the key contribution and ongoing importance of our
business there. We welcome Chris to the Board and the freshness of
thought and perspective that he is bringing to Board discussions.
The CEO has confirmed to the Board and the Committee that he intends to
remain in his role, health and personal circumstances permitting, over a
longer time horizon. Nevertheless, it is important that the Committee, in
consultation with the Board, continues to closely oversee succession for
the CEO. This is a significant priority for our shareholders, given his deep
knowledge of the Group and its business, and his almost 30 years in the
role. The Committee is particularly focused on emergency or unplanned
succession, given Tony Conophy’s departure in 2023 after 25 years as
CFO, incorporating all of Computacenter’s journey as a public company.
The Committee also recognises the importance of effective Non-Executive
Director succession planning, given that the Board includes our two
founder Non-Executive Directors, Sir Philip Hulme and Sir Peter Ogden.
They continue to contribute significantly to Board discussions,
particularly on strategy and performance. However, the Board does not
consider them to be independent for the purposes of the UK Corporate
Governance Code. It is therefore important that the Committee is
prepared for unexpected or emergency Non-Executive Director
succession, so the Company remains compliant with provision 11 of the
Code, which requires at least half of the Directors, excluding the Chair,
to be considered independent by the Board. Succession planning for the
independent Non-Executive Directors has been consistently successful,
with the Board appointing a new Non-Executive Director in four of the
previous five years.
Building strength in depth across our leadership team, and developing
our leaders of the future, has also remained a focus of our activity.
Following a presentation from the Chief People Officer, the Committee
reviewed Management’s processes for managing, developing and
nurturing talent at all levels of the organisation and particularly at the
intermediate levels, which could produce Group Executive Committee
succession candidates over the medium term. These processes included
how the organisation identifies and develops exceptional talent at the
earliest possible stage, and ensures this talent is developed to its fullest
potential, regardless of gender, ethnicity or social background.
After feedback from the Committee, the Board also reviewed Group
Executive Committee succession planning, following a presentation from
the Chief Executive Officer and the Chief People Officer. This considered
the criticality of each role to the Group’s long-term sustainable success,
and the relative availability of internal and external candidates for the
roles over various time horizons.
Board appointment process
There is a formal, rigorous and transparent procedure for the
appointment of new Directors to the Board led by the Committee and
triggered by the identification of a skills gap on the Board and its
Committees. This is usually, but not always, the result of a Board
resignation, changes in the Company’s activities or strategic focus,
or updated corporate governance requirements concerning Board or
Committee composition. The appointment process for a Board role
generally starts with the Committee appointing an independent search
firm, and the creation of a role specification which the Committee then
approves. Following further Committee discussion, it then provides input
on a shortlist of candidates, and is involved in the interview process for
all appointments. Generally, candidates are subsequently interviewed by
the remaining members of the Board. After taking feedback from these,
the Committee recommends the appointment of a candidate to the
Board, for discussion and approval. The process can vary slightly for
Executive Director roles, given that the Committee will consider internal
candidates. Only external candidates will be considered for independent
Non-Executive Director roles.
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Nomination Committee report continued
Diversity
The Board recognises the benefits that diverse skills, experience and
thought can bring to an organisation. The Committee always considers
these benefits when reviewing Board succession planning and during the
appointment process. This includes requiring diverse lists of potential
candidates to be presented to the Committee for review.
The Board also believes that appointments to it and to the Group
Executive Committee must be made primarily on skills and experience.
As such, the Committee does not view it as necessary to have a formal
diversity policy specifically for those bodies. However, the Board and its
Committees endorse Computacenter’s wider approach to diversity,
including its five pillars of diversity as follows, which apply to them and
their members:
• Gender: Improving the gender split in a male dominated industry
• Disability & Accessibility: Ensuring that everyone has the support
and environment they need to fully participate
• PRIDE: Embracing the diversity of our workforce’s sexual
orientation and gender identity
• Generations: Embracing the experiences, insights and
perspectives of a multigenerational workforce
• Cultures: Respecting the diverse culture, ethnicity, religion and
beliefs that make up our international workforce
They also endorse Computacenter’s policies which cover various aspects
of diversity and inclusion, including its Equality and Respect at Work
Policy, which applies throughout the organisation, including to the Board,
its Committees, and the Group Executive Committee. This is in place to
ensure that everybody who represents Computacenter promotes
equality, diversity and inclusion in the way they behave and communicates
and reinforces our zero tolerance towards differential treatment
or discrimination.
In our leadership teams, female representation increased from 29.3%
to 31.9%. Our leadership teams are comprised of members of the Group
Executive Committee and the senior leaders who are their direct reports.
We remain clear that a failure to recruit and retain the right calibre of
talent is a risk to the successful execution of our strategy, and our key
mitigation actions include implementing specific diversity projects and
initiatives relating to gender and ethnicity, amongst other areas. Further
detail on these can be found on pages 020 and 021.
Over the last 18 months, the Committee has considered at some length
the new Listing Rule requirements relating to diversity, which apply on a
comply or explain basis. The position of SID is held by a woman, Ros Rivaz,
and the Board has a member from an ethnic minority background, René
Carayol. It therefore complies with these aspects of the Listing Rule. As at
31 December 2023 (and as at the date of this report), female representation
on the Board was at 33%, which is below the 40% requirement. The Board
notes that of its nine members, the two founder members and the CEO
have been Directors since 1998. This continuity reflects both the
long-term support of the Group from Sir Philip Hulme and Sir Peter Ogden
as major shareholders (with associated Board appointments), and the
Group’s sustained success under Mike Norris as CEO.
The opportunity for planned succession has therefore mainly been
limited to our independent Non-Executive Directors. 75% of the Board’s
independent Non-Executive Directors (excluding the Chair who was
independent on appointment) are female, and the remaining male is from
an ethnic minority background. Our female Non-Executive Directors hold
most Board leadership positions, including chairing the Remuneration
and Audit Committees, as well as the roles of SID and Workforce
Engagement Director. Notwithstanding this, the Committee confirms
that its aspiration to comply with this requirement will be at the forefront
of future Board succession planning, while ensuring that the Board
maintains its balance across other areas of diversity, as well as skills
and experience.
Board evaluation
The Committee led on approving the process for the 2023 performance
evaluation for the Board, its Committees and Directors. It noted that the
2022 evaluation had been externally facilitated and, following discussion,
it concluded that there were no reasons to complete an external
evaluation for 2023.
Committee performance
The Committee’s performance was reviewed as part of the internally
facilitated evaluation of the Board, which took place in the first quarter
of 2024. Having reviewed the evaluation’s findings and discussed them
with the other members of the Board, I am satisfied that the Committee
continued to function effectively during the year.
Re-appointment of Directors
All Directors put forward for election or re-election at the Company’s AGM
are nominated on the Committee’s recommendation. In deciding whether
to recommend the nomination of a Director, the Committee considered
the outcome of the 2023 evaluation exercise. Following the Committee’s
assessment, all Directors in office as at 31 December 2023 will be put
forward for election or re-election at the AGM in May 2024.
Peter Ryan
Chair of the Nomination Committee
19 March 2024
STRATEGIC REPORT GOVERNANCE
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Audit Committee report
Dear Shareholder,
I am pleased to deliver our Audit Committee report for the year ended
31 December 2023. In the report below we explain how the Committee
has discharged its responsibilities during the year, including the
onboarding of a new auditor and CFO, considering the significant
matters relating to external financial reporting and ensuring that the
relationship with internal and external auditors remains appropriate.
Composition of the Committee
As at 31 December 2023, the Audit Committee comprised the four
independent Non-Executive Directors. All members are considered to be
appropriately qualified and experienced to fulfil their role and allow the
Committee to perform its duties effectively. For the purposes of Code
Provision 24, one member of the Committee, Pauline Campbell, is
considered to have recent and relevant financial experience. The
Committee notes the requirements of the Code and confirms that, having
considered the requirements against feedback provided through the
Board and Committee effectiveness review, the Committee, as a whole,
has competence relevant to the sector in which the Company operates.
Further details of specific relevant experience can be found in the
Directors’ biographies on pages 116 to 117.
Meetings of the Committee
The Committee met five times during 2023. Meetings are attended
routinely by the Chair of the Board, Chief Financial Officer, Group Head of
External Reporting, Group Head of Internal Audit & Risk Management and
the external auditor. The Company Secretary acts as secretary to the
Committee. The meetings cover a standing list of agenda items, which is
based on the Committee’s Terms of Reference, and consider additional
matters when the Committee deems it necessary.
In addition to the Committee meetings, the Chair also meets privately on
occasion with members of Management during the year, to discuss the
risks and challenges faced by the business as well as accounting and
reporting matters and, importantly, how these are being addressed. On
two occasions during the year, the Committee met separately with the
external auditor and the Group Head of Internal Audit & Risk Management,
without Management present, in addition to regular dialogue with the
external auditor.
Current members Role
Attendance
record
Pauline Campbell (Chair) Non-Executive Director 5/5
René Carayol Non-Executive Director 5/5
Ljiljana Mitic Non-Executive Director 5/5
Ros Rivaz Non-Executive Director 5/5
1. Financial statements and reporting
Reviewing the Interim and Annual Report and
Accounts, considering the key accounting
judgements and estimates that affect the
application of the policies and reporting values
and approving the Group’s going concern basis
of accounting and Viability Statement.
2. Risk management and internal controls
Reviewing the Group’s principal risks.
3. Committee evaluation
Considering the summary of the output and
proposed actions from the internal
effectiveness review.
How the Audit Committee spent its time
“The Committee continues to focus on
the appropriate controls and reporting
for our growing business.”
Pauline Campbell
Chair of the Audit Committee
Committee areas of focus or highlights
• Selection of, and engagement with, Grant Thornton as the
Group’s auditors.
See page 134
• Improvements in internal and external reporting.
See page 133
1
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3
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Audit Committee report continued
The Chair remains satisfied that the flow of information to the Committee
is appropriate and provided in good time, to allow members to review
matters due for consideration at each Committee meeting. The Committee
is also satisfied that meetings were scheduled to allow adequate time to
enable full and informed debate.
Principal responsibilities of the Committee
The Committee’s main responsibilities during the year, as set out in the
Code, were to:
• monitor the integrity of the Company’s Financial Statements and
any formal announcements relating to the Company’s financial
performance, and to review significant financial reporting
estimates and judgements contained therein;
• provide advice on whether the Annual Report and Accounts, taken
as a whole, is fair, balanced and understandable, and provides the
information necessary for shareholders to assess the Company’s
position and performance, business model and strategy;
• review the Company’s internal financial controls and internal
control and risk management systems;
• monitor and review the effectiveness of the Company’s Internal
Audit function, including approving the internal audit plan;
• make recommendations to the Board about the appointment,
re-appointment and removal of the external auditor, and, where
necessary, conduct the tender process;
• approve the external auditor’s remuneration and terms of
engagement; review and monitor the external auditor’s
independence and objectivity;
• review the effectiveness of the external audit process, taking into
consideration relevant UK professional and regulatory
requirements;
• develop and implement a policy on engaging the external auditor
to supply non-audit services, ensure there is prior approval of
non-audit services, consider the impact this may have on
independence, take into account the relevant regulations and
ethical guidance in this regard, and report to the Board on any
improvement or action required; and
• report to the Board on how it has discharged its responsibilities.
Immediately following each Committee meeting, the Chair reports to the
Board on the Committee’s activities and how it is discharging its wider
responsibilities as set out in its Terms of Reference, which can be found
on the Company’s website at investors.computacenter.com.
Activities of the Committee
The Committee’s activities during the year, which are based on its Terms
of Reference, are set out below:
Key estimates, judgements and current financial reporting standards
The Committee reviewed the integrity of the Group’s Consolidated
Financial Statements and, in doing so, considered the following key
estimates and judgements. In reviewing these matters, the Committee
also took account of the views of the external auditor, Grant Thornton UK
LLP (Grant Thornton).
Revenue recognition
The nature of the business leads to a significant amount of sales orders
around year end with high volumes of ‘bill and hold’ transactions.
Judgement is required to determine if the appropriate criteria have been
met to recognise a ‘bill and hold’ sale. There remains some risk that
revenue is recognised in the incorrect accounting period if the
judgements are not made correctly.
Management has an established set of criteria to allow recognition of
revenue, which are applied throughout the business and designed to
ensure compliance with International Financial Reporting Standards.
The Audit Committee supported the auditor’s focus on testing Technology
Sourcing revenue cut-off, particularly in regard to ‘bill and hold’ arrangements
where customers purchase inventory that remains in our Integration
Centers following revenue recognition.
In addition, there are a number of Professional Services contracts where
revenue is recognised based on fulfilling the customers’ requirements
in accordance with their contract terms. Management highlights to the
Committee any contracts that may be of interest, including the process
by which such contracts are identified. During the year there were
material, complex contracts that required detailed accounting
consideration of revenue, leasing and working capital. Management
prepared a detailed assessment of all aspects that was considered by
the Committee.
The Committee noted that no errors with a material impact on reported
profitability were found as a result of the auditor’s work in the area of
revenue recognition.
Exceptional and other adjusting items
The Committee considered the nature and quantum of items disclosed
as exceptional or as other adjusting items outside of adjusted profit
before tax in the Group’s 2023 Annual Report and Accounts.
Management continued to exclude the amortisation of acquired
intangible assets, and the tax effect thereon, from adjusted profit after
tax in the Group’s 2023 Annual Report and Accounts. Management
highlighted that this charge had materially increased with the acquisitions
within North America. Management’s view is that amortisation of intangible
assets is non-cash and is significantly affected by the timing and size of
acquisitions, which affects the understanding of the Group and Segmental
operating results.
Management considered the presentation of adjusted profit in the first half
of the Annual Report and Accounts, after taking account of the European
Securities and Markets Authority Guidelines on Alternative Performance
Measures, which promote the usefulness and transparency of such
measures. Management remains satisfied with the reconciliation between
statutory and adjusted measures that the Group has presented since the
2015 Interim Report, and the level of disclosure which explains both the
differences between these measures and the reasons for the differences.
The Committee considered the nature and quantum of items disclosed
as exceptional or as other adjusting items that are excluded from the
Group’s adjusted profit before tax, and other alternative performance
measures, in the Group’s 2023 Annual Report and Accounts. The Committee
concluded that the presentation of adjusted profit was adequately
explained, was intended to provide clarity on performance and has
sufficient equal prominence with statutory profit.
Going concern basis for the Consolidated Financial Statements
Management prepared a paper that provided input to the Board’s assessment
of whether it is appropriate for the Group to adopt the going concern basis
in preparing Consolidated Financial Statements, at both the half year and
full year. To do so, Management reviewed the Group’s financial plans and
its liquidity, including its cash position and committed bank facilities.
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Audit Committee report continued
It also considered the Group’s financing requirements in the context of
available committed facilities and reviewed forecasts concerning trading
performance, which had been discussed and approved at the 7 December
2023 Board meeting. These forecasts were subsequently further refined,
updated and re-approved at the 18 March 2023 Board meeting.
In making its assessment Management considered factors which could
affect the modelling of the Group’s financial plans and its impact on the
going concern assessment.
These included:
• Key financial performance forecasts for the next 18 months and
the predicted impact on cash generation.
• Consideration of where the potential impact of the principal risks
and uncertainties are applied to the forecasts.
• Risks and uncertainties that, individually or in plausible
combination, would threaten the Group’s business model, future
performance, solvency or liquidity over the assessment period and
which are considered to be severe but reasonable scenarios are
considered. It also takes into account an assessment of how the
risks are managed and the effectiveness of any mitigating actions.
The Committee considered the assessment described on page 076 of the
Strategic Report, together with the extended going concern disclosures
included within the ‘basis of preparation’ note to the Financial Statements
in the Annual Report and Accounts and advised the Board on its view. The
Committee considered whether the going concern basis of preparation
continued to be appropriate and provided recommendations around its
adoption to the Board, with which the Board concurred. The statement
and explanation from the Directors can be found within the Strategic
Report on page 076 and the Basis of Preparation within the Notes to the
Consolidated Financial Statements on pages 180 to 181.
Viability Statement
Following review of the Viability Statement, and associated considerations
and models, by the Group Risk Committee, as set out on pages 076 to 077
within the Strategic Report, Management presented its conclusions to
the Audit Committee on the Viability Statement. These included a
recommendation of the appropriate period for the assessment of
viability that is based on the nature of the Group’s business model and
its strategic time horizon, coupled with short-term macroeconomic
environmental impacts. Management produces financial forecasts for
the three-year period including an assessment, reviewed by the Group
Risk Committee, of how these forecasts would be affected by a realistic
concurrence of the Group’s principal risks and the estimated impact of
such a concurrence.
Management considered additional contingencies within the forecast,
utilising downside sensitivity scenarios as described within the going
concern analysis above. These downside scenarios continue the
assessment of the risks for going concern throughout the assessment
period with compounding impacts to cash flow as a result.
The financial forecasts build on the assumptions used for the going
concern assessment and extend this over the three-year period.
Management includes longer-term sensitivity analyses that range the
modelled downturn in the market across a number of factors, including
working capital usage, profitability, dividend payments and share
repurchases. The analyses also include an assessment of actions that
Management could take to support the balance sheet of the Company
in the event of the worst-case scenarios.
Following consideration of Management’s assessments and conclusions,
the Committee advised the Board that it could continue to set the period
of assessment for the Viability Statement at three years and that it could
make the statement required for the assessment period without
qualification. The statement and explanation from the Board can be
found within the Strategic Report on pages 076 to 077.
Parent Company investment in subsidiaries carrying value and
distributable reserves
Investments in subsidiaries are the primary asset on the Parent Company
Balance Sheet. The Committee considers Management’s assessment of
the carrying value of these investments annually or when an indicator
of impairment, or impairment reversal, is identified. Any impairment of
these investments would reduce the Company’s distributable reserves.
Management prepared an analysis to support the carrying value of the
investments in subsidiaries held by the Parent Company, including
assessing the cash flow forecasts and future trading assumptions of
each subsidiary. No impairment of carrying value in the investment in
subsidiaries was identified during the year. The Committee considered
Management’s assessments and remains satisfied that the carrying
value of each subsidiary remains appropriate.
During the year there was a merger of our wholly owned subsidiaries,
Computacenter France SAS and Computacenter NS (hereinafter
‘Computacenter France SAS’). Following this, and against the backdrop
of continually improving forecasts for Computacenter France SAS and
Computacenter NV/SA (another wholly owned subsidiary), Management
concluded that there has been a favourable change in estimates previously
used to determine the recoverable amounts when the last impairment
loss was recognised on the investments. An amount of previous impairment
was reversed based on the comparison of the net carrying value to the
recoverable amounts of these investments, determined by a value-in-
use calculation. The Company also assessed that the favourable change
had an impact in the prior year.
The Committee considered Management’s findings and agreed that the
impairment reversal, partially reflected in the prior year, was supportable.
Management assessed that information had been available at the end
of the previous year indicating an impairment reversal should have been
made at that point. As required, an adjustment has been made to the prior
year. The Committee also considered whether there was the possibility of
further adjustments needed to the prior year and agreed with Management
that none were required.
Management assessed the Company’s distributable reserves, prior to
the declaration of both the interim and final dividends in respect of the
reporting period, to ensure that sufficient reserves were legally available
for distribution. Further, Management modelled the medium-term
forecasts for distributable reserves, ensuring that the Board’s dividend
policy could remain supported by the generation of distributable
reserves within the Parent Company. The Committee received a
presentation of Management’s conclusions and reported to the Board
on the appropriateness of the dividend payment with regards to the
available distributable reserves.
Taxation
Management prepared papers documenting the Tax Strategy and
the Tax Policy of the Company. These papers document the policies,
processes and controls relating to the Group’s tax functions and the
Company’s Tax Strategy, which can be found on the Company’s website
at investors.computacenter.com.
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Audit Committee report continued
Management presented to the Committee on all aspects of business
taxation in all territories in which the Group is currently operating.
The Group Tax Strategy and Policy was approved by the Board annually
following its consideration by, and advice from, the Committee.
Management prepared the calculation of the tax liability of the Group,
including uncertain tax positions, and assessed the recognition criteria
for potential deferred tax assets relating to jurisdictions with significant
carried forward tax losses. Future forecasts, changes to revenue
accounting standards, local taxation rates, and potential changes to
local tax structures, were taken into account in determining the Group’s
tax rate assessment. Management made recommendations for the
consideration of the Committee for the identification of tax liabilities,
assets and the tax rate being disclosed in the accounts. The Committee
was satisfied that tax accounting is appropriate.
Improvements to general financial reporting
Management continues to review its accounting policies and reporting
in light of changes, general trends to improve financial reporting and
observations from the auditor.
During the period the Committee received recommendations for
consideration from Management on a range of topics focused on
improving the quality of the Group’s financial reporting. These included:
• Ongoing implementation of a Group-wide Accounting Policy
Handbook, to ensure consistency in the application of the Group’s
primary accounting policies.
• Accounting treatment for certain one-off commercial contracts
with particularly unusual or non-recurring terms.
• Management’s response to findings and recommendations
resulting from the 2022 external audit.
• The implementation of recommendations contained within
advisory publications from the FRC relating to, amongst others,
best practice disclosures for revenue and impairment.
• Improvements in the year-end revenue cut off procedures and
pre-audit review analysis.
The Committee approves of Management’s effort to continually improve
and is satisfied with changes made or proposed relating to the items listed.
Regulatory and legal compliance
Having been requested to do so by the Board in accordance with Code
Provision 27, the Committee also advises the Board on whether the
Annual Report and Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary for shareholders
to assess the Group’s position and performance, business model and
strategy. The Committee sought assurance as to the review procedures
performed by Management, to support the Board in making this statement.
These include clear guidance issued to all contributors to provide a
consistent approach and a formal review process, to ensure that the
Annual Report and Accounts are factually correct and reflective of
material matters that have been discussed by the Board throughout
the year. Following a review, the Committee advised the Board that
appropriate procedures had been applied.
The effectiveness of internal controls and of the risk
management framework
On behalf of the Board, the Committee is responsible for overseeing the
effectiveness of the Group’s systems of internal control and the risk
management framework. The Group Risk Committee (GRC) meets each
quarter to review the key risks facing the business. These are identified,
and their likelihood and impact are assessed, within the Group’s ‘Risk Heat
Map’. They are then reviewed in conjunction with accompanying risk
mitigation plans. The GRC meeting agendas are circulated to the Committee
for review, with any matters of note highlighted and explained to the
Committee by the GRC Chair. This includes how the Group’s risks may have
moved during the previous three months and the mitigations introduced
or developed. The GRC’s assessment of the effectiveness of the process
is also provided. To assist the Board, the Committee monitors the risk
management processes and reports from Internal Audit.
Internal control oversight
Periodically the Committee received reports on the operation of internal
controls from various Group functions. These included:
• A report from the Group Information Assurance (GIA) function on
its role, which continues to be a key part of the control framework
for data security and cyber defence, and how it fits into the
overall control structures of the Company within the wider risk
management framework. GIA reported on the programme of
enhancements for the Cyber Defence Center and cyber security.
Where cyber incidents, attacks and breaches are detected by
the GIA, it reports to the Committee on the mitigations and
outcomes of any investigation, including plans for remediation
and improvements.
• Corporate Governance Code compliance reviews.
• Review of distributable reserves within the Parent Company.
• Treasury reporting, policy and controls including the Group
Treasury Strategy and Policy, Transactional FX Strategy and
Policy and activities of the Treasury Committee, which retains
operational oversight.
• Trade receivables control environment, to assess the heightened
risk of customer defaults due to the current macroeconomic
environment and the associated collection risk.
• Trade payables and other creditors control environment, to review
procedures and payment timeliness analysis.
• Review of the operation, performance and planning of the
Company’s Finance Shared Service Center.
• Management’s review of the value of goodwill and acquired
intangibles including the assessment of factors which could affect
the recoverability of these assets and whether they could give rise
to an impairment.
• Results of the annual survey of the Group Executive and other key
senior Management’s controls self certification and control
environment grading.
• The effectiveness of controls over bid management and
contract reporting.
• Reports from the Compliance Steering Committee.
• Updates on litigation matters.
• Revised policy on related parties.
• Introduction of a code of Ethics for Senior Financial Officers.
• Updates on Audit Reform Governance changes as a result of the
BEIS recommendations.
• Updates on the Failure to Prevent Fraud initiatives.
• Finance organisation change and talent review.
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Audit Committee report continued
Whistleblowing
The Committee confirms that it is satisfied that, as at the date of this
report, arrangements are in place to ensure that employees are able,
in confidence, to raise any matters of concern, as detailed within the
Strategic Report on page 103. The Committee is also satisfied
Management will conduct proportionate and independent investigation
of such concerns, including an assessment of the financial impact and
any appropriate follow-up action, will be taken. During the year, the
Committee was satisfied that investigations and follow-up actions were
appropriate. As at the date of this report, all of the Group’s operating
entities had access to the same whistleblowing platform.
The effectiveness of the Internal Audit function
The Group has an Internal Audit function which reports to the Chair of
the Committee, and also has direct access to the CEO. Its key objectives
are to provide the Board, the Committee and senior Management with
independent and objective assurance on risks and the related mitigating
controls, and to assist the Board in meeting its corporate governance
and regulatory responsibilities. A formal audit charter guides the
function’s work and procedures and was updated during the year.
The Board, through the Committee, has directed the Internal Audit
department’s work towards areas of the business that are considered to
be the highest risk. The Committee approves a rolling audit programme,
ensuring that all significant areas of the business are independently
reviewed over, approximately, a four-year period. The programme and
the audit findings are assessed continually, to ensure they take account
of the latest information and, in particular, the results of the annual
review of the effectiveness of internal control and any shifts in the focus
areas of the various businesses.
Each year, the Committee reviews the effectiveness of the Internal Audit
department and the Group’s risk management programme. The formal
review typically consists of an evaluation of Internal Audit’s activities by
managers across the business who have been subject to audit during
the year. The assessment normally covers areas such as departmental
organisation, business understanding, skills and experience,
communication and performance.
The Committee received an update from the Group Head of Internal
Audit & Risk Management at each meeting during the year. The updates
covered current audit activities and the results of completed audits.
The Chair met the Group Head of Internal Audit & Risk Management on
a number of occasions during the year, to be updated on the function’s
activities. The Committee kept Internal Audit’s staffing levels under
review throughout 2023.
The Committee has challenged and approved the Internal Audit plan and
the mapping of that plan to the Group’s principal risks and related mitigating
controls, as set out on pages 064 to 073. The plan is kept under review to
reflect the changing needs of the business and to ensure that new and
emerging business risks are appropriately considered within it.
Internal audit independence
In all material respects, Computacenter follows the ‘Internal Audit Code
of Practice: Guidance on effective internal audit in the private and third
sectors’ published by the Chartered Institute of Internal Auditors in January
2020. In particular the Head of Internal Audit is ultimately responsible to
the Chair of the Audit Committee, with a secondary reporting line to the
Chief Financial Officer for administrative purposes only.
To guarantee its independence and objectivity Internal Audit does not:
• Set the Company’s risk appetite.
• Impose risk management processes.
• Take decisions on risk mitigation or implement risk mitigation
actions on behalf of business management.
• Perform operational duties, including the operation of policies
and procedures.
• Initiate or approve accounting transactions.
In addition, the Audit Committee:
• Is responsible for the appointment and removal of the Head
of Internal Audit.
• Approves the annual Internal Audit plan and budget.
• Receives regular updates from the Head of Internal Audit.
Performance of the Committee
Following last year’s external assessment, an internal survey was
performed to assess the current effectiveness of the Committee.
The review indicated that the Committee continues to perform effectively.
No significant issues in the way the Committee functions were highlighted
as being in need of remediation. The Committee agreed that it would
continue to support and oversee the work of the internal and external
auditors. In addition, there would be a focus on longer-term capital
planning and investment analysis as well as planning for compliance
with UK regulatory reform. Refer to pages 120 to 121 for further details
on the internally facilitated evaluation carried out.
The integrity of the Group’s relationship with the auditor and the
effectiveness of the external audit process
External audit
The Committee oversees the Group’s relationship with its auditor and
makes recommendations to the Board concerning the appointment,
reappointment and remuneration of the auditor.
Reappointment of the auditor
Following a review of the external auditor’s effectiveness and further
Committee discussions, the Committee has recommended to the Board
that it propose the reappointment of Grant Thornton as the Group’s
auditor, for approval by the Company’s shareholders at its 2024 AGM.
Grant Thornton was first appointed as the Group’s auditor with effect
from May 2023, following a competitive tender process. The Committee
will continue to review the performance of Grant Thornton, as set out
below, on an annual basis.
Rotation of lead audit engagement partner
The lead audit engagement partner for the year ended 31 December 2023
was Ms Rebecca Eagle, who completed her first year in this role.
During the reporting period, the Company complied with The Statutory
Audit Services for Large Companies Market Investigation (Mandatory
Use of Competitive Tender Processes and Committee Responsibilities)
Order 2014.
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Audit Committee report continued
Effectiveness of the external audit process
The Committee places great importance on ensuring a high-quality and
effective external audit process. When conducting the annual review,
the Committee considers the performance of the auditor as well as its
independence, compliance with relevant statutory, regulatory and
ethical standards, and objectivity.
The Committee has been extremely satisfied with the engagement and
performance of Grant Thornton in its first year of appointment. Notable
improvements include the presence of the audit team in the business,
adoption of earlier audit procedures and more effective resolution of
matters raised. The formal review of effectiveness will be reported to the
Committee after the finalisation of the 2023 Annual Report and Accounts.
During the year the Committee reviewed the effectiveness and quality
of the external audit process by:
• reviewing the audit plan, including identified significant risks and
monitoring changes in response to new issues or changing
circumstances, including supporting the performance of
additional advanced procedures;
• reviewing the planned audit hours of each component;
• reviewing the audit scope with the lead audit engagement partner,
to ensure adequate coverage of full-scope audit components over
the Group’s operations;
• understanding the materiality thresholds adopted by Grant
Thornton at each reporting period, for both the audit of the Group
and its key audit components;
• attending Grant Thornton’s annual audit planning workshop, which
was attended by senior members of the worldwide audit team and
senior finance managers from across the Group;
• receiving reports on the results of the audit work performed; and
• considering the report of the FRC’s Audit Quality Review team
(AQRT) on Grant Thornton.
The Committee reviewed the Grant Thornton year-end report and
discussed it with the lead audit engagement partner. The Committee
further reviewed the effectiveness of the external audit process by
means of a questionnaire, which was completed by key stakeholders and
relevant Group Management. The matters covered by the questionnaire
included the understanding of the business and its audit risks, and the
degree of scepticism, challenge and competency of the Grant Thornton
employees that comprise the audit team. The results were discussed as
a specific agenda item at the Committee meeting immediately following
the completion of the questionnaire process, and actions requested by
the Committee to enhance effectiveness were followed up with a series
of face-to-face meetings and continue to be monitored as appropriate.
The Committee also discussed the report published by the AQRT into the
findings of its inspections of audits carried out by Grant Thornton. The
Committee is satisfied that the audit team was aware of the findings and
was provided assurance that the ability of the team to provide a quality
audit was not impaired.
Auditor independence
The Committee places considerable importance on ensuring the continuing
independence of the Group’s auditor. This topic is reviewed at least annually
with the auditor, which confirms its independence to the Committee
twice a year. In addition to the above, the Company paid £0.3m during 2022
to Ernst & Young LLP to perform audit procedures to meet the requirements
as a component auditor on the 2022 Group audit, reporting to the former
Group auditor, KPMG LLP.
Non-audit services
To help maintain the auditor’s independence, the Committee has a policy
regarding the scope and extent of non-audit services provided by the
Group’s auditor, which is summarised below.
The auditor is appointed primarily to report on the annual and interim
Consolidated Financial Statements. The Committee places a high priority
on ensuring that the auditor’s independence and objectivity is not
compromised either in appearance or in fact. Equally, the Group should
not be deprived of expertise where it is needed and there may be occasions
where the external auditor is best placed to undertake other accounting,
advisory and consultancy work, in view of its knowledge of the business,
as well as confidentiality and cost considerations.
Under the Committee’s non-audit services policy, the Group auditor should
not be engaged to undertake work which constitutes a prohibited non-audit
service, as defined under provision 5.167 of the FRC’s Ethical Standard.
Any other non-audit service (a Permitted Service) must, to the extent that
it is not viewed as trivial, be approved in advance by the Committee.
In each case where the Group auditor is authorised to perform a
Permitted Service, the Committee will assess threats to the auditor’s
independence and the proposed safeguards to be applied when such
services are carried out. It will also document what action was taken by
the Group auditor, including appropriate safeguards where necessary,
to ensure that its independence was not compromised as a result of
performing the Permitted Service. The Committee will consider alternative
suppliers and competitive tenders and then discuss and document why
it viewed the Group auditor as the most appropriate party to perform the
Permitted Service.
The Committee monitors compliance with this policy by monitoring the
level of non-audit work provided by the external auditor, resulting in
non-audit fees being 6.3% of Grant Thornton’s overall audit fee during
2023 (2022: 4.0% for the former Group auditor, KPMG LLP), as set out on
page 196 of the Notes to the Consolidated Financial Statements. The
Group auditor will, in no circumstances, undertake non-audit services
for the Group to the extent that the total fee payable by the Group to its
auditor exceeds 70% of the average annual statutory fee payable by the
Group over the last three consecutive years. The Group ceased using the
Group’s auditor for all taxation services within the EU during 2017.
During the year, the only Permitted Service performed by Grant Thornton
was the performance of the Interim Review. No other Permitted Services
or trivial non-audit services were provided to the Group during the year.
Any other trivial non-audit services provided would be subject to Grant
Thornton’s review of the impact on its own independence against the
Group’s non-audit services policy and to ensure that they are not a
prohibited non-audit service.
The Committee was satisfied that the independence of Grant Thornton,
as Group auditor, was not affected.
Pauline Campbell
Chair of the Audit Committee
19 March 2024
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Directors’ Remuneration report
Annual statement from the Chair of the
Remuneration Committee
Dear Shareholder,
On behalf of the Board, I am pleased to present the Directors’
Remuneration report for the year ended 31 December 2023.
The report that follows is split into three sections:
• this Annual Statement;
• a summary of the existing Directors’ Remuneration Policy (the Policy)
on pages 141 to 144, which was approved by shareholders at the
Company’s 2023 AGM; and
• the Annual Report on Remuneration on pages 145 to 158, which
includes information concerning the amount paid to the Executive
and Non-Executive Directors in respect of 2023, and details of how
the Policy will be implemented in 2024. It will be subject to an advisory
vote by shareholders at the Company’s 2024 AGM.
Our approach to remuneration
I would like to start by taking the opportunity to thank our shareholders
for their ongoing support of the Committee in its work, as evidenced by
the strong shareholder approval of both the Policy and Annual Report on
Remuneration at the 2023 AGM, which both received over 99% of votes
in favour.
Reflecting the Group’s values and culture, we continue to prioritise a
consistent approach to executive remuneration which is centred on the
principle that the amount paid to the Executive Directors, and other members
of the Group Executive Committee who also fall under the Committee’s
remit, should be clearly linked to performance and the value delivered
to shareholders. Broader strategic factors, including diversity metrics,
are included as part of the overall assessment of performance.
“The Committee continues to focus on
ensuring that remuneration outcomes
reflect executive performance and
the value delivered by the Company to
its shareholders.”
Ros Rivaz
Chair of the Remuneration Committee
Areas of focus during 2023
• Reviewed Annual Bonus and PSP measures and targets to ensure
that they remain aligned with performance and strategy
• Ongoing consideration of sustainability measures in
incentive plans
• Assessment of variable remuneration outcomes for the
Executive Directors and the former CFO
Areas of focus during 2024
• Remuneration benchmarking for the Chair, Executive Directors,
and Group Executive Committee roles
• Continued consideration of sustainability measures in
incentive plans
• Review of performance measures and targets to ensure that
they remain aligned with our strategy
• Interim review of the Remuneration Policy to ensure that it
remains fit for purpose
Current members Role
Attendance
record
Ros Rivaz (Chair)
Senior Independent
Director 5/5
Pauline Campbell Independent
Non-Executive Director 5/5
René Carayol Independent
Non-Executive Director 5/5
Ljiljana Mitic Independent
Non-Executive Director 4/5
Peter Ryan Non-Executive Chair 5/5
1. Review of variable remuneration measures
and targets
To ensure annual bonus measures and targets
support the long-term success of the Group.
2. Approval of remuneration outcomes
Including base salary reviews for 2024, and
bonus and PSP vesting levels for performance
periods ending 31 December 2023.
3. Governance updates
Including on current market practice for
remuneration hot topics, and related
shareholder and investor proxy guidelines
and expectations.
How the Remuneration Committee spent its time
1
2
3
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Directors’ Remuneration report continued
The executive remuneration structure at Computacenter is heavily
weighted towards variable pay, which rewards stretching financial and
strategic targets delivered over the short and long term. In being simple,
straightforward and transparent, the Committee believes that the
executive remuneration structure also reflects Computacenter’s Winning
Together Values and prioritises the long-term interests of the Group.
The Committee considers that the current remuneration arrangements
promote and support the Group’s long-term sustainable success,
within a suitable risk framework which encourages alignment between
Management’s day-to-day decision-making and the Board’s risk appetite.
The Committee is of the view that our remuneration framework is clearly
understood by the Group’s stakeholders and Executive Directors and is
comfortable that the Policy has operated as intended for outcomes
related to the 2023 performance.
The Committee considers share ownership by the Executive Directors
to be a key principle to support shareholder alignment. The CEO holds a
significant interest in the Company’s shares, with a holding far in excess
of the minimum required by the Group’s Minimum Shareholding Policy
which is reviewed and approved by the Committee on an annual basis.
Arrangements are in place that will require our new CFO, Chris Jehle, to
build up his shareholding to the required value, and that also require our
former CFO Tony Conophy, who retired from his role and the Company
during the year, to hold Computacenter shares in line with our post-
cessation of employment shareholding policy for a period of two years
from 1 June 2023.
Business context – the year under review
A very strong finish to the year saw the Group achieve and exceed both its
own internal profit-based targets, and external market consensus for
adjusted profit before tax, both as set at the beginning of the year. Given
the current macroeconomic environment and the significant investment
the Group made during the year in its strategic initiatives to ensure that
it remains competitive over the long term, the Board viewed this as
a creditable performance.
The overall performance reflects the strength of our integrated
Technology Sourcing and Services model, as well as our geographic
diversity. The Technology Sourcing business saw strong revenue growth
across the Group. Our Services revenue performance was solid, and the
business was able to manage its margin position effectively within an
ongoing inflationary environment. The relative strength of performance
in the German and US businesses, and performance behind the Board’s
expectations in the UK, have also been reflected in remuneration outcomes
for those members of the wider senior Management team who are
overseen by the Committee.
Group adjusted profit before tax for the year increased by 5.4%, to
£278.0m. Adjusted diluted EPS, our primary EPS measure, increased by
3.0% to 174.8p per share (2022: 169.7p per share) and our proposed 2023
full-year dividend has increased by 3.1%, to 70.0p per share (2022: 67.9p
per share). Further detail on the Group’s performance is set out earlier in
the Annual Report on pages 036 to 047.
Remuneration outcomes
The Committee reviewed performance against the conditions set for the
annual bonus for 2023.
The strong profit performance during the year, as summarised above,
is reflected in the levels of pay-out for the Executive Directors, and the
former CFO who, whilst employed with the Company, made a material
contribution to the 2023 full-year result. The Group’s cash position
finished the year in excess of the Board’s expectations, and leaves it
well placed when considering the Company’s strategic options to deliver
value in 2024, whether through returning surplus capital to shareholders,
further acquisitions, or investment in our strategy.
As a result, the CEO received 76.56% of the award at £782,269, and the
CFO received 75.56% at £297,509, with 50% deferred into Computacenter
shares. Details for the former CFO are set out later in this report.
The Performance Share Plan (PSP) awards granted in March 2021 had
performance measures based on the Company’s adjusted diluted EPS
and Group Services revenue performance over the three financial years
ended 31 December 2023. Over this period, the Company has seen
significant growth, with an increase in adjusted diluted EPS of 11.41% per
annum. The EPS and Group Services revenue targets were substantially
met, and therefore 90.86% of the awards will vest and be subject to the
two-year holding period.
The Committee considered the bonus and PSP formulaic outturns in the
context of the external environment, the performance of the business,
wider Company and individual performance, the shareholder experience,
the customer experience, and the treatment of employees throughout
the rest of the Group. Taking all of the above into account, the Committee
considered the bonus and PSP outcomes to be a fair reflection of
performance, and no discretion was exercised to vary the amount.
Chief Financial Officer transition
Following his period of outstanding service with the Company, Tony
Conophy retired from his position as CFO and an Executive Director of
Computacenter plc during the year. He stepped down from the Board on
1 June 2023 and remained employed by the Company until 31 July 2023
to ensure a comprehensive transition. Tony’s remuneration was treated
in accordance with the Company’s approved Remuneration Policy and
his service contract. Further detail is set out on pages 148 and 154.
Chris Jehle joined Computacenter as CFO on 1 June 2023. Details of Chris’
remuneration arrangements on joining Computacenter were disclosed
in last year’s Directors’ Remuneration Report. Further detail is set out on
page 151.
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Directors’ Remuneration report continued
Wider workforce considerations
In line with the Committee’s broader responsibilities, it has reviewed
information on broader workforce policies and practices, as well as the
Company’s gender pay gap and CEO pay ratio reporting. This information
provided important context for the Committee’s decisions taken during
the year.
For 2024, the UK annual pay review budget was 4% with an average
increase in salaries in the UK of circa 3.8%. In the context of a lower
inflationary environment than that seen in 2022, the Committee and
Board considered that this represents an appropriate balance between
the 2023 performance of the Company, our ongoing aspiration to
motivate and retain the best talent, cost pressures being felt by many
of our employees, and ensuring a sustainable cost base for the business
moving forward.
We continue to ensure that employees have an opportunity to share in
our success through our Sharesave plan, which we have operated for
many years. Following feedback provided by senior Management
concerning the impact of higher interest rates across a number of our
participating countries, and the options available to employees to utilise
their disposable income to generate increased returns, either through
personal savings or the paying down of debt, the Board decided to
improve the terms on which participants are able to subscribe for shares
in the Company. Following the launch of the most recent plan in 2023, the
employee participation rate in these plans, where an employee is in at
least one active savings plan, is 55% of all employees in the UK (2022:
55%) and 24.8% in Germany (2022: 23.9%). This is the fifth year of
operation in the US business, with an overall participation rate of 18%
of the US employees (2022: 21.6%).
2024 remuneration
The salaries for Mike Norris and Chris Jehle will be increased by
approximately 3.8%, in line with the average wider UK workforce increase.
The increases for the Executive Directors are considered appropriate
in the context of both Company and individual performance. The 2024
bonus opportunity and PSP award level for the CEO will remain unchanged,
at 150% and 200% of salary respectively. There will also be no change in
the level of awards granted to the CFO, who will receive a bonus opportunity
of 150% and PSP award equal to 175% of his salary.
During the year, the Committee undertook a comprehensive review of the
targets and measures which apply for our remuneration plans. As a result
of this review the following changes are being made. For the PSP awards
to be made in 2024, we are introducing a new measure relating to EBIT
growth in North America. This will be weighted at 15%, and will operate
alongside the existing measures of compound annual EPS growth
(unchanged at 70% weighting) and compound annual Services revenue
growth (reduced to 15% weighting). This reflects and aligns with the
Board’s view that the market opportunity in the US is significant. We
expect that our previous US acquisitions will have been substantively
integrated into the Group at a point early in the three-year performance
period for the 2024 PSP grant, allowing Management to push on and
deliver the next phase of growth in our business there.
The Committee reviewed the existing EPS performance targets for the
PSP, and considering the Group’s internal financial targets, external
market consensus and existing headwinds to performance determined
that the existing EPS growth targets should be updated to better reflect
our objective of appropriate levels of pay for performance whilst
remaining sufficiently stretching with consideration to the Board’s risk
appetite. For the awards to be made in March 2024 to the Executive
Directors, the EPS target range will be from 5% to 10% compound annual
earnings per share growth over the three-year performance period. This
change impacts all participants in the same PSP plan as the Executive
Directors. Full details of the targets for the 2024 PSP awards are set out
on page 158.
ESG continues to be included in the Executive Directors’ annual bonus
personal objectives. For the CEO they include an objective based on the
progress made on the Group’s Net Zero journey, diversity and inclusion,
and also the development of Circular Services as a tool through which
Computacenter can contribute to a sustainable environment, as well
as assisting our customers on their own sustainability journeys.
The Committee will continue to keep this area under review as our
sustainability strategy continues to mature.
Committee performance
During the year, a review of the Committee and its activities was internally
facilitated. The results of this evaluation have been reviewed and indicate
that the Committee continues to be effective in its role. The latest review
highlights that there is open and thorough debate prior to the Committee’s
decisions being made in a balanced and considered manner.
The results of the internal evaluation of the Board and its Committees are
set out in more detail on page 121. The previous review at the end of 2022
highlighted that the Committee should continue to consider the way in
which ESG factors were taken into account for remuneration purposes.
This has been discussed by the Committee in the year, with an objective
related to the growth and development of the Group’s Circular Services
business added to the annual bonus measures for the CEO alongside
an additional environmental measure related to progress made on the
Group’s Net Zero plan. The Committee also held significant discussion
on whether an ESG-related measure should be included within the PSP
performance measures. Whilst the Committee concluded that an ESG
measure would not be included in the PSP at this time, it will continue
to keep this under review in 2024.
The Committee’s role is to ensure that the remuneration paid to the
Executive Directors reflects the Group’s performance. I hope that,
having read this report, shareholders will be satisfied that the Committee
has discharged its duties appropriately and in line with your interests.
The Committee and I would welcome any comments that you have on
its content.
Ros Rivaz
Chair of the Remuneration Committee
19 March 2024
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Directors’ Remuneration report continued
At a glance: implementation of the new Remuneration Policy for 2024 and key decisions in 2023
The table below summarises how key elements of the Remuneration Policy will be implemented in 2024 and key decisions taken by the Committee for the year ended 31 December 2023.
Element Chief Executive Officer
Mike Norris
Chief Financial Officer
Chris Jehle
Base salary
(from 1 January 2024)
£707,000
(Circa 3.8% increase for the CEO and CFO, in line with the wider UK workforce increase)
£467,000
Pension 5% (in line with UK employees) 5% (in line with UK employees)
Annual bonus opportunity Maximum: 150% of salary Maximum: 150% of salary
Annual bonus measures • The majority of the bonus will be based on financial measures and the remainder will be based on non-financial measures.
• For 2024, the financial measures are Group adjusted profit before tax (50%), Services contribution growth (10%), cash balance (10%), and cost efficiency (10%).
• The remainder of the annual bonus (20%) will be based on stretching personal objectives for the year.
• Performance measures will be disclosed in full retrospectively.
Annual bonus deferral • 50% of the annual bonus will be deferred into shares, with half the shares payable after one year and the remaining half after two years.
Performance Share Plan (PSP) opportunity Maximum: 200% of salary Maximum: 175% of salary
PSP measures • 2024 PSP awards will be based on the Group’s adjusted diluted earnings per share (70%), Services revenue growth (15%) and North American business EBIT growth (15%).
• Performance will be measured over a three-year period.
• Targets are disclosed prospectively later in this report.
PSP holding requirement • PSP awards are subject to a two-year, post-vesting holding period.
Shareholding guideline • 200% of salary in-employment shareholding guideline.
• Post-cessation shareholding requirements apply at the same level as the in-employment guideline (or actual shareholding, if lower) for two years after stepping down from the Board.
Malus and clawback • Malus and/or clawback provisions apply to annual bonus awards, including deferred awards for a period of two years, and to PSP awards up to the fifth anniversary of grant.
• The malus and clawback provisions are set out in the Remuneration Policy later on in this report.
CEO year-end outcomes:
2023 Bonus outcome • 76.56% of maximum pay-out.
2021-23 PSP outcome • 90.86% of maximum vesting.
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Alignment of our policy with the UK Corporate Governance Code
The Committee considers that the current Remuneration Policy and its implementation appropriately address the following principles, as set out in the UK Corporate Governance Code.
Principle How the Committee has addressed this
Clarity • The Committee is committed to providing open and transparent disclosures with regard to executive remuneration arrangements.
• As part of our ongoing review of remuneration arrangements, we engage with our major shareholders, and consult with them on material issues in order to allow their feedback to be
considered by the Committee.
Simplicity • In determining the remuneration framework, the Committee was mindful of avoiding complexity and ensuring that arrangements are easy to understand. Feedback we have received
from our shareholders indicates that our executive remuneration framework is well understood outside our organisation.
• Our remuneration arrangements are simple in nature, comprising three main elements – fixed pay (comprising of base salary, pension and benefits), variable short-term incentives
(annual bonus), and variable long-term incentives (PSP awards). This framework is well understood by both participants and shareholders.
Risk • The Committee believes that the structure of remuneration arrangements does not encourage excessive risk taking.
• The remuneration framework has a number of features which align remuneration outcomes with risk, including a two-year, post-vesting holding period applied to any PSP awards,
a deferred annual bonus plan and personal shareholding guidelines applying both in-employment and post-employment.
• In addition, malus and clawback provisions apply to both the annual bonus and PSP awards.
Predictability • The Remuneration Policy outlines the threshold, target and maximum levels of pay that Executive Directors can earn in any given year over the three-year life of the approved
Remuneration Policy. Actual incentive outcomes vary depending upon the level of performance against various measures, with performance against targets normally disclosed in the
Annual Report on Remuneration each year. Areas over which the Committee can exercise discretion are clearly outlined in the summary of the Directors’ Remuneration Policy as set out
from pages 141 to 144.
Proportionality • The Committee is satisfied that the Remuneration Policy does not reward poor performance. Payment of the annual bonus and PSP is subject to the achievement of stretching
performance targets, which are clearly linked to the Group’s strategy.
• Both the Committee and Executive Directors are cognisant of the pay and conditions for the wider workforce, and this is taken into account when considering executive remuneration.
Feedback and related questions from our workforce are provided to the Workforce Engagement Director during her annual engagement process.
• Additionally, the Committee retains the discretion to adjust formulaic outcomes under the annual bonus and/or PSP should it consider that the outcome is not aligned to the underlying
performance of the Company or individual.
Alignment to culture • The performance measures that are used for the annual bonus and PSP are clearly linked to delivery of the Group’s strategic KPIs. In addition, 20% of the annual bonus is based on
achievement against non-financial strategic targets, which ensures both financial and non-financial strategic goals are considered. As set out in the Chair’s letter on page 136, the
Committee believes that the remuneration structure is simple, straightforward and transparent, reflecting Computacenter’s Winning Together Values (especially ‘Considering the long
term’ and ‘Understanding people matter’).
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Computacenter’s Remuneration Policy
The table below sets out the main components of Computacenter’s Directors’ Remuneration Policy, which was
approved by way of a binding vote at the Company’s general meeting on 17 May 2023. The full policy can be found
on the Company’s website at investors.computacenter.com.
Policy table
Base salary
Purpose and link to strategy Supports the recruitment and retention of executives of the calibre required
to deliver the Group’s strategy.
Operation Base salaries are paid in cash and reflect an individual’s responsibilities,
performance, skills and experience.
Normally reviewed annually with any changes typically effective on 1 January,
taking into account the factors above and the level of pay settlements across
Computacenter Group, the performance of the business and general market
conditions. Salary levels at other organisations of a similar size, complexity and
business orientation will be reviewed for guidance.
A review may not necessarily result in an increase in base salary.
An exceptional review may take place to reflect a change in the scale or scope
of a Director’s role, for example (but not limited to) a major acquisition.
Salaries in respect of the year under review (and for the following year) are
disclosed in the Annual Report on Remuneration.
Maximum opportunity There is no prescribed maximum base salary or maximum annual increase.
Ordinarily any salary increase will not exceed our standard approach to increases
for other employees in the Group. Higher increases may be considered in certain
circumstances as required, for example, to reflect:
• an increase in scope of role or responsibility;
• performance in role; or
• an Executive Director being moved to appropriate market positioning over time.
Performance measures Individual and business performance are taken into consideration when deciding
salary levels.
Annual bonus
Purpose and link to strategy To incentivise the delivery of annual, short-term, stretching financial and normally
also non-financial objectives. To align pay costs to affordability and the value
delivered to shareholders.
Operation Performance measures and targets are set at the beginning of each financial year.
Performance is normally assessed over one financial year.
Normally, 50% will be paid in cash and 50% will be deferred into Computacenter
shares, with half the shares payable after one year and the remaining half after two
years, unless the Committee determines otherwise. Deferred awards will normally
be granted under the Deferred Bonus Plan.
Deferred awards will usually include the right to receive dividend equivalents in
respect of dividends paid, calculated on such basis as the Committee determines.
Malus and clawback provisions will apply, as set out in the notes to this table.
The Committee has discretion to vary bonus payments downwards or upwards in
appropriate circumstances, including if it considers the outcome would not be a fair
and complete reflection of performance. To the extent that this discretion is
exercised, this will be disclosed in the relevant Directors’ Remuneration report.
Maximum opportunity The maximum annual bonus opportunity in respect of any financial year is 150%
of base salary.
Bonus opportunities in respect of the year under review (and for the following year)
are disclosed in the Annual Report on Remuneration.
Performance measures Normally, the majority of the bonus will be based on financial measures and the
remainder on non-financial measures.
Financial measures may include profitability, cost management, cash management
and other appropriate measures.
Non-financial targets will be targets set by the Committee, including the delivery
of our strategy and/or the Executive Directors’ personal objectives for the year.
Targets are usually reviewed and approved annually by the Committee, to ensure
that they are stretching and adequately reflect the strategic aims of the Group.
The Committee determines the threshold and target payout levels each year, taking
into account the level of stretch in the targets set. The level of overall bonus award
which is payable for threshold performance will not normally exceed 30% of the
maximum opportunity.
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Performance Share Plan (PSP)
Purpose and link to strategy To align the interests of Executive Directors and shareholders. To incentivise the
achievement of longer-term profitability and returns to shareholders, and growth
of earnings in a stable and sustainable manner.
Operation Awards of nil-cost options (or equivalent) which are granted on a discretionary basis
and will normally vest subject to performance and continued employment at the
end of a performance period, which is usually at least three years.
PSP awards will normally be subject to a two-year holding period following vesting.
The shares held during the holding period will include the right to receive dividend
equivalents on the vested shares in respect of dividends paid over the period from
the end of the performance period to the date on which the Executive Director is
first able to acquire shares pursuant to the award, calculated on such basis as the
Committee determines.
The Committee normally reviews the performance criteria, targets and weightings
prior to each grant in line with business priorities, to ensure they are challenging
and fair.
The Committee has discretion to vary the percentage of awards vesting downwards
or upwards in appropriate circumstances, including if it considers that the outcome
would otherwise not be a fair and complete reflection of performance over the
performance period.
Awards are subject to malus and clawback provisions, as set out in the notes to
this table.
Maximum opportunity The maximum opportunity under the PSP in respect of any financial year is 200%
of annual base salary or 400% of annual base salary in exceptional circumstances,
in line with the current PSP Plan Rules as approved by shareholders.
The face value of awards in respect of the year under review (and for the following
year) are disclosed in the Annual Report on Remuneration.
For achievement of a threshold performance level (which is the minimum level of
performance that results in any part of an award vesting), no more than 25% of the
award will vest.
Performance measures Earnings per share is currently the primary measure for our Performance Share
Plan, but the Committee may exercise its discretion to introduce additional or
alternative measures which are aligned to the delivery of the business strategy.
Details of the performance conditions applied to awards granted in the year under
review and to be granted in the forthcoming year are set out in the Annual
Remuneration Report for the relevant year.
Retirement benefits
Purpose and link to strategy To provide an income for retirement.
Operation No special arrangements are made for Executive Directors, who are entitled to
become members of the Group’s defined contribution pension scheme, which
is open to all UK employees, or the pension plan relevant to the country where they
are employed if different.
If the Executive Director so chooses, he/she may take some or all of the pension
contribution as a cash alternative, which will be the same percentage of salary as
the pension contribution foregone.
Maximum opportunity The maximum pension contribution or allowance for Executive Directors will be in
line with that available to UK employees or to participants in the pension plan in the
relevant country. For UK employees, this is currently 5% of salary.
Performance measures n/a
Other benefits
Purpose and link to strategy To provide a competitive level of employment benefits.
Operation No special arrangements are generally made for Executive Directors.
Benefits currently include (but are not limited to):
• a car benefit appropriate for the role performed;
• participation in the Company’s private health and long-term sickness schemes;
• life insurance and income continuance schemes; and
• participation in all-employee share plans, on the same basis as other
eligible employees.
If new benefits are introduced for a wider employee group, the Executive Directors
shall be entitled to participate on the same basis as other eligible employees.
If, in the opinion of the Committee, a Director must relocate to undertake and
properly fulfil his/her executive duties, relocation benefits may be provided, which
may include a cash payment to cover reasonable expenses. Reimbursed expenses
may include a gross-up to reflect any tax due in respect of the reimbursement.
Maximum opportunity There is no maximum level of benefits provided to an individual Executive Director,
as the cost of benefits is dependent upon costs in the relevant market. Benefits will
be set at levels which are competitive, but not excessive.
Participation by Executive Directors in any all-employee share plan operated by the
Company is limited to the maximum award levels permitted by the plan rules from
time-to-time and, in the case of any UK tax qualifying plan, the limits prescribed by
the relevant tax legislation.
Performance measures n/a
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Chair and Non-Executive Director fees
Purpose and link to strategy To ensure that the Group is able to attract and retain experienced and skilled
Non-Executive Directors.
Operation Fee levels are determined with reference to the scope of responsibilities and the
amount of time that is expected to be devoted during the year and taking into
account the fee levels paid by other companies of similar size and complexity.
No individual is involved in the process of setting his/her own remuneration.
Fee levels may be reviewed annually. They may also be increased on an ongoing or
temporary or ad hoc basis, to take into account changes in the working of the Board
and/or changes in responsibilities.
The Chair of the Board receives a fixed fee. Other Non-Executive Directors receive
a basic fee and additional fees are payable for Chairing the Board’s Committees and
for the additional responsibility of being the Senior Independent Director and may
also be paid to other Non-Executive Directors to reflect additional time commitments
and responsibilities. Fees are normally paid in cash.
Travel expenses, hotel costs and other benefits related to the performance of the
role, including any tax due, are also paid where necessary.
Fees in respect of the year under review (and for the following year) are disclosed
in the Annual Report on Remuneration.
Non-Executive Directors do not participate in any of the Group’s incentive
arrangements or share schemes and are not eligible for pension or other benefits.
Maximum opportunity Maximum in line with the Company’s Articles of Association.
Performance measures n/a
Share ownership guidelines for Executive Directors
Purpose and link to strategy To strengthen alignment between Executives and shareholders.
Operation Levels are set in relation to annual base salary, and are normally required to be built
over a five-year period. The Committee retains discretion to vary this period on an
individual basis, if it believes that it is fair and reasonable to do so.
Options which have vested unconditionally, but are as yet unexercised, and shares
subject to deferred bonus awards and PSP awards which are in the holding period
but which are no longer subject to performance conditions, will be included on a net
of tax basis, for the purposes of calculating shareholdings, as will shares held by an
Executive’s spouse or dependents.
Post-cessation of employment, Executive Directors are also expected to remain
aligned with the interests of shareholders for an extended period after leaving the
Company, other than in exceptional circumstances. Details of the application of this
policy are set out in the Annual Report on Remuneration.
The Committee will regularly review the shareholding guidelines. It has discretion
to disapply or reduce the share ownership guidelines in extenuating circumstances,
for example in compassionate circumstances.
Maximum opportunity There is no maximum, but minimum levels have been set at 200% of base salary
for both the current CEO and CFO. Non-Executive Directors are not required to hold
shares in the Company.
Executive Directors who have not yet met their shareholding requirement will
normally be expected to retain at least 50% of any deferred bonus awards and PSP
awards which vest (net of tax) until such time as this level of holding is met.
Performance measures n/a
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Malus and clawback
Malus and clawback provisions apply to the annual bonus and Performance Share Plan. For awards paid or
granted in respect of 2020 onwards, the provisions are set out below.
Malus and/or clawback may apply to annual bonus awards, including deferred awards for a period of two years
and to Performance Share Plan awards in the period up to the fifth anniversary of grant, in the event of:
• a material misstatement of results;
• gross or serious misconduct;
• an error or misstatement which has resulted in a material overpayment to the participants;
• a significant failure of risk management within the Company or any Group Member;
• significant reputational damage to the Company or any Group Member;
• the participant leaving in circumstances which, had all the facts been known, would have resulted in the
award lapsing; or
• any other circumstances that the Committee, in its discretion, considers to be similar in nature or effect
to those above.
The malus and clawback provisions that apply to awards prior to the dates set out above are in line with the
relevant policy in force at the time the awards were made.
Explanation of performance measures
The performance measures in respect of variable remuneration included in the Policy are based on a combination
of financial and strategic measures, with an emphasis on the financial performance of the Group, and therefore
to the value that the business delivers to its shareholders. The Company is committed to long-term earnings per
share growth through increased profitability and prudent use of cash generation, with a Services-led strategy.
This commitment is reflected in the current measures used to motivate and incentivise our management team
through the annual bonus and PSP. The Committee may make changes to the performance measures in future
years to align them with the business strategy at that time.
The Committee usually reviews on an annual basis the potential performance criteria and targets for the annual
bonus and PSP, with further detail set out in the Annual Report on Remuneration.
Performance conditions applying to any award may be amended or substituted by the Committee if an event
occurs which causes the Committee to determine an amended or substituted performance condition would be
more appropriate and not materially less difficult to satisfy.
Remuneration arrangements across the Group
Whilst the Company does not feel it appropriate to consult directly with employees when drawing up the
Directors’ Remuneration Policy, the Committee has considered any feedback received via employee engagement
surveys and from the regular meetings the CEO and Chief People Officer conduct with employee representative
bodies in each of our major geographies.
The Remuneration Committee Chair, Ros Rivaz, was appointed in 2017 as the designated Non-Executive Director to
facilitate engagement with the wider workforce, to assist the Board in understanding the views of Computacenter’s
employees. This involves attending Works Council meetings and other employee events and feeding back the
views raised by employees to the Board. These events have provided a valuable opportunity for employees to
share their views freely on a range of topics. Ros welcomed questions on a broad range of topics including
executive remuneration, and how this aligned with Group pay policy, noting that base salary increases for the
Executive Directors in 2023 were below those for the wider UK workforce. Further information on the role and the
activities of the Workforce Engagement Director is on page 059.
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Annual Report on Remuneration
Responsibilities of the Remuneration Committee
The key responsibilities of the Remuneration Committee are to determine on behalf of the Board:
• the Company’s general policy on executive remuneration; and
• the specific remuneration packages of the Executive Directors, the Chair of the Board and senior
Executives of the Group including, but not limited to, base salary, pension, annual performance-related
bonuses and PSP awards.
The fees of the Non-Executive Directors are determined by the Chair and the Executive Directors. All Directors
are subject to the overriding principle that no person shall be involved in the process of determining his or her
own remuneration.
The full responsibilities of the Committee are contained within its Terms of Reference, which are available on the
Company’s website at investors.computacenter.com.
Membership and attendance
The Remuneration Committee is made up of independent Non-Executive Directors and the Chair of the Board, who
was considered to be independent on appointment. Details of the membership of the Committee and attendance
of the members at Committee meetings during the year, are provided on page 136.
The CEO attends meetings by invitation, as does the Chief People Officer. The Company Secretary is the secretary
to the Committee.
The principal advisor to the Committee is Deloitte LLP (Deloitte), which was selected by the Committee in
September 2016 by way of a tender process.
The total fees paid to Deloitte in relation to advice to the Committee in 2023 were £57,000. The Committee
considers the advice that it receives from Deloitte LLP to be independent. During the year, Deloitte also provided
consulting, tax and share plan advice to the Company. Deloitte is a founding member of the Remuneration
Consultants Group and, as such, voluntarily adheres to its Code of Conduct.
Directors’ information
The following pages illustrate how we have applied our Remuneration Policy during 2023, and describes all
elements of remuneration received by our Directors.
Audited information
The audited tables and related notes are identified within this report, using
A
key.
A
Single figure of total remuneration
The total amount paid by the Company to each of the Directors, in respect of the financial years ended
31 December 2023 and 2022, is set out in the tables that follow.
Year ended 31 December 2023
Salary or fees
£’000
Benefits
£’000
Pension
£’000
Total
fixed pay
£’000
Annual bonus
£’000
PSP
awards
£’000
Replacement
Awards
£’000
Total
variable pay
£’000
Total
£’000
Executive
Mike Norris 681.2 16.3 29.9 727.4 782.3 1,245.2 – 2,027.5 2,754.9
Chris Jehle 262.5 7.0 11.5 281.0 297.5 – 533.4 830.9 1,111.9
Tony Conophy 233.0 9.5 10.2 252.7 222.5 705.7 – 928.2 1,180.9
Non-Executive
Peter Ryan 230.6 – – 230.6 – – – – 230.6
Pauline Campbell 80.2 – – 80.2 – – – – 80.2
René Carayol 60.4 – – 60.4 – – – – 60.4
Philip Hulme 54.9 – – 54.9 – – – – 54.9
Ljiljana Mitic 60.4 – – 60.4 – – – – 60.4
Peter Ogden 54.9 – – 54.9 – – – – 54.9
Ros Rivaz 80.2 – – 80.2 – – – – 80.2
Total (£’000) 1,798.3 32.8 51.6 1,882.7 1,302.3 1,950.9 533.4 3,786.6 5,669.3
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Computacenter plc Annual Report and Accounts 2023 145
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Directors’ Remuneration report continued
Year ended 31 December 2022
Salary or fees
£’000
Benefits
£’000
Pension
£’000
Total
fixed pay
£’000
Annual bonus
£’000
PSP awards
£’000
Total
variable pay
£’000
Total
£’000
Executive
Mike Norris 650.0 16.5 28.4 694.9 271.5 2,372.7 2,644.2 3,339.1
Tony Conophy 381.2 17.0 16.6 414.8 123.2 1,345.1 1,468.3 1,883.1
Non-Executive
Peter Ryan 220.0 – – 220.0 – – – 220.0
Pauline Campbell 76.4 – – 76.4 – – – 76.4
René Carayol 9.6 – – 9.6 – – – 9.6
Rene Haas 52.8 – – 52.8 – – – 52.8
Philip Hulme 52.4 – – 52.4 – – – 52.4
Ljiljana Mitic 57.6 – – 57.6 – – – 57.6
Peter Ogden 52.4 – – 52.4 – – – 52.4
Ros Rivaz 76.4 – – 76.4 – – – 76.4
Total (£’000) 1,628.8 33.5 45.0 1,707.3 394.7 3,717.8 4,112.5 5,819.8
1 The benefits figure represents the taxable benefit arising from cash allowances paid in lieu of the provision of company car and other travel-related benefits for the CEO and the provision of a company car for the CFO.
2. This relates to the 2021 PSP awards that vested in March 2024 and which had a performance period of 1 January 2021 to 31 December 2023. The relevant performance criteria were partially achieved and therefore 90.86% of the award vested for the CEO. This calculation is based upon the
average value of a Computacenter plc share over the last quarter of 2023 being £26.52. The PSP value attributable to share price growth since the awards were granted is £223,975 and £126,930 for the CEO and Tony Conophy (former CFO) respectively. The Committee did not exercise its
discretion to change the value of awards vesting based on the share price appreciation or depreciation during the period.
3. Chris Jehle was appointed to the Board on 1 June 2023.
4. Chris Jehle was granted a number of Replacement Awards to compensate him for those awards forfeited as a result of leaving his previous employer, Experian plc. Further detail on the amount and structure of these awards is set out on page 151. The value in the table above relates to his
replacement bonus (£262,500) and replacement restricted stock units (RSUs) delivered in cash (£135,464) and as nil-cost options over Computacenter shares (£135,484). The replacement RSU options will vest on 1 July 2025.
5. Tony Conophy stepped down from the Board on 1 June 2023 and the figures in the table above cover the period until his retirement date of 31 July 2023. Further details of his leaving arrangements are set out on page 154.
6. The value of the 2020 PSP awards has been updated to reflect the actual share price at vesting on 31 March 2023 of £21.38.
7. René Carayol was appointed to the Board on 1 November 2022.
8. Rene Haas stepped down from the Board on 1 December 2022.
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Computacenter plc Annual Report and Accounts 2023146
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Directors’ Remuneration report continued
Remuneration paid in 2023: Executive Directors
2023 base salary
The Company provides competitive salaries to reflect individual responsibilities, performance, skills and experience
which supports the recruitment and retention of executives of the calibre required to deliver the Group’s strategy.
As disclosed in last year’s Annual Report on Remuneration, the annual salaries of the CEO and the former CFO were
increased by 4.8% to £681,200 and £399,500 respectively, effective 1 January 2023. This increase was below the
average wider workforce increase for the year. The new CFO, Chris Jehle, joined as the Group’s CFO with a salary
of £450,000 with effect from 1 June 2023.
2023 annual bonus
The annual bonus incentivises the delivery of annual, short-term, stretching financial and non-financial
objectives. The maximum bonus opportunity in 2023 was 150% of base salary for the CEO and 150% of base
salary for the CFO (pro-rated to reflect his appointment date of 1 June 2023). Half of the bonus will be deferred
into Computacenter shares, with half payable after one year and half payable after two years.
The 2023 annual bonus opportunity was driven by the financial performance of the business and individual targets
for each Director. For the year ended 31 December 2023, 80% of this award was conditional on the achievement of
criteria linked to the financial performance of the Group. These targets were set by the Committee with reference
to the Group’s strategic and financial plans, as approved by the Board. The non-financial personal objectives set
for the Executive Directors were based principally on delivery against the Group’s strategic KPIs, integration of
acquisitions, the Group’s environmental commitments and certain people-related objectives, including
organisational design and progress on diversity and inclusion. The Committee is comfortable with the level of
pay-out under the personal objectives given the strong individual and strategic performance during the year,
further detail of which is set out in the following table, and the fact that the profit threshold was significantly
exceeded in the year.
The table below sets out the targets and achievement thereof for the awards made to the CEO and CFO.
Supporting context for the 2023 annual bonus outcomes is provided in the Remuneration Committee Chair’s
letter on page 136.
A
The table below sets out details of the annual bonus criteria which applied for the Executive Directors for 2023
and the performance delivered:
As a percentage of
maximum bonus
opportunity
Performance required
Actual %
achieved Payout £’000Threshold Target Stretch Maximum
Measure CEO CFO CEO CFO
Financial criteria
Profit before tax (£m)
50%
263.7 268.5 273.3 287.0 275.5
381.4 147.0
Percentage payout 10% 20% 35% 50% 37.32%
Services contribution growth (£m)
10%
307.9 325.1 342.2 342.2 323.2
73.9 28.4
Percentage payout 5% 7.5% 10% 10% 7.24%
Cash balance (£m)
10%
140.8 164.3 187.8 187.8 298.3
102.2 39.4
Percentage payout 5% 7.5% 10% 10% 10.0%
Costs 2023 (%)
5%
33.4% 33.8% 34.1% 34.1% 34.1%
51.1 19.7
Percentage payout 3% 4% 5% 5% 5.0%
Costs 2024 (%)
5%
34.8% 35.2% 35.5% 35.5% 33.5%
0.0 0.0
Percentage payout 3% 4% 5% 5% 0.0%
Non-financial criteria
Personal objectives 20% 0% 7.5% 15% 20% 17.0% 16.0% 173.7 63.0
Total 100% 26% 50.5% 80% 100% 76.56% 75.56% 782.3 297.5
1. Profit before tax represents Group adjusted profit before tax on a currency adjusted basis excluding the results of the entities acquired during the year which were not included in the targets.
2. The measure represents the actual percentage of gross profit retained as adjusted operating profit, after costs, within the core UK, German and French geographies for 2023.
3. The measure represents the targeted percentage of gross profit to be retained as adjusted operating profit, after costs, within the core UK, German and French geographies for 2024.
STRATEGIC REPORT GOVERNANCE
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Computacenter plc Annual Report and Accounts 2023 147
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Directors’ Remuneration report continued
The former CFO Tony Conophy, stepped down from the Board on 1 June 2023, and left the Company as a good
leaver, following a transition to Chris Jehle, on 31 July 2023.
As disclosed last year, as a good leaver Tony was eligible to participate in the annual bonus in respect of the 2023
financial year of up to 125% of salary, pro-rated for time up to his retirement date and subject to deferral. As he
was only employed for part of the year, his bonus was based on PBT (80%) and personal objectives (20%) only.
The PBT outcome was 59.71%, on the same basis as for the other Executive Directors as disclosed on page 147.
The outcome of the personal objectives was 16.67%. This resulted in a total bonus for Tony of £222,504, equivalent
to 76.38% of his maximum bonus potential. The figure shown in the single figure table is for the period Tony was
employed by the Company in 2023. The total bonus is subject to deferral on the same basis as for the other
Executive Directors.
The personal objectives for the Executive Directors, and the former CFO, are subject to a profit performance
underpin and, for 2023, are related to the following:
Objectives Progress in the year
CEO
Continue to drive the agenda
for a diverse and inclusive
workforce with a particular
focus on gender and ethnicity
Female representation across the whole employee base at the end of 2023 is at
28%, and we are on track to meet our corporate objective of 30%. Progress towards
meeting our corporate objective of having a 25% female mix for our senior leadership
continued with a mix of 24.2% achieved, showing 8% growth since the targets were
introduced in 2020. We continued to drive a number of initiatives to support this
objective, including our third Senior Women Development Programme completed
in September 2023, with delegates across North America, UK, France, Germany
and Spain.
Where possible, we captured data on the ethnicity of our workforce and continue to
develop our commitment to inclusion and diversity across the Group, driven through
our Employee Impact Groups and focusing on engagement, education, career
development and social outreach. We continued to get good scores through
employee surveys, with an inclusion score of 88% across the Group.
Development of plan to
enable the Group to meet its
commitment to be Net Zero
across Scope 1, 2 and 3
emissions by 2040 including
appropriate milestones
We formulated our Sustainable Operations Strategy in line with our Net Zero
ambitions, supported by Science Based Target Initiative carbon GHG calculations
with a 2032 milestone, one of the first resellers in the world to receive this sign-off.
We ensured actions would be sustainable and work would be done in collaboration
with technology vendors. The sustainability reporting outlook was reviewed, based
on both current and forthcoming mandatory, competitive and ratings agency
categories, and good progress was made in preparation for both TCFD improvement
and CSRD implementation. Introduction of new strategy and targets around
Circular Services.
Drive the next phase of
integration of recent
acquisitions in North America,
and ensure that performance is
in line with Group expectations
for the region
Significant progress was made in 2023 in regard to North American integration
where Group cultural alignment was driven, as evidenced by employee feedback and
surveys. The 2023 EBIT performance for North America was above Group expectations
for the year. There was also a successful restructure of the sales force and a new
sales administration hub built in Atlanta.
Effective execution of the
Information Systems roadmap
We continued to execute the roadmap, enhanced our systems and upgraded to
current versions of our core applications. We continued to ensure that our systems
and tools align to offer simplicity of use where possible, enhanced productivity and
better customer outcomes in terms of effectiveness for technology delivery, which
will be key to our future competitiveness. We also made some leadership changes
and successfully reorganised parts of the function which should enable us to go
faster with our Information Systems roadmap.
Succession planning and
organisational design
Material progress with succession planning took place in 2023, with the new CFO and
CIO successfully transitioned into their respective roles. We further developed our
overall management talent with potential successors identified for key roles.
There was also significant progress on our organisational redesign to optimise the
operating structure and facilitate growth across the Group.
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Directors’ Remuneration report continued
Objectives Progress in the year
CFO
Drive the agenda for a diverse
and inclusive workforce
Female representation across the whole employee base at the end of 2023 is at
28%, and we are on track to meet our corporate objective of 30%. Progress towards
meeting our corporate objective of having a 25% female mix for our senior leadership
continued with a mix of 24.2% achieved, showing 8% growth since the targets were
introduced in 2020.
Development of Group investor
relations strategy
Analysis was undertaken to assess best practice and determine an engagement
programme for investor relations. A new Head of Investor Relations was successfully
onboarded and we appointed and onboarded two new brokers. Good progress was
made on developing Computacenter’s investment case and new systems were set
up to assist with shareholder engagement.
Develop and drive the changes
required to the Group IT Systems
roadmap with a focus on
Finance to enhance
performance
A detailed review was undertaken of the applicable IT system areas and a
subsequent programme was designed and launched to define the roadmap and
operating model for the future. There was also a specific focus on the Finance
roadmap with analysis and design of the end-state finance systems, analytics
platforms and architecture design to deliver the vision, as well as transition phases
and measures of performance.
Review, transform, and simplify
back-office processes
Progress was made in streamlining functions within the Group and outlining a
forward-looking plan to advance actions to deliver opportunities for transformation
and efficiency, with the aim of enabling better customer service and improvement
in working capital. Initiatives have been agreed with the Executive Team that will
deliver material value to the business.
Advance the finance and
facilities functions and create a
people and communications plan
Analysis has identified areas of focus and, following this, we have launched a
transformation project. The goal is to enhance business partnering, provide better
insights, and improve efficiency across both transactional finance and commercial
capabilities. Clear and concise definitions for goals, scope and outcomes were
defined and will be utilised in the next step of the project.
Objectives Progress in the year
Former CFO
Ensure a smooth audit transition Facilitated a successful transition to the new auditor.
Review role activities and
conclude on areas of transition
to Executive members
Relevant responsibilities were handed over to designated Executive members
over the course of the period, with assistance given to enable this process to take
place efficiently.
Further develop inventory and
working capital arrangements
and systems
Further progress was made towards effective strategic change with a concerted
effort to remedy existing issues. Additional action to ensure that changes
implemented are systemic will be required in the future.
PSP
PSP awards incentivise the achievement of long-term profitability, returns to shareholders, and growth of
earnings in a suitable and sustainable manner. The PSP awards granted to Executive Directors with a performance
period ending on 31 December 2023 vested at 90.86%, pursuant to the 2021 PSP plan, as the relevant performance
criteria were partially achieved. The vested awards are subject to a two-year holding period before release to the
current CEO, and the former CFO.
Vesting of these awards to the CEO, and the former CFO, was dependent upon the achievement of the following
performance measures over a three-year period:
The compound annual growth rate of the Group’s adjusted diluted earnings per share (EPS) – 70% weighting
Performance level
*
Adjusted diluted EPS CAGR
Maximum (100% vesting) 12.50%
In line with expectations (50% vesting) 8.33%
Threshold (10% vesting) 5.00%
* Vesting occurs on a straight-line basis in between these thresholds.
The EPS number used for the base year of this award (i.e. EPS in 2020) is consistent with the EPS number that was
used to calculate the vesting of the 2018–2020 PSP. On this basis, the growth in adjusted diluted EPS during the
period 1 January 2021 to 31 December 2023 was 11.41% per annum. This resulted in 86.94% of this element vesting.
Services revenue growth – 30% weighting (measured on a constant currency basis)
Performance level
*
Services revenue CAGR
Maximum (100% vesting) 7.5%
In line with expectations (50% vesting) 5.5%
Threshold (25% vesting) 3.5%
* Vesting occurs on a straight-line basis in between these thresholds.
The Services revenue growth during the period 1 January 2021 to 31 December 2023 was 9.72% per annum. This
resulted in 100% of this element vesting. As set out in the Annual Statement from the Chair of the Remuneration
Committee on page 136, the Committee considered the PSP formulaic outturn in the context of wider Company
performance and the wider stakeholder experience, and considers that the outcome is a fair reflection of
performance over the performance period.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 149
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Directors’ Remuneration report continued
Remuneration awards granted in 2023: Executive Directors
A
Share plan interests awarded during the year
The table below details awards made during 2023 under the PSP plan. The performance conditions for these awards are set out in more detail on the following page. Any awards that vest will be subject to a two-year holding period.
Year ended 31 December 2023
Plan/type of
award
Number of
shares
Face value at
time of grant
Performance
conditions
applied
Amount vesting related to
threshold of performance
Performance
period set
Threshold
performance
(% of face value)
Maximum
performance
(% of face value)
CEO
PSP – nil
cost option
60,437 £1,300,000
Compound growth of Company EPS (70%) 10% 100%
Three financial years from 1 January 2023
Compound growth of Services revenue (30%) 25% 100%
CFO
PSP – nil
cost option
3
33,973 £787,500
Compound growth of Company EPS (70%) 10% 100%
Three financial years from 1 January 2023
Compound growth of Services revenue (30%) 25% 100%
1. This is based on the average mid-market share price of Computacenter plc on the three immediately preceding business days from the 6 April 2023 grant, being £21.51.
2. This is based on the average mid-market share price of Computacenter plc on the three immediately preceding business days from the 5 June 2023 grant, being £23.18.
3. Award made to Chris Jehle on his appointment to the Board.
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Directors’ Remuneration report continued
Vesting of these awards to each Executive Director will be dependent upon achieving the performance measures
over a three-year period, as follows:
The compound annual growth rate of the Group’s adjusted diluted earnings per share (EPS) – 70% weighting
Performance level
*
Adjusted diluted EPS CAGR
Maximum (100% vesting) 12.5%
In line with expectations (50% vesting) 8.33%
Threshold (10% vesting) 5.0%
* Vesting occurs on a straight-line basis in between these thresholds. As disclosed last year, the base year of this award (i.e. EPS in 2022) will
be consistent with the EPS number that was used to calculate the vesting of PSP awards granted for the performance period 2020-2022.
Services revenue growth – 30% weighting (measured on a constant currency basis)
Performance level
*
Services revenue CAGR
Maximum (100% vesting) 7.5%
In line with expectations (50% vesting) 5.5%
Threshold (25% vesting) 3.5%
* Vesting occurs on a straight-line basis in between these thresholds.
The table below details awards made during 2023 under the deferred bonus plan.
Plan/
type of award
Number of
shares Face value Vesting date
CEO DBP – Conditional Share 6,312 £135,771 50% – 30/03/2024
50% – 30/03/2025
Former CFO DBP – Conditional Share 2,863 £61,583 50% – 30/03/2024
50% – 30/03/2025
1. This is based on the average mid-market share price of Computacenter plc on the three immediately preceding business days from grant,
being £21.51.
2. These are not subject to any other performance conditions.
Replacement awards
In addition to the awards set out above, upon appointment Chris Jehle was made cash and share awards to
replace unvested awards forfeited as a consequence of leaving his former employer to join Computacenter.
The Committee took into account the form of award, time horizons and extent to which performance conditions
applied to the original awards. Full details of the awards, which were disclosed last year, are set out below.
• An award to replace restricted shares granted by his former employer which were due to vest in June
2023 and based on the value of the forfeited shares at that point. Taking into account Chris’s start date,
the Committee agreed to extend the time horizon of this award, with 50% of the award delivered in cash
upon joining in June 2023 (£135,464). The remaining 50% of the award was delivered as a nil-cost option
over Computacenter shares. There are no outstanding conditions left which either the Company or Chris
must fulfil in order for this award (value at grant of £135,484) to vest on 1 July 2025.
• An award to replace a 2022 performance share award which was also forfeited. To ensure incentivisation
against Computacenter performance from joining, this award was replaced with a PSP award subject to
the same Computacenter performance measures and targets as those applying to the 2022 award made
to the CEO, as disclosed in the 2022 Annual Report (value at grant of £321,807). In line with the time
horizon of the forfeited award, the award will vest in June 2025, subject to performance.
• Chris also received compensation for the estimated value of the annual bonus which would have been
made by his former employer for the financial year ended 31 March 2023. The amount paid (£262,500)
took into account an estimate of performance and was lower than the bonus outturn in the prior two
years. The bonus was paid in cash, to mirror the form of the forfeited award.
Plan/type of award Number of shares Face value Vesting date
Replacement PSP award – nil-cost option 13,527 £321,807 5 June 2025
Replacement RSU award – nil-cost option 5,695 £135,484 1 July 2025
1 Based on the average middle market closing quotation, as derived from the Daily Official List of the London Stock Exchange, for the 30 days
to and including 2 June 2023 (£23.79).
2 The PSP award is based on the same performance measures and targets as for the CEO’s 2022 PSP award. Further detail is set out in the
2022 Annual Report. As previously disclosed, there is no post-vesting holding period for this award.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
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Directors’ Remuneration report continued
A
Executive Director outstanding share awards as at 31 December 2023
Directors’ interests in share plans
Plans Note
Exercise/share
price Exercise period At 1 January 2023
Granted during
the year
Exercised during
the year
Lapsed during
the year
At 31 December
2023
Mike Norris Sharesave 1 1,011.0p 01/12/24 – 31/05/25 2,967 – – – 2,967
PSP 3 Nil 31/03/23 – 20/03/28 62,147 – 62,147 – –
PSP 3 Nil 21/03/24 – 20/03/29 90,604 – – – 90,604
PSP 2,3 Nil 23/03/25 – 22/03/30 110,977 – – – 110,977
PSP 3 Nil 22/03/26 – 21/03/31 51,678 – – – 51,678
PSP 3 Nil 22/03/27 – 22/03/32 39,368 – – – 39,368
PSP 3 Nil 23/03/28 – 06/04/33 – 60,437 – – 60,437
DBP 4 Nil 31/03/2023 14,838 – 14,838 – –
DBP 4 Nil 21/03/2024 7,086 – – – 7,086
DBP 4 Nil 02/04/2024 – 3,156 – – 3,156
DBP 4 Nil 31/03/2025 – 3,156 – – 3,156
Chris Jehle PSP 3 Nil 23/03/28 – 05/06/33 – 33,973 – – 33,973
Replacement PSP 5 Nil 05/06/25 – 05/06/33 – 13,527 – – 13,527
Replacement RSUs 6 Nil 01/07/25 – 05/06/33 – 5,695 – – 5,695
1. Issued under the rules of the Computacenter 2018 Sharesave Plan, which is available to employees of Computacenter in the UK, Germany and the US. Eligible employees can save between £5 and £500 a month to purchase options in shares in Computacenter plc at a price fixed at the
beginning of the Plan term. There are no conditions relating to the performance of the Company for this Plan. The Sharesave Plan only requires that an employee remains employed by the Group at the end of the term of the Plan.
2. These awards vested during the year at 100%, with 0% of the shares under award lapsing.
3. Issued under the terms of the Computacenter Performance Share Plan 2005, as amended at the AGMs held on 19 May 2015, 14 December 2017, 18 May 2018, 7 March 2019, 5 March 2020, 20 May 2021, 19 May 2022 and 17 May 2023.
(a) In respect of 70% of the total award: 10% of this portion of the award will vest if the compound annual EPS growth over the Performance Period equals 5% per annum. If the compound annual EPS growth rate over the Performance Period is between 5% and 8.33%, this portion of the award
will vest on a straight-line basis up to one-half. This portion of the award will vest in full if the compound annual EPS growth equals or exceeds 12.5% per annum, with straight-line vesting between 50% and 100%.
(b) In respect of 30% of the total award: the award will start to vest if the compound annual Services revenue growth rate over the Performance Period equals 3.5%. If the compound annual Services revenue growth rate over the Performance Period is 7.5%, this portion of the award will vest
in full. If the compound annual Services revenue growth rate over the period is between 3.5% and 7.5%, then this portion of the award will vest on a straight-line basis between 25% and 100%.
PSP awards from 2018 onwards are subject to a two-year holding period.
4. Conditional shares issued under the terms of the Computacenter 2017 Deferred Bonus Plan. Awards vest in equal tranches on the first and second anniversary of the grant date.
5. Replacement Award granted to Chris Jehle to compensate him for performance-based awards forfeited by him as a result of leaving his previous employer, Experian plc. Performance period of 1 January 2022 to 31 December 2024, and subject to the same performance conditions as set out
in note 3 above. No holding period applies following vesting on 5 June 2025 (which is on or around the date of vesting of his Experian awards, had they not been forfeited).
6. Further Replacement Award granted to Chris Jehle to compensate him for service-based awards forfeited by him as a result of leaving Experian plc. The terms of the Computacenter 2017 Deferred Bonus plan will be applied, save that those rules relating to reduction of awards and clawback,
cessation of employment and amendments will not apply. There are no performance conditions or performance period which apply to the award, which is structured as a nil-cost option. It will vest in Chris Jehle on 1 July 2025.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023152
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Directors’ Remuneration report continued
Director gains
PSP
Director Date of vesting Plan
Number of
shares Exercise price
Market price
at vesting
Notional
gain made
Mike Norris 31/03/2023 PSP 110,977 Nil £21.38 £2,372,688
Tony Conophy 31/03/2023 PSP 62,915 Nil £21.38 £1,345,122
The closing market price of ordinary shares at 29 December 2023 (being the last trading day of 2023) was £27.92
(31 December 2022: £19.11).
The highest price during the year was £27.96 and the lowest was £19.39.
Minimum shareholding requirements
In accordance with the Group’s minimum shareholding guidelines, the Executive Directors are each required to
build up a shareholding that is equal to 200% of their gross salary. It is also expected that the Executive Directors
will achieve these levels within five years of appointment. For the purposes of these requirements, deferred
bonuses, shares subject to the holding period, and options which have either vested but are as yet unexercised,
or which have no performance conditions (other than time lapsation), will be included on a net basis, for the
purposes of calculating shareholdings, as will shares held by an Executive’s spouse or dependents. There is no
requirement for the Non-Executive Directors of the Company to hold shares.
In addition, when an Executive Director steps down from the Board they will be expected to retain an interest in
Computacenter shares based on their in-employment share ownership guideline (or actual shareholding at the
date of stepping down from the Board if lower) for a period of two years.
The Committee has the discretion to disapply or reduce this requirement in extenuating circumstances,
for example in compassionate circumstances.
Mike Norris substantially exceeds his shareholding requirement. Chris Jehle was appointed as CFO in June 2023,
and is subject to the guidelines set out above. Tony Conophy remains compliant with the post-employment
shareholding requirements which he remains subject to as a former Executive Director.
A
Directors’ shareholdings
The beneficial interest of each of the Directors in the shares of the Company, as at 31 December 2023, is as follows:
Current Directors
Number of
shares in the
Company as at
31 December
2023
Percentage of
requirement
achieved
Interests in shares
SAYE PSP DBP Total
Mike Norris 1,079,214 2,466% 2,967 353,064 13,398 1,448,643
Chris Jehle – 9.7%
,
– 47,500 5,695 53,195
Peter Ryan 3,100 n/a – – – 3,100
Pauline Campbell – n/a – – – –
René Carayol – n/a – – – –
Philip Hulme 8,666,695 n/a – – – 8,666,695
Ljiljana Mitic – n/a – – – –
Peter Ogden 18,699,389 n/a – – – 18,699,389
Ros Rivaz 2,181 n/a – – – 2,181
Note: There has been no grant of, or trading in, shares of the Company by the Directors between 1 January 2024 and 19 March 2024.
1. There are no conditions relating to the performance of the Company or individual for the vesting of these plans.
2. There are performance conditions for this Plan as set out within the table on page 152.
3. Based on the Company’s closing share price as at 29 December 2023, being £27.92, and the approved 2023 base salaries.
4. Nil-cost options that have no performance conditions or period, and will vest in Chris Jehle on 1 July 2025, and which count towards his
minimum shareholding requirement on a net basis.
Dilution limits
Computacenter uses a mixture of both new issue and market purchase shares to satisfy the vesting of awards
made under its PSP, DBP and Sharesave plans. In line with best practice, the use of new or treasury shares to
satisfy awards made under all share plans is restricted to 10% in any ten-year rolling period, with a further
restriction for discretionary plans of 5% in the same period. The Company’s current position against its dilution
limit is below each of these thresholds. The Company regularly reviews its position against the dilution guidelines
and, should there be insufficient headroom within which to grant new awards which could be satisfied by issuing
new shares, the Company intends to continue its current practice of satisfying new awards with shares
purchased on the market.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 153
GLOSSARY
Directors’ Remuneration report continued
Payments to past Directors and payments for loss of office
Aside from the leaving arrangements for Tony Conophy as set out below, there were no payments made to past
Directors and no payments made for loss of office during the period.
Leaving arrangements for Tony Conophy
As previously announced, Tony Conophy stepped down from the Board on 1 June 2023 and, to enable an appropriate
transition, remained with the Company up until his retirement on 31 July 2023. Tony’s remuneration arrangements
have been treated in accordance with the Company’s approved Remuneration Policy and his service contract.
The Committee determined that Tony be treated as a good leaver in respect of his outstanding awards.
Tony’s remuneration for the period he was employed by the Company is shown in the single figure table on page
145. He continued to receive his salary, pension, contractual benefits, and an annual bonus payment in respect
of the period up to his retirement.
In terms of his share awards, as a good leaver, all deferred bonus shares will continue on their original terms and
be released on the normal release dates. All outstanding PSP awards in the holding period will continue on their
original terms and time horizons. All outstanding PSP awards in the performance period are subject to the original
performance conditions, will vest on their normal vesting dates including any holding period, and will be reduced
pro-rata based on the performance period completed when he retired from the Company.
Tony was not granted a further PSP award in 2023. Tony’s options held in the Company’s Sharesave plan were
exercisable given that he was automatically deemed to be a good leaver under the terms of the plan. In line with
our Policy, a post-employment shareholding guideline will apply for a period of two years from stepping down
from the Board.
Executive service contracts
A summary of the Executive Directors’ contracts of employment is given in the table below:
Director Start date Expiry date Unexpired term
Notice period
(months)
Mike Norris 23/04/1998 n/a None specified 12
Chris Jehle 01/06/2023 n/a None specified 12
All Executive Directors have a rolling 12-month service contract with the Company, which is subject to 12 months’
written notice by either the Company or the Director.
External appointments for Executive Directors
Executive Directors are permitted to hold outside directorships, subject to approval by the Chair of the Board, and
any such Executive Director is permitted to retain any fees paid for such services. During 2023, neither Executive
Director held any outside fee-paying directorships.
Non-Executive Directors’ letters of appointment
The Non-Executive Directors have not entered into service contracts with the Company. They each operate under
a letter of appointment which sets out their terms, duties and responsibilities. Non-Executive Directors are
appointed for an initial term, which runs to the conclusion of the third AGM following their appointment, and which
may be renewed at that point. The letters of appointment provide that should a Non-Executive Director not be
re-elected at an AGM before he or she is due to retire, then his or her appointment will terminate.
The terms and conditions of appointment of the Non-Executive Directors are available for inspection by shareholders
at the Company’s registered office. The appointments continue until the expiry dates set out below, unless
terminated for cause or on the period of notice stated below:
Director
Date of latest letter of
appointment Expiry date Notice period
Peter Ryan 16 May 2022 Close of the Company’s Annual
General Meeting in 2025
3 months
Pauline Campbell 9 March 2021 Close of the Company’s Annual
General Meeting in 2024
3 months
René Carayol 1 November 2022 Close of the Company’s Annual
General Meeting in 2025
3 months
Philip Hulme 4 May 2022 Close of the Company’s Annual
General Meeting in 2025
3 months
Ljiljana Mitic 16 May 2022 Close of the Company’s Annual
General Meeting in 2025
3 months
Peter Ogden 4 May 2022 Close of the Company’s Annual
General Meeting in 2025
3 months
Ros Rivaz 11 November 2022 Close of the Company’s Annual
General Meeting in 2025
3 months
In 2024, the Chair will be paid a single consolidated fee of £230,600, the same as for 2023. The Non-Executive Directors
are paid a basic fee, plus additional fees for chairing Board Committees or Senior Independent Director duties.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023154
GLOSSARY
Directors’ Remuneration report continued
In 2024, Non-Executive Directors’ annual fees will increase by 3.8%:
Position
2023 Annual
fees (£)
2024 Annual
fees (£)
Independent Non-Executive Directors 60,350 62,650
Founder Non-Executive Directors 54,900 57,000
Additional fee for Chairing the Audit Committee 19,800 20,550
Additional fee for Chairing the Remuneration Committee 11,000 11,420
Additional fee for the position of Senior Independent Director 8,800 9,130
Performance of the Company
Total shareholder return performance
(Computacenter versus FTSE Software and Computer Services sector)
0
100
200
300
400
500
600
Dec
2013
Dec
2014
Dec
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
Dec
2021
Dec
2023
Dec
2022
Computacenter FTSE All Share – Software and Computer Services
In this graph, TSR performance shows the value, in December 2023, of £100 invested in the Company’s shares
in December 2013, assuming that all dividends received between December 2013 and December 2023 were
reinvested in the Company’s shares (source: Datastream).
CEO pay history
The table below shows the total remuneration figure for the CEO over the previous ten financial years. The total remuneration figure includes the annual bonus and PSP awards which vested based on performance in those years.
The annual bonus and PSP percentages show the payout for each year as a percentage of the maximum.
Plan/type of award 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
CEO single figure of remuneration (£) 1,506,300 2,763,900 1,807,600 2,291,500 2,081,700 2,391,409 2,538,817 4,084,506 3,339,063 2,754,876
Annual bonus payout (as a % of maximum opportunity) 69.39% 84.54% 49.12% 92.35% 82.63% 92.5% 96.0% 96.0% 27.85% 76.56%
Annual bonus (£) 451,035 803,200 319,280 606,047 557,753 636,863 674,400 825,120 271,538 782,269
PSP vesting (as a % of maximum opportunity) 35.34% 71.5% 85.13% 68.01% 65.68% 80.78% 70.00% 100% 100% 90.86%
PSP vesting (£) 478,679 1,384,500 891,800 1,101,400 923,699 1,150,120 1,398,898 2,653,094 2,372,688 1,245,247
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 155
GLOSSARY
Directors’ Remuneration report continued
Percentage change in remuneration of Board Directors and employees
The table below sets out the percentage change in the salary, benefits and annual bonus of all Executive and Non-Executive Directors compared to the average amount paid to Computacenter employees in the UK, between the years
ended 31 December 2020, 2021, 2022 and 2023.
On the basis that Computacenter plc (the Parent Company) does not employ any employees, the comparator group of Computacenter UK-based employees was chosen on a voluntary basis as the Committee believes it provides
a sufficiently large comparator group based on a similar incentive structure to the CEO and reduces any distortion arising from currency and cost of living differences in other geographies in which the Group operates.
% change in remuneration between 2019 and 2020 % change in remuneration between 2020 and 2021 % change in remuneration between 2021 and 2022 % change in remuneration between 2022 and 2023
Salary/Fee Benefits Annual bonus Salary/Fee Benefits Annual bonus Salary/Fee Benefits Annual bonus Salary/Fee Benefits Annual bonus
Executive
Mike Norris (23.47)% (34.35)% 5.89% 35.94% (24.32)% 22.35% 13.44% 103.70% (67.09)% 4.80% (1.21%) 188.14%
Chris Jehle – – – – – – – – – – – –
Tony Conophy (23.53)% (5.99)% 4.20% 35.97% 2.52% 27.73% 2.69% 4.94% (72.11)% (38.88%) (44.12%) 80.60%
Non-Executive
Peter Ryan 39.72% – – 2.0% – – 2.71% – – 4.82% – –
Pauline Campbell n/a – – n/a – – 195.89% – – 4.84% – –
René Carayol n/a – – n/a – – n/a – – 528.60% – –
Rene Haas 172.28% – – 2.0% – – (5.88)% – – n/a – –
Philip Hulme (75.0)% – – 308.0% – – 2.69% – – 4.83% – –
Ljiljana Mitic 59.42% – – 2.0% – – 2.67% – – 4.77% – –
Peter Ogden (75.0)% – – 308.0% – – 2.69% – – 4.83% – –
Minnow Powell 3.69% – – (23.56)% – – n/a – – n/a – –
Ros Rivaz 3.69% – – 2.05% – – 2.69% – – 4.84% – –
Employees
Computacenter UK-based employees 3.26% (10.39)% (3.48)% 4.19% (4.49)% (0.69)% 5.81% (5.60)% 1.29% 6.33% (0.09)% (14.52)%
12
1. The significant percentage increase for the CEO and former CFO reflects the voluntary temporary reduction in base salary for the period
1 April 2020 to 30 June 2020.
2. Following shareholder consultation, the CEO salary was increased by 13.4%.
3. Peter Ryan was appointed to the role of Chair on 16 May 2019. The increase reflects that he was only paid the Chair’s fee for part of the
prior year.
4. Pauline Campbell was appointed to the Board on 16 August 2021 and assumed the role of Chair of the Audit Committee on
30 September 2021.
5. René Carayol was appointed to the Board on 1 November 2022.
6. Rene Haas was appointed to the Board on 20 August 2019.
7. Rene Haas stepped down from the Board on 1 December 2022.
8. The significant percentage increase for Philip Hulme and Peter Ogden reflects their decision to waive basic fees due to them as founder
Non-Executive Directors from 1 April 2020 until 31 December 2020, as announced by the Company on 6 April 2020.
9. Ljiljana Mitic was appointed to the Board on 16 May 2019.
10. Minnow Powell stepped down from the Board on 30 September 2021.
11. The reduction in benefits in 2021 for the CEO was due to his election not to have a car and driver provided from the middle of 2021 onwards.
The rise in his benefits in 2022 represents an uplift through a car allowance, to offset his loss of car and driver, in line with that given to the
former CFO, for the whole of the year.
12. The change in the Computacenter UK-based employee annual bonus figure is based on the bonus paid during 2023 in respect of 2022
rather than in respect of 2023 due to the availability of data at the time this report is finalised. Therefore, this is comparable with the
Executive Director annual bonus change between 2021 and 2022.
13. Chris Jehle was appointed to the Board as CFO on 1 June 2023.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023156
GLOSSARY
Directors’ Remuneration report continued
CEO pay ratio
The CEO pay ratio table shows the ratio of pay between the CEO of Computacenter and Computacenter’s UK
employees. The ratio compares the total remuneration of the CEO against the total remuneration of the median
UK employee and those who sit at the 25th and 75th percentiles (lower and upper quartiles).
Computacenter’s CEO pay ratios have been calculated using Option B, a continuation of approach from the
previous four years and based on the availability of data at the time the Annual Report is published. This uses the
most recent gender pay data to identify the three employees that represent our 25th, 50th and 75th percentile
employees. As an additional sense check, the salary and total pay and benefits of a number of employees either
side of these 25th, 50th and 75th employees were also reviewed with an adjustment made where appropriate to
ensure that the figures used were representative of an employee at these positions (e.g. where the employee at
the relevant position isn’t representative of other employees at that level, the employee next to them has been
used instead). The total remuneration for these individuals has been calculated based on all components of pay
for 2023, including base salary, performance-based pay, pension and benefits. The Committee considers that
this provides an outcome that is representative of the employees at these pay levels.
Where an identified employee received a pro-rated component of pay, their figures have been converted to a
full-year equivalent. No other adjustments were necessary other than the adjustments already set out above.
The day by reference to which the Company determined the 25th, 50th and 75th percentile employees was
31 December 2023.
The Committee believes that the median pay ratio is consistent with the pay, reward and progression policies for
the Company’s UK employees taken as a whole. Computacenter’s employer pension contributions, Company-paid
benefits and voluntary benefit scheme options are consistent for all UK employees, including the CEO. In addition,
the CEO is eligible to participate in the Company’s annual bonus and Performance Share Plan, in line with other
members of the senior Management team. The value of these variable pay awards is affected by performance
delivered and, in the case of the Performance Share Plan, share price movement over three years.
The reduction in the pay ratio between 2022 and 2023 is primarily due to the lower PSP vesting level and
difference in share price growth over the relevant three-year period which has a greater impact on the CEO’s pay.
There is no discernible trend in the CEO pay ratio over the five-year period which has been impacted by incentive
pay-outs and share price performance.
Year Method
25th percentile
pay ratio Median pay ratio
75th percentile
pay ratio
2023 Option B 76:1 53:1 33:1
2022
1
Option B 98:1 68:1 44:1
2021 Option B 114:1 83:1 55:1
2020 Option B 69:1 57:1 34:1
2019 Option B 76:1 51:1 36:1
1. The 2022 ratios have been updated to reflect the actual CEO’s 2022 single figure total using the share price on the date of vesting, further
detail of which is set out in the notes to the single figure table on page 146.
2023 salary and total pay and benefits – all employee figures
Employees 25th percentile Median 75th percentile
Total pay and benefits £36,146 £52,465 £83,849
Salary £34,466 £49,965 £80,440
Relative importance of spend on pay
The charts below show the relative expenditure of the Group on the pay of its employees, against certain other
key financial indicators of the Group:
Expenditure on Group employees’ pay
(£m)
2023
2022
1090.5
999.5
Shareholder distributions
**
(£m)
2023
2022
77.3
80.5
Group adjusted profit before tax
*
(£m)
2023
2022
278.0
263.7
* As well as information prescribed by current remuneration reporting regulations, Group adjusted profit before tax has also been included
as this is deemed to be a key performance indicator of the Group which is linked to the delivery of value to our shareholders.
** Relates to shareholder distributions made in, and not for, the relevant year.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 157
GLOSSARY
Directors’ Remuneration report continued
Statement of implementation of Remuneration Policy in the following financial year
Executive Director Remuneration for 2024 will be in accordance with the terms of our Directors’ Remuneration
Policy, as set out on pages 141 to 144 of this report.
2024 base salaries
The base salary of the CEO and the CFO will increase by approximately 3.8% to £707,000 and £467,000 respectively
from 1 January 2024. This is in line with the average increase for the wider UK workforce and takes into account
Company and individual performance.
2024 annual bonus
The performance measures and weightings for the 2024 annual bonus will be as follows:
Mike Norris – CEO and Chris Jehle – CFO
(2024)
50% 10% 10% 10% 20%
Group adjusted profit before tax (up to 50%)
Services contribution growth (up to 10%)
Cash balance (up to 10%)
Cost efficiency (up to 10%)
Personal objectives (up to 20%)
The measures for 2024 have been set to be challenging relative to our 2024 business plan. The targets
themselves, as they relate to the 2024 financial year, are deemed by the Committee to be commercially sensitive
and therefore have not been disclosed. They will be disclosed at such time as the Committee no longer deems
them to be commercially sensitive, and it currently anticipates including these in the Company’s 2024 Annual
Report and Accounts.
The maximum bonus opportunity for the Executive Directors in 2024 will be 150% of base salary. These awards
will be subject to deferral in line with our Policy on page 141.
2024 PSP
The award levels for the Executive Directors in the 2024 financial year are 200% of salary for the CEO and 175%
of salary for the CFO.
The 2024 PSP awards will be subject to the following performance conditions, with further context provided in the
Annual Statement from the Chair of the Committee:
1. In respect of 70% of the total award: 10% of this portion of the award will vest if the compound annual EPS
growth equals 5% per annum. This portion of the award will vest in full if the compound annual EPS growth
equals or exceeds 10% per annum, with straight-line vesting between 5% and 10%.
2. In respect of 15% of the award: 25% of this portion of the award will vest if the compound annual Services
growth rate over the performance period equals 3.5% per annum, with 50% vesting for growth of 5.5% per
annum. If the compound annual Services growth rate over the performance period is 7.5% per annum, this
portion of the award will vest in full. There will be straight-line vesting between these points.
3. In respect of 15% of the award: 25% of this portion of the award will vest if the compound annual EBIT growth
rate of the Group’s North American business during the performance period equals 12% per annum, with 50%
vesting for growth of 16% per annum. If the compound annual EBIT growth rate over the performance period is
20% per annum, this portion of the award will vest in full. There will be straight-line vesting between these points.
Statement of voting
The results of voting on the Directors’ Remuneration report at the Company’s 2023 AGM are outlined in the
table below:
Votes cast in favour/discretionary Votes cast against Total votes cast Votes withheld/abstentions
98,719,645 99.08% 919,790 0.92% 99,639,435 111,485
The results of voting on the Directors’ Remuneration Policy at the Company’s 2023 AGM are outlined in the
table below:
Votes cast in favour/discretionary Votes cast against Total votes cast Votes withheld/abstentions
99,013,713 99.37% 626,069 0.63% 99,639,782 111,948
The Committee is grateful for the continuing support of shareholders. To ensure that this continues, the
Committee will consult with shareholders on major issues where it is appropriate to do so. It will also continue to
adhere to its underlying principle of decision making that Executive Directors’ pay must be linked to performance
and the sustainable delivery of value to our shareholders.
This Annual Report on Remuneration has been approved by the Board of Directors and signed on its behalf by:
Ros Rivaz
Chair of the Remuneration Committee
19 March 2024
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023158
GLOSSARY
Directors’ report
The Directors present their report, together with the audited accounts of
Computacenter plc and its subsidiary companies (the Group) for the year
ended 31 December 2023.
Computacenter plc is incorporated as a public limited company and is
registered in England and Wales with the registered number 3110569.
Computacenter plc’s registered office address is Hatfield Avenue,
Hatfield, Hertfordshire, AL10 9TW. The Company’s registrar is Equiniti
Limited, which is situated at Aspect House, Spencer Road, Lancing,
West Sussex, BN99 6DA.
The pages from the inside front cover to 106 of this Annual Report and
Accounts are incorporated by reference into the Directors’ Report, which
has been drawn up and presented in accordance with English company
law, and the liabilities of the Directors in connection with that report shall
be subject to the limitations and restrictions provided by such law.
Strategic Report
The Companies Act 2006 requires the Group to prepare a Strategic Report,
which commences at the start of this Annual Report and Accounts up to
page 106. The Strategic Report includes information about the Group’s
operations and business model, particulars of all important events
affecting the Company or its subsidiaries, the Group’s financial performance
in the year and likely future developments, strategic KPIs, principal risks
and information regarding the Group’s sustainability strategy.
Corporate governance
Under Disclosure and Transparency Rule 7.2, the Company is required to
include a Corporate Governance report within the Directors’ report.
Information on our corporate governance practices can be found in the
Corporate Governance report on pages 107 to 164, and the reports of the
Audit, Remuneration and Nomination Committees on pages 130, 136 and
127 respectively, all of which are incorporated into the Directors’ report
by reference.
Management Report
This Directors’ report, together with the other reports, forms the
Management Report for the purposes of Disclosure and Transparency
Rule 4.1.8.
Results and dividends
The Group’s Consolidated Income Statement is on page 176. The Group’s
activities resulted in a profit before tax of £272.1m (2022: £249.0m). The
Group profit for the year, attributable to equity shareholders, amounted
to £197.6m (2022: £182.8m).
The Directors recommend a final dividend of 47.4p per share (2022: 45.8p
per share) totalling £54.1m (2022: £52.3m). Subject to shareholder approval,
this will be paid on Friday 5 July 2024, to shareholders on the register at
the close of business on Friday 7 June 2024. The shares will be marked
ex-dividend on Thursday 6 June 2024. This is in line with the normal dividend
procedure timetable, as set by the London Stock Exchange.
Following the payment of an interim dividend for 2023 of 22.6p per share
on 27 October 2023, the total dividend for 2023 will be 70.0p per share.
The Board has consistently applied the Company’s dividend policy, which
states that the total dividend will be 2 to 2.5 times covered by adjusted
diluted earnings per share. Further detail on the Company’s dividend
policy can be found within the Chief Financial Officer’s review on page 051.
Dividends are recognised in the accounts in the year in which they are
paid, or in the case of a final dividend, when approved by the shareholders.
As such, the amount recognised in the 2023 Annual Report and Accounts,
as described in note 14, is made up of the 2023 interim dividend (22.6p
per share) and the 2022 final dividend (45.8p per share).
Articles of Association
The Company’s Articles of Association set out the procedures for
governing the Company. The Articles of Association may only be amended
by a special resolution at a general meeting of the shareholders. A copy
of the Articles of Association is available on the Company’s website at
investors.computacenter.com.
Voting rights
Shareholders are entitled to attend and vote at any general meeting of the
Company. It is the Company’s practice to hold a poll on every resolution at
general meetings. Every member present in person or by proxy has, upon a
poll, one vote for every share held. In the case of joint holders of a share the
vote of the senior who tenders a vote, whether in person or by proxy, shall
be accepted to the exclusion of the votes of the other joint holders and,
for this purpose, seniority shall be determined by the order in which the
names stand in the Register of Members in respect of the joint holdings.
Dividend rights
Shareholders may by ordinary resolution declare dividends, but the
amount of the dividend may not exceed the amount recommended by
the Board.
Transfer of shares
There are no specific restrictions on the size of a holding, nor on the
transfer of shares which are both governed by the general provisions of
the Company’s Articles and prevailing legislation. The Directors are not
aware of any agreements between holders of the Company’s shares that
may result in restrictions on the transfer of securities or on voting rights
at any meeting of the Company.
Stakeholder engagement
The Board is aware that its actions and decisions impact our
stakeholders. Effective engagement with stakeholders is important for
the Group. In order to comply with section 172 of the Companies Act 2006,
each Director is required to act in a way that he or she considers will
promote the success of the Company whilst taking into account the
interests of stakeholders. The Directors must also include a statement in
the Annual Report and Accounts explaining how they have discharged this
duty during the year. The Group’s key stakeholders are identified on pages
057 to 063 of the Strategic Report and the statement of compliance with
section 172 is set out on page 105.
Directors and Directors’ authority
The Directors who served during the year ended 31 December 2023 were
Pauline Campbell, Tony Conophy, René Carayol, Philip Hulme, Chris Jehle,
Ljiljana Mitic, Mike Norris, Peter Ogden, Ros Rivaz and Peter Ryan. Biographical
details of each Director, as at 31 December 2023, are given on pages
116 to 117.
The Company’s Articles of Association require that at each AGM, those
Directors who were appointed since the last AGM retire, as well as
one-third of the Directors who have been the longest serving. The Board
has decided, in accordance with the Code, that all Directors will retire
at each forthcoming AGM and offer themselves for re-election. The
Nomination Committee has considered each Director who is standing for
election or re-election and recommends their election or re-election.
Further details on the Committee’s recommendations for the election
and re-election of the Directors are set out in the Notice of AGM, which
summarises the skills and experience that the Directors bring to the Board.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 159
GLOSSARY
Directors’ report continued
Subject to applicable law and the Company’s Articles of Association, the
Directors may exercise all of the powers of the Company. The Company’s
Articles of Association provide for a Board of Directors consisting of
between three and 20 Directors, who manage the business and affairs
of the Company. The Directors may appoint additional or replacement
Directors, who shall serve until the following AGM of the Company, at
which point they will be required to stand for election by the members.
A Director may be removed from office by the Company as provided for by
applicable law, in certain circumstances set out in the Company’s Articles
of Association, and at a general meeting of the Company by the passing
of an Ordinary Resolution (provided special notice has been given in
accordance with the Companies Act 2006).
Members have previously approved a resolution to give the Directors
authority to allot shares, and a renewal of this authority is proposed at
the 2024 AGM. This authority allows the Directors to allot shares up to the
maximum amount stated in the Notice of AGM (approximately one-third of
the issued share capital). In addition, the Company may not allot shares
for cash (unless pursuant to an employee share scheme) without first
making an offer to existing shareholders in proportion to their existing
holdings. This is known as rights of pre-emption. Two resolutions allowing
a limited waiver of these rights were passed by the members at last
year’s AGM.
Members also approved a resolution giving delegated authority allowing
the Company to make market purchases of its own shares, up to a maximum
of 10% of the Company’s issued share capital, subject to certain conditions
including price of purchase, amongst others. Each of these standard
authorities will expire on the earlier of 30 June 2024 or the conclusion
of the Company’s 2024 AGM. The Directors will seek to renew each of the
authorities at the 2024 AGM, and full details are provided in the Notice of
AGM. As at 19 March 2024, none of these authorities approved by
shareholders at the 2023 AGM had been exercised.
Directors’ indemnities
The Company has executed deeds of indemnity with each of the Directors.
These deeds contain qualifying third-party indemnity provisions,
indemnifying the Directors to the extent permitted by law, and remain in
force at the date of this report, as was the case for the duration of 2023.
The indemnities are uncapped and cover all costs, charges, losses and
liabilities the Directors may incur to third parties, in the course of acting
as Directors of the Company or its subsidiaries. In addition, the Group
maintains liability insurance for its Directors and officers.
Directors’ conflicts of interest
The Directors are required to notify the Company Secretary of any
situations (appointments, holdings or otherwise), or any changes to such,
which may give rise to an actual or potential conflict of interest with the
Company. These notifications are then reviewed by the Board and recorded
in a register maintained by the Company Secretary. If appropriate, they
are then considered further by the Directors who are not conflicted,
who may authorise the position. The register of notifications and
authorisations is reviewed by the Board twice a year. Where the Board
approves an actual or potential conflict, the conflicted Director cannot
participate in any discussion or decision affected by the conflict.
Directors’ interests in shares
The Directors’ interests in the Company’s share capital, at the start and end of the reporting period, were as follows:
As at 31 December 2023
As at 1 January 2023
or date of appointment
Number of
ordinary shares
Beneficial
Number of
ordinary shares
Non-beneficial
Number of
ordinary shares
Beneficial
Number of
ordinary shares
Non-beneficial
Executive Directors
Mike Norris 1,079,214 – 1,134,214 –
Tony Conophy
*
1,987,809 – 1,873,556 –
Chris Jehle
*
– – n/a n/a
Non-Executive Directors
Peter Ryan 3,100 – 3,100 –
Pauline Campbell – – – –
René Carayol – – – –
Philip Hulme 8,666,695 9,728,293 8,896,695 9,498,293
Ljiljana Mitic – – – –
Peter Ogden 18,699,389 8,103,356 18,699,389 8,103,356
Ros Rivaz 2,181 – 2,181 –
* Chris Jehle joined the Board on 1 June 2023 and Tony Conophy retired from the Board on 1 June 2023. There were no changes to the interests set out above between 1 January 2024 and
19 March 2024.
STRATEGIC REPORT GOVERNANCE
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Computacenter plc Annual Report and Accounts 2023160
GLOSSARY
Directors’ report continued
Major interests in shares and voting rights
As at 31 December 2023, the Company had been notified under the FCA’s
Disclosure and Transparency Rules of the following interests in its total
voting rights, which are equal to or greater than 3%:
Name of major shareholder
Percentage of total
voting rights held Date of notification
BlackRock, Inc. 5.02 8 February 2023
BlackRock, Inc. 4.98 16 February 2023
BlackRock, Inc. 5.10 1 March 2023
BlackRock, Inc. Below 5% 13 June 2023
Philip William Hulme 7.59 11 September 2023
No further interests have been disclosed to the Company between
31 December 2023 and 19 March 2024.
An updated list of the Company’s major shareholders, based on
information available to the Company, is available at investors.
computacenter.com.
Capital structure and rights attaching to shares
As at 19 March 2024, there were 122,687,970 fully paid ordinary shares in
issue, of which the Company held 8,546,861 ordinary shares in treasury,
representing 6.97% of voting rights. The total number of voting rights in
the Company, which shareholders may use as the denominator when
calculating if they are required to notify their interest in the Company or
a change to that interest, under the Disclosure and Transparency Rules,
is therefore 114,141,109.
The rights attaching to each of the Company’s ordinary shares and
deferred shares are set out in its Articles of Association. As at 19 March
2024, there were no deferred shares in issue.
The holders of ordinary shares are entitled, subject to applicable law and
the Company’s Articles of Association, to:
• have shareholder documents made available to them, including
notice of any general meetings of the Company; and
• to attend, speak and exercise voting rights at general meetings
of the Company, either in person or by proxy.
Pursuant to the Company’s share plans, there is an employee benefit
trust which, as at the year end, held a total of 1,373,127 ordinary shares of
7⁵⁄₉p each, representing approximately 1.12% of the issued share capital.
During the year, the trust purchased a total of 1,654,178 shares, so it could
satisfy the maturities occurring pursuant to these share option plans.
When the trust holds shares before transferring them to participants,
in line with good practice, the Trustees do not exercise the associated
voting rights. The Trustees also have a dividend waiver in place in respect
of shares which are the beneficial property of the trust. During 2023,
no ordinary shares in the Company were issued for cash to satisfy the
exercise of options.
The employee share plans have change of control provisions that would
be triggered if another entity or individual takes control of the Company.
Participants may, in certain circumstances, be allowed to exchange
their existing options for options of an equivalent value over shares in
the acquiring company. Alternatively, the options may vest early. Early
vesting under the executive schemes will generally be on a time-
apportioned basis. Under the Sharesave scheme, employees will only
be able to exercise their options to the extent that their accumulated
savings allow at that time.
During the period, no ordinary shares were purchased for cancellation.
Significant agreements and relationships
Details regarding the status of the Group’s various borrowing facilities
are provided in the Chief Financial Officer’s review on page 054. These
agreements each include a change of control provision, which may result
in the facility being withdrawn or amended upon a change of control of
the Company. The Group’s longer-term Services contracts may also contain
change of control clauses that allow a counterparty to terminate the
relevant contract in the event of a change of control of the Company.
The Company does not have any agreements with any Director or employee
that would provide compensation for loss of office or employment resulting
from a change of control on takeover, except in relation to the Company’s
share plans, as described above.
Financial instruments
The Group’s financial risk management objectives and policies are
discussed in the Chief Financial Officer’s review on page 054.
Related-party transactions
Internal controls are in place to ensure that any related-party
transactions involving Directors or their connected persons are carried
out on an arm’s length basis and are properly recorded and disclosed
where appropriate.
Employee share plans
The Company operates a Performance Share Plan (PSP) to incentivise
employees. During the year, 434,398 ordinary options of 7⁵⁄₉p each were
awarded subject to performance conditions (2022: 275,665). At the year
end, 1,604,617 options remained outstanding under the PSP (2022: 1,777,687).
During the year, 524,110 shares were transferred to participants and
88,365 options lapsed. In addition, the Company operates a Sharesave
Plan for the benefit of employees. As at the year end, 3,304,459 options
granted under the Sharesave Plan remained outstanding (2022: 3,615,052).
On 6 April 2023, in accordance with the rules of the Computacenter 2017
Deferred Bonus Plan, the Company granted a conditional award over
9,175 ordinary shares of 7⁵⁄₉p each. On 5 June 2023, the Company granted a
nil-cost option award over 5,695 ordinary shares of 7⁵⁄₉p each (2022: 21,759).
Corporate sustainable development and political donations
The Board recognises that acting in a socially responsible way benefits
the community, our customers, shareholders, the environment and
employees alike. Further information can be found in the report on pages
083 to 088, which covers matters regarding health and safety, equal
opportunities, employee involvement and employee development.
During the year, the Group did not make any political donations or incur
any political expenditure within the meaning of sections 362 to 379 of the
Companies Act 2006.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 161
GLOSSARY
Directors’ report continued
Equal opportunities
The Group acknowledges the importance of equality and diversity and is
committed to equal opportunities throughout the workplace. The Group’s
policies for recruitment, training, career development and promotion of
employees, are based purely on the suitability of the employee and give
those who may be disabled equal treatment to their able-bodied colleagues.
Where an employee becomes disabled after joining the Group, all efforts
are made to enable that employee to continue in their current job.
However, if, due to the specific circumstances, it is not possible for an
employee to continue in their current job, they will be given suitable
training for alternative employment within the Group or elsewhere.
The Group monitors and regularly reviews its policies and practices to
ensure that they meet current legislative requirements, as well as its own
internal standards. The Group is committed to making full use of the talents
and resources of all its employees and to providing a healthy environment
that encourages productive and mutually respectful working relationships.
Policies dealing with equal opportunities are in place in all parts of the
Group, which take account of the Group’s overall commitment and also
address local regulatory requirements.
Employee involvement and development
The Group is committed to involving all employees in significant
business issues, especially matters which affect their work and working
environment. A variety of methods are used to engage with employees,
including team briefings, intranet, email and in-house publications.
The Group uses one or more of these channels to brief employees on the
Group’s performance and the financial and economic factors affecting it.
Team briefings are a primary method for engaging and consulting with
employees, with managers tasked with ensuring regular information
sharing, discussion and feedback.
Employee consultative forums exist in each Group country, to consult
employees on major issues affecting employment and matters of policy,
and to enable Management to seek employees’ views on a wide range of
business matters. Where there are cross-jurisdictional issues to discuss,
a European forum is engaged, made up of representatives from each
country forum. The Senior Independent Director attends at least one
meeting per year of this European forum, to engage directly with employee
representatives and report a summary of this engagement to the Board.
The Group regularly reviews employees’ performance through a formal
review process, to identify areas for development. Managers are responsible
for setting and reviewing personal objectives, aligned to corporate and
functional goals. The Board closely oversees and monitors Management
skills and the development of talent, to meet the Group’s current and
future needs. The Board directly monitors and closely reviews succession
and plans for developing identified key senior managers.
The development of employee skills and careers, as well as the communication
of the Group’s goals, are driven by our Winning Together processes and
tools. Annual assessments via our Winning Together processes and tools
are a formal requirement of all managers.
The Group operates a Save As You Earn (SAYE) share plan for eligible employees,
including those in the UK, who are encouraged to save a fixed monthly
sum for a period of either three or five years. When the plan matures,
participants can purchase shares in the Company at a price set at the
start of the savings period.
Further information can be found in the report on pages 083 to 088
covering employee involvement and employee development, and in the
Stakeholder Engagement section on page 059, which explains how the
Company and Board have engaged with and considered employees.
Engagement with suppliers, customers and others
The required disclosure on engagement with suppliers, customers,
our people and other stakeholders can be found in the Stakeholder
Engagement section on pages 057 to 063. Pages 109 to 111 include detail
of how the Board considered the views and interests of our stakeholders
in its decision-making.
Business ethics
The Group Ethics Policy commits employees to the highest standards
of ethical behaviour in respect of customers, suppliers, colleagues and
other stakeholders in the business. The policy includes a requirement for
all employees to report abuses or non-conformance with the policy and
sets out the procedures to be followed.
Going concern
The Directors’ statement regarding adoption of the going concern basis
of accounting in preparation of the annual Consolidated Financial
Statements is set out within the Strategic Report on page 076.
Viability Statement
The Directors’ statement regarding the long-term viability of the
Company is set out within the Strategic Report on pages 076 to 077.
Greenhouse gas emissions
The Company is required to state the annual quantity of emissions in
tonnes of carbon dioxide equivalent from Group activities, and to provide
details of its energy usage and the principal measures taken by the
Company in 2023 to increase its energy efficiency. Details can be found
in the Strategic Report on pages 089 to 101. Further details of our
environmental policies and programmes can be found on our Company’s
website at computacenter.com. The Group’s disclosure in response to
the Task Force on Climate-related Financial Disclosures can be found on
pages 094 to 101. The Company does not own and does not pay for any of
its Directors to use private jets, including when they are conducting
Company business.
Auditor
A resolution to appoint Grant Thornton UK LLP as auditor of the Group was
approved by the Company’s shareholders at the Company’s 2023 AGM.
Resolutions to reappoint Grant Thornton UK LLP as the auditor of the Group,
as well as to authorise the Directors to determine its remuneration for
fulfilling that role, will be put to shareholders at the forthcoming 2024 AGM.
Disclosure of information to auditor
The Directors who held office as at the date of approval of this Directors’
report confirm that, so far as they are aware, there is no relevant audit
information of which the Company’s auditor is unaware; and each
Director has taken all of the steps that he/she ought to have taken as a
Director to make himself/herself aware of any relevant audit information
and to establish that the Company’s auditor is aware of that information.
Annual General Meeting
The Board currently intends to hold the AGM on 14 May 2024 at 11.30am.
The arrangements for the Company’s 2024 AGM, and details of the
resolutions to be proposed, together with explanatory notes, will be set
out in the Notice of AGM to be published on the Company’s website.
STRATEGIC REPORT GOVERNANCE
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Computacenter plc Annual Report and Accounts 2023162
GLOSSARY
Directors’ report continued
Listing rule (LR) disclosures
The information required to be disclosed by LR 9.8.4R is set out below, along with cross references indicating where the relevant information is otherwise set out in the Annual Report and Accounts:
Interest capitalised n/a
Publication of unaudited financial information n/a
Details of performance share plans n/a
Waiver of emoluments by a Director n/a
Waiver of future emoluments by a Director n/a
Non pre-emptive issues of equity for cash n/a
Non pre-emptive issues of equity for cash in relation
to major subsidiary undertakings
n/a
Contracts of significance Details of significant contracts are set out in the Chief Financial Officer’s review on pages 054 to 055. Details of transactions with related parties are set out on page 231 in
note 34 to the Consolidated Financial Statements.
Provision of services by a controlling shareholder n/a
Shareholder waiver of dividends The Trustees of the Company’s employee share plans have a dividend waiver in place in respect of shares which are the beneficial property of each of the trusts.
Shareholder waiver of future dividends The Trustees of the Company’s employee share plans have a dividend waiver in place in respect of shares which are the beneficial property of each of the trusts.
Agreements with controlling shareholder Any person who exercises or controls on their own or together with any person with whom they are acting in concert, 30% or more of the votes able to be cast on all or
substantially all matters at general meetings are known as ‘controlling shareholders’. The Financial Conduct Authority’s Listing Rules now require companies with controlling
shareholders to enter into a written and legally binding agreement (a Relationship Agreement) which is intended to ensure that the controlling shareholder complies with
certain ‘independence-related’ provisions. The Company confirms that it has undertaken a process following the reporting period to review whether it has any ‘controlling
shareholders’. Following this process, it was determined that there was no requirement on the Company to enter into a Relationship Agreement with any of its shareholders.
The Company confirms that this remained the case as at 31 December 2023, but will keep the matter under review.
MJ Norris MC Jehle
Chief Executive Officer Chief Financial Officer
19 March 2024 19 March 2024
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GLOSSARY
Directors’ Responsibilities
Statement of Directors’ Responsibilities in respect of the Annual Report
and the Financial Statements
The Directors are responsible for preparing the Annual Report and the
Group and Parent Company financial statements in accordance with
applicable law and regulations.
Company law requires the Directors to prepare Group and Parent Company
financial statements for each financial year. Under that law they are
required to prepare the Group financial statements in accordance with
UK-adopted international accounting standards and applicable law and
have elected to prepare the Parent Company financial statements in
accordance with UK accounting standards and applicable law, including
FRS 101 Reduced Disclosure Framework.
Under company law the directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs and profit or loss of the Company and Group for that period. In
preparing each of the Group and parent Company financial statements,
the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable, relevant
and reliable;
• for the Group financial statements, state whether they have
been prepared in accordance with UK-adopted international
accounting standards;
• for the parent Company financial statements, state whether
applicable UK accounting standards have been followed, subject
to any material departures disclosed and explained in the parent
Company financial statements;
• assess the Group and Parent Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern; and
• use the going concern basis of accounting unless they either
intend to liquidate the Group or the parent Company or to cease
operations, or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records
that are sufficient to show and explain the Parent Company’s transactions
and disclose with reasonable accuracy at any time the financial position
of the Parent Company and enable them to ensure that its financial
statements comply with the Companies Act 2006. They are responsible
for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material
misstatement, whether due to fraud or error, and have general
responsibility for taking such steps as are reasonably open to them to
safeguard the assets of the Group and to prevent and detect fraud and
other irregularities.
Under applicable law and regulations, the directors are also responsible
for preparing a Strategic Report, Directors’ report, Directors’ Remuneration
report and Corporate Governance Statement that complies with that law
and those regulations.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in the UK governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Responsibility statement of the Directors in respect of the Annual
Report and Accounts
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the applicable
set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company
and the undertakings included in the consolidation taken as a
whole; and
• the Strategic Report and Directors’ report include a fair review of
the development and performance of the business and the position
of the issuer and the undertakings included in the consolidation
taken as a whole, together with a description of the principal risks
and uncertainties that they face.
We consider the Annual Report and Accounts, taken as a whole, is fair,
balanced and understandable and provides the information necessary
for shareholders to assess the Group’s position and performance,
business model and strategy.
The Annual Report from inside front cover to page 164 was approved by
the Board of Directors and authorised for issue on 19 March 2024 and
signed for and on behalf of the Board by:
MJ Norris MC Jehle
Chief Executive Officer Chief Financial Officer
STRATEGIC REPORT GOVERNANCE
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GLOSSARY
Financial
statements
Contents
Independent Auditor’s report to the members of Computacenter plc 166
Consolidated Income Statement 176
Consolidated Statement of Comprehensive Income 176
Consolidated Balance Sheet 177
Consolidated Statement of Changes in Equity 178
Consolidated Cash Flow Statement 179
Notes to the Consolidated Financial Statements 180
Company Balance Sheet 232
Company Statement of Changes in Equity 233
Notes to the Company Financial Statements 234
Group five-year financial review 240
Financial calendar 241
Corporate information 241
Principal offices 242
Computacenter plc Annual Report and Accounts 2023 165
FINANCIAL STATEMENTS GLOSSARY
GOVERNANCESTRATEGIC REPORT
Independent Auditor’s report to the members of Computacenter plc
Opinion
Our opinion on the financial statements is unmodified
We have audited the financial statements of Computacenter plc (the ‘parent company’) and its subsidiaries
(the ‘group’) for the year ended 31 December 2023 which comprise the Consolidated Income Statement,
Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet,
Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash
Flow Statement, the Notes to the Consolidated Financial Statements and Notes to the Company Financial
Statements, including a summary of significant accounting policies. The financial reporting framework that
has been applied in the preparation of the group financial statements is applicable law and UK-adopted
international accounting standards. The financial reporting framework that has been applied in the
preparation of the parent company financial statements is applicable law and United Kingdom Accounting
Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom
Generally Accepted Accounting Practice).
In our opinion:
• the financial statements give a true and fair view of the state of the group’s and of the parent
company’s affairs as at 31 December 2023 and of the group’s profit for the year then ended;
• the group financial statements have been properly prepared in accordance with UK-adopted
international accounting standards;
• the parent company financial statements have been properly prepared in accordance with
United Kingdom Generally Accepted Accounting Practice; and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit
of the financial statements’ section of our report. We are independent of the group and the parent company in
accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,
including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the group’s and the parent company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s
opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future
events or conditions may cause the group or the parent company to cease to continue as a going concern.
Our evaluation of the directors’ assessment of the group’s and the parent company’s ability to continue to adopt
the going concern basis of accounting included:
• obtaining and challenging the underlying assumptions in management’s base case scenario for the
period to 19 March 2025, including corroborating to supporting evidence where appropriate;
• obtaining management’s downside scenarios, which reflect management’s assessment of uncertainties
such as worsening economic conditions, and evaluating the assumptions regarding reduced trading levels,
increased cost base and decreased collection rates of trade receivables, under each of these scenarios;
• obtaining management’s reverse stress test, which reflects management’s assessment of an
implausible scenario of how the base case scenario can be broken, which would result in a material
uncertainty related to going concern, and assessing whether this represents an implausible scenario;
• assessing whether the key assumptions (such as revenue growth and working capital) are consistent
with our understanding of the business obtained during the course of the audit and the changing
external circumstances arising from the changing global economic environment;
• evaluating the accuracy of management’s historical forecasting and the impact of this on
management’s assessment;
• reading minutes of meetings held during the year of the board of directors and all of its committees
to identify if significant events have been factored into management’s forecasts; and
• evaluating the appropriateness of disclosures in respect of going concern made in the financial statements.
In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the group’s and
the parent company’s business model including effects arising from macro-economic uncertainties such as
inflationary pressures and interest rates, we assessed and challenged the reasonableness of estimates made
by the directors and the related disclosures and analysed how those risks might affect the group’s and the parent
company’s financial resources or ability to continue operations over the going concern period.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis
of accounting in the preparation of the financial statements is appropriate.
STRATEGIC REPORT GOVERNANCE GLOSSARY
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023166
Independent Auditor’s report to the members of Computacenter plc continued
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the group’s and the parent company’s
ability to continue as a going concern for a period of at least twelve months from when the financial statements
are authorised for issue.
In relation to the group’s reporting on how it has applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the directors’ statement in the financial statements about
whether the directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
Our approach to the audit
Overview of our audit approach
Overall materiality:
Group: £13,200,000, which represents approximately 5% of the Group’s profit before taxation.
Parent company: £4,967,000, which represents approximately 0.9% of the parent company’s total assets.
We have determined the matters described below to be the key audit matters to be communicated in our report:
• Revenue recognition
The predecessor auditor’s report for the year ended 31 December 2022 included two key audit matters in relation
to revenue recognition. These two key audit matters have been combined into one overall key audit matter of
revenue recognition in the current year, with the risk in revenue recognition pinpointed to these two areas of
revenue along with one additional area being revenue unusual transactions as defined within the key audit
matters section below.
The predecessor auditor’s report for the year ended 31 December 2022 included two key audit matters that have
not been reported as a key audit matter in our current period’s report.
The first of these key audit matters relates to the transitional application of agent vs. principal in Computacenter
United States Inc (“CC US”), following the International Financial Reporting Interpretations Committee (“IFRIC”)
agenda decision relevant to the application of IFRS 15’s principal vs. agent considerations for software
license reselling.
This was included as a key audit matter in the prior year auditor’s report due to imprecision of data and data
migration issues leading to significant effort by both management and the predecessor auditor in interrogating
and auditing the data, which gave rise to a risk that the new accounting policy had not been applied to all relevant
sales and cost of sales in Computacenter United States Inc.
During our planning procedures, a comprehensive revenue walkthrough was performed to obtain an understanding
of processes and controls relating to revenue, including the application of agent vs. principal in CC US. These
procedures performed indicated that the imprecision of data and data migration issues identified in the prior
period audit had been suitably rectified by management. On this basis, we have concluded that this is no longer
a key audit matter or a significant risk.
The second prior year key audit matter not reported in our current year’s report relates to the recoverability of the
parent company’s investment in subsidiaries (parent company only). As identified in the prior year auditor’s report,
the recoverability of the parent company’s investments in subsidiaries is not considered to have a high risk of
significant misstatement or be subject to significant judgement. We have not identified this area to be a Key Audit
Matter for the current year audit due to there being a limited number of significant engagement team judgements
and the work performed not requiring significant resource allocation.
We performed an audit of the financial information using component materiality (full-scope audit procedures)
of one group component in the United Kingdom, one group component in Germany and two group components
in the United States of America. We performed specific-scope audit procedures relating to the risks of material
misstatement of the Group financial statements for two components, one in France and one in the United States
of America. We performed analytical procedures on the financial information of all the remaining group components
which are based in a number of countries across North America, Europe and Asia.
Key audit matters (KAM)
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial statements of the current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified. These matters included those that had the
greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts
of the engagement team. These matters were addressed in the context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
DISCLOSURES OUR RESULTS
DESCRIPTION AUDIT RESPONSE
KAM
STRATEGIC REPORT GLOSSARYGOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 167
Independent Auditor’s report to the members of Computacenter plc continued
In the graph below, we have presented the key audit matters and significant risks relevant to the audit. This is not
a complete list of all risks identified by our audit.
Key Audit Matter – Group How our scope addressed the matter – Group
We identified revenue recognition as one of the most
significant assessed risks of material misstatement
due to fraud.
Group revenue totals £6,939.5m (2022: £6,470.5m)
We pinpointed the significant risk of fraud in revenue
recognition to fall into three areas:
• Technology sourcing revenue cut-off in relation
to unshipped bill and hold revenue;
• Technology Sourcing revenue cut-off of non-bill
and hold revenue; and
• Revenue transactions that do not follow the
expected transaction flow, which we define as
an unusual transaction
In responding to the key audit matter, we performed
the following audit procedures:
For all pinpointed areas of risk
• We assessed whether the accounting policies
adopted by the directors are in accordance with
the requirements of IFRS 15, and whether
management applied them consistently and
appropriately to revenue transactions.
Technology Sourcing Revenue –
unshipped bill and hold
Technology Sourcing revenue includes revenues from
bill and hold transactions, which involves the Group
invoicing a customer and recognising associated
revenue, while retaining physical possession of the
product until it is delivered to the customer at a
future point in time. As such, there is a risk that
revenue is recognised too early or that control of the
product has not yet been transferred to the customer
at the time of revenue recognition.
Given the complexity of these arrangements, there is
a higher risk of fraud and error in respect of
unshipped bill and hold revenue.
Technology Sourcing Revenue –
unshipped bill and hold
• We performed a disaggregation of all bill and
hold revenue to identify shipped and unshipped
bill and hold populations; and
• We selected of a sample of items from the
unshipped population and agreed these to
relevant and appropriate supporting evidence
(such as signed agreements) to determine that
these arrangements were substantive and to
understand when the customer obtains control
of the product to assess whether revenue is
recognised in the appropriate period.
Extent of management judgment
HIGH
LOW
LOW HIGH
Potential financial statement impact
Key audit matter Significant risk
Investment in subsidiaries
(Parent company)
Management override
of controls
Revenue
recognition
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Computacenter plc Annual Report and Accounts 2023168
Independent Auditor’s report to the members of Computacenter plc continued
Key Audit Matter – Group How our scope addressed the matter – Group
Technology Sourcing Revenue –
cut-off (non-bill and hold)
Technology Sourcing revenue includes revenues from
numerous product groups, such as hardware and
software, each sold with varying contractual terms
and conditions that impact the point in time at which
all delivery obligations are fulfilled and revenue
is recognised.
Whilst there is little judgement required in identifying
the appropriate accounting policy to apply, the volume
of orders close to year end gives rise to a risk that
revenue is recognised too early.
Given the complexity of the contractual terms and
conditions, there is a higher risk of fraud and error
in revenue recognition for this revenue stream.
Technology Sourcing Revenue –
cut-off (non-bill and hold)
• We obtained management’s manual analysis
over the cut-off period. We have evaluated the
extent of this analysis and performed tests of
detail on a sample of items within this analysis
agreeing to appropriate supporting evidence
(such as shipping documents) to assess
whether revenue has been recognised in the
appropriate period.
Key Audit Matter – Group How our scope addressed the matter – Group
Revenue unusual transactions
A large proportion of revenue is made up of a high
volume of relatively low value transactions.
Therefore, we have pinpointed our fraud risk to
those transactions that do not follow the expected
transaction flow which we define as an unusual
transaction. We consider that there is a higher risk
of fraud in respect of these unusual transactions.
Revenue unusual transactions
• We utilised audit data analytical (“ADA”)
procedures on non-complex revenue to identify
transactions that do not follow the expected
transaction flow. As part of our procedures to
support the ADA output, we tested the operating
effectiveness of the bank reconciliation
controls and tested a sample of revenue
transactions to supporting evidence such as
invoice, remittance, cash receipt and proof of
delivery; and
• We have assessed and substantively tested the
transactions identified outside of the expected
transaction flow by obtaining corroborative
evidence that supports these transactions.
Relevant disclosures in the Annual Report and
Accounts 2023
• Financial statements: Note 2 Summary of
significant accounting policies, Revenue, Note 3
Critical accounting estimates and judgements
and Note 5 Revenue
• Audit Committee Report, Page 131: Activities of
the Committee.
Our results
Based on the audit work performed, we did not
identify any material misstatement in relation to
revenue recognition.
We did not identify any key audit matters relating to the audit of the financial statements of the parent
company only.
STRATEGIC REPORT GLOSSARYGOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 169
Our application of materiality
We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial statements and in forming
the opinion in the auditor’s report.
Materiality was determined as follows:
Materiality measure Group Parent company
Materiality for financial statements as a whole We define materiality as the magnitude of misstatement in the financial statements that, individually or in the aggregate, could reasonably be expected to influence the
economic decisions of the users of these financial statements. We use materiality in determining the nature, timing and extent of our audit work.
Materiality threshold £13,200,000, which represents approximately 5% of the Group’s profit
before taxation.
£4,967,000 which represents approximately 0.9% of the parent company’s total assets.
Significant judgements made by auditor in
determining materiality
In determining materiality, we made the following significant judgements:
• Profit before taxation is considered to be the most appropriate benchmark
because this is a key performance indicator used by the Directors to report to
investors on the financial performance of the group.
• We have considered 5% to be an appropriate percentage, given the business
operates in a stable environment, has limited debt, is not currently in a
significant growth phase and has not been impacted by significant changes
in operations during the period.
Materiality for the current year is higher than the level that was determined by
the predecessor auditor (£12m) given the increase in profit before taxation in the
current year.
In determining materiality, we made the following significant judgements:
• Total assets is considered to be the most appropriate benchmark as it reflects the
parent company’s status as a non-trading holding company.
• We have considered 0.9% to be an appropriate percentage, given the parent
company has no external debt and the concentration of ownership is comparably
high for a listed entity of its size. Additionally, we note that a significant portion
of the asset total is made up of investments in subsidiary undertakings. These
subsidiaries operate in stable environments, which supports the overall stability
and resilience of the Group’s financial position.
Materiality for the current year is higher than the level that was determined by the
predecessor auditor (£2.5m) as a result of the increase in the benchmark percentage
to 0.9% (2022: 0.5%) for the reasons set out above.
We calculated materiality during the planning stage of the audit and then during the
course of our audit, we re-assessed initial materiality based on actual total assets for
the year ended 31 December 2023 and adjusted our audit procedures accordingly.
Independent Auditor’s report to the members of Computacenter plc continued
STRATEGIC REPORT GOVERNANCE GLOSSARY
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023170
Independent Auditor’s report to the members of Computacenter plc continued
Materiality measure Group Parent company
Performance materiality used to drive the
extent of our testing
We set performance materiality at an amount less than materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole.
Performance materiality threshold £8,580,000 which is 65% of financial statement materiality. £3,228,550, which is 65% of financial statement materiality.
Significant judgements made by auditor in
determining performance materiality
In determining performance materiality, we made the following significant judgements:
• Our previous experience with the group – as this is our initial audit
engagement, we have no experience of any adjustments made in the
previous periods;
• Our risk assessment – we considered control deficiencies previously reported
by the predecessor auditor and the potential impact on the current period’s
audit when performing our risk assessment procedures; and
• Change in key management personnel – we have considered the appointment
of the new Chief Financial Officer and the departure of the outgoing Chief
Financial Officer who had held the role for a number of years.
In determining performance materiality, we made the following significant judgements:
• Our previous experience with the group – as this is our initial audit engagement,
we have no experience of any adjustments made in the previous periods; and
• Our risk assessment – we considered control deficiencies previously reported by
the predecessor auditor and the potential impact on the current period’s audit
when performing our risk assessment procedures.
Specific materiality We determine specific materiality for one or more particular classes of transactions, account balances or disclosures for which misstatements of lesser amounts than
materiality for the financial statements as a whole could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Specific materiality We determined a lower level of specific materiality for the following areas:
• Directors’ remuneration;
• Identified related party transactions outside of the normal course of the
business; and
• Auditor’s remuneration
We determined a lower level of specific materiality for the following areas:
• Directors’ remuneration;
• Identified related party transactions outside of the normal course of the
business; and
• Auditor’s remuneration
Communication of misstatements to the
audit committee
We determine a threshold for reporting unadjusted differences to the audit committee.
Threshold for communication £660,000 and misstatements below that threshold that, in our view, warrant
reporting on qualitative grounds.
£248,350 and misstatements below that threshold that, in our view, warrant reporting on
qualitative grounds.
STRATEGIC REPORT GLOSSARYGOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 171
The graphs below illustrates how performance materiality and the range of component materiality interacts
with our overall materiality and the threshold for communication to the audit committee.
Overall materiality – Group Overall materiality – Parent
1
2
3
4
1
2
3
FSM: Financial statements materiality, PM: Performance materiality, RoM: Range of materiality at financially significant components,
TfC: Threshold for communication to the audit committee.
An overview of the scope of our audit
We performed a risk-based audit that requires an understanding of the group’s and the parent company’s
business and in particular matters related to:
Understanding the group, its components, and their environments, including group-wide controls
• Our audit approach was a risk-based approach founded on a thorough understanding of the Group’s and
parent company’s business, its environment and risk profile. The Group’s accounting process is primarily
resourced through a central function within the UK, with local finance functions reporting subsidiary
results to Group, and certain financial and operational processes and functions being performed from
a shared service centre in Hungary. Each local finance function reports into the central Group finance
function based at the Group’s head office. The Group engagement team obtained an understanding
of the Group and its environment, including Group-wide controls, and assessed the risks of material
misstatement at the Group level;
• We obtained an understanding of the business processes for all significant classes of transactions,
including significant risks, in order to confirm our understanding of the control environment across
the Group;
• For significant components requiring a full-scope audit approach, we or the component auditors
obtained an understanding of the relevant controls over the entity-specific financial reporting systems
identified as well as the centralised financial reporting system as part of our risk assessment; and
• We documented and assessed the design and implementation of controls related to key audit matters
and other significant risks communicated in this report.
Identifying significant components
• Component significance was determined based on their relative share of key Group financial metrics
including revenue and profit before taxation. These metrics were used to identify components classified
as ‘individually financially significant to the Group’ and an audit of the financial information of the
component using component materiality (full-scope audit) was performed.
• We also considered whether any components were likely to include significant risks of material
misstatement to the Group financial statements due to their specific nature or circumstances.
No additional significant components were identified as a result of this consideration.
Type of work to be performed on financial information of parent and other components (including how
it addressed the key audit matters)
In order to address the audit risks identified during our planning procedures, the Group engagement team
performed the following audit procedures:
• Full-scope audit procedures on the financial information of four components, being Computacenter
UK Ltd, Computacenter AG & Co oGH, Computacenter USA Inc, and Pivot Technology Solutions Ltd.
These full-scope audits included all our work on the identified key audit matter described above.
Independent Auditor’s report to the members of Computacenter plc continued
1. Group PBT:
£272m
2. FSM:
£13.2m
1. FSM:
£13.2m (5% PBT)
2. PM:
£8.58m (65% FSM)
3. RoM:
£5m to £7m
4. TfC:
£0.66m (5% FSM)
1. FSM:
£4.97m (0.9% Assets)
2. PM:
£3.2m (65% FSM)
3. TfC:
£0.25m (5% FSM)
1. Total assets:
£553.2m
2. FSM:
£4.97m
1
2
12
STRATEGIC REPORT GOVERNANCE GLOSSARY
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023172
Independent Auditor’s report to the members of Computacenter plc continued
• Specific-scope audit procedures relating to the risks of material misstatement of the financial
statements of two components.
• Analytical procedures on the financial information of all the remaining group components which are
based in a number of countries across North America, Europe and Asia.
Performance of our audit
• Full-scope audits were performed on two components located in the US, one component in the UK and
one component in Germany. These four components contributed 83% of group revenue and 86% of
group profit before taxation. In addition, specific-scope audit procedures were performed on one
component in France and one component in the US.
• In total, percentage revenue coverage of full-scope audit and specified audit procedures equated to 83%
of group revenue and 86% of group profit before taxation.
Audit approach
No. of
components
% coverage
total assets
% coverage
revenue
% coverage
PBT
Full-scope audit 4 82% 83% 86%
Specified audit procedures 2 1% 0% 0%
Analytical procedures 37 17% 17% 14%
Total 43 100% 100% 100%
Communications with component auditors
• The component auditors of the reporting components where a full scope approach was required were
issued with detailed audit instructions. These instructions highlighted the significant risks that needed
to be addressed through the audit procedures and specified the information that we required to be
reported to the Group engagement team;
• Throughout the planning, fieldwork, and concluding stages of the Group audit, the Group engagement
team communicated with all component auditors and conducted a review of their work. Key working
papers were prepared by the Group engagement team to summarise their review of component auditor
files;
• Additionally, members of the Group engagement team visited the locations of all individually financially
significant components to gain an in-depth understanding of their operations and the risks associated
with them; and
• Across the Group audit, the Group engagement team and all component auditors carried out the majority
of work performed in person with the respective finance teams. We held detailed discussions with the
component audit teams, including remote and in-person reviews of the work performed, update calls on
the progress of their fieldwork and by attending the component audit clearance meetings with
component management.
Other information
The other information comprises the information included in the annual report and accounts, other than the
financial statements and our auditor’s report thereon. The directors are responsible for the other information
contained within the annual report and accounts. Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly stated in our report, we do not express any form
of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether there is a material misstatement in the financial
statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Our opinions on other matters prescribed by the Companies Act 2006 are unmodified
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in
accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which
the accounts are prepared is consistent with those accounts; and
• the strategic report and the directors’ report have been prepared in accordance with applicable
legal requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the group and the parent company and their environment
obtained in the course of the audit, we have not identified material misstatements in the strategic report or the
directors’ report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our
audit have not been received from branches not visited by us; or
• the parent company financial statements and the part of the directors’ remuneration report to be
audited are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit;
STRATEGIC REPORT GLOSSARYGOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 173
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and the part of the
Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate
Governance Code specified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of
the Corporate Governance Statement is materially consistent with the financial statements or our knowledge
obtained during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis
of accounting and any material uncertainties identified set out on page 132;
• the directors’ explanation as to their assessment of the Group’s prospects, the period this assessment
covers and why the period is appropriate set out on page 132;
• the director’s statement on whether they have a reasonable expectation that the Group will be able
to continue in operation and meet its liabilities as set out on page 132;
• the directors’ statement on fair, balanced and understandable set out on page 164;
• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks
set out on page 74;
• the section of the annual report that describes the review of the effectiveness of risk management and
internal control systems set out on page 74; and
• the section describing the work of the audit committee set out on page 131.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view, and for such
internal control as the directors determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent
company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which
our procedures are capable of detecting irregularities, including fraud, is detailed below:
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the parent
company and the Group and sector in which they operate and how the parent company and the Group are
complying with those legal and regulatory frameworks, through our commercial and sector experience,
making enquiries of management and those charged with governance, and inspection of the parent
company’s and the Group’s key external correspondence. We corroborated our enquiries through our
inspection of board minutes and other information obtained during the course of the audit.
• We have identified the following areas within the Group’s operations that are particularly susceptible to
non-compliance with laws and regulations, including export legislation, GDPR compliance, listing rules,
health and safety, contract legislation, anti-bribery, employment law, and certain aspects of company
and environmental legislation. This is due to the nature of the Group’s activities, which involve the export
of IT hardware and the provision of global IT services.
• In addition, we evaluated the Group’s compliance with laws and regulations that have a direct impact on
the financial statements. These laws and regulations include financial reporting legislation (including
related companies legislation), distributable profits legislation, pension legislation, company legislation,
climate regulation, and taxation legislation.
• Our assessment of the Group’s compliance with these laws and regulations was integrated into our
procedures on the related financial statement items. We obtained an understanding of the Group’s
systems and processes for monitoring compliance, tested key controls, and evaluated the effectiveness
of the Group’s compliance program. We also reviewed relevant documentation and obtained representations
from management regarding their compliance with these laws and regulations.
• To gain assurance on the Group’s compliance with laws and regulations, we made enquiries of
management and the Board of Directors to determine if they were aware of any instances of non-
compliance. Additionally, we made enquiries of the finance team, internal audit, head of risk and
compliance, and the Audit Committee to understand the company’s policies and procedures related
to identifying, evaluating, and complying with laws and regulations. We also assessed the susceptibility
of the parent company’s and the Group’s financial statements to material misstatement, including
fraud risk.
Independent Auditor’s report to the members of Computacenter plc continued
STRATEGIC REPORT GOVERNANCE GLOSSARY
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023174
Independent Auditor’s report to the members of Computacenter plc continued
• We obtained an understanding of the company’s compliance with legal and regulatory frameworks by
consulting with management, those responsible for legal and compliance procedures, and the company
secretary. Our findings were corroborated by our review of the board minutes. In assessing the risk of
fraud, we consulted with our forensic specialists and considered management’s incentives and opportunities
for manipulation of the financial statements, including the risk of management override of controls.
• Our audit procedures were specifically designed to prevent and detect fraud, and included:
– Evaluated the design and implementation of the controls that management has put in place to prevent
and detect fraudulent activities;
– Conducted journal entry testing with a focus on journals indicating large or unusual transactions or
account combinations based on our understanding of the business;
– Gained an understanding of and tested significant related party transactions; and
– Performed audit procedures to ensure compliance with applicable financial reporting requirements.
• These audit procedures were designed to provide reasonable assurance that the financial statements
were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher
than the risk of not detecting one resulting from error and detecting irregularities that result from fraud
is inherently more difficult than detecting those that result from error, as fraud may involve collusion,
deliberate concealment, forgery, or intentional misrepresentations. Also, the further removed non-
compliance with laws and regulations is from events and transactions reflected in the financial
statements, the less likely we would become aware of it;
• As part of the engagement partner’s assessment of the engagement team’s collective competence and
capabilities, we considered their understanding of, and practical experience with, audit engagements
of a similar nature and complexity through appropriate training and participation. We also evaluated
their knowledge of the industry in which the parent company and the Group operate, as well as their
understanding of the legal and regulatory requirements specific to the parent company and the Group.
• We communicated relevant laws and regulations and potential fraud risks to all engagement team
members, including internal specialists, and remained alert to any indications of fraud or non-
compliance with laws and regulations throughout the audit.
• For components at which audit procedures were performed, we requested component auditors to report
to us instances of non-compliance with laws and regulations that gave rise to a risk of material
misstatement of the group financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.
Other matters which we are required to address
We were appointed by the Board on 17 May 2023 to audit the financial statements for the year ending
31 December 2023. This is the first year of our engagement as auditor of Computacenter plc.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent
company and we remain independent of the group and the parent company in conducting our audit.
Our audit opinion is consistent with the additional report to the audit committee.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Rebecca Eagle
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
30 Finsbury Square
London
EC2A 1AG
19 March 2024
STRATEGIC REPORT GLOSSARYGOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 175
| 2023 | 2022 | ||
| Note | £m | £m | |
Revenue | 4,5 | ||
Cost of sales | ( | ( | |
Gross profit | 4 | ||
Administrative expenses | ( | ( | |
Other income related to acquisition of a subsidiary | 8 | ||
Gain related to acquisition of a subsidiary | 8 | ||
Operating profit | |||
Finance income | 10 | ||
Finance costs | 11 | ( | ( |
Profit before tax | |||
Income tax expense | 12 | ( | ( |
Profit for the year | |||
| Attributable to: | |||
Equity holders of the Parent | |||
Non-controlling interests | |||
Profit for the year | |||
| Earnings per share: | |||
– basic | 13 | ||
– diluted | 13 |
All of the activities of the Group relate to continuing operations.
The accompanying notes on pages 180 to 231 form an integral part of these consolidated financial statements.
| 2023 | 2022 | ||
| Note | £m | £m | |
Profit for the year | |||
| Items that may be reclassified to the Consolidated Income Statement: | |||
Gain/(loss) arising on cash flow hedge | ( | ||
Income tax effect | 12d | ( | |
( | |||
Exchange differences on translation of foreign operations | ( | ||
( | |||
| Items not to be reclassified to the Consolidated Income Statement: | |||
Remeasurement of defined benefit plan | 33 | ( | |
Other comprehensive expense for the year, net of tax | ( | ||
Total comprehensive income for the year | |||
| Attributable to: | |||
Equity holders of the Parent | |||
Non-controlling interests | |||
Total comprehensive income for the year |
The accompanying notes on pages 180 to 231 form an integral part of these consolidated financial statements.
Consolidated Income Statement
For the year ended 31 December 2023
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023176
GLOSSARY
| 2022 | 1 January | |||
| 2023 | (restated * ) | 2022 * | ||
| Note | £m | £m | £m | |
| Non-current assets | ||||
Property, plant and equipment | 15 | |||
Right-of-use assets | 15 | |||
Intangible assets | 16 | |||
Investment in associate | 18a | |||
Deferred income tax assets | 12d | |||
Trade and other receivables * | 25 | |||
Prepayments | 5 | |||
| Current assets | ||||
Inventories | 19 | |||
Trade and other receivables * | 20 | |||
Income tax receivable | ||||
Prepayments | 5 | |||
Accrued income * | 5 | |||
Derivative financial instruments | 24 | |||
Cash and short-term deposits * | 21 | |||
Total assets | ||||
| Current liabilities | ||||
Bank overdraft * | ||||
Trade and other payables | 22 | |||
Deferred income | 5 | |||
Financial liabilities | 23a | |||
Lease liabilities | 23b | |||
Derivative financial instruments | 24 | |||
Income tax payable * | ||||
Provisions | 26 | |||
| 2022 | 1 January | |||
| 2023 | (restated * ) | 2022 * | ||
| Note | £m | £m | £m | |
| Non-current liabilities | ||||
Financial liabilities | 23a | |||
Lease liabilities | 23b | |||
Deferred income | 5 | |||
Retirement benefit obligation | 33 | |||
Provisions | 26 | |||
Deferred income tax liabilities | 12d | |||
Total liabilities | ||||
Net assets | ||||
| Capital and reserves | ||||
Issued share capital | 29 | |||
Share premium | 29 | |||
Capital redemption reserve | 29 | |||
Own shares held | 29 | ( | ( | ( |
Translation and hedging reserve | 29 | |||
Retained earnings | ||||
Shareholders’ equity | ||||
Non-controlling interests | 29 | |||
Total equity |
* Refer to note 2 for restatement of prior-year comparatives.
The accompanying notes on pages 180 to 231 form an integral part of these consolidated financial statements.
Approved by the Board on 19 March 2024.
MJ Norris MC Jehle
Chief Executive Officer Chief Financial Officer
Consolidated Balance Sheet
As at 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 177
GLOSSARY
| Attributable to equity holders of the Parent | |||||||||
| Capital | Own | Translation and | |||||||
| Issued share | Share | redemption | shares | hedging | Retained | Shareholders’ | Non-controlling | Total | |
| capital | premium | reserve | held | reserves | earnings | equity | interests | equity | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | |
At 1 January 2023 | ( | ||||||||
Profit for the year | |||||||||
Other comprehensive (expense) | ( | ( | ( | ( | ( | ||||
Total comprehensive (expense)/income | ( | ||||||||
| Transactions with owners: | |||||||||
– Cost of share-based payments | |||||||||
– Tax on share-based payments | |||||||||
– Capital reduction | ( | ||||||||
– Exercise of options | ( | ||||||||
– Purchase of own shares | ( | ( | ( | ||||||
– Equity dividends | ( | ( | ( | ||||||
Total | ( | ( | ( | ( | ( | ||||
At 31 December 2023 | ( | ||||||||
At 1 January 2022 | ( | ||||||||
Profit for the year | |||||||||
Other comprehensive income | |||||||||
Total comprehensive income | |||||||||
| Transactions with owners: | |||||||||
– Cost of share-based payments | |||||||||
– Tax on share-based payments | ( | ( | ( | ||||||
– Exercise of options | ( | ||||||||
– Purchase of own shares | ( | ( | ( | ||||||
– Equity dividends | ( | ( | ( | ||||||
Total | ( | ( | ( | ( | |||||
At 31 December 2022 | ( |
The accompanying notes on pages 180 to 231 form an integral part of these consolidated financial statements.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023178
GLOSSARY
| 2023 | 2022 | ||
| Note | £m | £m | |
| Operating activities | |||
Profit before taxation | |||
Net finance (income)/cost | ( | ||
Depreciation of property, plant and equipment | 15 | ||
Depreciation of right-of-use assets | 15 | ||
Amortisation of intangible assets | 16 | ||
Share-based payments | 9 | ||
Loss on disposal of property, plant and equipment | |||
Net cash flow from inventories | ( | ||
| Net cash flow from trade and other receivables | |||
(including contract assets) | ( | ||
| Net cash flow from trade and other payables | |||
(including contract liabilities) | ( | ||
Net cash flow from provisions and employee benefits | ( | ( | |
Other adjustments | ( | ||
Cash generated from operations | |||
Income taxes paid | ( | ( | |
Net cash flow from operating activities | |||
| Investing activities | |||
Interest received | 10 | ||
Acquisition of subsidiaries, net of cash acquired | ( | ||
Contingent consideration | 18 | ( | |
Purchases of property, plant and equipment | 15 | ( | ( |
Purchases of intangible assets | 16 | ( | ( |
Proceeds from disposal of property, plant and equipment | |||
Net cash flow from investing activities | ( | ( |
| 2023 | 2022 | ||
| Note | £m | £m | |
| Financing activities | |||
Interest paid | 11 | ( | ( |
Interest paid on lease liabilities | 11 | ( | ( |
Purchase of non-controlling interest | 18 | ( | |
Dividends paid to equity shareholders of the Parent | 14 | ( | ( |
Proceeds from exercise of share options | |||
Purchase of own shares | ( | ( | |
Repayment of loans and credit facility | 31 | ( | ( |
Payment of capital element of lease liabilities | 23b | ( | ( |
Drawdown of borrowings | 31 | ||
Net cash flow from financing activities | ( | ( | |
Increase/(decrease) in cash and cash equivalents | ( | ||
Effect of exchange rates on cash and cash equivalents | ( | ( | |
Cash and cash equivalents at the beginning of the year | 21 | ||
Cash and cash equivalents at the year end | 21 |
The accompanying notes on pages 180 to 231 form an integral part of these consolidated financial statements.
Consolidated Cash Flow Statement
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 179
GLOSSARY
2 Summary of significant accounting policies
The accounting policies adopted are consistent with those of the previous financial year as applied in the 2022
Annual Report and Accounts.
Notes to the Consolidated Financial Statements
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023180
GLOSSARY
2 Summary of significant accounting policies continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 181
GLOSSARY
2 Summary of significant accounting policies continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023182
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 183
GLOSSARY
2 Summary of significant accounting policies continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023184
GLOSSARY
2 Summary of significant accounting policies continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 185
GLOSSARY
2 Summary of significant accounting policies continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023186
GLOSSARY
2 Summary of significant accounting policies continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 187
GLOSSARY
2 Summary of significant accounting policies continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023188
GLOSSARY
2 Summary of significant accounting policies continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 189
GLOSSARY
3 Critical accounting estimates and judgements
The preparation of the Consolidated Financial Statements requires Management to exercise judgement in
applying the Group’s accounting policies. It also requires the use of estimates and assumptions that affect the
reported amounts of assets, liabilities, income and expenses.
Due to the inherent uncertainty in making these critical judgements and estimates, actual outcomes could
be different.
During the year, Management reconsidered the critical accounting estimates and judgements for the Group.
This process included reviewing the last reporting period’s disclosures, the key judgements required on the
implementation of forthcoming standards and the current period’s challenging accounting issues. Where
Management deemed there is a change for an area of accounting to be considered a critical estimate or
judgement, an explanation for this decision is provided in note 3.3.
3.1 Critical estimates
Estimates and underlying assumptions are reviewed on an ongoing basis, with revisions recognised in the year
in which the estimates are revised and in any future years affected. The are no areas involving significant risk
resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
3.2 Critical judgements
Judgements made by Management in the process of applying the Group’s accounting policies, which have the
most significant effect on the amounts recognised in the Consolidated Financial Statements, are as follows:
3.2.1 Bill and hold
The Group generates some of its revenue through its bill and hold arrangements with its customers. These arise
when the customer is invoiced but the product is not shipped to the customer until a later date, in accordance
with the customer’s request in a written agreement. In order to determine the appropriate timing of revenue
recognition, it is assessed whether control has transferred to the customer.
A bill and hold arrangement is only put in place when a customer lacks the physical space to store the product or
the product previously ordered is not yet needed in accordance with the customer’s schedule and the customer
wants to guarantee supply of the product. In order to determine whether an arrangement is bill and hold and
control has been transferred to the customer, a customer request must have been approved and all of the below
criteria must have been met :
a) the reason for the bill and hold arrangement must be substantive (for example, the customer has requested
the arrangement);
b) the product must be identified separately as belonging to the customer;
c) the product currently must be ready for physical transfer to the customer; and
d) the Group cannot have the ability to use the product or to direct it to another customer.
Judgement is required to determine if all of the criteria (a) to (d) have been met, to recognise a bill and hold sale.
This is determined by segregation and readiness of inventory and the review and approval of all customer requests,
in order to assess whether the accounting policy had been correctly applied to recognise a bill and hold sale.
£407.6m of product sold is held by the Group for bill and hold transactions as at 31 December 2023
(2022: £386.9m).
3.3 Change in critical estimates and critical judgements
During the year, Management reassessed the critical estimates and critical judgements.
At its 20 April 2022 meeting, the IFRS Interpretation Committee (the Committee) finalised and approved its agenda
decision in response to a submission from a valued added reseller to determine whether an entity should treat
revenue from the resale of standard software licences on a principal or agent recognition basis under IFRS 15
Revenue from Contracts with Customers (IFRS 15).
As noted in our 2022 Annual Report and Accounts, the Group revised its accounting policies accordingly and
implemented a series of system and process changes. The impact of this is to make the determination of Agent
vs Principal routine and embedded within the transactional flows of the business, reducing significantly the
day-to-day judgement required. Therefore, Management has concluded that the level of judgement now involved
in Technology Sourcing principal versus agent recognition will not result in a significant effect on the amounts
recognised in the Consolidated Financial Statements and this is no longer considered a critical judgement.
Exceptional items are no longer considered a critical judgement by Management and have therefore been
removed from the above disclosure, as reported exceptional items are not material and do not involve a
significant level of judgement.
Apart from the changes discussed above, the critical accounting estimates and judgements reported in the
Group’s 2022 Annual Report and Accounts are unchanged.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023190
GLOSSARY
4 Segment information
The Segment information is reported to the Board and the Chief Executive Officer. The Chief Executive Officer is
the Group’s Chief Operating Decision Maker (CODM). The Group has the same operating Segments and reporting
Segments and these remain unchanged from those reported at 31 December 2022.
Year ended 31 December 2023
| Central | |||||||
| North | Corporate | ||||||
| UK | Germany | France | America * | International | Costs | Total | |
| £m | £m | £m | £m | £m | £m | £m | |
| Revenue | |||||||
| Technology Sourcing revenue | |||||||
Gross invoiced income | 1,938.1 | 2,111.5 | 728.5 | 3,454.4 | 212.4 | – | 8,444.9 |
Adjustment to gross invoiced income for income recognised as agent | (1,166.3) | (849.7) | (248.6) | (851.8) | (42.2) | – | (3,158.6) |
Total Technology Sourcing revenue | 771.8 | 1,261.8 | 479.9 | 2,602.6 | 170.2 | – | 5,286.3 |
| Services revenue | |||||||
Professional Services | 132.2 | 365.4 | 50.8 | 118.7 | 11.7 | – | 678.8 |
Managed Services | 309.7 | 400.3 | 132.8 | 27.4 | 87.5 | – | 957.7 |
Total Services revenue | 441.9 | 765.7 | 183.6 | 146.1 | 99.2 | – | 1,636.5 |
Total revenue | 1,213.7 | 2,027.5 | 663.5 | 2,748.7 | 269.4 | – | 6,922.8 |
| Results | |||||||
Gross profit | 250.8 | 374.5 | 87.3 | 267.5 | 63.9 | – | 1,044.0 |
Adjusted administrative expenses | (192.0) | (211.5) | (78.6) | (202.5) | (44.1) | (43.8) | (772.5) |
Adjusted operating profit/(loss) | 58.8 | 163.0 | 8.7 | 65.0 | 19.8 | (43.8) | 271.5 |
Adjusted net interest | 5.5 | 1.0 | (0.8) | 1.7 | (0.9) | – | 6.5 |
Adjusted profit/(loss) before tax | 64.3 | 164 | 7.9 | 66.7 | 18.9 | (43.8) | 278.0 |
| Exceptional items: | |||||||
– unwinding of discount relating to acquisition of a subsidiary | (3.2) | ||||||
– gain relating to acquisition of a subsidiary | 2.8 | ||||||
– other income relating to acquisition of a subsidiary | 5.3 | ||||||
Total exceptional items | 4.9 | ||||||
Amortisation of acquired intangibles | (10.8) | ||||||
Profit before tax | 272.1 |
* Included within the North America Segment total revenue of £2,748.7m is an amount of £2,703.4m revenue for the United States of America.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 191
GLOSSARY
4 Segment information continued
The reconciliation of adjusted operating profit to operating profit as disclosed in the Consolidated Income Statement is as follows:
Year ended 31 December 2023
| Total | |
| £m | |
Adjusted operating profit | 271.5 |
Amortisation of acquired intangibles | (10.8) |
Exceptional items | 8.1 |
Operating profit | 268.8 |
Year ended 31 December 2023
| Central | |||||||
| North | Corporate | ||||||
| UK | Germany | France | America * | International | Costs | Total | |
| £m | £m | £m | £m | £m | £m | £m | |
| Other Segment information | |||||||
Property, plant and equipment | 31.7 | 40.7 | 5.5 | 9.9 | 8.3 | – | 96.1 |
Right-of-use assets | 9.0 | 45.4 | 14.3 | 18.8 | 17.0 | – | 104.5 |
Intangible assets | 54.8 | 17.1 | 10.2 | 225.8 | 14.5 | – | 322.4 |
| Capital expenditure: | |||||||
Property, plant and equipment | 5.7 | 7.8 | 1.6 | 2.4 | 4.4 | – | 21.9 |
Right-of-use assets | 3.5 | 13.2 | 1.7 | 2.8 | 12.6 | – | 33.8 |
Software | 12.0 | 0.3 | – | 0.2 | 0.7 | – | 13.2 |
Depreciation of property, plant and equipment | 6.2 | 6.9 | 1.6 | 3.6 | 2.1 | – | 20.4 |
Depreciation of right-of-use assets | 4.6 | 20.5 | 5.3 | 5.4 | 5.6 | – | 41.4 |
Amortisation of software | 5.7 | 0.4 | 0.1 | 1.4 | 0.5 | – | 8.1 |
Share-based payments | 2.7 | 1.8 | 0.1 | 0.3 | – | 2.8 | 7.7 |
* Included within the North America Segment Intangible assets of £225.8m is an amount of £218.4m Intangible assets for the United States of America.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023192
GLOSSARY
4 Segment information continued
Year ended 31 December 2022
| Central | |||||||
| North | Corporate | ||||||
| UK | Germany | France | America * | International | Costs | Total | |
| £m | £m | £m | £m | £m | £m | £m | |
| Revenue | |||||||
| Technology Sourcing revenue | |||||||
Gross invoiced income | 1,864.2 | 1,704.7 | 606.7 | 3,131.7 | 174.3 | – | 7,481.6 |
Adjustment to gross invoiced income for income recognised as agent | (1,055.1) | (551.6) | (170.9) | (773.8) | (30.3) | – | (2,581.7) |
Total Technology Sourcing revenue | 809.1 | 1,153.1 | 435.8 | 2,357.9 | 144.0 | – | 4,899.9 |
| Services revenue | |||||||
Professional Services | 147.5 | 315.7 | 41.7 | 122.5 | 9.2 | – | 636.6 |
Managed Services | 312.8 | 374.7 | 136.4 | 26.9 | 83.2 | – | 934.0 |
Total Services revenue | 460.3 | 690.4 | 178.1 | 149.4 | 92.4 | – | 1,570.6 |
Total revenue | 1,269.4 | 1,843.5 | 613.9 | 2,507.3 | 236.4 | – | 6,470.5 |
| Results | |||||||
Gross profit | 259.2 | 325.1 | 76.7 | 238.3 | 47.8 | – | 947.1 |
Adjusted administrative expenses | (178.7) | (184.2) | (69.6) | (185.3) | (36.5) | (23.7) | (678.0) |
Adjusted operating profit/(loss) | 80.5 | 140.9 | 7.1 | 53.0 | 11.3 | (23.7) | 269.1 |
Adjusted net interest | 2.6 | (2.2) | (0.8) | (4.2) | (0.8) | – | (5.4) |
Adjusted profit/(loss) before tax | 83.1 | 138.7 | 6.3 | 48.8 | 10.5 | (23.7) | 263.7 |
| Exceptional items: | |||||||
– unwinding of discount relating to acquisition of a subsidiary | (2.0) | ||||||
– costs relating to acquisition of a subsidiary | (1.8) | ||||||
Total exceptional items | (3.8) | ||||||
Amortisation of acquired intangibles | (10.9) | ||||||
Profit before tax | 249.0 |
* Included within the North America Segment Total revenue of £2,507.3m is an amount of £2,470.0m revenue for the United States of America.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 193
GLOSSARY
4 Segment information continued
| Total | |
| £m | |
Adjusted operating profit | 269.1 |
Amortisation of acquired intangibles | (10.9) |
Exceptional items | (1.8) |
Operating profit | 256.4 |
| Central | |||||||
| North | Corporate | ||||||
| UK | Germany | France | America * | International | Costs | Total | |
| £m | £m | £m | £m | £m | £m | £m | |
| Other Segment information | |||||||
Property, plant and equipment | 29.6 | 40.7 | 5.6 | 11.7 | 6.5 | – | 94.1 |
Right-of-use assets | 10.3 | 53.8 | 18.2 | 22.5 | 14.6 | – | 119.4 |
Intangible assets | 49.5 | 17.5 | 10.4 | 250.6 | 14.1 | – | 342.1 |
| Capital expenditure: | |||||||
Property, plant and equipment | 7.2 | 7.8 | 2.2 | 3.9 | 2.6 | – | 23.7 |
Right-of-use assets | 2.6 | 22.6 | 4.8 | 10.5 | 4.5 | – | 45.0 |
Software | 10.5 | 0.5 | 0.3 | 0.1 | 0.4 | – | 11.8 |
Depreciation of property, plant and equipment | 6.9 | 6.8 | 2.2 | 3.3 | 2.3 | – | 21.5 |
Depreciation of right-of-use assets | 4.6 | 30.2 | 4.9 | 5.5 | 5.3 | – | 50.5 |
Amortisation of software | 5.7 | 0.4 | 0.1 | 1.4 | 0.4 | – | 8.0 |
Share-based payments | 4.2 | 1.9 | 0.1 | 0.7 | – | 1.7 | 8.6 |
relation to the Group’s underlying ongoing operational performance. In addition, amortisation of acquired
intangibles is not included in the analysis of Segment performance used by the CODM.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023194
GLOSSARY
| 2023 | 2022 | |
| £m | £m | |
| Revenue by type | ||
Gross invoiced income | 8,444.9 | 7,481.6 |
Adjustment to gross invoiced income for income recognised as agent | (3,158.6) | (2,581.7) |
Technology Sourcing revenue * | 5,286.3 | 4,899.9 |
| Services revenue | ||
Professional Services | 678.8 | 636.6 |
Managed Services | 957.7 | 934.0 |
Total Services revenue | 1,636.5 | 1,570.6 |
Total revenue | 6,922.8 | 6,470.5 |
| 31 December | 31 December | ||
| 2023 | 2022 | ||
| Note | £m | £m | |
Trade receivables | 20 | 1,471.8 | 1,659.7 |
Contract assets, which are included in prepayments | 19.6 | 23.7 | |
Contract assets, which are included in accrued income | 151.9 | 129.2 | |
Contract liabilities, which are included in deferred income | 234.6 | 273.2 |
accrued income are considered to be immaterial.
| Less than | One to | Two to | Three to | Four years | ||
| one year | two years | three years | four years | and beyond | Total | |
| £m | £m | £m | £m | £m | £m | |
As at 31 December 2023 | 747.4 | 528.4 | 370.3 | 194.6 | 152.0 | 1,992.7 |
As at 31 December 2022 | 729.1 | 513.2 | 374.0 | 266.7 | 226.8 | 2,109.8 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 195
GLOSSARY
| 2023 | 2022 | |
| £m | £m | |
Depreciation of property, plant and equipment | 20.4 | 21.5 |
Depreciation of right-of-use assets | 41.4 | 50.5 |
Loss on disposal of property, plant and equipment | 0.2 | 0.5 |
Amortisation of software | 8.1 | 8.0 |
Amortisation of acquired intangible assets | 10.8 | 10.9 |
Severance costs | 3.2 | 1.9 |
Government grants | – | (1.2) |
(Gain)/loss on net foreign currency differences | (1.7) | 0.4 |
Costs of inventories recognised as an expense | 4,567.6 | 4,270.0 |
| 2023 | 2022 | |
| £m | £m | |
| Auditor’s remuneration: | ||
– Audit of the Financial Statements | 1.1 | 0.2 |
– Audit of subsidiaries | 2.1 | 2.3 |
Total audit fees | 3.2 | 2.5 |
Audit-related assurance services for the review of the Interim Report and Accounts | 0.2 | 0.1 |
Total non-audit services | 0.2 | 0.1 |
Total fees | 3.4 | 2.6 |
8 Exceptional items
| 2023 | 2022 | |
| £m | £m | |
| Operating profit | ||
Other income related to acquisition of a subsidiary | 5.3 | – |
Costs related to acquisition of a subsidiary | – | (1.8) |
Gain related to acquisition of a subsidiary | 2.8 | – |
Exceptional operating profit/(loss) | 8.1 | (1.8) |
Interest cost relating to acquisition of a subsidiary | (3.2) | (2.0) |
Profit/(loss) on exceptional items before taxation | 4.9 | (3.8) |
| Income tax | ||
Tax credit relating to acquisition of a subsidiary | – | 0.2 |
Loss on exceptional items after taxation | 4.9 | (3.6) |
Included within 2023 are the following exceptional items:
• £3.2m relating to the unwinding of the discount on the contingent payment for the purchase of BITS has
been classified as exceptional interest costs. This is consistent with our prior-year treatment.
• A $9.3m (£7.4m) settlement was received on 8 May 2023 from the Washington State Department of
Revenue. The settlement related to litigation contesting a historic, pre-acquisition, sales tax assessment
that was paid by antecedent companies related to the acquired Pivot group of companies. Of this
amount, $6.7m (£5.3m) has been recognised as other income relating to acquisition of a subsidiary for
the refunded sales tax amount. This other income is non-operational in nature, material in size and
unlikely to recur, and has therefore been classified as exceptional. Further amounts of $1.6m (£1.3m) and
$1.0m (£0.8m) have been credited to adjusted interest income, for the refund of statutory overpayment
interest receivable on the original payment, and adjusted administrative expenses, to reimburse legal
expenses incurred since acquisition, respectively.
• £2.8m relating to a release of contingent consideration in relation to the BITS acquisition (refer to note
18d). As this release is related to the acquisition and not operational activity within BITS and is of a
one-off nature, it was classified as an exceptional item.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023196
GLOSSARY
8 Exceptional items continued
Included within 2022 are the following exceptional items:
• An exceptional cost of £1.8m resulting from costs directly relating to the acquisition of BITS and Emerge.
These costs primarily related to advisors’ fees and seller’s costs that were paid on completion of the
transaction. As these costs are non-operational and unlikely to recur they have been classified as
exceptional items, consistent with our prior-year treatment of acquisition costs on material transactions.
• £2.0m relating to the unwinding of the discount on the contingent payment for the purchase of BITS has
been classified as exceptional interest costs. As this is related to the acquisition and not an operational
activity, it was classified as an exceptional item.
• A credit of £0.2m arising from the tax benefit on the BITS exceptional acquisition costs has been
recognised as tax on the above exceptional items. As this credit is related to the acquisition and not
operational activity within BITS and is of a one-off nature, it was classified as an exceptional tax item.
9 Employee costs
The table below shows the average monthly number of employees(including Executive Directors) by Segment
during the year:
| Average number of full-time | ||||
| Average number of employees | equivalents | |||
| 2023 | 2022 | 2023 | 2022 | |
| No. | No. | No. | No. | |
UK | 4,487 | 4,519 | 4,418 | 4,434 |
Germany | 7,086 | 6,921 | 6,725 | 6,556 |
France | 2,269 | 2,199 | 2,136 | 2,152 |
North America | 1,704 | 1,593 | 1,701 | 1,591 |
International | 4,762 | 4,138 | 4,596 | 3,975 |
Total | 20,308 | 19,370 | 19,576 | 18,708 |
Their aggregate remuneration comprised:
| 2023 | 2022 | |
| £m | £m | |
Wages and salaries | 1,090.5 | 999.5 |
Social security costs | 156.3 | 142.9 |
Contributions to defined contribution plans | 25.1 | 22.6 |
Expenses relating to defined benefit plans (note 33) | 2.2 | 2.2 |
Total staff costs | 1,274.1 | 1,167.2 |
Share-based payments | 7.7 | 8.6 |
1,281.8 | 1,175.8 |
Share-based payments arise from transactions accounted for as equity-settled share-based payment transactions.
| 2023 | 2022 | |
| £m | £m | |
Bank interest received | 10.7 | 1.8 |
Interest receivable as a lessor | 0.7 | – |
Other interest received | 2.4 | 0.6 |
13.8 | 2.4 |
| 2023 | 2022 | |
| £m | £m | |
Interest paid on bank loans and overdraft | 0.3 | 0.8 |
Interest paid on credit facilities | 0.4 | 1.4 |
Interest paid on lease liabilities | 4.7 | 4.9 |
Exceptional interest cost relating to acquisition of a subsidiary (note 8) | 3.2 | 2.0 |
Finance charges paid on customer-specific financing | 0.3 | – |
Other interest paid | 1.6 | 0.7 |
10.5 | 9.8 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 197
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
| 2023 | 2022 | |
| £m | £m | |
| Tax charged in the Consolidated Income Statement | ||
| Current income tax | ||
UK corporation tax | 13.6 | 15.1 |
| Foreign tax: | ||
– operating results before exceptional items | 64.0 | 49.0 |
– exceptional items | – | (0.2) |
Total foreign tax | 64.0 | 48.8 |
Adjustments in respect of prior years | 2.1 | (5.1) |
Total current income tax | 79.7 | 58.8 |
| Deferred income tax | ||
| Operating results before exceptional items: | ||
– origination and reversal of temporary differences | 0.3 | 1.0 |
– change in tax rates | (0.5) | 0.6 |
– adjustments in respect of prior years | (6.8) | 4.4 |
Total deferred income tax | (7.0) | 6.0 |
Tax charge in the Consolidated Income Statement | 72.7 | 64.8 |
| 2023 | 2022 | |
| £m | £m | |
Profit before income tax | 272.1 | 249.0 |
At the UK standard rate of corporation tax of 23.5% (2022: 19%) | 63.9 | 47.3 |
Expenses not deductible for tax purposes | 2.8 | 1.2 |
Non-deductible element of share-based payment charge | (0.1) | 2.3 |
Adjustments in respect of prior years | (4.7) | (0.7) |
Effect of different tax rates of subsidiaries operating in other jurisdictions | 12.0 | 17.6 |
Change in tax rate | (0.5) | 0.6 |
Other differences | (0.1) | 0.5 |
Overseas tax not based on earnings | 1.5 | 1.1 |
Previously unrecognised tax losses used to reduce deferred income tax expense | – | (3.2) |
Previously unrecognised tax losses used to reduce current tax expense | (0.9) | (0.9) |
Tax effect of income not taxable in determining taxable profit | (1.2) | (1.0) |
At effective income tax rate of 26.7% (2022: 26.0%) | 72.7 | 64.8 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023198
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
12 Income tax continued
| Consolidated Statement of | ||||||
Consolidated Balance Sheet | Consolidated Income Statement | Comprehensive Income | ||||
| 2022 | ||||||
| 2023 | (restated * ) | 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | £m | £m | |
| Deferred income tax assets/(liabilities) | ||||||
Property, plant and equipment | (3.1) | (3.2) | (2.1) | (5.8) | – | – |
Right-of-use assets | (26.6) | (31.1) | 4.2 | 0.3 | – | – |
Intangible assets | (19.9) | (29.9) | 8.0 | (0.2) | – | – |
Inventories | 2.5 | 3.9 | (2.0) | (0.9) | – | – |
Derivative financial instruments | 0.1 | 1.2 | – | – | (0.9) | 1.0 |
Lease liabilities | 27.9 | 32.4 | (4.1) | (0.2) | – | – |
Share-based payments | 8.0 | 6.8 | 0.4 | (0.8) | – | – |
Tax losses carried forward | 3.7 | 3.9 | – | 3.2 | – | – |
Other temporary differences | 5.6 | 6.6 | 2.6 | (1.6) | – | – |
Deferred income tax (charge)/credit | 7.0 | (6.0) | (0.9) | 1.0 | ||
Net deferred income tax asset/(liabilities) | (1.8) | (9.4) | ||||
| Disclosed on the Consolidated Balance Sheet | ||||||
Deferred income tax assets | 11.6 | 11.3 | ||||
Deferred income tax liabilities | (13.4) | (20.7) | ||||
Net deferred income tax asset/(liabilities) | (1.8) | (9.4) |
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GLOSSARY
12 Income tax continued
13 Earnings per share
Earnings per share amounts are calculated by dividing profit attributable to ordinary equity holders by the
weighted average number of ordinary shares outstanding during the year (excluding own shares held).
To calculate diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to
assume conversion of all dilutive potential shares. Share options granted to employees where the exercise price
is less than the average market price of the Company’s ordinary shares during the year are considered to be
dilutive potential shares.
| 2023 | 2022 | |
| £m | £m | |
Profit attributable to equity holders of the Parent | 197.6 | 182.8 |
| 2023 | 2022 | |
| m | m | |
Basic weighted average number of shares (excluding own shares held) | 112.9 | 112.8 |
| Effect of dilution: | ||
Share options | 1.2 | 2.1 |
Diluted weighted average number of shares | 114.1 | 114.9 |
| 2023 | 2022 | |
| p | p | |
Basic earnings per share | 175.0 | 162.1 |
Diluted earnings per share | 173.2 | 159.1 |
14 Dividends paid and proposed
| 2023 | 2023 | 2022 | 2022 | |
| p/share | £m | p/share | £m | |
| Amounts recognised as distributions to owners | ||||
| in the financial year | ||||
| Equity dividends on ordinary shares: | ||||
Paid prior financial year dividend | 45.8 | 51.9 | 49.4 | 55.6 |
Paid interim dividend | 22.6 | 25.4 | 22.1 | 24.9 |
77.3 | 80.5 | |||
Proposed (not recognised as a liability as at 31 December) | ||||
| Equity dividends on ordinary shares: | ||||
Proposed final dividend at financial year end | 54.1 | 52.3 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
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FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023200
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
15 Property, plant and equipment
| Property, plant | ||||||
| Fixtures, | and equipment | |||||
| Freehold | fittings, | excluding | ||||
| land and | Short leasehold | equipment | right-of-use | Right-of- | ||
| buildings | improvements | and vehicles | assets | use assets | Total | |
| £m | £m | £m | £m | £m | £m | |
| Cost | ||||||
At 1 January 2022 | 85.0 | 34.2 | 136.7 | 255.9 | 242.1 | 498.0 |
Relating to acquisition of subsidiaries | – | 0.8 | 0.2 | 1.0 | 0.8 | 1.8 |
Additions | – | 2.7 | 21.0 | 23.7 | 45.0 | 68.7 |
Disposals | – | (2.9) | (17.2) | (20.1) | (78.0) | (98.1) |
Transfers | – | 10.7 | (12.5) | (1.8) | – | (1.8) |
Foreign currency adjustment | 1.1 | 3.0 | 5.6 | 9.7 | 12.3 | 22.0 |
At 31 December 2022 | 86.1 | 48.5 | 133.8 | 268.4 | 222.2 | 490.6 |
Additions | 0.1 | 4.6 | 17.2 | 21.9 | 33.8 | 55.7 |
Disposals | – | (1.8) | (14.7) | (16.5) | (30.2) | (46.7) |
Transfers | – | 2.4 | (5.5) | (3.1) | – | (3.1) |
Reclassification | (2.7) | 2.7 | 0.1 | 0.1 | – | 0.1 |
Foreign currency adjustment | (0.4) | (1.0) | (2.5) | (3.9) | (5.6) | (9.5) |
At 31 December 2023 | 83.1 | 55.4 | 128.4 | 266.9 | 220.2 | 487.1 |
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GLOSSARY
15 Property, plant and equipment continued
| Property, plant | ||||||
| Fixtures, | and equipment | |||||
| Freehold | fittings, | excluding | ||||
| land and | Short leasehold | equipment | right-of-use | Right-of- | ||
| buildings | improvements | and vehicles | assets | use assets | Total | |
| £m | £m | £m | £m | £m | £m | |
| Accumulated depreciation and impairment | ||||||
At 1 January 2022 | 46.6 | 15.9 | 103.4 | 165.9 | 104.0 | 269.9 |
Provided during the year | 2.0 | 4.7 | 14.8 | 21.5 | 50.5 | 72.0 |
Disposals | – | (2.7) | (15.8) | (18.5) | (56.9) | (75.4) |
Transfers | – | 8.0 | (8.5) | (0.5) | – | (0.5) |
Foreign currency adjustment | 0.1 | 1.9 | 3.9 | 5.9 | 5.2 | 11.1 |
At 31 December 2022 | 48.7 | 27.8 | 97.8 | 174.3 | 102.8 | 277.1 |
Provided during the year | 2.0 | 4.4 | 14.0 | 20.4 | 41.4 | 61.8 |
Disposals | – | (1.8) | (14.5) | (16.3) | (26.4) | (42.7) |
Transfers | – | 2.4 | (5.2) | (2.8) | – | (2.8) |
Reclassification | (2.6) | 2.6 | (2.7) | (2.7) | – | (2.7) |
Foreign currency adjustment | – | (0.5) | (1.6) | (2.1) | (2.1) | (4.2) |
At 31 December 2023 | 48.1 | 34.9 | 87.8 | 170.8 | 115.7 | 286.5 |
| Net book value | ||||||
At 31 December 2023 | 35.0 | 20.5 | 40.6 | 96.1 | 104.5 | 200.6 |
At 31 December 2022 | 37.4 | 20.7 | 36.0 | 94.1 | 119.4 | 213.5 |
At 1 January 2022 | 38.4 | 18.3 | 33.3 | 90.0 | 138.1 | 228.1 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
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FINANCIAL STATEMENTS
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GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
15 Property, plant and equipment continued
The Group leases various properties, equipment and cars. Rental contracts are typically made for fixed periods of
two to 10 years, but might have extension options. Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased
assets cannot be used as security for borrowing purposes.
Transfers for the year ended 31 December 2023 relate to:
• Computer equipment, incorrectly classified in Computacenter France SAS, which have been reclassified
to inventories. The net book value transferred was nil (cost of £2.6m and accumulated depreciation of £2.6m).
• Assets incorrectly classified as fixtures, fittings, equipment and vehicles, in Computacenter France SAS,
which have been reclassified to short leasehold improvements. The net book value transferred was nil
(cost of £2.4m and accumulated depreciation of £2.4m).
• Computer equipment, incorrectly reclassified in Computacenter AG, which have been reclassified to software.
The net book value transferred was £0.3m (cost of £0.5m and accumulated depreciation of £0.2m).
As at 31 December 2023, the net book value of recognised right-of-use assets relating to land and buildings was
£75.7m (2022: £88.9m) and plant and equipment £28.8m (2022: £30.5m). The depreciation charge for the year
relating to those assets was £24.2m (2022: £22.9m) and £17.2m (2022: £27.6m), respectively.
| Acquired intangible assets | |||||
| Customer | |||||
| Goodwill | Software | relationships | Others | Total | |
| £m | £m | £m | £m | £m | |
| Cost | |||||
At 1 January 2022 | 165.9 | 112.0 | 114.0 | 22.1 | 414.0 |
Relating to acquisition of subsidiaries | 10.6 | – | 39.5 | 1.1 | 51.2 |
Additions | – | 11.8 | – | – | 11.8 |
Disposals | – | (5.7) | – | – | (5.7) |
Foreign currency adjustment | 13.1 | 1.4 | 13.6 | 1.4 | 29.5 |
At 31 December 2022 | 189.6 | 119.5 | 167.1 | 24.6 | 500.8 |
| Acquired intangible assets | |||||
| Customer | |||||
| Goodwill | Software | relationships | Others | Total | |
| £m | £m | £m | £m | £m | |
Relating to acquisition of subsidiaries (note 18) | 1.9 | – | – | – | 1.9 |
Additions | – | 13.2 | – | – | 13.2 |
Disposals | – | (8.0) | – | – | (8.0) |
Transfers | – | 0.5 | – | – | 0.5 |
Reclassification | – | (4.3) | – | – | (4.3) |
Foreign currency adjustment | (6.4) | (0.5) | (8.7) | (0.2) | (15.8) |
At 31 December 2023 | 185.1 | 120.4 | 158.4 | 24.4 | 488.3 |
| Accumulated amortisation | |||||
| and impairment | |||||
At 1 January 2022 | 10.1 | 90.4 | 17.8 | 22.0 | 140.3 |
Provided during the year | – | 8.0 | 9.6 | 1.3 | 18.9 |
Disposals | – | (5.8) | – | – | (5.8) |
Foreign currency adjustment | 0.6 | 0.9 | 2.5 | 1.3 | 5.3 |
At 31 December 2022 | 10.7 | 93.5 | 29.9 | 24.6 | 158.7 |
Provided during the year | – | 8.1 | 10.8 | – | 18.9 |
Disposals | – | (8.0) | – | – | (8.0) |
Transfers | – | 0.3 | – | – | 0.3 |
Reclassification | – | (1.4) | – | – | (1.4) |
Foreign currency adjustment | (0.2) | (0.3) | (1.9) | (0.2) | (2.6) |
At 31 December 2023 | 10.5 | 92.2 | 38.8 | 24.4 | 165.9 |
| Net book value | |||||
At 31 December 2023 | 174.6 | 28.2 | 119.6 | – | 322.4 |
At 31 December 2022 | 178.9 | 26.0 | 137.2 | – | 342.1 |
At 1 January 2022 | 155.8 | 21.6 | 96.2 | 0.1 | 273.7 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
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GLOSSARY
| Pivot | |||||||||||
| Technology | Business IT | ||||||||||
CC * | CC | CC * | CC *** | CC * | PathWorks | Solutions, Inc | Source | ||||
| (UK) Limited | Germany | CC * AG | Belgium | US, Inc | Netherlands | GmbH | (Canada CGU) | Emerge | Holdings | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
1 January 2022 | 36.4 | 15.9 | 3.2 | 1.4 | 87.7 | 3.1 | 3.1 | 5.0 | – | – | 155.8 |
Relating to acquisition of subsidiaries | 2.1 | 8.5 | 10.6 | ||||||||
Foreign currency adjustment | – | 0.9 | 0.3 | 0.1 | 10.2 | 0.2 | 0.3 | 0.6 | – | (0.1) | 12.5 |
31 December 2022 | 36.4 | 16.8 | 3.5 | 1.5 | 97.9 | 3.3 | 3.4 | 5.6 | 2.1 | 8.4 | 178.9 |
Relating to acquisition of subsidiaries | 1.9 | – | – | – | – | – | – | – | – | – | 1.9 |
Foreign currency adjustment | – | (0.3) | 0.2 | – | (5.3) | (0.1) | 0.2 | (0.4) | (0.1) | (0.4) | (6.2) |
31 December 2023 | 38.3 | 16.5 | 3.7 | 1.5 | 92.6 | 3.2 | 3.6 | 5.2 | 2.0 | 8.0 | 174.6 |
Market growth rate | 2.0% | 2.0% | 1.6% | 1.6% | 1.9% | 1.6% | 1.6% | 2.1% | 1.8% | 1.9% | |
Discount rate (pre tax) | 14.5% | 18.5% | 11.2% | 20.0% | 18.4% | 15.1% | 11.3% | 17.6% | 11.9% | 18.5% | |
Discount rate (post tax) | 13.2% | 12.4% | 9.9% | 14.1% | 13.6% | 11.9% | 9.9% | 13.4% | 9.5% | 13.3% |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
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GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
17 Impairment testing of goodwill, other intangible assets and other non-current assets continued
| 2023 | 2022 | |
| £m | £m | |
| Cost | ||
At 1 January and 31 December | 0.1 | 0.1 |
| Impairment | ||
At 1 January and 31 December | – | – |
Carrying value | 0.1 | 0.1 |
STRATEGIC REPORT GOVERNANCE
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GLOSSARY
18 Investments continued
| Proportion of voting rights | ||||
| Country of | and shares held | |||
Name | incorporation | Nature of business | 2023 | 2022 |
Computacenter Pty Ltd. | Australia | IT infrastructure services | 100% | 100% |
| Computacenter Services | Australia | IT infrastructure services | 100% | 100% |
| Australia Pty Ltd. | ||||
Computacenter NV/SA | Belgium | IT infrastructure services | 100% | 100% |
Computacenter Brasil Importacao, Comercio e Servicos Ltda | Brazil | IT infrastructure service | 100% | 100% |
Computacenter Canada Inc. | Canada | IT infrastructure services | 100% | 100% |
Computacenter Hong Kong Limited | China | IT infrastructure services | 100% | 100% |
| Computacenter Pivot Hong | China | IT infrastructure services | 100% | 100% |
| Kong Limited | ||||
| Computacenter Services | China | IT infrastructure services | 100% | 100% |
| Hong Kong Limited | ||||
Computacenter (UK) Limited | England | IT infrastructure services | 100% | 100% |
R.D. Trading Limited | England | IT infrastructure services | 100% | 95% |
Computacenter France SAS | France | IT infrastructure services | 100% | 100% |
Computacenter AG & Co oHG | Germany | IT infrastructure services | 100% | 100% |
Computacenter Aktiengesellschaft | Germany | IT infrastructure services | 100% | 100% |
Computacenter Management GmbH | Germany | IT infrastructure services | 100% | 100% |
| Computacenter Managed | Germany | IT infrastructure services | 100% | 100% |
| Services GmbH | ||||
| Computacenter Germany AG & Co oHG Germany | IT infrastructure services | 100% | 100% | |
Computacenter Holding GmbH | Germany | IT infrastructure services | 100% | 100% |
Alfatron GmbH Elektronik – Vertrieb | Germany | IT infrastructure services | 100% | 100% |
| C’NARIO Informationsprodukte | Germany | IT infrastructure services | 100% | 100% |
| Vertriebs-GmbH | ||||
E’ZWO Computer vertriebs | Germany | IT infrastructure services | 99.09% | 99.09% |
ITL logistics GmbH | Germany | IT infrastructure services | 100% | 100% |
| Proportion of voting rights | ||||
| Country of | and shares held | |||
Name | incorporation | Nature of business | 2023 | 2022 |
Computacenter Ireland Limited | Ireland | IT infrastructure services | 100% | 100% |
| Computacenter Services Ireland | Ireland | IT infrastructure services | 100% | 100% |
| Limited | ||||
Computacenter Japan K.K. | Japan | IT infrastructure services | 100% | 100% |
Computacenter B.V. | Netherlands | IT infrastructure services | 100% | 100% |
| Computacenter Services | Singapore | IT infrastructure services | 100% | 100% |
| Singapore Pte. Ltd. | ||||
Computacenter Singapore Pte. Ltd. | Singapore | IT infrastructure services | 100% | 100% |
Computacenter (Pty) Limited | South Africa | IT infrastructure services | 100% | 100% |
Computacenter AG | Switzerland | IT infrastructure services | 100% | 100% |
Computacenter TS GmbH | Switzerland | IT infrastructure services | 100% | 100% iii |
Computacenter United States Inc. | USA | IT infrastructure services | 100% | 100% v |
FusionStorm Acquisition Corp. | USA | IT infrastructure services | 100% | 100% v |
FusionStorm International Inc. | USA | IT infrastructure services | 100% | 100% v |
Computacenter Holdings Inc. | USA | IT infrastructure services | 100% | 100% |
Business IT Source Holdings, Inc. | USA | IT infrastructure services | 100% | 100% |
Pivot Technology Services Corp. | USA | IT infrastructure services | 100% | 100% |
ARC Acquisition (US), Inc. | USA | IT infrastructure services | 100% | 100% |
| ProSys Information System Inc. (WBE) USA | 28 | IT infrastructure services | 46.4% | 46.4% |
Digica Group Finance Limited | England | Investment property | 100% | 100% |
Computacenter Immobilien GmbH | Germany | Investment property | 100% | 100% ii |
| Computacenter Information | China | International call centre | 100% | 100% |
| Technology (Shanghai) Company | services | |||
| Limited | ||||
Computacenter Services Kft | Hungary | International call centre | 100% | 100% |
| services |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
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GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
| Proportion of voting rights | ||||
| Country of | and shares held | |||
Name | incorporation | Nature of business | 2023 | 2022 |
Computacenter India Private Limited | India | International call centre | 100% | 100% |
| services | ||||
| Computacenter Services (Malaysia) | Malaysia | International call centre | 100% | 100% |
| Sdn. Bhd | services | |||
Computacenter México S. A. de C.V. | Mexico | International call centre | 100% | 100% |
| services | ||||
Pivot of the Americas, S. A. de C.V. | Mexico | International call centre | 100% | 100% |
| services | ||||
Computacenter Poland sp. Z.o.o. | Poland | International call centre | 100% | 100% |
| services | ||||
Computacenter Services S.R.L. | Romania | International call centre | 87.47% | 87.47% |
| services | ||||
Computacenter Services (Iberia) SLU | Spain 11 | International call centre | 100% | 100% |
| services | ||||
| Computacenter Quest Trustees | England | Employee share scheme | 100% | 100% |
| Limited | trustees | |||
Computacenter Trustees Limited | England | Employee share scheme | 100% | 100% |
| trustees | ||||
Allnet Limited | England | Dormant company | 100% | 100% |
Amazon Computers Limited | England | Dormant company | 100% | 100% |
Amazon Energy Limited | England | Dormant company | 100% | 100% |
Amazon Systems Limited | England | Dormant company | 100% | 100% |
CAD Systems Limited | England | Dormant company | 100% | 100% |
Compufix Limited | England | Dormant company | 100% | 100% |
Computacenter (FMS) Limited | England | Dormant company | 100% | 100% |
| Computacenter (Management | England | Dormant company | 100% | 100% |
| Services) Limited | ||||
Computacenter (Mid-Market) Limited | England | Dormant company | 100% | 100% |
Computacenter Distribution Limited | England | Dormant company | 100% | 100% |
Computacenter Leasing Limited | England | Dormant company | 100% | 100% |
| Proportion of voting rights | ||||
| Country of | and shares held | |||
Name | incorporation | Nature of business | 2023 | 2022 |
Computacenter Maintenance Limited | England | Dormant company | 100% | 100% |
| Computacenter Overseas Holdings | England | Dormant company | 100% | 100% |
| Limited | ||||
Computacenter Services Limited | England | Dormant company | 100% | 100% |
Computacenter Software Limited | England | Dormant company | 100% | 100% |
Computacenter Solutions Limited | England | Dormant company | 100% | 100% |
Computacenter Training Limited | England | Dormant company | 100% | 100% |
Computadata Limited | England | Dormant company | 100% | 100% |
Computer Services Group Limited | England | Dormant company | 100% | 100% |
Digica Group Limited | England | Dormant company | 100% | 100% |
Digica Group Holdings Limited | England | Dormant company | 100% | 100% |
Digica SMP Limited | England | Dormant company | 100% | 100% |
Digica (FMS) Limited | England | Dormant company | 100% | 100% |
ICG Services Limited | England | Dormant company | 100% | 100% |
Kit Online Limited | England | Dormant company | 100% | 100% |
M Services Limited | England | Dormant company | 100% | 100% |
Merchant Business Systems Limited | England | Dormant company | 100% | 100% |
Merchant Systems Limited | England | Dormant company | 100% | 100% |
Logival (SARL) | France 12 | Dormant company | 100% | 100% |
Damax GmbH | Switzerland | Dormant company | 100% | 100% |
18 Investments continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
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GLOSSARY
18 Investments continued
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
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GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
18 Investments continued
| 2023 | 2022 | |
| $m | $m | |
Current assets | 149.7 | 209.6 |
Non-current assets | 30.7 | 36.8 |
Current liabilities | 156.1 | 221.6 |
Non-current liabilities | 5.7 | 10.4 |
Revenue | 807.8 | 955.1 |
Total comprehensive income | 3.8 | 3.4 |
% interest held | 46.4% | 46.4% |
19 Inventories
| 2023 | 2022 | |
| £m | £m | |
Inventories for re-sale (gross) | 236.8 | 437.0 |
Provisions | (20.8) | (19.3) |
Inventories for re-sale (net) | 216.0 | 417.7 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 209
GLOSSARY
| 2022 | ||
| 2023 | (restated * ) | |
| £m | £m | |
Trade receivables, including credit notes | 1,480.1 | 1,666.4 |
Allowance for expected credit losses | (8.3) | (6.7) |
Trade receivables | 1,471.8 | 1,659.7 |
Net investment in finance leases (note 25) | 5.8 | 3.3 |
Other receivables | 20.5 | 20.8 |
1,498.1 | 1,683.8 |
| 2023 | 2022 | |
| £m | £m | |
At 1 January | 6.7 | 7.8 |
Relating to acquisition | – | 0.3 |
Charge for the year | 9.3 | 4.8 |
Utilised | (0.4) | (0.7) |
Unused amounts reversed | (7.2) | (5.9) |
Foreign currency adjustment | (0.1) | 0.4 |
At 31 December | 8.3 | 6.7 |
| Past due but not impaired | |||||||
| Neither past due | |||||||
| Total | nor impaired | <30 days | 30–60 days | 60–90 days | 90–120 days | >120 days | |
| £m | £m | £m | £m | £m | £m | £m | |
| 2023 | |||||||
Expected loss rate | 0.6% | 0.2% | 0.4% | 0.7% | 3.2% | 3.2% | 10.1% |
Trade receivables, including credit notes | 1,480.1 | 1,099.2 | 256.3 | 59.3 | 22.2 | 12.5 | 30.6 |
Allowance for expected credit losses | 8.3 | 2.7 | 1.0 | 0.4 | 0.7 | 0.4 | 3.1 |
| 2022 | |||||||
Expected loss rate | 0.4% | 0.1% | 0.3% | 0.4% | 3.7% | 5.6% | 11.6% |
Trade receivables, including credit notes | 1,666.4 | 1,315.7 | 222.1 | 74.5 | 21.8 | 10.7 | 21.6 |
Allowance for expected credit losses | 6.7 | 1.9 | 0.6 | 0.3 | 0.8 | 0.6 | 2.5 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023210
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
| 2022 | ||
| 2023 | (restated * ) | |
| £m | £m | |
Cash and short-term deposits * | 471.2 | 264.4 |
Bank overdraft * | – | – |
Cash and cash equivalents in the Consolidated Cash Flow Statement | 471.2 | 264.4 |
| 2023 | 2022 | |
| £m | £m | |
Trade payables | 1,186.5 | 1,320.5 |
Accruals | 277.3 | 305.9 |
Social security and other taxes | 137.1 | 123.9 |
Other payables | 53.4 | 68.3 |
Contingent consideration – note 18d | 20.2 | 38.9 |
1,674.5 | 1,857.5 |
| 2023 | 2022 | |
| £m | £m | |
| Current | ||
Bank loans | 2.1 | 2.6 |
Other loans | 2.7 | 4.9 |
4.8 | 7.5 | |
| Non-current | ||
Bank loans | 5.6 | 7.8 |
Other loans | 1.8 | 4.8 |
7.4 | 12.6 | |
12.2 | 20.1 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 211
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
23 a) Financial liabilities continued
| 2023 | 2022 | |
| £m | £m | |
At 1 January | 127.1 | 146.1 |
Additions during the year | 33.8 | 45.0 |
Relating to acquisition of a subsidiary | – | 0.8 |
Gross payment of lease liabilities | (46.1) | (55.2) |
Interest relating to lease liabilities | 4.7 | 4.9 |
Early terminations during the year | (0.4) | (22.0) |
Exchange adjustment | (3.7) | 7.5 |
At 31 December | 115.4 | 127.1 |
Current | 37.3 | 36.9 |
Non-current | 78.1 | 90.2 |
115.4 | 127.1 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023212
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
| 2023 | 2022 | |
| £m | £m | |
| Financial instruments at fair value through profit and loss | ||
Foreign exchange forward contracts | (3.6) | 1.8 |
(3.6) | 1.8 | |
| Financial instruments at fair value through other comprehensive income | ||
| Cash flow hedges | ||
Foreign exchange forward contracts | (0.2) | (3.0) |
(3.8) | (1.2) | |
Current assets | 2.5 | 7.5 |
Current liabilities | (6.3) | (8.7) |
(3.8) | (1.2) |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 213
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
| Nominal value of | |||||
| contracts | |||||
Buy currency | Sell currency | (m) | Maturity dates | Contract rates | |
UK | Sterling | US dollars | 22.9 | Jan 24 – Mar 24 | 1.216 – 1.271 |
Sterling | Hungarian forint | 0.7 | Jan 24 – Feb 24 | 442.563 – 443.943 | |
Sterling | Swiss francs | 1.9 | Jun 24 | 1.053 | |
Sterling | Swedish krona | 0.4 | Feb 24 | 13.004 | |
| South African | |||||
| Sterling | rand | 5.4 | Jan 24 – Aug 25 | 23.205 – 24.926 | |
Sterling | Japanese yen | 0.6 | Jun 24 | 175.155 | |
| Hong Kong | |||||
| Sterling | dollars | 0.8 | Feb 24 – Mar 24 | 9.952 – 9.960 | |
Sterling | Romanian leu | 0.7 | Jan 24 – Feb 24 | 5.736 – 5.739 | |
Euros | Sterling | 6.2 | Jan 24 – Apr 24 | 0.859 – 0.901 | |
US dollars | Sterling | 96.5 | Jan 24 – Mar 27 | 0.780 – 0.785 | |
Hungarian forint | Sterling | 2,239.0 | Jan 24 – Dec 24 | 0.002 | |
| South African | |||||
rand | Sterling | 382.8 | Jan 24 – Oct 27 | 0.033 – 0.047 | |
Japanese yen | Sterling | 1,527.4 | Mar 24 | 0.006 | |
Romanian leu | Sterling | 2.0 | Mar 24 | 0.173 – 0.174 | |
Germany | Euros | US dollars | 103.9 | Jan 24 – Jun 24 | 1.061 – 1.115 |
Euros | Hungarian forint | 0.6 | May 24 – Jun 24 | 461.994 –464.114 | |
Euros | Singapore dollars | 2.3 | Mar 24 | 1.464 | |
| South African | |||||
| Euros | rand | 0.7 | Jan 24 – Oct 25 | 19.194 | |
US dollars | Euros | 41.8 | Jan 24 – Mar 24 | 0.930 – 0.947 | |
Hungarian forint | Euros | 600.0 | Jan 24 – Apr 24 | 0.002 | |
Romanian leu | Euros | 2.5 | Jan 23 – Feb 24 | 4.988 – 4.989 |
| Nominal value of | |||||
| contracts | |||||
Buy currency | Sell currency | (m) | Maturity dates | Contract rates | |
France | Euros | Hungarian forint | 1.3 | Jan 24 – Jun 24 | 383.061 –460.777 |
Euros | Mexican peso | 0.1 | Jan 24 | 18.894 | |
Euros | Polish zloty | 1.5 | Jan 24 – Mar 24 | 4.348 – 4.366 | |
Euros | Thai baht | 0.1 | Jan 24 | 38.072 | |
| South African | |||||
| Euros | rand | 0.9 | Jan 24 – Jun 24 | 18.530 – 21.987 | |
Sterling | Euros | 0.1 | Jan 24 | 1.168 | |
US dollars | Euros | 9.3 | Jan 24 – Apr 24 | 0.902 – 0.929 | |
| South African | |||||
Belgium | Euros | rand | 2.0 | Jan 24 – Dec 26 | 19.351 – 24.669 |
US dollars | Euros | 1.8 | Jan 24 – Mar 24 | 0.909 – 0.935 | |
US | US dollars | Euros | 2.3 | Jan 24 | 0.909 |
| South African | |||||
| US dollars | rand | 5.4 | Jan 24 – May 26 | 16.398 – 22.297 | |
US dollars | Japanese yen | 9.3 | Jan 24 – Apr 24 | 0.902 – 0.929 | |
India | Indian rupees | Sterling | 3,112.0 | Jan 24 – Dec 26 | 0.009 – 0.010 |
Indian rupees | Euros | 1,732.1 | Jan 24 – Mar 24 | 0.010 – 0.011 |
24 Derivative financial instruments continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023214
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
24 Derivative financial instruments continued
| Nominal value of | |||||
| contracts | |||||
Buy currency | Sell currency | (m) | Maturity dates | Contract rates | |
UK | Sterling | Euros | £1.2 | Jan 23 – Oct 23 | 1.086 – 1.136 |
Sterling | US dollars | £26.2 | Jan 23 – Mar 23 | 1.116 – 1.229 | |
Sterling | Hungarian forint | £1.7 | Jan 23 – Feb 24 | 454.525 – 502.086 | |
Sterling | Swiss francs | £6.0 | Jan 23 – Sep 23 | 1.090 – 1.115 | |
Sterling | Swedish krona | £28.7 | Jan 23 – Oct 23 | 12.231 – 12.600 | |
Sterling | SA rand | £11.0 | Jan 23 – Aug 25 | 20.523 – 24.926 | |
Sterling | Japanese yen | £0.4 | Jun 23 | 155.236 | |
Sterling | Norwegian krone | £0.1 | Jan 23 | 11.874 | |
Sterling | Hong Kong dollars | £0.5 | Jun 23 | 9.453 | |
Sterling | Singapore dollars | £1.5 | Feb 23 | 1.621 | |
Sterling | Polish zloty | £0.4 | Jan 23 | 5.286 | |
Sterling | Canadian dollars | £6.3 | Jan 23 – Mar 23 | 1.630 – 1.639 | |
Euros | Sterling | €12.2 | Jan 23 – Apr 24 | 0.859 – 0.901 | |
US dollars | Sterling | $133.4 | Jan 23 – Oct 26 | 0.705 – 0.960 | |
Hungarian forint | Sterling | HUF 2,207.3 | Jan 23 – Jun 24 | 0.002 | |
SA rand | Sterling | ZAR 319.3 | Jan 23 – Dec 26 | 0.039 – 0.049 |
| Nominal value of | |||||
| contracts | |||||
Buy currency | Sell currency | (m) | Maturity dates | Contract rates | |
Germany | Euros | US dollars | €83.7 | Jan 23 – May 26 | 0.985 – 1.106 |
Euros | Hungarian forint | €5.4 | Jan 23 – Jun 24 | 377.720 – 464.114 | |
Euros | Polish zloty | €0.6 | Feb 23 – Mar 23 | 4.780 – 4.812 | |
Euros | SA rand | €1.1 | Jan 23 – Oct 25 | 19.194 | |
Sterling | Euros | £1.3 | Jan 23 | 1.152 – 1.162 | |
US dollars | Euros | $86.9 | Jan 23 – Jul 23 | 0.922 – 1.027 | |
Hungarian forint | Euros | HUF 600.0 | Jan 24 – Apr 24 | 0.002 | |
Swiss francs | Euros | CHF 0.2 | Jan 23 | 0.984 | |
Polish zloty | Euros | PLN 2.1 | Jan 23 – Mar 23 | 0.204 – 0.212 | |
Romanian leu | Euros | RON 1.0 | Jan 23 | 0.202 | |
France | Euros | Hungarian forint | €3.1 | Jan 23 – Jun 24 | 373.040 – 460.777 |
Euros | SA rand | €1.8 | Jan 23 – Jun 24 | 17.467 – 20.747 | |
US dollars | Euros | $8.1 | Jan 23 – Mar 23 | 0.935 – 1.020 | |
Belgium | Euros | SA rand | €2.0 | Jan 23 – Sep 25 | 18.481 – 21.021 |
US dollars | Euros | $0.3 | Feb 23 | 0.961 | |
US | US dollars | SA rand | $5.8 | Jan 23 – May 26 | 15.825 – 19.321 |
US dollars | Japanese yen | $66.2 | Jan 23 – Mar 23 | 124.570 – 138.064 | |
India | Indian rupees | Sterling | INR 2,364.3 | Jan 23 – Nov 25 | 0.01 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 215
GLOSSARY
25 Leases as a lessor
Finance lease receivables
The Group leases items of IT equipment which have been classified as finance leases. In certain customer
contracts, there are two situations which lead to a net lease receivable being recognised on the Group’s
Consolidated Balance Sheet.
• Longer-term leasing situations where assets have been deployed to the customer’s premises and funded
through the Group’s balance sheet. These finance lease receivables are accounted for under the Dealer/
Manufacturer lessor provisions of IFRS 16.
• Leasing situations where assets have been deployed to the customer’s premises, but the requisite
paperwork and other steps required to sell the assets and the related net lease receivables to a financing
company have not yet been completed. Once the assignment to the financing company has been completed,
the net lease receivable and associated finance liability to the financing company are derecognised
under the provisions of IFRS 9. Prior to assignment, these are still finance lease receivables on the
Group’s Consolidated Balance Sheet.
Whilst there is a natural delay in terms of the administrative processing, which leads to a gap in the assignment
of the lease, this is temporary as the intended outcome is for these assets to be sold in the immediate future.
However, as there is no legally binding contract that insists, without recourse, that the financing company must
accept funding requests following deployment, leases not yet assigned at the reporting date are retained on the
Group’s Consolidated Balance Sheet as lease receivables. As the net lease receivables associated with these
contracts are expected to have a different pattern of cash flows based on an intended, but not contractually
secure prior to the assignment, outcome we describe these as ‘transitory net lease receivables’.
As at 31 December 2023, net investment in finance leases is included within:
| 2023 | 2022 | |
| £m | £m | |
Trade and other receivables (current) | 5.8 | 3.3 |
Trade and other receivables (non-current) | 21.1 | 9.9 |
26.9 | 13.2 |
During 2023, the Group recognised interest income on lease receivables of £0.7m (2022: nil).
| 2023 | 2022 | |
| £m | £m | |
Less than one year | 7.7 | 3.6 |
One to two years | 7.7 | 3.6 |
Two to three years | 7.6 | 3.6 |
Three to four years | 5.3 | 2.0 |
Four to five years | 1.5 | 0.7 |
More than five years | 1.0 | 0.6 |
Total undiscounted lease receivable | 30.8 | 14.1 |
Less: unearned finance income | (3.9) | (0.9) |
Net investment in finance leases | 26.9 | 13.2 |
| 2023 | 2022 | |
| £m | £m | |
Within one year | 0.1 | 3.6 |
After one year | 0.2 | 6.4 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023216
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
| Customer | ||||
| contract | Property | Other | Total | |
| provisions | provisions | provisions | provisions | |
| £m | £m | £m | £m | |
At 1 January 2022 | 5.9 | 5.6 | 1.7 | 13.2 |
Amount unused reversed | (1.8) | (0.3) | (0.9) | (3.0) |
Arising during the year | 1.3 | 0.8 | 0.4 | 2.5 |
Utilisation | (1.5) | (0.5) | (0.3) | (2.3) |
Exchange adjustment | 0.3 | 0.1 | – | 0.4 |
At 31 December 2022 | 4.2 | 5.7 | 0.9 | 10.8 |
Reclassification | – | – | 1.4 | 1.4 |
Amount unused reversed | (1.3) | – | (0.7) | (2.0) |
Arising during the year | 0.2 | 0.6 | 1.1 | 1.9 |
Utilisation | (1.5) | (0.3) | (1.0) | (2.8) |
Exchange adjustment | (0.1) | (0.1) | – | (0.2) |
At 31 December 2023 | 1.5 | 5.9 | 1.7 | 9.1 |
Current 2023 | 1.2 | 0.9 | 0.1 | 2.2 |
Non-current 2023 | 0.3 | 5.0 | 1.6 | 6.9 |
1.5 | 5.9 | 1.7 | 9.1 | |
Current 2022 | 2.5 | 1.0 | 0.3 | 3.8 |
Non-current 2022 | 1.7 | 4.7 | 0.6 | 7.0 |
4.2 | 5.7 | 0.9 | 10.8 |
| 2023 | 2022 | ||
| Note | £m | £m | |
| Financial assets at amortised cost: | |||
Trade receivables | 20 | 1,471.8 | 1,659.7 |
Other receivables * | 14.7 | 8.6 | |
Net investment in finance leases | 25 | 26.9 | 13.2 |
Cash and short-term deposits | 21 | 471.2 | 264.4 |
Financial assets at fair value through other comprehensive income (FVOCI): | |||
Derivative financial instruments – cash flow hedges | 2.3 | 4.3 | |
| Financial assets at fair value through profit or loss (FVPL): | |||
Derivative financial instruments – held for trading | 0.2 | 3.2 | |
1,987.1 | 1,953.4 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 217
GLOSSARY
27 Financial instruments continued
| 2023 | 2022 | ||
| Note | £m | £m | |
| Financial liabilities at amortised cost: | |||
Trade and other payables * | 22 | 1,517.2 | 1,694.7 |
Financial liabilities | 23a | 12.2 | 20.1 |
Lease liabilities | 23b | 115.4 | 127.1 |
Financial liabilities at fair value through other comprehensive income (FVOCI): | |||
Derivative financial instruments – cash flow hedges | 2.5 | 7.3 | |
| Financial liabilities at fair value through profit or loss (FVPL): | |||
Derivative financial instruments – held for trading | 3.8 | 1.4 | |
Contingent consideration | 22 | 20.2 | 38.9 |
1,671.3 | 1,889.5 |
| Effect on profit | ||
| Change in | before tax | |
| basis points | £m | |
| 2023 | ||
Sterling | +100 | 0.6 |
Euro | +100 | 0.5 |
US dollars | +100 | 1.2 |
| 2022 | ||
Sterling | +100 | 0.7 |
Euro | +100 | 0.1 |
US dollars | +100 | 1.0 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023218
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
27 Financial instruments continued
| 31 December 2023 | 31 December 2022 | |||
| (m) | (m) | |||
$ | € | $ | € | |
Trade and other receivables | 523.3 | 865.7 | 737.8 | 792.1 |
Trade and other payables | (535.0) | (846.4) | (759.6) | (838.4) |
Forecast future cash flow (net) | (110.9) | (129.3) | (175.3) | (47.1) |
(122.6) | (110.0) | (197.1) | (93.4) | |
Forward exchange contracts | 122.6 | 110.0 | 197.1 | 93.4 |
Net exposure | – | – | – | – |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 219
GLOSSARY
27 Financial instruments continued
| On demand | <3 months | 3–12 months | 1–2 years | 2–5 years | >5 years | Total | |
| £m | £m | £m | £m | £m | £m | £m | |
| Year ended 31 December 2023 | |||||||
Bank loans | – | 1.2 | 3.6 | 6.1 | 1.4 | – | 12.3 |
Lease liabilities | – | 10.3 | 30.9 | 28.7 | 44.6 | 11.9 | 126.4 |
Derivative financial instruments | – | 3.8 | 1.0 | 1.0 | 0.5 | – | 6.3 |
Contingent consideration | – | 10.2 | 10.8 | – | – | – | 21.0 |
Trade and other payables | – | 1,674.5 | – | – | – | – | 1,674.5 |
– | 1,700 | 46.3 | 35.8 | 46.5 | 11.9 | 1,840.5 |
| On demand | <3 months | 3–12 months | 1–2 years | 2–5 years | >5 years | Total | |
| £m | £m | £m | £m | £m | £m | £m | |
| Year ended 31 December 2022 | |||||||
Bank loans | 2.1 | 1.7 | 3.9 | 5.1 | 8.0 | – | 20.8 |
Lease liabilities | – | 10.2 | 30.6 | 31.4 | 48.3 | 19.2 | 139.7 |
Derivative financial instruments | – | 5.3 | 2.7 | 0.3 | 0.4 | – | 8.7 |
Contingent consideration | – | – | 17.9 | 25.3 | – | – | 43.2 |
Trade and other payables | – | 1,857.5 | – | – | – | – | 1,857.5 |
2.1 | 1,874.7 | 55.1 | 62.1 | 56.7 | 19.2 | 2,069.9 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023220
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
27 Financial instruments continued
| £m | |
At 1 January 2022 | – |
Acquisition of BITS | 36.6 |
Exceptional interest cost – unwind of discount (note 8) | 2.0 |
Foreign currency adjustment | 0.3 |
At 31 December 2022 | 38.9 |
Paid during the year | (17.4) |
Gain related to acquisition of a subsidiary (note 8) | (2.8) |
Exceptional interest cost – unwind of discount (note 8) | 3.2 |
Foreign currency adjustment | (1.7) |
At 31 December 2023 | 20.2 |
28 Capital management
Computacenter’s approach to capital management is to ensure that the Group has a strong capital base to
support the development of the business and to maintain a strong credit rating, whilst aiming to maximise
shareholder value. Consistent with the Group’s aim to maximise return to shareholders, the Company’s dividend
policy is to maintain a dividend cover of between two to 2.5 times. In 2023, the cover was 2.5 times on an adjusted
earnings basis (2022: 2.5 times).
Capital, defined as net funds, that the Group monitors is disclosed in note 31.
Each operating country manages its working capital in line with Group policies. The key components of working
capital, i.e. trade receivables, inventory and trade payables, are managed in accordance with an agreed number
of days targeted in the budget process, in order to ensure efficient capital usage. An important element of the
process of managing capital efficiently is to ensure that each operating country rewards behaviour at an
account manager and account director level, to minimise working capital at a transactional level. This is achieved
by increasing commission payments for early payment by customers and reduced commission payments for
late payment by customers, which encourages appropriate behaviour. Management intends to implement Group
policies into acquired businesses over time with the introduction of systems, reward mechanisms and other
operational practices that support these policies.
The Group regularly reviews the adequacy of its facilities against any foreseeable peak borrowing requirement.
See note 21 for details on uncommitted overdraft facilities available to the Group.
In certain circumstances, the Group deposits its funds in short-term investments that do not fulfil the criteria to
be classified as cash and cash equivalents. The Group considers these deposits when managing the net funds of
the business, and accordingly includes these deposits within adjusted net funds.
Capital is allocated across the Group, in order to ensure each operating company is able to manage its working
capital needs efficiently and to minimise its exposure to exchange rates. Each country finances its own working
capital requirements with cash on deposit in the UK and Germany. An internal cash pooling arrangement has been
implemented which utilises internal Group financing arrangements.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 221
GLOSSARY
28 Capital management continued
available. The Group is subject to certain key financial covenants under this syndicated facility with Barclays,
Lloyds, HSBC, BNP Paribas, JPMorgan and PNC Bank. These covenants, as defined in the agreement, are monitored
regularly to ensure compliance. As at 31 December 2023, the Group was in compliance with all covenants.
Computacenter India Private Limited has a local facility with HSBC India for local cash liquidity to facilitate the
continued growth of our operations in the country. There was no interest-bearing debt drawn under this facility
as at 31 December 2023.
The recently acquired BITS subsidiary maintains a ringfenced ‘Accounts Receivable and Inventory’ facility with
Wells Fargo of up to $100m, secured on the assets of that subsidiary. The facility is provided on a rolling basis and
the latest amendment was signed on 21 July 2023.
29 Issued capital and reserves
| 7⁵⁄₉p | 0.01p | ||
| ordinary | deferred | ||
| shares | shares | Total | |
| Issued and fully paid | No. ’000 | No. ‘000 | £m |
At 1 January 2022 and 1 January 2023 | 122,688 | – | 9.3 |
| Deferred shares issued during the year for the capitalisation | |||
of reserves | – | 10,895,383.8 | 109.0 |
Deferred shares capital reduction | – | (10,895,383.8) | (109.0) |
At 31 December 2023 | 122,688 | – | 9.3 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023222
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
29 Issued capital and reserves continued
ii) Treasury shares
The Company holds, in treasury, the ordinary shares purchased by way of tender offer on 14 February 2018.
Following the purchase, the Company’s issued share capital consisted of 122,687,970 ordinary shares of 7⁵⁄₉p
| 2023 | 2022 | |
| £m | £m | |
Applied Computer Solutions (ACS) * | – | 2.5 |
ProSys Information Systems, Inc (ProSys) | 7.7 | 3.7 |
R.D. Trading Limited (RDC) | – | 0.1 |
7.7 | 6.3 |
30 Share-based payments
Computacenter Performance Share Plan (PSP)
Under the Computacenter PSP, shares granted will be subject to certain performance conditions as described in
the Annual Report on Remuneration. As at 31 December 2023, the number of shares outstanding was as follows:
| 2023 | 2022 | |||
| Share price at | Number | Number | ||
Date of grant | Maturity date | date of grant | outstanding | outstanding |
20/03/2014 | 20/03/2017 | 682.5p | 6,557 | 6,557 |
26/03/2015 | 26/03/2018 | 720.0p | 11,729 | 19,225 |
22/03/2016 | 22/03/2019 | 845.0p | 19,396 | 33,093 |
22/03/2017 | 22/03/2020 | 736.5p | 18,939 | 110,576 |
21/03/2018 | 21/03/2021 | 1182.67p | 25,378 | 39,205 |
21/03/2018 | 21/03/2021 | 1182.67p | – | 97,364 |
21/03/2019 | 21/03/2022 | 1192.00p | 219,372 | 242,498 |
23/03/2020 | 21/03/2023 | 993.00p | 152,999 | 418,605 |
23/03/2020 | 21/03/2023 | 993.00p | 173,892 | 173,892 |
11/05/2020 | 21/03/2023 | 1472.00p | – | 2,853 |
02/11/2020 | 21/03/2023 | 2265.00p | – | 14,504 |
22/03/2021 | 21/03/2024 | 2175.00p | 307,924 | 340,822 |
21/03/2021 | 21/03/2023 | 2175.00p | – | 11,685 |
10/06/2021 | 21/03/2024 | 2671.00p | 7,384 | 7,384 |
21/03/2022 | 21/03/2025 | 2911.00p | 234,456 | 271,109 |
21/03/2022 | 21/03/2023 | 2911.00p | – | 10,879 |
21/03/2022 | 21/03/2024 | 2911.00p | 10,880 | 10,880 |
06/04/2023 | 23/03/2026 | 2151.00p | 364,221 | – |
06/04/2023 | 30/03/2024 | 2151.00p | 4,587 | – |
06/04/2023 | 30/03/2025 | 2151.00p | 4,588 | – |
05/06/2023 | 01/07/2025 | 2379.00p | 5,695 | – |
05/06/2023 | 05/06/2025 | 2379.00p | 13,527 | – |
05/06/2023 | 23/06/2026 | 2318.00p | 33,973 | – |
14/09/2023 | 23/03/2026 | 2449.00p | 9,830 | – |
02/10/2023 | 23/03/2026 | 2530.00p | 5,040 | – |
1,630,367 | 1,811,131 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 223
GLOSSARY
30 Share-based payments continued
The following table illustrates the number (No.) of share options for the PSP Scheme:
| 2023 | 2022 | |
| No. | No. | |
| PSP Scheme | ||
Outstanding at the beginning of the year | 1,811,131 | 1,995,454 |
Granted during the year | 449,268 | 297,424 |
Forfeited during the year | (82,388) | (28,762) |
Exercised during the year * | (547,644) | (452,985) |
Outstanding at the end of the year | 1,630,367 | 1,811,131 |
Exercisable at the end of the year | 628,262 | 548,518 |
* The weighted average share price at the date of exercise for the options exercised was £22.00 (2022: £28.25).
The weighted average remaining contractual life for the options outstanding as at 31 December 2023 was
1.3 years (2022: 1.2 years).
Computacenter Sharesave Scheme (SAYE)
The Group operates a Sharesave Scheme which is available to all employees and full-time Executive Directors of
the Group and its subsidiaries who have worked for a qualifying period. All options granted under this scheme are
satisfied at exercise by way of a transfer of shares from the Computacenter Qualifying Employee Share Trust.
During the year, 669,433 options were granted (2022: 1,007,817) with a fair value of £5,772,514 (2022: £6,412,764).
Under the scheme the following options have been granted and are outstanding at the year end:
| 2023 | 2022 | |||
| Share | Number | Number | ||
Date of grant | Exercisable between | price | outstanding | outstanding |
October 2017 | 01/12/2022 – 31/05/2023 | 789.00p | – | 231,920 |
October 2018 | 01/12/2023 – 31/05/2024 | 1,054.00p | 134,500 | 452,689 |
October 2019 | 01/12/2022 – 31/05/2023 | 1,138.00p | 63 | 114,795 |
October 2019 | 01/12/2024 – 31/05/2025 | 1,011.00p | 534,105 | 553,222 |
October 2020 | 01/12/2023 – 31/05/2024 | 2,092.00p | 51,323 | 183,556 |
October 2020 | 01/12/2025 – 31/05/2026 | 1,860.00p | 442,049 | 472,070 |
October 2020 | 01/12/2020 – 26/01/2023 | 2,217.00p | – | 10,623 |
October 2021 | 01/12/2024 – 31/05/2025 | 2,571.00p | 131,064 | 150,632 |
October 2021 | 01/12/2026 – 31/05/2027 | 2,286.00p | 373,568 | 410,593 |
October 2021 | 01/12/2021 – 25/01/2024 | 2,468.00p | 20,690 | 31,138 |
December 2022 | 01/12/2022 – 01/06/2026 | 1,77200p | 248,384 | 271,287 |
December 2022 | 01/12/2022 – 01/06/2028 | 1,575.00p | 656,243 | 684,333 |
December 2022 | 01/12/2022 – 07/05/2025 | 1,665.00p | 44,600 | 48,194 |
December 2023 | 01/12/2023 – 01/06/2027 | 2,148.00p | 233,032 | – |
December 2023 | 01/12/2023 – 07/05/2029 | 2,021.00p | 400,858 | – |
December 2023 | 01/12/2023 – 07/05/2025 | 2,218.00p | 33,980 | – |
3,304,459 | 3,615,052 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023224
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
30 Share-based payments continued
The following table illustrates the number (No.) and weighted average exercise price (WAEP) of share options for the Sharesave Scheme:
| 2023 | 2023 | 2022 | 2022 | |
| No. | WAEP | No. | WAEP | |
| Sharesave Scheme | ||||
Outstanding at the beginning of the year | 3,615,052 | £15.70 | 3,496,799 | £14.30 |
Granted during the year | 669,433 | £20.75 | 1,007,817 | £16.33 |
Forfeited during the year | (186,598) | £19.24 | (183,219) | £19.03 |
Exercised during the year * | (793,428) | £11.60 | (706,345) | £8.82 |
Outstanding at the end of the year | 3,304,459 | £17.51 | 3,615,052 | £15.70 |
Exercisable at the end of the year | 200,980 | £14.66 | 357,535 | £9.51 |
* The weighted average share price at the date of exercise for the options exercised was £24.96 (2022: £22.08).
The weighted average remaining contractual life for the options outstanding as at 31 December 2023 was 2.4 years (2022: 2.3 years).
The fair value of the PSP, Deferred Bonus Plan (DBP) and SAYE plans are estimated as at the date of grant using the Black-Scholes valuation model. The following tables give the assumptions made during the years ended 31 December
2023 and 31 December 2022:
2023
| PSP | PSP | PSP | PSP | PSP | PSP | PSP | PSP | |
| Nature of the arrangement | scheme | scheme | scheme | scheme | scheme | scheme | scheme | scheme |
Date of grant | 06/04/2023 | 06/04/2023 | 06/04/2023 | 05/06/2023 | 05/06/2023 | 14/09/2023 | 02/10/2023 | 14/09/2023 |
Number of instruments granted | 193,453 | 169,047 | 9,528 | 33,973 | 13,527 | 7,146 | 5,040 | 2,684 |
Exercise price | nil | nil | nil | nil | nil | nil | nil | nil |
Share price at date of grant | £21.51 | £21.51 | £21.51 | £23.18 | £23.79 | £24.49 | £25.30 | £24.49 |
Contractual life (years) | 3 | 3 | 3 | 3 | 2 | 3 | 3 | 3 |
| See page 152 | See page 152 | See page 152 | See page 152 | See page 152 | ||||
| of the Annual | of the Annual | of the Annual | of the Annual | of the Annual | ||||
| See note 1 | Report on | Three-year | Report on | Report on | Report on | Report on | See note 1 | |
| Vesting conditions | below | Remuneration | service period | Remuneration | Remuneration | Remuneration | Remuneration | below |
Expected volatility | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
Expected option life at grant date (years) | 3 | 3 | 3 | 3 | 2 | 3 | 3 | 3 |
Risk-free interest rate | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
Dividend yield | 3.7% | 3.7% | 3.7% | 3.5% | 3.4% | 3.3% | 3.2% | 3.3% |
Fair value per granted instrument determined at grant date | £19.27 | £19.27 | £19.27 | £20.92 | £22.26 | £22.23 | £23.03 | £22.23 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 225
GLOSSARY
30 Share-based payments continued
2023
| DBP | DBP | DBP | SAYE | SAYE | SAYE | |
| Nature of the arrangement | scheme | scheme | scheme | scheme | scheme | scheme |
Date of grant | 06/04/2023 | 06/04/2023 | 05/06/2023 | 01/12/2023 | 01/12/2023 | 01/12/2023 |
Number of instruments granted | 4,587 | 4,588 | 5,695 | 34,474 | 233,476 | 401,483 |
Exercise price | nil | nil | nil | £22.18 | £21.48 | £20.21 |
Share price at date of grant | £21.51 | £21.51 | £23.79 | £25.94 | £25.94 | £25.94 |
Contractual life (years) | 1 | 2 | 2 | 2 | 3 | 5 |
| See page 151 of | See page 151 | See page 151 | Two-year | Three-year | Five-year | |
| the Annual | of the Annual | of the Annual | service period | service period | service period | |
| Report on | Report on | Report on | and savings | and savings | and savings | |
| Vesting conditions | Remuneration | Remuneration | Remuneration | requirement | requirement | requirement |
Expected volatility | n/a | n/a | n/a | 30.70% | 29.00% | 36.60% |
Expected option life at grant date (years) | 1 | 2 | 2 | 2 | 3 | 5 |
Risk-free interest rate | n/a | n/a | n/a | 0.72% | 0.72% | 0.72% |
Dividend yield | 3.7% | 3.7% | 3.4% | 3.11% | 3.11% | 3.11% |
Fair value per granted instrument determined at grant date | £20.73 | £19.99 | £22.26 | £6.07 | £6.89 | £9.85 |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023226
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
30 Share-based payments continued
2022
| PSP | PSP | PSP | PSP | PSP | DBP | DBP | SAYE | SAYE | SAYE | |
| Nature of the arrangement | scheme | scheme | scheme | scheme | scheme | scheme | scheme | scheme | scheme | scheme |
Date of grant | 21/03/22 | 21/03/22 | 21/03/22 | 21/03/22 | 21/03/22 | 21/03/22 | 21/03/22 | 01/12/22 | 01/12/22 | 01/12/22 |
Number of instruments granted | 101,562 | 143,189 | 7,245 | 1,992 | 21,677 | 10,879 | 10,880 | 49,100 | 272,829 | 685,888 |
Exercise price | nil | nil | nil | nil | nil | nil | nil | £16.65 | £17.72 | £15.75 |
Share price at date of grant | £29.11 | £29.11 | £29.11 | £29.11 | £29.11 | £29.11 | £29.11 | £18.99 | £18.99 | £18.99 |
Contractual life (years) | 3 | 3 | 3 | 3 | 3 | 1 | 2 | 2 | 3 | 5 |
| See page 127 | See page 127 | See page 127 | Two-year | Three-year | Five-year | |||||
| of the Annual | of the Annual | of the Annual | service period | service period | service period | |||||
| See note 1 | Report on | Three-year | Three-year | See note 1 | Report on | Report on | and savings | and savings | and savings | |
| Vesting conditions | below | Remuneration | service period | service period | below | Remuneration | Remuneration | requirement | requirement | requirement |
Expected volatility | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 28.80% | 38.10% | 37.30% |
Expected option life at grant date (years) | 3 | 3 | 3 | 3 | 3 | 1 | 2 | 2 | 3 | 5 |
Risk-free interest rate | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 0.45% | 0.45% | 0.45% |
Dividend yield | 2.1% | 2.1% | 2.1% | 2.1% | 2.1% | 2.1% | 2.1% | 4.25% | 4.25% | 4.25% |
Fair value per granted instrument determined at grant date | £27.32 | £27.32 | £27.32 | £27.32 | £27.32 | £28.50 | £27.90 | £4.01 | £5.16 | £7.01 |
Note
1. Issued under the terms of the Computacenter Performance Share Plan 2005, as amended at the AGMs held on 19 May 2015 and 18 May 2018. One-quarter of the shares will vest if the compound annual EPS growth over the performance period equals 5% per annum. One-half of the shares will
vest if the compound annual EPS growth over the performance period equals 7.5% and the shares will vest in full if the compound annual EPS growth over the performance period equals 10%. If the compound annual EPS growth over the performance period is between 5% and 10%, shares
awarded will vest on a straight-line basis. The performance period usually covers a period of three years from 1 January of the year the award is granted.
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur.
The expected volatility reflects the assumption that the recent historical volatility is indicative of future trends, which may not necessarily be the actual outcome. No other features of the options granted were incorporated into the
measurement of fair value.
31 Analysis of changes in net funds
| At 1 January | Cash flows | Non-cash | Exchange | At 31 December | |
| 2023 | in year | flow | differences | 2023 | |
| £m | £m | £m | £m | £m | |
Cash and short-term deposits | 264.4 | 207.6 | – | (0.8) | 471.2 |
Cash and cash equivalents | 264.4 | 207.6 | – | (0.8) | 471.2 |
Bank loans | (20.1) | 6.9 | – | 1.0 | (12.2) |
Adjusted net funds (excluding lease liabilities) | 244.3 | 214.5 | – | 0.2 | 459.0 |
Lease liabilities | (127.1) | 46.1 | (30.7) | (3.7) | (115.4) |
Net funds | 117.2 | 260.6 | (30.7) | (3.5) | 343.6 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 227
GLOSSARY
31 Analysis of changes in net funds continued
The financing cash flows included in the table above are detailed as follows:
| Customer- | Liabilities from | |||||
| specific | Lease | financing | ||||
Bank loans | Credit facilities | financing | Others | liabilities | activities | |
Balance at 1 January 2023 | (20.1) | – | – | – | (127.1) | (147.2) |
| Changes from financing cash flows: | ||||||
Interest paid | 0.3 | 0.4 | 0.3 | 1.6 | – | 2.6 |
Interest paid on lease liabilities | – | – | – | – | 4.7 | 4.7 |
Repayment of loans | 6.9 | – | – | – | – | 6.9 |
Repayment of credit facilities | – | 62.9 | – | – | – | 62.9 |
Payment of capital element of lease liabilities | – | – | – | – | 41.4 | 41.4 |
Drawdown of borrowings | – | (62.9) | – | – | – | (62.9) |
Total changes from financing cash flows | 7.2 | 0.4 | 0.3 | 1.6 | 46.1 | 55.6 |
The effect of changes in foreign exchange rates | 1.0 | – | – | – | 3.7 | 4.7 |
| Other changes: | ||||||
New leases | – | – | – | – | (33.8) | (33.8) |
Early termination of leases | – | – | – | – | 0.4 | 0.4 |
Interest expense | (0.3) | (0.4) | (0.3) | (1.6) | (4.7) | (7.3) |
Total other changes | (0.3) | (0.4) | (0.3) | (1.6) | (38.1) | (40.7) |
Balance at 31 December 2023 | (12.2) | – | – | – | (115.4) | (127.6) |
| At 31 December | ||||||
| At 1 January | Cash flows | Non-cash | Exchange | 2022 | ||
| 2022 | in year | flow | differences | (restated * ) | ||
| £m | £m | £m | £m | £m | ||
Cash and short-term deposits * | 285.2 | (13.6) | – | (7.2) | 264.4 | |
Bank overdrafts * | (12.0) | 12.0 | – | – | – | |
Cash and cash equivalents | 273.2 | (1.6) | – | (7.2) | 264.4 | |
Bank loans and credit facility | (31.8) | 12.9 | – | (1.2) | (20.1) | |
| Adjusted net funds | (excluding lease liabilities) | 241.4 | 11.3 | – | (8.4) | 244.3 |
Lease liabilities | (146.1) | 55.2 | (28.7) | (7.5) | (127.1) | |
Net funds | 95.3 | 66.5 | (28.7) | (15.9) | 117.2 |
* Refer to note 2 for restatement of prior-year comparatives.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023228
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
31 Analysis of changes in net funds continued
The financing cash flows included in the table above are detailed as follows:
| Liabilities from | ||||||
| financing | ||||||
| Bank overdraft | Lease | activities | ||||
Bank loans | Credit facility | (restated * ) | Others | liabilities | (restated * ) | |
Balance at 1 January 2022 | (24.8) | (7.0) | (12.0) | – | (146.1) | (189.9) |
| Changes from financing cash flows: | ||||||
Interest paid | 0.8 | 1.4 | – | 0.7 | – | 2.9 |
Interest paid on lease liabilities | – | – | – | – | 4.9 | 4.9 |
Repayment of loans | 9.6 | – | – | – | – | 9.6 |
Repayment of credit facility | – | 11.0 | – | – | – | 11.0 |
Payment of capital element of lease liabilities | – | – | – | – | 50.3 | 50.3 |
Bank overdraft reduction | – | – | 12.0 | – | – | 12.0 |
New loans relating to acquisition of a subsidiary | (3.7) | – | – | – | – | (3.7) |
Drawdown of borrowings | – | (4.0) | – | – | – | (4.0) |
Total changes from financing cash flows | 6.7 | 8.4 | 12.0 | 0.7 | 55.2 | 83.0 |
The effect of changes in foreign exchange rates | (1.2) | – | – | – | (7.5) | (8.7) |
| Other changes: | ||||||
New leases | – | – | – | – | (45.0) | (45.0) |
New leases relating to acquisition of a subsidiary | – | – | – | – | (0.8) | (0.8) |
Early termination of leases | – | – | – | – | 22.0 | 22.0 |
Interest expense | (0.8) | (1.4) | – | (0.7) | (4.9) | (7.8) |
Total other changes | (0.8) | (1.4) | – | (0.7) | (28.7) | (31.6) |
Balance at 31 December 2022 | (20.1) | – | – | – | (127.1) | (147.2) |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 229
GLOSSARY
33 Pensions and other post-employment benefit plans continued
| 2023 | 2022 | |
| £m | £m | |
Total defined benefit liability | 26.2 | 23.0 |
| 2023 | 2022 | |
| £m | £m | |
Balance at 1 January | 23.0 | 21.8 |
| Included in Consolidated Income Statement | ||
Current service cost | 1.4 | 2.0 |
Interest cost | 0.8 | 0.2 |
2.2 | 2.2 | |
| Included in Consolidated Statement of Comprehensive Income | ||
| Remeasurements loss | ||
Actuarial (gain)/loss arising from: | 2.8 | (1.7) |
– Changes in demographic assumptions | (0.2) | 6.7 |
– Change in financial assumptions | 1.3 | (8.7) |
– Experience adjustment | 1.7 | 0.3 |
Effect of movements in exchange rates | (0.9) | 1.2 |
1.9 | (0.5) | |
Other Benefits paid | (0.9) | (0.5) |
(0.9) | (0.5) | |
Balance at 31 December | 26.2 | 23.0 |
| 2023 | 2022 | |
| % | % | |
Discount rate | 3.2 | 3.8 |
Future salary growth | 3.9 | 4.0 |
| Turnover rates: | ||
– Non-managers | 5.7 | 5.7 |
– Supervisors | 2.7 | 2.7 |
– Executives | 2.7 | 2.7 |
| 2023 | 2022 | |||
| £m | £m | |||
Increase (1%) | Decrease (1%) | Increase (1%) | Decrease (1%) | |
Discount rate | 2.8 | (3.3) | 2.3 | (2.8) |
Future salary growth | (3.3) | 2.9 | (2.7) | 2.4 |
Turnover rates | 2.9 | (2.0) | 2.5 | (2.9) |
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023230
GLOSSARY
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2023
| 2023 | 2022 | |
| £m | £m | |
| Biomni Limited | ||
Sales to related parties | – | – |
Purchase from related parties | 0.9 | 0.6 |
| 2023 | 2022 | |
| £m | £m | |
Short-term employee benefits | 3.7 | 2.1 |
Social security costs | 0.9 | 0.5 |
Share-based payment transactions | 1.9 | 3.7 |
Pension costs | 0.1 | 0.1 |
Total compensation paid to key management personnel | 6.6 | 6.4 |
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 231
GLOSSARY
Note
2023
£m
2022
(restated
*
)
£m
Non-current assets
Intangible assets 4 – 8.2
Investment property 5 9.9 10.9
Investments
*
6 540.7 486.1
550.6 505.2
Current assets
Debtors 0.2 0.1
Prepayments 2.4 2.5
2.6 2.6
Total assets 553.2 507.8
Current liabilities
Trade and other payables 7 65.8 52.3
Income tax payable – 0.9
65.8 53.2
Total liabilities 65.8 53.2
Net assets 487.4 454.6
Capital and reserves
Issued share capital 8 9.3 9.3
Share premium 4.0 4.0
Capital redemption reserve 8 – 75.0
Merger reserve 8 – 55.9
Own shares held (140.4) (127.7)
Retained earnings
*
614.5 438.1
Shareholders’ equity 487.4 454.6
* Refer to note 13 for adjustment for the year ended 31 December 2022.
The profit for the year ended 31 December 2023 included in the accounts of the Company is £131.2m (2022
*
: £158.2m). The accompanying notes on pages 234 to 239 form an integral part of these financial statements.
Approved by the Board on 19 March 2024.
MJ Norris MC Jehle
Chief Executive Officer Chief Financial Officer
Company Balance Sheet
As at 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023232
GLOSSARY
Issued share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Merger
reserve
£m
Own shares
held
£m
Retained
earnings
£m
Shareholders’
equity
£m
At 1 January 2023 9.3 4.0 75.0 55.9 (127.7) 438.1 454.6
Profit for the year – – – – – 131.2 131.2
Total comprehensive income for the year – – – – – 131.2 131.2
Transactions with owners:
– Exercise of options – – – – 25.3 (16.1) 9.2
– Share options granted to employees of subsidiary companies – – – – – 7.7 7.7
– Purchase of own shares – – – – (38.0) – (38.0)
– Capital Reduction – – (75.0) (55.9) – 130.9 –
– Equity dividends – – – – – (77.3) (77.3)
Total – – (75.0) (55.9) (12.7) 45.2 (98.4)
At 31 December 2023 9.3 4.0 – – (140.4) 614.5 487.4
At 1 January 2022 9.3 4.0 75.0 55.9 (115.5) 367.8 396.5
Profit for the year (restated
*
) – – – – – 158.2 158.2
Total comprehensive income (restated
*
) – – – – – 158.2 158.2
Transactions with owners:
– Exercise of options – – – – 22.2 (16.0) 6.2
– Share options granted to employees of subsidiary companies – – – – – 8.6 8.6
– Purchase of own shares – – – – (34.4) – (34.4)
– Equity dividends – – – – – (80.5) (80.5)
Total (12.2) (87.9) (100.1)
At 31 December 2022 9.3 4.0 75.0 55.9 (127.7) 438.1 454.6
* Refer to note 13 for adjustment for the year ended 31 December 2022.
The accompanying notes on pages 234 to 239 form an integral part of these financial statements.
Company Statement of Changes in Equity
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 233
GLOSSARY
1 Authorisation of Financial Statements
The Parent Company’s Financial Statements of Computacenter plc (the Company) for the year ended
31 December 2023 were authorised for issue by the Board of Directors on 19 March 2024 and the Balance Sheet
was signed on the Board’s behalf by MJ Norris and MC Jehle. Computacenter plc is a public limited company
incorporated and domiciled in England and Wales. The Company’s ordinary shares are traded on the London
Stock Exchange.
2 Summary of significant accounting policies
Basis of preparation and statement of compliance with FRS 101
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework (FRS 101). The financial statements are prepared under the historical cost convention.
No profit and loss account is presented by the Company as permitted by section 408 of the Companies Act 2006.
The results of Computacenter plc are included in the Consolidated Financial Statements of Computacenter plc
which are available from Computacenter plc, Hatfield Business Park, Hatfield Avenue, Hatfield, AL10 9TW.
The accounting policies which follow set out those policies which apply in preparing the Financial Statements for
the year ended 31 December 2023. The Financial Statements are prepared in pound sterling and all values are
rounded to the nearest hundred thousand, except when otherwise indicated.
In preparing these Financial Statements, the Company applies the recognition, measurement and disclosure
requirements of UK-adopted international accounting standards (adopted IFRSs), but makes amendments where
necessary in order to comply with the Companies Act 2006 and has set out below where advantage of the FRS 101
disclosure exemptions has been taken.
(a) the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based Payment;
(b) the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64 (o)(ii),
B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations;
(d) the requirements of IFRS 7 Financial Instruments: Disclosures;
(e) the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
(f) the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative
information in respect of:
(i) paragraph 79(a)(iv) of IAS 1;
(ii) paragraph 73(e) of IAS 16 Property, Plant and Equipment;
(iii) paragraph 118(e) of IAS 38 Intangible Assets; and
(iv) paragraphs 76 and 79(d) of IAS 40 Investment Property.
(g) the requirements of paragraphs 10(d), 10(f), 39(c) and 134-136 of IAS 1 Presentation of Financial Statements;
Notes to the Company Financial Statements
For the year ended 31 December 2023
(h) the requirements of IAS 7 Statement of Cash Flows;
(i) the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors;
(j) the requirements of paragraph 17 of IAS 24 Related Party Disclosures;
(k) the requirements in IAS 24 Related Party Disclosures to disclose related-party transactions entered into
between two or more members of a group, provided that any subsidiary which is a party to the transaction
is wholly owned by such a member; and
(l) the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
As applicable, equivalent disclosures are included in the Consolidated Financial Statements of the Group in which
the entity is consolidated.
Intellectual property
Licences purchased in respect of intellectual property are capitalised, classified as an intangible asset on the
Balance Sheet and amortised on a straight-line basis over the period of the licence, normally 20 years.
Depreciation of fixed assets
Freehold land is not depreciated. Depreciation is provided on all other tangible fixed assets at rates calculated to
write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Freehold buildings 25 years
Investment property
Investment property is defined as land and/or buildings held by the Company to earn rental income or for capital
appreciation or both, rather than for sale in the ordinary course of business or for use in supply of goods or services
or for administrative purposes. The Company recognises any part of an owned (or leased under a finance lease)
property that is leased to third parties as investment property, unless it represents an insignificant portion of
the property.
Investment property is measured initially at cost including transaction costs. Subsequent to initial recognition,
the Company elected to measure investment property at cost less accumulated depreciation and accumulated
impairment losses, if any (i.e. applying the same accounting policies, including useful lives, as for property, plant
and equipment). The fair values, which reflect the market conditions at the balance sheet date, are disclosed
in note 5.
Investments
Fixed-asset investments are shown at cost less provision for impairment.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023234
GLOSSARY
2 Summary of significant accounting policies continued
Impairment of assets
The carrying values of assets are reviewed for impairment when events or changes in circumstances indicate
that the carrying value may not be recoverable.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance
sheet date. All differences are taken to the profit and loss account.
Amounts owed by/to subsidiary undertakings
Intra-group receivables are recognised initially at fair value, and subsequently at amortised cost using the
effective interest rate method, less an allowance for any uncollectable amounts. The Company assesses for
doubtful debts (impairment) using the expected credit losses model, as required by IFRS 9.
Intra-group payables are recognised initially at fair value, and subsequently at amortised cost using the effective
interest rate method.
Share-based payment transactions
The accounting policy in relation to share-based payment transactions is disclosed in full in the Consolidated
Financial Statements. In addition, the financial effect of awards by the Company of options over its equity
shares to employees of subsidiary undertakings is recognised by the Company in its individual financial
statements as an increase in its investment in subsidiaries, with a credit to equity equivalent to the IFRS 2 cost
in subsidiary undertakings.
On transition to IFRS, the Group did not apply the measurement rules of IFRS 2 to equity-settled awards granted
before 7 November 2002 or granted after that date and vested before 1 January 2005. However, later modifications
of such equity instruments are measured under IFRS 2.
Taxation
Corporation tax payable is provided on taxable profits at the current tax rate. Where Group relief is surrendered
from other subsidiaries in the Group, the Company is required to pay to the surrendering company an amount
equal to the loss surrendered multiplied by the current tax rate.
Deferred tax is recognised in respect of all timing differences that have originated, but not reversed, at the
balance sheet date where transactions or events that result in an obligation to pay more, or a right to pay less,
tax in the future have occurred at the balance sheet date.
Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in periods in
which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance
sheet date.
Own shares held
Shares in the Company, held by the Company, are classified in shareholders’ equity as own shares held and
are recognised at cost. Consideration received for the sale of such shares is also recognised in equity, with any
difference between the proceeds from sale and the original cost being taken to revenue reserves. No gain or
loss is recognised in the performance statements on the purchase, sale, issue or cancellation of equity shares.
Merger accounting and the merger reserve
Prior to 1 January 2013, certain significant business combinations were accounted for using the pooling of
interests method (or merger accounting), which treats the merged groups as if they had been combined
throughout the current and comparative accounting periods. Merger accounting principles for these combinations
gave rise to a merger reserve in the balance sheet, being the difference between the nominal value of new shares
issued by the Parent Company for the acquisition of the shares of the subsidiary and the subsidiary’s own share
capital and share premium account. These transactions have not been restated, as permitted by the IFRS 1
transitional arrangements.
The merger reserve is also used where more than 90% of the shares in a subsidiary are acquired and the
consideration includes the issue of new shares by the Company, thereby attracting merger relief under the
Companies Act 1985 and, from 1 October 2009, the Companies Act 2006.
The merger reserve of £55.9m was created on acquisition of Computacenter (UK) Limited on 14 October 1995 by
Computacenter plc. Immediately following the acquisition, this merger reserve was reduced to nil in the Group’s
Consolidated Financial Statements due to the write off of goodwill arising on the consolidation of Computacenter
(UK) Limited.
As disclosed in note 8, the issued share capital was increased by £109.0m by the issue of deferred shares of 0.01p
each (the ‘New Deferred Shares’). The New Deferred Shares were issued through capitalisation of the merger
reserves and the dividend in specie made to the Company by Computacenter (UK) Limited in December 2020 in
respect of shares in Pivot Technology Solutions, Ltd (together the ‘Capitalised Amount’). This reduced the
Company’s merger reserve of £55.9m to nil.
Notes to the Company Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 235
GLOSSARY
3 Critical accounting estimates and judgements
The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Company’s
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions
and estimates are significant to the financial statements, are disclosed below.
Due to the inherent uncertainty in making these critical judgements and estimates, actual outcomes could
be different.
Recoverability of investments
On an annual basis the Company is required to perform a review of its investments to identify if indicators of
impairment or impairment reversal exist. If such indicators are identified, the Company compares the net
carrying value to the recoverable amounts of the relevant investments, based on a value-in-use calculation.
The value-in-use determination requires the Company to estimate the future cash flows expected to arise from
the investee, which include estimates of future performance, and a suitable discount rate applied in order to
calculate the present value.
The main assumptions used in the calculation of the recoverable amount are revenue growth and contribution
margin (resulting in annual earnings before interest and tax (“EBIT”)) and the discount rate.
Recoverability of investments has been included as a critical estimate in the current year as the impairment
reversal recognised for the Company’s investment in Computacenter France SAS (CC France) means that
estimates used in determining its value-in-use are sensitive enough to affect the calculation materially.
A 5% decrease in EBIT over the five-year forecast would decrease the impairment reversal recorded for CC France
by £7.5m and a 5% increase in EBIT over this same period would increase the impairment reversal by £7.5m. A 1%
increase in the discount rate would decrease the impairment reversal recorded for CC France by £4.4m and a 1%
decrease in the discount rate would increase the impairment reversal by £5.4m. No other reasonably possible
changes in the value-in-use calculations would see material change in the carrying value of any other
investments in subsidiary undertakings.
4 Intangible assets
Intellectual
property
£m
Cost
At 1 January 2023 and 31 December 2023 169.7
Accumulated amortisation
At 1 January 2023 161.5
Charge in the year 8.2
At 31 December 2023 169.7
Net book value
At 31 December 2023 –
At 31 December 2022 8.2
Notes to the Company Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023236
GLOSSARY
5 Investment properties
Freehold land
and buildings
£m
Cost
At 1 January 2023 and 31 December 2023 42.4
Accumulated depreciation
At 1 January 2023 31.5
Charge in the year 1.0
At 31 December 2023 32.5
Net book value
At 31 December 2023 9.9
At 31 December 2022 10.9
Investment property represents a building owned by the Company that is rented under a short-term rolling
arrangement to Computacenter (UK) Ltd, a wholly-owned subsidiary of the Company. Rental income during the
year was £4.2m (2022: £4.2m).
The fair value of investment property amounted to £32.2m at 31 December 2023 (2022: £33.5m). The fair values
for disclosure purposes have been determined using either the support of qualified independent external valuers
or by internal valuers with the necessary recognised and relevant professional qualification, applying a
combination of the present value of future cash flows and observable market values of comparable properties.
Management’s most recent external valuation of this property took place in February 2016. As this property is
rented to a subsidiary and is carried at depreciated cost value, an updated external valuation was not sought at
31 December 2023.
Notes to the Company Financial Statements continued
For the year ended 31 December 2023
6 Investments
Investments in
subsidiary
undertakings
£m
Loans to
subsidiary
undertakings
£m
Total
£m
Cost
At 31 December 2022 597.0 2.8 599.8
Additions 17.4 – 17.4
Adjustment relating to a disposed subsidiary (23.4) (0.7) (24.1)
Share-based payments 5.4 – 5.4
At 31 December 2023 596.4 2.1 598.5
Amounts provided
At 31 December 2022 (reported) 122.0 2.8 124.8
Adjustment (note 13) (11.1) – (11.1)
At 31 December 2022 (restated) 110.9 2.8 113.7
Adjustment relating to a disposed subsidiary (23.4) (0.7) (24.1)
Reversed during the year (31.8) – (31.8)
At 31 December 2023 55.7 2.1 57.8
Net book value
At 31 December 2023 540.7 – 540.7
At 31 December 2022 (restated) 486.1 – 486.1
During the year, the Company made an investment of $21.2m into Computacenter Holdings Inc., a wholly-owned
US subsidiary, by way of a capital contribution.
The carrying values of investments are reviewed annually or when events or changes in circumstances indicate
that the carrying value may not be recoverable. The Company assesses if such indicators exist at the end of each
reporting period by considering external and internal factors including whether the carrying amount of an
investment exceeds the investee’s net assets or if a dividend exceeds the total comprehensive income of the
investee. The Company also evaluates its investments annually for any indicators of impairment reversal.
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 237
GLOSSARY
6 Investments continued
During the year there was a merger of our wholly owned subsidiaries, Computacenter France SAS and
Computacenter NS (hereinafter ‘Computacenter France SAS’). Following this, and against the backdrop of continually
improving forecasts for Computacenter France SAS and Computacenter NV/SA (another wholly owned subsidiary),
the Company concluded that there has been a favourable change in estimates previously used to determine
the recoverable amounts when the last impairment loss was recognised on the investments. Consequently,
the Company compared the net carrying value to the recoverable amounts of these investments, based on a
value-in-use calculation. The Company also assessed if the favourable change had an impact in the prior year,
which is disclosed in note 13.
The Company has determined that an impairment reversal of £31.8m should be recognised in 2023, which has
been included within the current year’s profit of £131.2m.
The discount rates used in the estimates of value in use were:
• Computacenter France SAS: 12.2% (previous estimate: 12.0%)
• Computacenter NV/SA: 14.1% (previous estimate: 8.0%)
Details of the principal investments at 31 December in which the Company holds more than 20% of the nominal
value of ordinary share capital are given in note 18 to the Consolidated Financial Statements.
7 Trade and other payables
2023
£m
2022
£m
Accruals – 0.3
Amount owed to subsidiary undertaking 65.8 52.0
65.8 52.3
8 Issued share capital and reserves
Share capital
Issued and fully paid
7⁵⁄₉p
ordinary
shares
No. ’000
0.01p
deferred
shares
No. ‘000
Total
£m
At 1 January 2022 and 1 January 2023 122,688 – 9.3
Deferred shares issued during the year for the capitalisation
of reserves – 10,895,383.8 109.0
Deferred shares capital reduction – (10,895,383.8) (109.0)
At 31 December 2023 122,688 – 9.3
During the year, the issued share capital was increased by £109.0m by the issue of deferred shares of 0.01p each
(the ‘New Deferred Shares’). The New Deferred Shares were issued through the capitalisation of the following
reserves (together the ‘Capitalised Amount’) in the Company:
i. an amount of up to £55.9m, being the full amount standing to the credit of the merger reserve account of the
Company as at 31 December 2022 (being the date of the latest audited accounts of the Company); and
ii. an amount of up to £53.1m, being part of the amount standing to the credit of the Company’s retained earnings
reserve as at 31 December 2022 (being the date of the latest audited accounts of the Company) and
attributable to the dividend in specie made to the Company by Computacenter (UK) Limited in December 2020
in respect of shares in Pivot Technology Solutions, Ltd.
The Capitalised Amount was applied in paying up in full and at par 10,895,383,765 New Deferred Shares in the
capital of the Company.
These New Deferred Shares were allotted and issued to a nominee appointed by the Company on behalf of the
holders of ordinary shares entered in the register of members of the Company at the Capitalisation Record Time
(in proportion, as nearly as practicable to the aggregate nominal amount of the ordinary shares held by such
holders at the Capitalisation Record Time, subject to such adjustments as the Directors saw fit to deal with any
fractional entitlements).
The holders of the New Deferred Shares were conferred no material rights from the New Deferred Shares,
including no rights to receive any dividend or other distribution of the Company, nor any right to participate in the
profits of the Company, with further details of these rights limitations available within the 2023 Notice of General
Meeting. The New Deferred Shares were then subject to a Capital Reduction and creation of distributable reserves
within the Company for £109.0m.
Capital redemption reserve
The capital redemption reserve is used to maintain the Company’s capital following the purchase and
cancellation of its own shares. During the year, the Company repurchased nil of its own shares for cancellation
(2022: nil).
The High Court of Justice of England and Wales on 20 June 2023 confirmed an application for a Capital Reduction
that subsequently became effective on 21 June 2023 following the necessary regulatory filings. This Capital
Reduction reduced the Company’s Capital Redemption Reserve of £75.0m to nil and created distributable
reserves for this same amount.
Notes to the Company Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023238
GLOSSARY
9 Financial liabilities
Bank loans
On 9 December 2022, Computacenter Group entered into a new multi-currency revolving loan facility of £200.0m
in order to rationalise its treasury operations. The new facility has a term of five years plus two one-year extension
options exercisable on the first and second anniversary of the facility. The Company paid arrangement fees of
£2.5m which are included within Prepayments on the Balance Sheet and are being amortised over the term of the
facility. The facility was not used and the amount outstanding as at 31 December 2023 was nil (2022: nil).
10 Auditor’s remuneration
All auditor’s remuneration is borne by Computacenter (UK) Ltd, a wholly-owned UK subsidiary of the Company.
The amount payable to the auditor in respect of the audit of the Company is £1.1m (2022: £0.2m).
Following a tender process carried out in 2022 by the Company, KPMG LLP stepped down as auditor of the
Company and Grant Thornton UK LLP was appointed as auditor for the year ended 31 December 2023. Therefore,
the amount payable to the auditor for 2023 and 2022 is based on services provided by each firm in the respective
year. The Company is exempt from providing details of non-audit fees as it prepares Consolidated Financial
Statements in which the details are required to be disclosed on a consolidated basis (see note 7 to the
Consolidated Financial Statements).
11 Employee costs
The average number of Directors employed during the financial year was 2 (2022: 2) who are remunerated
through other Group companies. The Company has no other employees.
12 Distributable reserves
Dividends are paid from the standalone balance sheet of Computacenter plc, and as at 31 December 2023 the
distributable reserves are approximately £474.1m (2022: £257.4m). Previously reported distributable reserves
for 2022 of £246.3m have increased by £11.1m due to the prior-year adjustment (note 13).
13 Impairment reversal
Based on reviews in previous years, the Company had recorded a cumulative impairment of £94.7m relating to
investments in two wholly-owned subsidiaries, Computacenter France SAS and Computacenter NV/SA.
As disclosed in note 6, the Company compared the net carrying value of these investments to their recoverable
amounts. Based on this analysis, the Company determined that an impairment reversal of £11.1m relates to the
prior year and this has been reflected by restating each of the affected financial statement line items for the year
ended 31 December 2022.
The following summarises the impact on the Company’s financial statements.
(i) Company Balance Sheet as at 31 December 2022
As previously
reported
£m
Adjustment
£m
Restated
£m
Investments 475.0 11.1 486.1
Others 21.7 – 21.7
Total assets 496.7 11.1 507.8
Retained earnings 427.0 11.1 438.1
Others 16.5 – 16.5
Shareholders’ equity 443.5 11.1 454.6
Net assets 443.5 11.1 454.6
(ii) Company Statement of Changes in Equity for the year ended 31 December 2022
The above adjustment of £11.1m has been reported within profit for the year of £158.2m in the Company
Statement of Changes in Equity for the year ended 31 December 2022. There is no tax impact as a tax deduction
was not claimed on the initial recording of the impairment loss and, therefore, the subsequent reversal will not
result in any additional tax.
There is no impact on the Computacenter Group’s retained earnings and basic/diluted earnings per share for the
year ended 31 December 2022, and no impact on the total assets, net assets and shareholders’ equity position as
at 31 December 2022.
(iii) Opening Balance Sheet as at 1 January 2022
The above adjustment has no impact on the Company Balance Sheet or Computacenter Group’s Consolidated
Balance Sheet as at 1 January 2022.
Notes to the Company Financial Statements continued
For the year ended 31 December 2023
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 239
GLOSSARY
Group five-year summary results
As of 31 December
2019
£m
2020
£m
2021
£m
2022
£m
2023
£m
Revenue 5,052.8 5,441.3 5,034.5
*
6,470.5 6,922.8
Adjusted operating profit 151.5 206.4 262.8 269.1 271.5
Adjusted profit before tax 146.3 200.5 255.6 263.7 278.0
Profit for the year 101.6 154.2 186.5 184.2 199.4
Adjusted diluted earnings per share 92.5p 126.4p 165.6p 169.7p 174.8p
Adjusted net funds 137.1 188.6 241.4 244.3 459.0
Average monthly number of full-time equivalent employees 15,816 16,764 17,496 18,708 19,576
* Revenue for the year ended 31 December 2021 has been restated to reflect the change in revenue recognition policies relating to software licences and third-party services agreements resold on a standalone basis following the finalisation of an agenda decision by the IFRS
Interpretation Committee.
Group five-year summary balance sheet
As at 31 December
2019
£m
2020
£m
2021
£m
2022
£m
2023
£m
Tangible assets 101.4 107.0 90.0 94.1 96.1
Right-of-use assets 110.9 129.6 138.1 119.4 104.5
Intangible assets 175.6 274.7 273.7 342.1 322.4
Investment in associate 0.1 0.1 0.1 0.1 0.1
Deferred tax asset 9.2 10.1 30.2 11.3 11.6
Non-current trade and other receivables
*
– – – 9.9 21.1
Non-current prepayments 3.5 23.6 16.6 19.4 10.3
Inventories 122.2 211.3 341.3 417.7 216.0
Trade and other receivables (including income tax receivables)
*
996.5 1,105.9 1,263.5 1,698.4 1,510.6
Prepayments and accrued income
*
176.3 228.2 251.1 259.7 291.6
Derivative financial instruments 3.3 1.6 3.6 7.5 2.5
Cash and short-term deposits 217.9 309.8 285.2 264.4 471.2
Current liabilities
*
(1,257.8) (1,586.2) (1,763.2) (2,210.6) (1,972.3)
Non-current liabilities (166.6) (184.8) (185.4) (161.4) (136.3)
Net assets 492.5 630.9 744.8 872.0 949.4
* Refer to note 2 for restatement of prior-year comparatives.
Group five-year financial review
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023240
GLOSSARY
Financial calendar
Title Date
AGM 14 May 2024
Ex-dividend date 6 June 2024
Dividend record date 7 June 2024
Dividend payment date 5 July 2024
Interim results announcement 9 September 2024
Board of Directors
Peter Ryan (Non-Executive Chair)
Mike Norris (Chief Executive Officer)
Chris Jehle (Chief Financial Officer)¹
Tony Conophy (Chief Financial Officer)²
Philip Hulme (Non-Executive Director)
Ljiljana Mitic (Non-Executive Director)
Peter Ogden (Non-Executive Director)
Ros Rivaz (Senior Independent Director)
Pauline Campbell (Non-Executive Director)
René Carayol (Non-Executive Director)
1. Appointed on 1 June 2023.
2. Retired on 1 June 2023.
Principal bankers
Barclays Bank plc
1 Churchill Place
Canary Wharf
London
E14 5HP
United Kingdom
Tel: +44 (0) 345 7345 345
HSBC Bank plc
8 Canada Square
London
E14 5HQ
United Kingdom
Tel: +44 (0) 345 740 4404
Auditor
Grant Thornton UK LLP
30 Finsbury Square
London
EC2A 1AG
United Kingdom
Tel: +44 (0) 20 7383 5100
Company Secretary
Simon Pereira
Registered office
Hatfield Avenue
Hatfield
Hertfordshire
AL10 9T W
United Kingdom
Tel: +44 (0) 1707 631000
Stockbrokers and investment bankers
J.P Morgan
25 Bank Street
Canary Wharf
London
E14 5JP
United Kingdom
Tel: +44 (0) 20 7742 4000
Jefferies International Limited
100 Bishopsgate
London
EC2N 4JL
United Kingdom
Tel: +44 (0) 20 7029 8000
Registrar and transfer office
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
United Kingdom
Tel: +44 (0) 371 384 2027
Solicitor
Linklaters LLP
One Silk Street
London
EC2Y 8HQ
United Kingdom
Tel: +44 (0) 20 7456 2000
Company registration number
03110569
Internet address
Computacenter Group
www.computacenter.com
Corporate information
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 241
GLOSSARY
Principal offices
UK and Group headquarters
Computacenter plc
Hatfield Avenue
Hatfield
Hertfordshire
AL10 9T W
United Kingdom
Tel: +44 (0) 1707 631000
Belgium
Computacenter NV/SA
Ikaroslaan 31
B-1930 Zaventem
Belgium
Tel: +32 (0) 2 704 9411
France
Computacenter France SAS
229 rue de la Belle Étoile
ZI Paris Nord II
BP 52387
95943 Roissy CDG Cedex
France
Tel: +33 (0) 1 48 17 41 00
Germany
Computacenter AG & Co. oHG
Computacenter Park 1
50170 Kerpen
Germany
Tel: +49 (0) 2273 5970
Computacenter AG
Kattenbug 2 50667 Köln
Germany
Tel: +49 (0) 22142 07430
Computacenter Germany AG & Co. oHG
Werner-Eckert-Str. 16-18
81829 München
Germany
Tel: +49 (0) 8945 7120
Hungary
Computacenter Services Kft
Haller Gardens, Building D.
1st Floor Soroksári út 30-34
Budapest 1095
Hungary
Tel: +36 1 777 7488
India
Computacenter India Private Limited,
4th Floor, Purva Premiere
Residency Road,
Bangalore 560025
India
Tel: +91 95386 11122
Japan
Computacenter Japan K.K.
Cross Office Mita 601
5-29-20 Shiba
Minato-ku Tokyo
Japan
Tel: +81 3 6809 3032
Malaysia
Computacenter Services (Malaysia) Sdn Bhd
Level 9, Tower 1
Puchong Financial Corporate Centre
Jalan Puteri 1/2, Bandar Puteri
47100 Puchong
Selangor Darul Ehsan
Malaysia
Tel: +603 7724 9626
Mexico
Computacenter México S.A. de C.V.
Av. Paseo de la Reforma, No. 412-5
Col. Juárez
Delegación Cuauhtémoc
CP 06600
México City
México
Tel: +52 (55) 6844 0700
Netherlands
Computacenter B.V.
Gondel 1
1186 MJ Amstelveen
Netherlands
Tel: +31 (0) 88 435 8000
Romania
Computacenter Services S.R.L.
Stables Office
20A Onisifor Ghibu
Record Park
Cluj-Napoca, CJ 400185
Romania
South Africa
Computacenter (Pty) Ltd
Building 1
Klein D’Aria Estate
97 Jip de Jager Drive
Bellville, 7530
Cape Town
South Africa
Tel: +27 (0) 21 957 4900
Spain
Computacenter Services (Iberia) S.L.U.
Carrer de Sancho De Avila 52-58
08018 Barcelona
Spain
Tel: +34 936 207 000
Switzerland
Computacenter AG
Riedstrasse 14
CH-8953 Dietikon
Switzerland
Tel: +41 (0) 43 322 40 80
United States of America
Computacenter United States, Inc.
1 University Avenue
Suite 102, Westwood
MA 02090
United States of America
Tel:+ 1 800-228-8324
Pivot Technology Solutions, Inc.
6026 The Corner Parkway, Suite 100
Norcross, GA 30092
United States of America
Tel: +1 800-228-8324
Business IT Source, Inc.
850 Asbury Drive
Buffalo Grove
IL 60089
United States of America
Tel: +1 847-793-0600
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023242
GLOSSARY
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 243
GLOSSARY
Glossary
Contents
Alternative performance measures 244
Terminology 246
Disclaimer: Forward looking statements 247
Alternative Performance Measures are used by the Group to understand and manage performance. These are not
defined under International Financial Reporting Standards (IFRS) or UK-adopted International Accounting
Standards (UK-IFRS) and are not intended to be a substitute for any IFRS or UK-IFRS measures of performance but
have been included as Management considers them to be important measures, alongside the comparable
Generally Accepted Accounting Practice (GAAP) financial measures, in assessing underlying performance.
Wherever appropriate and practical, we provide reconciliations to relevant GAAP measures. The table below sets
out the basis of calculation of the Alternative Performance Measures and the rationale for their use.
Measure Description Rationale
Adjusted net funds
and net funds
Adjusted net funds or adjusted net debt includes
cash and cash equivalents, other short- or
long-term borrowings and current asset
investments. Following the adoption of IFRS 16,
this measure excludes all lease liabilities
recognised under IFRS 16.
Net funds is adjusted net funds including all lease
liabilities recognised under IFRS 16.
A table reconciling this measure,
including the impact of lease
liabilities, is provided within note
31 to the Consolidated Financial
Statements.
Measure Description Rationale
Adjusted (expense
and profit) measures
Adjusted administrative expense, adjusted
operating profit or loss, adjusted profit or loss
before tax, adjusted tax, adjusted profit or loss,
adjusted earnings per share and adjusted diluted
earnings per share are, as appropriate, are each
stated before: exceptional and other adjusting
items, including gains or losses on business
acquisitions and disposals, amortisation of
acquired intangibles, utilisation of deferred tax
assets (where initial recognition was as an
exceptional item or a fair value adjustment on
acquisition), and the related tax effect of these
exceptional and other adjusting items.
• Recurring items include purchase price
adjustments, including amortisation of
acquired intangible assets and adjustments
made to reduce deferred income arising on
acquisitions and acquisition-related items.
Recurring items are adjusted each period
irrespective of materiality, to ensure
consistent treatment.
• Non-recurring items are those that
Management judge to be one-off or non-
operational, such as gains and losses on the
disposal of assets, impairment charges and
reversals, and restructuring related costs.
Adjusted measures exclude
items which in Management’s
judgement need to be disclosed
separately by virtue of their size,
nature or frequency to aid
understanding of the
performance for the year or
comparability between periods.
Adjusted measures allow
Management and investors
to compare performance
without these recurring or
non-recurring items.
Management does not consider
these items when reviewing the
underlying performance of the
Segment or the Group as a whole.
A reconciliation to adjusted
measures is provided on page 49
of the Chief Financial Officer’s
review, which details the impact
of exceptional and other adjusted
items when compared to the
non-GAAP financial measures,
in addition to those reported
in accordance with IFRS.
Further detail is provided within
note 4 to the Consolidated
Financial Statements.
Constant currency We evaluate the long-term performance and
trends within our strategic KPIs on a constant-
currency basis. The performance of the Group and
its overseas Segments are also shown, where
indicated, in constant currency. The constant
currency presentation, which is a non-GAAP
measure, excludes the impact of fluctuations
in foreign currency exchange rates.
We believe providing constant
currency information gives
valuable supplemental detail
regarding our results of
operations, consistent with how
we evaluate our performance.
Alternative performance measures
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023244
GLOSSARY
Measure Description Rationale
Free cash flow Free Cash Flow is Cash Flow from Operations minus
net interest received, interest and payments
related to lease liabilities, income tax paid and
gross capital expenditure.
To measure the cash generated
by the operating activities during
the period that is available to
repay debt, undertake
acquisitions or distribute to
shareholders.
Gross invoiced
income and IFRS
revenue
Gross invoiced income is based on the value of
invoices raised to customers, net of the impact
of credit notes and excluding VAT and other sales
taxes. Gross invoiced income includes all items
recognised on an ‘agency’ basis within revenue,
on a gross income billed to customers basis,
as adjusted for deferred and accrued revenue.
A reconciliation of revenue to gross invoiced
income is provided within note 4 to the
Consolidated Financial Statements.
IFRS revenue refers to revenue recognised in
accordance with International Financial Reporting
Standards including IFRS 15 ‘ Revenue from
Contracts with Customers’ and IFRS 16 ‘Leases’.
Gross invoiced income reflects
the cash movements to assist
Management and the users of the
Annual Report and Accounts in
understanding revenue growth
on a ‘principal’ basis and to assist
in their assessment of working
capital movements in the
Consolidated Balance Sheet and
Consolidated Cash Flow Statement.
This measure allows an alternative
view of growth in adjusted gross
profit, based on the product mix
differences and the accounting
treatment thereon.
Measure Description Rationale
Organic (revenue and
profit) measures
In addition to the adjustments made for adjusted
measures, organic measures:
• exclude the contribution from discontinued
operations, disposals and assets held for sale
of standalone businesses in the current and
prior period;
• exclude the contribution from acquired
businesses until the year after the first full
year following acquisition; and
• adjust the comparative period to exclude
prior-period acquired businesses if they were
acquired part-way through the prior period.
Acquisitions and disposals where the revenue
and contribution impact would be immaterial are
not adjusted.
Organic measures allow
management and investors to
understand the like-for-like
revenue and current-period
margin performance of the
continuing business.
The result for the year benefited
from £221.4m of revenue (2022:
£187.1m), and £9.3m of adjusted
profit before tax (2022: £7.1m),
resulting from all acquisitions
made since 1 January 2022.
All figures reported throughout
this Annual Report and Accounts
include the results of these
acquired entities. The results of
these acquisitions are excluded
where narrative discussion refers
to ‘organic’ growth in this Annual
Report and Accounts.
Product order
backlog
The total value of committed outstanding purchase
orders placed with our technology vendors against
non-cancellable sales orders received from our
customers for delivery within 12 months, on a gross
invoiced income basis.
The Technology Sourcing backlog,
alongside the Managed Services
contract base and the
Professional Services forward
order book, allows us visibility of
future revenues in these areas.
Return on capital
employed (ROCE)
ROCE is calculated as adjusted operating profit,
divided by capital employed, which is the closing
total net assets excluding adjusted net funds.
As an indicator of the current
period financial return on the
capital invested in the Company.
Alternative performance measures continued
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023 245
GLOSSARY
Terminology
Term Meaning
Annual reporting and financial terminology
AGM Annual General Meeting
CAGR Compound Annual Growth Rate
CGU Cash Generating Unit
DTR Disclosure Guidance and Transparency Rules
EBITDA Earnings Before Interest Taxes Depreciation and
Amortisation
EBT Employee Benefit Trust
EPS Earnings Per Share
ETR Effective Tax Rate
EU European Union
H1/H2 First half/second half of the year
IFRS International Financial Reporting Standards
KPI Key Performance Indicator
LTIP Long Term Incentive Plan
OECD Organisation for Economic Co-operation and
Development
PBT Profit Before Tax
PSP Performance Share Plan
% per cent
m millions
p pence
Term Meaning
Technology terminology
DC Data Center
DaaS Device as a Service
SaaS Software as a Service
AI Artificial Intelligence
CRM Customer Relationship Management
ERP Enterprise Resource Planning
Computacenter terminology
TS Technology Sourcing
MS Managed Services
PS Professional Services
Services Managed Services and Professional Services that
Computacenter delivers
VAR Value-added reseller
BITS Business IT Source Holdings, Inc.
Emerge Emerge 360 Japan k.k (Emerge) and subsidiaries
Pivot Pivot Technology Solutions Ltd. and subsidiaries
Group The term Group refers to Computacenter plc and its
subsidiaries
Company Computacenter plc
ONE CC Computacenter intranet site
Our Purpose Computacenter plc Purpose Statement
Public Sector Central and local government
Segments IAS8 Reporting Segments
ITL ITL logistics GmbH
RDC R.D. Trading Ltd, our Circular Services business
Term Meaning
Management terminology
CEO Chief Executive Officer
CFO Chief Financial Officer
Management The Group Executive Management Team
ELT Executive Leadership Team
NED Non-Executive Director
ED Executive Director
HR Human Resources
ESG terminology
GHG Greenhouse Gas
TCFD Task Force on Climate-Related Financial Disclosures
ESG Environmental, Social and Governance
CDP Carbon Disclosure Project
D&I Diversity and Inclusion
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
Computacenter plc Annual Report and Accounts 2023246
GLOSSARY
This Annual Report and Accounts includes statements that are, or may be deemed to be, ‘forward-looking
statements’. These forward-looking statements can be identified by the use of forward-looking terminology,
including the terms ‘anticipates’, ‘believes’, ‘estimates’, ‘expects’, ‘intends’, ‘may’, ‘plans’, ‘projects’, ‘should’ or ‘will’,
or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy,
plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that
are not historical facts. They appear in a number of places throughout this Annual Report and Accounts and
include, but are not limited to, statements regarding the Group’s intentions, beliefs or current expectations
concerning, amongst other things, results of operations, prospects, growth, strategies and expectations of its
respective businesses.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events
and circumstances. Forward-looking statements are not guarantees of future performance and the actual
results of the Group’s operations and the development of the markets and the industry in which it operates or
are likely to operate and its respective operations may differ materially from those described in, or suggested by,
the forward-looking statements contained in this Annual Report and Accounts. In addition, even if the results of
operations and the development of the markets and the industry in which the Group operates are consistent with
the forward-looking statements contained in this Annual Report and Accounts, those results or developments
may not be indicative of results or developments in subsequent periods. A number of factors could cause results
and developments to differ materially from those expressed or implied by the forward-looking statements,
including, without limitation, those risks in the risk factor section of this Annual Report and Accounts, as well
as general economic and business conditions, industry trends, competition, changes in regulation, currency
fluctuations or advancements in research and development.
Forward-looking statements speak only as of the date of this Annual Report and Accounts and may, and often do,
differ materially from actual results. Any forward-looking statements in this Annual Report and Accounts reflect
the Group’s current view with respect to future events and are subject to risks relating to future events and other
risks, uncertainties and assumptions relating to the Group’s operations, results of operations and growth strategy.
Neither Computacenter plc nor any of its subsidiaries undertakes any obligation to update the forward-looking
statements to reflect actual results or any change in events, conditions or assumptions or other factors unless
otherwise required by applicable law or regulation.
Disclaimer: forward-looking statements
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Computacenter plc Annual Report and Accounts 2023 247
Computacenter is a leading independent technology and services
provider, trusted by large corporate and public sector organisations.
We are a responsible business that believes in winning together for our
people and our planet. We help our customers to Source, Transform and
Manage their technology infrastructure to deliver digital transformation,
enabling people and their business. Computacenter plc is a public
company quoted on the London Stock Exchange (CCC.L) and a member
of the FTSE 250. Computacenter employs over 20,000 people worldwide.
Computacenter plc
Tel: +44 (0) 1707 631000
www.computacenter.com
E&OE. All trademarks acknowledged.
© 2024 Computacenter.
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