It may be bewildering figuring out which shares to purchase. In spite of everything, it’s not possible to undertake detailed analysis on all of them. So why did I just lately put money into one which, regardless of being a member of the FTSE 100, I reckon only a few folks have heard of? Let’s see…
What?
Admittedly, Computacenter (LSE:CCC) sounds a little bit old style. In my thoughts, I image a big warehouse piled excessive with bins of PCs.
The truth is, the corporate provides the IT tools that’s serving to to gasoline the expansion of information centres, the constructing blocks of AI. In some respects, it’s on the forefront of the fourth industrial revolution. However that’s not all it does.
Its Know-how Sourcing (TS) division, which accounted for over 80% of income in 2025, additionally provides bread-and-butter {hardware} and software program, in addition to important networking options.
How’s it doing?
Final month (9 July), the group issued a buying and selling replace for the primary half of 2026. It stated it now expects to ship a full-year revenue earlier than tax that’s “comfortably” forward of analysts’ expectations.
It attributed its success to “stronger than anticipated” quantity progress with its hyperscale prospects. Though it doesn’t reveal who these are, the group’s an authorised reseller for Amazon, Microsoft, and Alphabet (Google).
It additionally reported an order ebook that was “effectively forward” of the £7.1bn disclosed at 31 December 2025. Additional particulars will likely be supplied in early September.
Measurement issues
Crucially, there are only a few suppliers on the planet able to assembly the wants of hyperscalers. Computacenter claims to be the world’s sixth-largest value-added reseller of IT. It says it has 215 “main prospects”, outlined as these contributing greater than £1m of gross revenue a yr.
Over the previous 5 years, reported income has steadily elevated:
- 2021: £5.035bn
- 2022: £6.471bn
- 2023: £6.923bn
- 2024: £6.965bn
- 2025: £9.194bn
Except 2024, adjusted earnings per share has additionally been getting into the best course:
- 2021: 165.6p
- 2022: 169.7p
- 2023: 174.8p
- 2024: 159.9p
- 2025: 175.1p
Regardless of this, I’m aware that the consensus of analysts is that the group’s share worth is at present (1 August) bang on the cash.
Proper place, proper time
Nevertheless, it’s clear that the group’s step-change efficiency in 2025 comes at a time when spending on computing energy, fuelled by AI, is growing quickly. Certainly, it acknowledged this when it stated “additional AI-related initiatives” contributed to the “wonderful progress” in its TS enterprise.
In fact, this is also Computacenter’s Achilles’ heel. Any slowdown (or worse) and the group could be badly affected. Nevertheless, in the intervening time no less than, this doesn’t look like a problem.
My view
Computacenter has a robust foothold in an AI market the place capital expenditure goes by the roof. In accordance with the Monetary Occasions, the Massive 4 hyperscalers are anticipated to spend $725bn on knowledge centres in 2026. I’m positive because of this the group’s administrators have upgraded their expectations for the yr.
Importantly, the corporate’s stability sheet stays robust. Excluding lease liabilities, it had simply £22.5m of borrowings. That’s tiny for a enterprise with a market-cap of £5bn. Adjusted web funds have been £606m. It additionally pays (no ensures) a modest dividend.
That’s why I just lately purchased some Computacenter shares. For a similar causes, others might think about including some to their very own portfolios.
Must you make investments £5,000 in Computacenter Plc proper now?
When investing professional Mark Rogers and his group have a inventory tip, it may possibly pay to hear. In spite of everything, the flagship Twelfth Magpie Share Advisor publication he has run for practically a decade has supplied 1000’s of paying members with high inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that traders ought to think about shopping for. Need to see if Computacenter Plc made the listing?
James Beard owns shares in Computacenter plc.
