Computacenter Annual Report 2021

FY2021 Annual Report · Computacenter

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Computacenter plc
Annual Report and
Accounts 2021

ENABLING
SUCCESS

1981-2021

Computacenter at a glance

Our types of revenue

Computacenter has an integrated offering which provides three
complementary entry points for our customers, giving us a balanced
business portfolio and helping us to achieve long-term growth.

SOURCE:
Technology Sourcing
We help our customers to determine
their technology needs and, supported
by our technology partners, we arrange
the commercial structures, integration
and supply chain services to meet
them reliably.

Revenue characteristics
We earn revenue from large contracts,
with thinner margins and lower visibility.

Technology Sourcing revenue £m
+26.2%

5,274.9

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.

MARKHAM, ON, CANADA

Revenue characteristics
Our revenue depends on our forward
order book, which contains a multitude
of short, medium and long-term projects.

SAN FRANCISCO, CA, USA

LIVERMORE, CA, USA

Professional Services revenue £m
+29.9%

MEXICO CITY, MEXICO

DALLAS, TX, USA

MANAGE:
Managed Services
We maintain, support and manage IT
infrastructure and operations for our
customers, to improve quality and
BRUSSELS, BELGIUM
flexibility while reducing costs.

BODEGRAVEN, NETHERLANDS

HATFIELD, MILTON KEYNES,
NOTTINGHAM, SHEFFIELD, UK

Revenue characteristics
HATFIELD, BRAINTREE, UK
Our revenue under contract has high
visibility and is long term and stable.

HATFIELD, UK, EMEA

BARCELONA, SPAIN

GONESSE, PARIS, FRANCE

Managed Services revenue £m
+7.5%

LYON, MONTPELLIER,
PARIS, PERPIGNAN, FRANCE

552.4

ATLANTA, GA, USA

ALPHARETTA, GA, USA

898.5

2021
2020
2019
2018
2017

5,274.9
4,180.1
3,822.2
3,177.6
2,636.2

2021
2020
2019
2018
2017

552.4
425.4
366.1
321.9
319.2

2021
2020
2019
2018
2017

898.5
835.8
864.5
853.1
838.0

Worldwide reach and customer focus

SERVICE CENTERS

INTEGRATION CENTERS

COMPUTACENTER’S COVERAGE

REGIONAL HEADQUARTERS

BODEGRAVEN, NETHERLANDS

BRUSSELS, BELGIUM

HATFIELD, MILTON KEYNES,
NOTTINGHAM, SHEFFIELD, UK

HATFIELD, BRAINTREE, UK

HATFIELD, UK, EMEA

BARCELONA, SPAIN

GONESSE, PARIS, FRANCE

LYON, MONTPELLIER,
PARIS, PERPIGNAN, FRANCE

MARKHAM, ON, CANADA

INDIANAPOLIS, IN, US

SAN FRANCISCO, CA, US

LIVERMORE, CA, US

DALLAS, TX, US

MEXICO CITY, MEXICO

ATLANTA, GA, US

ALPHARETTA, GA, US

POZNAN, POLAND

CLUJ, ROMANIA

BUDAPEST, HUNGARY

BERLIN, DRESDEN, ERFURT,
KERPEN, GERMANY

KERPEN, GERMANY

CAPE TOWN, SOUTH AFRICA

ZURICH, SWITZERLAND

BANGALORE, INDIA

KUALA LUMPUR, MALAYSIA

KUALA LUMPUR, MALAYSIA, APAC

POZNAN, POLAND

CLUJ, ROMANIA

BUDAPEST, HUNGARY

BERLIN, DRESDEN, ERFURT,

KERPEN, GERMANY

CAPE TOWN, SOUTH AFRICA

ZURICH, SWITZERLAND

BANGALORE, INDIA

KUALA LUMPUR, MALAYSIA

KUALA LUMPUR, MALAYSIA, APAC

SERVICE CENTERS

70
9

INTEGRATION CENTERS

REGIONAL HEADQUARTERS

COMPUTACENTER’S COVERAGE

We SOURCE, TRANSFORM and MANAGE technology for our customers
in 70 countries worldwide
8

Our Purpose – Enabling Success

Our Purpose is Enabling Success by building long-term trust with our
customers, our partners, our people and our communities. If we do
this, we will earn the trust and loyalty of our shareholders.

WE’RE PROUD
OF WHAT WE’VE
ACHIEVED

• Together, we’ve created a can-do culture
where people matter and are encouraged
to thrive.

• Our business has grown in capability,

reach and reputation.

• We’ve built powerful partnerships with the

world’s leading technology partners.
• We deliver digital technology to some of
the world’s greatest organisations.

WE CAN HELP
OUR CUSTOMERS
DELIVER FASTER

• Our customers can be confident in our

skills and solutions.

• They can trust our independence

and experience.

• Our partners can rely on our reach

and scale.

• This means we can help customers
make wise choices in a complex and
changing world.

AND TOGETHER,
BECOMING
THE BEST

• We’ll understand what our customers
need so we remain fundamental to
their success.

• We’ll work hard to keep our promises and
always be honest and straightforward.
• We’ll build more collaborative relationships
and continue to treat people as we expect
to be treated.

• We’ll act for the long term and always

strive to improve what we do.

BUT WE
COULD BE
EVEN BETTER

• We have many opportunities to
better enable our people and
improve our business.
• As we grow, we need to

remain agile and relevant to
our customers.

• We must never forget what
makes us different and why
customers rely on us.

BY ACTING
WITH PACE AND
CONFIDENCE

• We are giving our teams the freedom to
make responsible decisions that meet
customer needs faster.

• Investing to make our services more

innovative and competitive.

• Building on the capabilities of our

people, supported by better systems
and processes.

• Focusing on delivering digital

technology at scale, where we can play
to our strengths.

WE’LL BE THE
TRUSTED ENABLERS
OF SUCCESS

• Our customers will strongly recommend
us for the way we help them achieve
their goals.

• We’ll be the preferred route to market for

technology partners.

• People will want to join and stay with us,
and be proud of our reputation, as we
learn, earn and have fun.

• We’ll be a trusted, agile and innovative
provider of digital technology around
the world.

2021
highlights

Our strong financial and operational performance in 2021 has been facilitated by the consistent implementation of our
strategy. It has also been underpinned by our focus on the long-term consequences of our decision-making across the
organisation, and the actions we have taken to understand the needs, views and interests of our stakeholders.

Following the very strong growth of adjusted1 diluted earnings per share that the Company achieved in 2020, we grew
again by over 30 per cent in constant currency2 during the year. Our profit results for both the first and second halves
of the year are individually greater than any full-year profit we achieved prior to 2019.

We have achieved improvement across each of the four key metrics that the Board uses to measure performance
against our strategic priorities.

We have seen progress in the delivery of our sustainability strategy, Winning Together for our people and our planet.
Our Scopes 1 and 2 carbon emissions have fallen by 62 per cent in 2021, from 13,856 metric tonnes of CO2e in 2020
to 5,210 metric tonnes, we were certified as a Top Employer across a number of our major operating geographies,
and we were recognised at the CRN Women in Channel Awards 2021 for our community outreach programme.

We continue to work diligently to enable the consistent delivery of value for our stakeholders, and make decisions
to ensure the long-term sustainable success of our organisation and the achievement of Our Purpose.

Revenue £m
+23.6%

6,725.8

Dividend per share Pence
+30.8%

66.3

Profit before tax £m
+20.0%

248.0

2021
2020
2019
2018
2017

6,725.8
5,441.3
5,052.8
4,352.6
3,793.4

2021
2020
2019
2018
2017

66.3
50.7
10.1
30.3
26.1

2021
2020
2019
2018
2017

248.0
206.6
141.0
108.1
111.7

Adjusted1 profit before tax £m
+27.5%

Diluted earnings per share Pence
+20.3%

Adjusted1 diluted earnings per share
Pence +31.0%

255.6

160.9

165.6

2021
2020
2019
2018
2017

255.6
200.5
146.3
118.2
106.2

2021
2020
2019
2018
2017

160.9
133.8
89.0
70.1
66.5

2021
2020
2019
2018
2017

165.6
126.4
92.5
75.7
65.1

The result for the year benefited from £1,105.1 million of revenue (2020: £232.6 million), and £13.9 million of adjusted1 profit before tax (2020: £3.3 million), resulting from all acquisitions
made since 1 January 2020. 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.

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, 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, as 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 71 of the Group Finance Director’s review, which details the impact of exceptional and other adjusted items when
compared to the non-Generally Accepted Accounting Practice (GAAP) financial measures, in addition to those reported in accordance with IFRS. Further detail is provided within note 4
to the Consolidated Financial Statements, Segment Information.

We evaluate the long-term performance and trends within our strategic priorities 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.
We calculate constant currency percentages by converting our prior-year local currency financial results using the current year average exchange rates and comparing these
recalculated amounts to our current year results or by presenting the results in the equivalent local currency amounts. Wherever the performance of the Group, or its overseas
Segments, are presented in constant currency, or equivalent local currency amounts, the equivalent prior-year measure is also presented in the reported pound sterling equivalent,
using the exchange rates prevailing at the time. 2021 highlights, as shown above, are provided in the reported pound sterling equivalent.

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. A table reconciling this measure, including the impact of lease liabilities, is provided within note 31 to the Consolidated Financial Statements,
Analysis of Changes in Net Funds.

Gross invoiced income is based on the value of invoices raised to customers, net of the impact of credit notes. This reflects the cash movements from revenue, 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 Statement of Financial Position 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. 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,
Segment Information.

The term Group refers to Computacenter plc and its subsidiaries.

ENABLING
SUCCESS
BY BUILDING
LONG-TERM TRUST

Centred around our
customers

Chief Executive’s strategic review

Strategic report
IFC 2021 highlights
02 Our customers
04 Chair’s statement
06
08 Our strategic priorities
10 Our approach to market
Our business model
17
Technology Sourcing
18
Managed Services and Professional
22
Services

26 Our Performance in 2021
40
62

Sustainability strategy
Task Force on Climate-related Financial
Disclosures
Section 172 statement
Non-financial information statement
Stakeholder engagement
Group Finance Director’s review
Principal risks and uncertainties

65
65
66
70
80

Who we are
Computacenter is a leading independent
technology partner, trusted by large
corporate and public sector organisations.

Our ambition
• Strongly recommended by customers for
the way we help them achieve their goals.

• The preferred route to market for our

What we do
We help our customers to Source,
Transform and Manage their technology
infrastructure, to deliver digital
transformation, enabling people and
their business.

technology partners.

• People want to join and stay with us, be

proud of our reputation, as we learn, earn
and have fun.

• Trusted as an agile and innovative

provider of digital technology around
the world.

Chair’s governance overview

Governance
87
88 Board of Directors
90 Corporate governance report
95 Nomination Committee report
97
Risk and internal control
Audit Committee report
99
106
Directors’ remuneration report
126 Directors’ report
131 Directors’ Responsibilities

Financial Statements
133

Independent Auditor’s Report to the
members of Computacenter plc
Consolidated Income Statement
Consolidated Statement of
Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes
in Equity
Consolidated Cash Flow Statement
Notes to the Consolidated Financial
Statements
Company Balance Sheet
Company Statement of Changes in Equity
Notes to the Company Financial
Statements
Group five-year financial review
Financial calendar
Corporate information
Principal offices

140
141

142
143

144
145

194
195
196

202
202
203
204

SOURCE

CIO
PEOPLE
BUSINESS

MANAGE

TRANSFORM

Strategic ReportAnnual Report and Accounts 2021OUR CUSTOMERS

This sample of customer stories illustrates
the trust that our customers place in
Computacenter and the skills and experience
of our people.

Computacenter ably demonstrated
why they are recommended by
Microsoft. Ageas UK now intends
to continue to work with
Computacenter to develop and
expand our partnership.
Mark Tyrrell
Ageas Insurance Limited

Computacenter met its
commitments on critical
projects throughout the
health crisis.
Olivier Jecker
CHU Bordeaux

We already had a strong
partnership with Computacenter,
but it was refreshing to see the
ideas they brought to the table
as part of the bidding process;
they didn’t just propose a
like-for-like service.
Sarah Hollis
Yorkshire Building Society

We have been working successfully
with Computacenter for a long time.
Our contacts are always happy to
think outside the box and establish
relationships with reference
customers. We’ve already reviewed
several other successful case studies.
Uwe R. Dietz
HUK-COBURG

Computacenter supported
us selecting and
implementing technology,
fully meeting our needs.
We have collaborated over
many years to achieve
our goals.
Bernd Huber
NetCom BW

Sichuuu

Computacenter TeraMach
was instrumental in
helping us build a world-
class network in a very
remote, isolated First
Nation community.
Peter Leaton
Sichuun Inc.

Computacenter can
provide IT experts of all
kinds, and we have taken
advantage of this.
Benjamin Stein
Hansgrohe SE

Computacenter are a long-
standing supplier and partner to
the CAA and their knowledge of
our environment and the
systems in use made them the
outstanding candidate to deliver
the project.
Simon Sheeran
Civil Aviation Authority

Computacenter’s Cisco® expertise
and maintenance services provide
great support for our server and
network components. The
cooperation with the on-site
technicians is as smooth as the
support from the partner services:
High-Touch Expert Care at Cisco®.
Torsten Nöcker
Arvato Systems

Computacenter has done
something no other partner or
OEM has been able to do, through
the team’s perseverance and
willingness to ‘do the right thing’.
Staying focused on the mission,
proof of concept and strategic value
speaks highly of Computacenter’s
maturity as a partner.
Allan Lamkin
Paul Hastings

We gave Computacenter an
opportunity to show what they
were capable of, and they
approached it in a really, really
professional way, delving into so
many areas we wouldn’t have
been able to do in-house.
Stephanie Roddy
Kellogg’s

Chair’s
statement

ENABLING
SUCCESS
BY DELIVERING
CONSISTENT
GROWTH

We are unwavering
in our focus on
continuing to
strengthen and grow
Computacenter to
enable the success of
all our stakeholders.

Peter Ryan
Chair

Strategic Report
Annual Report and Accounts 2021

We are extremely concerned and saddened
by the ongoing situation in Ukraine following
the invasion by Russia. We offer our deepest
sympathies and support to Ukraine.
Computacenter will be launching a campaign
page for its employees to donate to Disaster
Emergency Committee (DEC) – Ukraine
Humanitarian Appeal. Computacenter will
make a corporate donation and also match
funds raised by our employees.

Sanctions have been widely imposed by a
number of national governments and the
European Union on the Russian Federation,
related organisations and individuals
(Sanctioned Parties). We have undertaken,
as a consequence, a review of our operations
to ensure that we are not directly or indirectly
conducting business activities with Sanctioned
Parties, supplying sanctioned or restricted
goods or software services, or conducting
business activities with individuals and
organisations who are known to be closely
related to Sanctioned Parties. We have also
implemented review processes to ensure that
we modify our activities to adhere to any future
changes in sanctions requirements.

Whilst the scope of our business in Russia and
Ukraine is extremely limited, we recognise the
likely short- to medium-term impact of the
situation on the global macro-economic
environment, including an exacerbation of
supply chain issues currently being experienced.

Computacenter in 2021
The Computacenter team continued to
execute incredibly well in 2021 and delivered
our 17th consecutive year of adjusted1 diluted
earnings per share (EPS) growth, which
was fitting as the Company celebrated its
40th anniversary.

Across the 40 years Computacenter has
navigated many trends in technology, adapted
to be able to deliver what customers valued,
evolved a culture that attracted great talent
and sustained an environment that persuaded
a significant number of our people to build
their careers here.

During this journey, the Company has
significantly expanded its technology partner
base, services portfolio, geographic markets
and customers it serves. This has created the
foundation for the sustained growth we
delivered in 2021. We are also pleased with
the performance of the acquired American
businesses and the addressable market
potential that it highlights.

The continuing Covid-19 pandemic
The global pandemic has continued to weigh
heavily on our people, customers, partners
and communities around the world and we
send our thoughts and best wishes to all those
who have been affected. The leadership team
has resolutely focused on both the human

and business aspects of this crisis, and
the results from our recent employee
survey indicate that this difficult balance
was achieved.

Financial performance and dividend
Revenue for the full-year increased to £6,725.8
million (2020: £5,441.3 million), with the Group
generating adjusted1 profit before tax of
£255.6 million (2020: £200.5 million), and
adjusted1 diluted EPS of 165.6 pence (2020:
126.4 pence).

We are proposing an increase in the final
dividend to 49.4 pence per share, reflecting
both our performance and confidence in the
outlook for the Group. If approved by
shareholders at Computacenter’s 2022 Annual
General Meeting, this will bring the full-year
dividend for 2021 to 66.3 pence per share. This
represents an increase of 30.8 per cent over
that paid for 2020. This remains in line with
our stated long-term dividend policy of paying
a dividend that is covered between 2.0 and 2.5
times by adjusted1 diluted EPS.

The Group’s cash position finished strongly
at the end of the year, with adjusted net
funds3 of £241.4 million as at 31 December
2021. The Board continues to review our
approach to capital allocation, so that it
ensures balance sheet efficiency and
appropriate returns for shareholders. Whilst
our use of cash continues to prioritise the
organic growth and 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 2021
During 2021, there was one significant change
to the Board. Minnow Powell decided to retire
from his roles as Chair of the Audit Committee
and Non-Executive Director.

We followed a robust process to identify his
successor, led by the Nomination Committee
and assisted by an external search firm. This
produced an impressive and diverse list of
candidates and we were delighted to
announce the appointment of Pauline
Campbell as his successor as Audit Committee
Chair. Pauline had recently retired from a long
and successful career in the audit profession
with PwC.

Pauline’s appointment results in at least half
the Board (excluding the Chair) remaining as
Independent Non-Executive Directors. It also
means we have just over 33 per cent female
representation on the Board, in line with the
recommendations from the Hampton-
Alexander review.

Environmental, social and governance
The Board has continued its focus on
sustainability, diversity and inclusion and
ensuring our governance practices evolve.
These subjects are regarded as very
important by both the Board and the people
across Computacenter. You will find
considerable detail on our approach to
people (pages 44-51), planet (pages 52-61),
Governance (pages 86-131) and the
recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD)
(pages 62-64).

In terms of concrete commitments, we aim
to be Carbon Neutral in 2022 for Scopes 1 and
2 emissions. Scopes 1 and 2 emissions include
all of our direct emissions, such as our
facilities and some of our indirect emissions
such as electricity purchased. This will be
achieved by a combination of increases in our
own renewable energy generation, continued
investment in energy-efficient lighting and
equipment, the purchase of electricity
generated by renewable sources and the
purchase of carbon offsetting credits.

The Board has also agreed a target of being
Net Zero for Scopes 1, 2 and 3 emissions by
2040, ten years ahead of our previous target.
Scope 3 emissions include all other indirect
emissions, including our business travel and
transportation, as well as those from sources
that we do not own or directly control,
including our supply chain.

The year ahead
We are unwavering in our focus on continuing
to strengthen and grow Computacenter to
enable the success of all our stakeholders.
I thank them all for their continued trust
and support.

The demand drivers for our business look
strong as we enter 2022. Many market
commentators have noted a global
acceleration in the efforts of governments
and businesses to take advantage of the
opportunities afforded by digital
transformation. This is true across all areas
of how organisations run their internal
operations effectively and how they engage
with their customers and broader stakeholder
communities. In concrete terms, there is more
demand for technology and services to
support the vast array of transformation
projects and this, combined with our business
momentum, makes us believe that 2022 will
be another year of continued progress.

Peter Ryan
Chair
23 March 2022

Chief Executive’s
strategic review

ENABLING
SUCCESS
BY BUILDING
LONG-TERM TRUST

060606

I would like to take
this opportunity to
thank all of our people
for their hard work
and dedication, which
has been reflected
in the final result for
the year.

Mike Norris
Chief Executive Officer

STRATEGIC PRIORITIES

Strategic priority 1
To lead with and grow
our Services business

2021 was an excellent year for
Computacenter. Our relentless focus on
understanding and addressing the needs
of our customers, and taking decisions that
prioritise the long-term success of our
Company, has again served us well. Our strong
in-year growth has been underpinned by
recent investments we have made. These
have spread the business geographically,
increased our productivity, broadened the
range of offerings we deliver for our
customers, and positioned us well to take
advantage of buoyant market conditions
during the year.

Our focus remains on consistent financial
performance and the delivery of value for
our stakeholders. Following the very strong
growth of adjusted1 diluted EPS that the
Company achieved in 2020, we grew again by
over 30 per cent in constant currency2 during
the year. The Group has now doubled its profit
over the past three years, a feat we last
achieved in the middle of the 1990s, prior to
becoming a public company.

Our financial success can only be achieved
through the delivery of superb quality to
our customers. I would like to take this
opportunity to thank all of our people for their
hard work and dedication, which is reflected
in our financial outcome for 2021, as well
as a recent independent survey of client
satisfaction carried out by Whitelane Research.

There has been high demand for Professional
Services skills across the Group, as many of
our customers have continued to roll out new
digital solutions to their users and their own
customers. Our ability to recruit and retain
employees in this area is therefore crucial to
our success. At a Group level, Computacenter
recruited 3,200 new people into our business
in 2021, bringing our total number of
employees to over 18,000.

While Professional Services was the main
driver of Services growth during the year,
we also saw improved performance from
our Managed Services business. We have
strengthened our offerings to the
marketplace, grown our off-shore capability
and increased the use of automation to
deliver solutions to customers. These

measures have both improved service to our
customers and resulted in the highest gross
margins we have ever achieved in this area of
the business.

Technology Sourcing saw significant demand
for software and hardware across all of our
main operating geographies, as customers
invested in new technology to support their
businesses. While supply chain shortages
were an issue, these gave us an opportunity
to outperform our competition through the
performance of our well-developed supply
chain. Many of our larger customers are highly
reliant on deploying new technology and they
have taken to ordering much further in
advance. While this gives us greater visibility,
it has also meant an increase in the inventory
we are carrying. We do expect our inventory to
return to more normal levels as supply chain
constraints ease. We have continued to invest
in our Integration Centers to increase service
quality and throughput volumes, as we expect
demand to continue to grow.

Our German business had an outstanding
year and continues to go from strength to
strength, particularly in Professional Services
and Technology Sourcing. We performed
solidly in the UK, with some major renewals
and an outstanding performance from
Technology Sourcing. In France, although our
performance was slightly disappointing, we
successfully integrated the acquisition we
made in late 2020. The financial performance
of the acquisition was in line with expectations,
and we are confident we will turn this around
in the coming years. We saw a significant
upturn in performance from our Belgian
business, as well as better performances
from our businesses in the Netherlands
and Switzerland.

In North America, we have brought together
the acquisitions made in 2018 and 2020.
Although there remains work to do on
integrating back-office systems, the
Management teams are now highly integrated.
We are extremely excited by the opportunity
for future organic and inorganic growth in
North America and very pleased with the 2021
performance there.

Throughout 2021, we continued to invest in
our operations, particularly in India, Romania,
Poland and South Africa. We now have a total
workforce in near-shore and off-shore
operations of approximately 3,000 people.

The strong cash generation we have achieved
over many years continued last year, despite
the increase in inventory. The strength of
our balance sheet gives us strategic
options as we move forward, either through
further acquisitions or the return of cash to
our shareholders.

Our Management team remained unchanged
throughout 2021. Kevin James, who first
started at Computacenter in 1990 and has
been our Chief Commercial Officer for the last
four years, has decided to retire at the end of
the first quarter in 2022. I would like to thank
Kevin for his loyal and dedicated service to
Computacenter and congratulate John Beard,
who steps up into Kevin‘s role. John joined
Computacenter as a graduate trainee back
in 1995 and is a great example of our strength
in depth. Computacenter’s continued
investment in people over many years has
enabled this smooth transition, along with
many others, and holds us in good stead for
the future.

As always, I would like to thank our customers
for the faith they continue to show in us. We
will always remember that they have a choice.
Our job is to make sure that their decision to
place business with Computacenter above the
competition is the right one.

We look forward to the challenge of 2022 and
continuing our success.

Mike Norris
Chief Executive Officer
23 March 2022

Strategic priority 2
To improve our
Services productivity
and enhance our
competitiveness

Strategic priority 3
To retain and maximise
the relationship with
our customers over the
long term

Strategic priority 4
To innovate our
Services offerings
to build future
growth opportunities

Strategic ReportAnnual Report and Accounts 2021Our strategic priorities

Strategic priority 1

Strategic priority 2

To lead with and grow our
Services business

To improve our Services
productivity and enhance
our competitiveness

Services Contract Base £m
+2.9%

Services revenue generated per Services head £’000
+10.5%

821

2021
2020
2019
2018
2017

105.5

821
798
780
772
748

2021
2020
2019
2018
2017

105.5
95.5
91.2
87.4
88.5

We go into 2022 with a Contract Base of £821 million. Our
Managed Services business has seen more progress in 2021
than it has for a number of years and while customer demand
to reduce cost has continued the deflationary pressure on the
business, our efforts to win market share have more than made
up for this.

Progress in 2021
Our Contract Base was up from £798 million to £821 million in
constant currency at the end of 2021, which was entirely due to
organic growth. We have been pleased with how successfully
we have onboarded new contracts, from both a customer service
and financial viewpoint.

Target for 2022
The momentum that has built up in our business in 2021 and
the weakness of some competition in the marketplace gives us
confidence for further growth in the coming year. We must
continue our drive for automation and offshoring, to enhance our
competitiveness and win market share.

How we define Services Contract Base
This is the annual value of our committed Managed Services
contract spend as at the year end.

The prior-year comparatives are restated on a constant currency2
basis to provide a better indicator of underlying growth.

Technology encourages standardisation and commoditisation.
Organisations such as ours must therefore differentiate the
way we deliver value to customers. We do this by rigorously
applying effective processes and utilising the right resources,
including automation and robotics, in suitable locations.
This allows us to best meet the needs of our global customers,
at a competitive price.

Progress in 2021
The progress we have made in Services revenue per head over
the last few years, and particularly in 2021, has arguably been
our greatest success. This has enhanced our margin in both
Managed and Professional Services, due to high utilisation and
the steady growth in automation within our business, and is
highly encouraging.

Target for 2022
While we believe progress in this area will continue in 2022, any
further gains will be more difficult to achieve, given that we have
already removed significant problem contracts.

How we define Services revenue generated per Services head
This is our Group Services revenue divided by the number of
employees directly involved in providing either our Managed
Services or Professional Services offerings.

The prior-year comparatives are restated on a constant currency2
basis to provide a better indicator of underlying growth.

Strategic Report
Annual Report and Accounts 2021

Strategic priority 3

Strategic priority 4

To retain and maximise
the relationship with our
customers over the
long term

Number of customer accounts with contributions
of over £1 million
+6.5%

165

2021
2020
2019
2018
2017

To innovate our Services
offerings to build future
growth opportunities

Services revenue £m
+17.8%

1,451

165
155
131
116
107

2021
2020
2019
2018
2017

1,451
1,231
1,215
1,156
1,143

Computacenter focuses on the large account market in both
the public and private sectors, and looks to maintain these
customers for the long term. The number of large customers
we have is directly related to our long-term profitability.
Growing the number of customers who contribute more than
£1 million of margin is therefore a key driver for Computacenter.

Annual Services revenue, which comprises our Managed
Services and Professional Services businesses, is the key
measure for this strategic priority. Our portfolio and Services
development activities are focused on improving our
differentiation and building competitive advantage, laying
the foundation for future Services growth.

Progress in 2021
We finished 2021 with 165 customers generating greater than
£1 million of gross margin, up by 10 customers on the previous
year. This growth was entirely organic and particularly strong in
the UK and Germany, our most established businesses.

Target for 2022
We have invested heavily in our sales force across western
Europe over the last two years to enable further gains within our
established businesses, which we hope to see continue in 2022.
This is coupled with the significant upside opportunity in North
America, where the opportunity for market share gain is vast.

How we define customer accounts with contributions of
over £1 million
A customer account is the consolidated spend by a customer
and all of its subsidiaries. Where our customer account exceeds
£1 million of contribution to Group gross profit, it is included within
this measure.

The prior-year comparatives are restated on a constant currency2
basis to provide a better indicator of underlying growth.

Progress in 2021
The growth of 17.8 per cent was assisted by our two acquisitions
in November 2020. However, we still saw organic growth of 9.2 per
cent. While our Professional Services business continued its
strong gains of recent years, it was encouraging to see our
Managed Services business producing an enhanced performance.

Target for 2022
Our ability to hire people in our core geographies, particularly
certain skills, will always be key to growth within the Services
business. However, this is a challenge we have stepped up to in
recent years and we intend to continue to meet it. There is a major
opportunity to increase our Services share within our North
American business, which is very underdeveloped compared to
Europe. While this will take longer than a year, we are looking to
make progress in 2022.

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 currency2
basis to provide a better indicator of underlying growth.

Our approach to market

EVOLVING
A DIFFERENTIATED
AND COMPLETE
CUSTOMER OFFER

Our customers are confident in our skills and
capabilities to help them make the right choices in the
complex and fast-changing world of digital technology.
To maintain this trust, we invest to stay relevant and
competitive and ensure we have a complete offering
of services, which we can deliver at scale.

This section describes Computacenter’s breadth
of capability and our go-to-market messaging.

OUR COMPLETE
CUSTOMER OFFER
Our comprehensive capabilities help
customers to Source, Transform and
Manage digital technology across the
domains of workplace, applications &
data, cloud & data center, networking,
and security.
SOURCE
Our powerful partnerships with the leading
technology partners in the market allow us
to help our customers make informed and
wise choices in the selection of digital
technology. With the investments in our
Integration Centers, underpinned by our
people, systems and processes, we can
help our customers to integrate and deploy
digital technology at scale across the world.
Increasingly, our customers are asking us
to take more responsibility in this area and
help them deliver faster, both for their
people and to underpin the digital
strategies for their businesses.
TRANSFORM
By combining leading technology from our
technology partners with the skills of our
own project managers, consultants,
engineers and test facilities, we support
customers from initial planning through
to their digital transformations going live.

We provide end-to-end solutions and
Services, within or across the five
technology domains, which enable genuine
realisation of business goals. Our
engagements range from long-term
complex transformation programmes to
shorter-term or expert-leasing based
consulting and implementations.
MANAGE
We use a broad range of operational skills,
across our network of international Service
Centers and distributed engineering teams,
to operate and manage our customers’ IT.
This increases quality and flexibility, while
reducing costs. Our Services currently
deliver engagement and enablement for
over 3.7 million users.

Across all domains of our portfolio, we sell
defined Managed Services, with related
service-level agreements and either fixed
or consumption-based pricing. Where
customers want more flexibility or control,
we also provide support and skills on a
more transactional basis. Complementing
our Technology Sourcing services,
we offer a range of product lifecycle
and maintenance Services, often on
a per-device basis.

Members of the Group
Development team

SERVICE CENTERS
Our Service Centers deliver a range of
shared and dedicated capabilities including:

Service Desk
Our goal is to provide a faster and smarter
response to people. We deliver end-to-end
support, locally and globally, and provide
a ‘follow-the-sun’ service. Our global
Service Desks handle over 1.1 million
contacts per month, using 25 languages,
at a price point and quality tailored to meet
customer priorities. We leverage analytics,
chatbots and intelligent automation to
improve our agent productivity and each
customer’s experience.

Remote Infrastructure Management
The scale of our operation means we can
support users and systems anywhere in
the world, 24 hours a day, seven days a
week. From private and public clouds to
user devices, our infrastructure services
manage and improve availability,
performance and security.

Field & Maintenance Services
Our field engineering operations allow
customers access to both dedicated and
on-demand engineering to support both the
deployment of new technology and ongoing
support of both infrastructure and users.
Our engineering teams are supported by
partners in both our larger operating
countries and worldwide, allowing us to scale
quickly to meet peaks in customer demand
as well as offering customers global reach.
Our field engineering teams are supported by
maintenance logistics operations for
infrastructure support.

Professional Services Hubs
From our remote Professional Services Hubs
in Romania and India, we help customers
assess their current IT environment,
identify improvement potential, implement
and integrate new technologies, and
migrate solutions to the latest version
or a new platform.

Both the near-shore hub in Romania
(centred on Cluj and with a large portion of
German speakers) and the off-shore hub in
India (centred on Bangalore) give us access
to skills, as well as cost arbitrage benefits.

Integration Centers
Our Integration Centers act as a critical
link in supporting customers to manage
the deployment of new technology.
We provide logistical services including
stock-holding to help manage product
availability and schedule deliveries, as well
as technical services to configure and
integrate technology from different
technology partners.

These are complex and scalable operations,
underpinned by our IT infrastructure, and
provide a bridge between our Technology
Sourcing and our Services businesses.
As we continue to build our Integration
Center capabilities internationally, we can
also help customers to address their
sustainability challenges by minimising the
shipment distances for supply of product.

OUR BREADTH OF SKILLS
Our portfolio of Sourcing, Transformation
and Managed Services spans all relevant
infrastructure areas, ensuring our
customers have access to a reliable,
secure and flexible technology platform
to accelerate their business.

Workplace

Applications
& Data

Cloud &
Data Center

Networking

Security

SOURCE

TRANSFORM

MANAGE

Strategic ReportAnnual Report and Accounts 2021Our approach to market
continued

OUR STRATEGIC PROPOSITIONS
We reflect the voice of the customer by
consolidating our broad portfolio of
capabilities into four strategic go-to-market
propositions, designed to address an
emerging market trend with a specific value
proposition and vision.

Digital Me
Workplace
Designed for people and engineered for business, our
workplace solutions accelerate the digital agenda with
agile technology that unleash the power of people and
enable business success. Our solutions are increasingly
underpinned by analytics, artificial intelligence (AI)
and automation, to reduce cost and provide a proactive
digital experience.
• EquipMe: Appropriate technology for effective working

• EmpowerMe: Intuitive collaboration for increased

– Technology Sourcing
– Modern device management
– Application lifecycle management

productivity
– Cloud productivity suites
– Enterprise content management
– Collaboration solutions

preference
– Service Desk
– Smart on-site Services
– Analytics and automation

• AssistMe: Intelligent support aligned to personal

Digital Power
Cloud & data center
We provide sourcing, advisory and support Services that help
our customers to navigate their cloud and data centers,
building platforms that power their business. For some, this
means building out platforms that support the rapid growth
that their success in the global digital economy is delivering.

• Applications and data
• Service management platforms
• Cloud native platforms
• Multi-cloud
• Public cloud
• Server and storage
• Converged and hyperconverged infrastructure
• Software-defined infrastructure and networks
• Next generation data centers

EmpowerMe

INTUITIVE COLLABORATION
FOR INCREASED PRODUCTIVITY

EquipMe

AssistMe

APPROPRIATE TECHNOLOGY
FOR EFFECTIVE WORKING

INTELLIGENT SUPPORT ALIGNED
TO PERSONAL PREFERENCE

ACCELERATE DIGITAL BUSINESS

ADOPT PUBLIC CLOUD

ENABLE MULTI-CLOUD

MODERNISE THE DATA CENTER

Strategic Report
Annual Report and Accounts 2021

Digital Trust
Security
Our customers continue to face an ever-expanding cyber
threat landscape, with more demanding compliance
requirements and a shortage of security talent to address it.
We have the skills and partnerships to deliver end-to-end
security solutions, helping our customers protect their data
and information, secure their workplaces and people, defend
their technology platforms and achieve compliance and
manage IT risk. We enable public sector, industry and service
organisations to undertake digital transformation securely.

• Cyber defence Services
• Identity and access management
• Infrastructure security
• Workplace security
• Internet of Things (IoT) security
• Cloud security
• Industrial security
• IT governance, risk and compliance

Digital Connect
Networking
We provide Technology Sourcing, Professional Services and
Managed Services expertise, with innovation and delivery
across every aspect of enterprise networking for large
corporates and public sector organisations, from business-
critical data centers, to local and wide-area wireless,
to industrial networks.

• Software and automation are at the core of every

future-proof network architecture

• Increasing demand for unrestricted access to Services

and applications; anytime, anywhere

• Hybrid IT and multi-cloud becoming the norm for the

data center

• Increasing regulatory requirements and accelerated

demand for enterprise security

• People, devices and everyday objects connected, to

increase collaboration and efficiency

• New devices and smart sensors necessitate a different

approach to networking

ENABLINGMULTI-C L O
CENTER &
NETWOR K S

C L

ATA
D

I
R

I
L

I
S
I

ESS
R
KS

NTERPRISE

CONNEC

TIN

LOCAL
NET

W
I
D

I N D USTRIAL
N ET WORKS
DIGITAL
C C ELERATING

Our approach to market
continued

STAYING ABREAST OF CHANGES
IN THE GLOBAL MARKET
To stay competitive, our customers need to
respond faster and more effectively to
changing business conditions and
unpredictable external factors. This means
they have to innovate and enrich the digital
experiences of their people and customers,
in a secure and sustainable manner.

In turn, we need to act with pace and
confidence, to help our customers make the
most of their existing technology and select
new investments that support their digital
agenda, in this increasingly complex and
fast-changing environment.

This section looks at the major trends that
are changing our markets and considers our
competitive environment.

Five major trends are shaping our
markets worldwide.

THE COMPETITIVE MARKET
In addition to the major trends described
above, a number of factors are influencing
the way we compete in our markets.

Major trend 1
Speed
Agility becoming a
competitive advantage
While we see customers investing in IT,
they continue to face pressure to deliver
efficiencies and return on investment.
At the same time, what was on top of our
customers’ agendas yesterday may not
be there tomorrow: the global pandemic
has stressed the importance of
adaptability at pace. Organisations are
adopting new change methodologies,
and IT departments have to innovate at
speed, in order for their organisations to
remain serious contenders in the
marketplace. To do so, they are also using
technologies where service is primarily
provided with or through software, and
augmented with analytics and AI.

What this means for Computacenter
Being independent of our technology
partners remains a key strength for us.
We can assess our customers’ business
requirements quickly and help them to
select and integrate the appropriate
solution and service model, in an
increasingly complex environment. At the
same time, we need to keep up with the
pace of innovation and invest in new
skills, so that our offerings remain
relevant to our customers.

“In 2020, the Covid-19 pandemic gave
multiple organizations an impetus for
change, and it may be a catalyst for
changes already taking place in the
nature of work. The crisis has been for
many companies a wake-up call to finally
get moving. Now we see potential to go
beyond traditional transformation and
move toward agility.”

McKinsey & Company, Organizing for
speed: Agile as a means to
transformation in Japan, Nov. 2020

Major trend 2
Resilience
Ensuring secure digital delivery
The accelerated adoption of new and
sometimes immature technologies, as
well as remote working models during the
pandemic, increases the risk of security
and privacy breaches. Additionally, our
customers have to react to changing
regulatory requirements and security
legislation. To protect themselves from
financial and reputational losses and to
meet compliance requirements,
customers often implement rigid and
fragmented security concepts that
inhibit innovation and fast reactions to
market changes.

What this means for Computacenter
Our strong security practice, with over
200 security consultants, represents a
competitive advantage and differentiates
us from many of our competitors. We help
our customers to implement an end-to-
end security concept, allowing them to
stay ahead of criminal threats and remain
compliant with regulatory requirements.

“Technology plays a central role in society
today. It supports initiatives by business
and government, enables worldwide
communications and drives innovation.
As technology has become more prevalent,
so has the reality of cyber attacks
targeting corporations, governments and
individuals. Over the last five years, the
World Economic Forum has consistently
rated cyber attacks as a substantial global
risk and the latest reports from ENISA
further highlight the complexity of the
threat landscape, suggesting that these
attacks are increasingly sophisticated,
targeted and widespread.“

ENISA (European Union Agency for
Cybersecurity), Addressing the EU
Cybersecurity skills shortage and gap
through higher education, Nov. 2021

Market segments – Save to innovate
With IT budgets staying flat or growing very
slowly, IT decision makers need to reduce
costs in order to fund new digital initiatives.
Procurement departments also push to
reduce costs in existing contracts and
legacy platforms, which puts pressure on
renewals, and we therefore continue to
drive efficiencies in our scale operations to
remain competitive. This includes various
initiatives from implementing automation
to significant investments in our off-shore
Service Centers.

At the same time, we help Chief Information
Officers to select, implement and manage
technology platforms such as multi-cloud, big
data and the IoT, to become the foundation for
new digital business models and applications.
Our ability to select the right solutions from a
wide range of options, paired with our security
and networking skills, put us in a good position
to exploit these digital business markets.

Shifting buying centres
The traditional buying centres in our industry
are our customers’ IT and procurement
departments. However, customers are now

Major trend 3
Disruption
Technology innovation
delivering impact
Too often we see companies that fail to
move forward, allowing competition to
move in swiftly. There is no time to stand
still, especially with the rise of ‘unicorn’
businesses disrupting industries.
Thanks to the unparalleled speed of
technological advancement and mass
business digitalisation, start-ups are
now able to reach unicorn status in less
time than ever before, posing a real
challenge to traditional businesses.
Hence, organisations must connect their
business directly to the IT function and
the IT function must understand how its
services directly influence market share
and profits. This continues to drive new
ways of working, service delivery and
productivity, for both future unicorn
businesses and traditional organisations.

What this means for Computacenter
We have a competitive advantage
through our proximity to customers, our
long-term relationships with them, our
understanding of their business
requirements and our flexibility to provide
technology and service options specific
to those requirements. To continue
enabling success for our customers,
Computacenter will invest to build
vertical-specific skills and know-how.

“Emerging technologies have become key
enablers of competitive differentiation
and catalysts for transforming many
industries. Understanding shorter-term
technology trends, with proven use
cases and business outcomes, is just
the beginning of the value technology
innovation brings to the enterprise.”

Gartner, Predicts 2022: 4 Technology Bets
for Building the Digital Future, Dec. 2021

Major trend 4
Experience
Transforming customer
and employee experience
Disruption has accelerated the
requirement for new, digital experiences
for both customers and employees.
Both groups are becoming more diverse,
more mobile and more distributed, using
a large variety of devices, technologies
and applications to access their work
environment and to purchase products.
To improve both employee engagement
and customer satisfaction and loyalty,
organisations will have to explore
these new technologies and accelerate
their adoption.

What this means for Computacenter
Customers can benefit from our broad
technology skills, which include
automation solutions such as Blue Prism
and UiPath, as well as the ServiceNow
Centre of Excellence we built with the
acquisition of TeamUltra. Our end-to-end
portfolio covering front-end
collaboration tools and technologies,
as well as modern back-end application
platforms, is a true asset for supporting
customers to implement a seamless,
total experience for their employees
and customers.

“The adoption of digital technology and
migration to distributed enterprise,
where employees work from anywhere,
has been unprecedented during
2020/2021. For the hybrid or remote
digital worker, technology is the primary
means by which they interact with
colleagues, managers and customers.“

Gartner, Innovation Insight for the Digital
Employee Experience, Dec. 2021

Major trend 5
Sustainability
Social purpose influencing
strategic decision-making
Sustainability is becoming an important
factor in strategic decision-making for
our customers. Customers will want to
do business with responsible suppliers
who have the same level of commitment
to sustainability as themselves.

What this means for Computacenter
Computacenter’s sustainability strategy
‘Winning Together for our people and our
planet’ is closely linked to Our Values and
Our Purpose. It is based on three pillars:
People – supporting our people
and communities. We aim to deliver
positive social impact, with a focus on
our employees.
Planet – ensuring sustainable
operations. We take a responsible
approach across our operations,
including our direct and indirect
environmental impact and oversight
of our supply chain.
Solutions – offering sustainable
customer solutions. We help our
customers with their sustainability goals
through our service offerings with a
focus on Circular Services.

Our sustainability strategy is discussed
in more detail on page 40 of this report.

shifting to include other parts of their
business, as digital transformation rises to
the top of all their departments’ agendas.
While this shift is real and we are adapting
with new value propositions, we believe it is
happening slowly and our core Services will
continue to provide ongoing differentiation
and genuine value for our customers.

Substitutes
Organisations that had previously bought
their own networking and data center
infrastructure are now able to substitute
them with cloud-based services. This could

affect demand for our Technology Sourcing
business over the coming years. However, the
process of moving to the cloud offers
considerable Professional Services
opportunity and the knock-on effect for
customers’ network, security and workplace
environments will support growth in all parts
of our portfolio associated with those
technology areas. In addition, many
hyperscale cloud providers themselves are
among our customers.

Partner ecosystems
With shifting buying centres and the trend
to cloud computing and hybrid IT, customers
want solutions covering all aspects from
infrastructure to applications, as well as
business adoption. In response, we continue
to expand our portfolio, and our partnerships
in particular, building on those we already
have with the world’s leading technology
partners and the mature processes to adopt
partner technologies and take them to
market. We will also continue to integrate
services partners, to ensure a
comprehensive Services portfolio.

Strategic ReportAnnual Report and Accounts 2021Our approach to market
continued

HOW WE CREATE
SUSTAINABLE VALUE
Computacenter is a leading independent
technology partner, trusted by large
corporate and public sector organisations.
We help our customers to Source, Transform
and Manage their technology infrastructure
to deliver digital transformation, enabling
people and their business.

Our business model is customer-centric,
based on enabling success by building
long-term trust with our customers, our
people and our partners. This underpins
our value to our communities and our
shareholders. In doing so, we leverage the
long-term investment in our infrastructure
and physical assets and place great
confidence in the depth of skills and
knowledge of our teams.

Our customers
We deliver digital technology to some of the
world’s greatest organisations. Our target
market is the largest 1,000 corporate and
government organisations in each of the nine
countries in which we sell. Our operational
model supports this aim through having
account managers, sales specialists,
consultants, and project and service
managers aligned to our customers, to build
strong customer intimacy. We give our
customer teams the freedom to make
responsible decisions that meet customer
needs faster. The majority of our customers
have been trading with us for over 10 years,
showing the value of these trusted
relationships and our financial stability. We
have a balanced spread of business with most
of our customers, supporting them through
Technology Sourcing, as well as Professional
and Managed Services, as each part of our
customer offering supports the others.

More information about how we create value
is on pages 10 to 16.

Our people
Together, we have created a can-do culture
where people matter and are encouraged to
thrive. Computacenter employs over 18,000
people worldwide. This includes more than
5,000 engineers, 5,000 support operatives in
our Service Centers, 1,600 project and service
managers and 1,600 consultants. These
service delivery teams are backed by the skills
and experience of our sales and business
services teams. Our aim is that people want
to join and stay with us, and be proud of our
reputation, as we learn, earn and have fun.

More information about how we attract, retain
and develop our people is on pages 44 to 51.

Our partners
We have built powerful partnerships with the
world’s leading technology partners, who can
rely on our reach and scale. We are among the
largest partners in EMEA for each of the
technology partners, who are increasingly
recognising us for our achievements at a
global level. We use our technology
understanding to build solutions for our
customers across all parts of our portfolio.
We aim for our customers to be confident in
our skills and solutions and trust in our
independence and experience. This means we
can help our customers to make wise choices
in a complex and changing world.

Our brand
Our brand and reputation are underpinned
by our Winning Together Values. We maintain
a strong brand by putting customers first,
being straightforward, keeping promises
and considering the long term, while
understanding that people matter and
inspiring success.

Our Purpose is Enabling Success by building
long-term trust with our customers, people,
technology partners, and communities.
We aim to be strongly recommended by
customers for the way we help them achieve
their goals, ensuring customer referenceability.
Where we make acquisitions, we usually
transition the acquired business quickly to the
Computacenter brand and embed our values.

More information about our values can be
found on page 45.

Our infrastructure and physical assets
We sell to customers in nine countries and
have supporting near-shore and off-shore
operations in another seven countries. We
have entities or VAT registrations in another
eight countries or territories. We source for,
and support, customers across more than 70
countries worldwide. Our customers demand
that our operations are delivered to high
industry standards and we have a range of
ISO certifications, including ISO 27001, ISO
9001, ISO 20000-1, ISO 14001 and ISO 45001.

Our Service Centers and Integration Centers
are indicated on the map located on the inside
front cover of this document.

Our Service Centers help us to support our
Managed Services contracts. They are
underpinned by a common technology
infrastructure, to allow customers to be
supported by multiple centers.

Our Integration Centers allow us to stage, test
and integrate technology for our customers
around the world.

We have a number of underlying systems that
support our business, including our SAP ERP
solution, systems that connect us to our
customers’ sourcing functions, and systems
that underpin our Managed Services.

Our propositions
We drive engagement with our customers
through our strategic propositions, which are
underpinned by a range of service offerings
designed to deliver solutions to our customers.

More information about our partners and
Technology Sourcing is on pages 18 to 21.

More information about these can be found on
pages 12 to 13.

BUSINESS MODEL AT A GLANCE
Making all of the elements of our business model work together.

Our resources

The skills and
experience of our people

Digital technology
from our partners

Brand

Propositions

Infrastructure
and physical assets

Integration
Centers

Service
Centers

Sustainability
strategy

Financial
stability

Worldwide
reach

Our leverage

Vendor
independence

SOURCE

CIO
PEOPLE
BUSINESS

Reliable
infrastructure

MANAGE

TRANSFORM

Powerful
partnerships

Service
offerings

Scale

Delivery
quality

Our Purpose

Our Values

Target
market

Our customer offer sits at the
heart of our business model
See page 10 for more information.

Creating value for all our stakeholders

Customers

People

Communities

Partners

Shareholders

Strategic ReportAnnual Report and Accounts 2021Technology Sourcing

OUR PARTNERS
CAN RELY ON OUR
REACH AND SCALE

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 partners, we
provide the commercial structures, integration and
supply chain services to meet those needs reliably.
We earn revenue from large contracts, with thinner
margins and lower visibility than for Services, but
with amazing customer loyalty, which we earn
through reliability, agility and scale.

Integration Center – Livermore, United States
Our facility next to Silicon Valley, close to major
hyperscale customers.

Integration Center – Hatfield, United Kingdom
Technical Services: volume configuration.

OUR INTEGRATION CENTERS

Alpharetta,
United States

Bodegraven,
Netherlands

Brussels,
Belgium

Gonesse,
France

Hatfield,
United Kingdom

Kerpen,
Germany

Livermore,
United States

Zurich,
Switzerland

Members of the Group
Technology Sourcing team

Our customers are
increasingly relying
on our ability to help
them manage product
availability while
deploying technology
internationally and
at scale.

Kevin James
Group Chief Commercial Officer

• connect their people, data and IoT devices,
to better leverage existing know-how and
improve the efficiency and productivity of
their workforce.

Technology Sourcing is a service
We integrate and deploy across workplace,
data center, networking and security. Our
investment in Integration Centers in the
United Kingdom, Germany, France, Belgium,
the Netherlands and the United States gives
us the scale to meet the most demanding
customer requirements.

The importance to our customers of the scale
and resilience of our Integration Center
infrastructure was demonstrated in 2020 by
our ability to support their deployment of new
technology at incredible pace, in response to
the Covid-19 pandemic. The customer demand
for our Integration Center services has
continued through 2021 with high utilisation
and workload driven by both the volume of
customer deployment projects as well as
helping customers by managing inventory
availability, as global supply chains have
remained challenged.

We provide our customers with huge flexibility,
adapting our processes to fit their often very
specific quotation, order management,
shipment, receipt and documentation
requirements. This flexibility comes from our
significant long-term investment in our
people, systems and Integration Centers.
Our supply chain 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.

Growth drivers
A number of key drivers in the market are
underpinning our customers’ continuing
investment in new digital technology. In
particular, our customers want to:

• modernise their workplaces, to enable
people through better technology
that attracts and retains talent,
increases collaboration and drives closer
customer proximity;

• transform their legacy applications, data
centers and processes, and adopt cloud
technology, to be more scalable, flexible
and agile;

• ensure that their networks and

communications can support their
digitisation and future operational models
and that everything is secure; and

Integration Center – Kerpen, Germany
Long-term investment in the German market through our Kerpen facility which opened in 2020.

Strategic ReportAnnual Report and Accounts 2021Technology Sourcing
continued

Computacenter’s long-term investments in
systems and infrastructure have positioned
us as a trusted partner for major organisations
needing to deploy technology at scale. In 2021,
we have continued to invest in our capabilities:

• We have significantly upgraded the IT

network and security at each of our main
European Integration Centers to allow us
to download Autopilot configurations for
customers, reducing the time taken by
users when receiving new devices.
• We have gone live with a new export

compliance system across the Group that
automates the compliance process when
exporting items from an Integration Center
in one country to another.

• We have started the rollout of new

quotation and opportunity management
systems across the Group.

• In March 2021, we acquired ITL logistics,
a German business which employs 80
people, to strengthen our supply chain
capabilities in Germany and the European
Union. ITL logistics operates regional
warehouses where IT products are held,
configured, repaired and disposed of and
also operates its own IT logistics fleet with
technical couriers who deliver and collect IT
products across Europe. These capabilities
are being integrated into our supply chain
solutions and Circular Services solutions in
Germany, providing greater flexibility and
improved service levels for our customers.

Powerful partnerships
The increasing pace of technological change
and the diversity of the technology partner
landscape has made our technology partner
independence more critical to our customers.
We are trusted to provide impartial and
knowledgeable advice and to integrate
solutions comprising products from multiple
technology partners.

Computacenter is one of the largest value-
added resellers (VAR) worldwide for most of
the major technology partners. We invest
heavily in working closely with them, to ensure
we can effectively help our customers to
Source, Transform and Manage their IT
infrastructure. The breadth and depth of our
technology partnerships allows us to help our
customers navigate the complexity and speed
of change in the current market.

Our expertise in our technology partners’
solutions is significant, with our people
holding more than 12,000 technical
certifications. Our strong working
relationships and our desire to collaborate
and seek innovation and new services help us
remain relevant, so we are increasingly seen
as the partner of choice.

Through our close working relationships with
technology partners and major customers we
are helping to minimise the impact of global
industry supply chain issues, which we expect
to continue throughout 2022.

We are not just working with our established
technology partners. There is increasing
demand for new technology partners and
innovative approaches, which are often
integrated with core partner technology to
provide complete solutions. Our ability to
design, source, integrate, deploy and support
means we can add material value in delivering
new digital solutions. This is reflected in
another year of awards and recognition
across the Group.

For example:
Cisco – 14 awards overall including

– Global Enterprise Partner of the Year
– EMEAR Partner of the Year
– EMEA Security Partner of the Year
– DE Partner of the Year, Enterprise Partner

of the Year

– UK Partner of the Year, Enterprise Partner
of the Year, Security Partner of the Year

– FR Capital Partner of the Year
– BE CX Partner of the Year
– Canada Breakout Partner of the Year
Dell Technologies – EMEA Partner of the Year
F5 – DE Partner of the Year
HPE – US Solution Provider of the Year
HPE – Northern Europe Solution Provider
of the Year
HP Inc. – UK 5* Sustainability Award
Microsoft – Global Surface Partner of the Year
NetApp – Awarded Global Star Partner
NetApp – EMEA Partner of the Year
Samsung – UK Elite Partner of the Year
VMware – EMEA Partner of the Year

ITL logistics – Germany
The acquisition of ITL logistics in Germany helps improve our supply chain flexibility and service levels.

Strategic Report
Annual Report and Accounts 2021

Group annual sales event – Manchester, United Kingdom
Building Powerful Partnerships with the world’s leading technology partners.

Our established technology partners
We hold over 200 technology accreditations and our people hold over 12,000 technical certifications.

Gold Integrator

Managed Services and Professional Services

OUR CUSTOMERS
CAN BE CONFIDENT
IN OUR SKILLS AND
EXPERIENCE

We employ over 13,000 people globally to deliver services
to our customers. These range from IT strategy, advisory,
transformation and deployment services (Professional
Services) to support, maintenance and managed
services (Managed Services).

In 2021, we have
continued to
demonstrate the
resilience of our
infrastructure, the
benefits of the scale
of our operations
and the skills and
commitment of
our people.

Julie O’Hara
Group Delivery Director

SELECTION OF OUR
SERVICE CENTERS

Bangalore,
India

Barcelona,
Spain

Berlin,
Germany

Budapest,
Hungary

Cape Town,
South Africa

Kuala Lumpur,
Malaysia

Mexico City,
Mexico

Milton Keynes,
United Kingdom

Montpellier,
France

Poznan,
Poland

Members of the Group Delivery and Group
Commercial Management teams

2021 highlights include:
• Successful go-live of 23 new service

contracts, supporting customers across
more than 50 countries, including three
major new services.

• Significant expansion of our off-shore

Service Center in Bangalore, India, where we
now have 850 people at the end of 2021 and
will grow to over 1,200 in 2022.

• Expansion of our near-shore Service

Center in Poznan, Poland, where we expect
to have approximately 300 people by the
end of 2022.

• Reducing our Managed Services ‘cost to

serve’, to ensure we remain competitive in
the evolving market. This is demonstrated
by the increase in our Services revenue
per Services head of 10.5 per cent to
approximately £105,500 (see page 8),
demonstrating the progress in
services efficiency.

MANAGED SERVICES
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, 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 offer.
Customers ask us to reduce their costs by
running 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 Services, to the benefit of
our customers and our own business. As our
customers’ businesses continue to evolve and
be challenged, 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 have
continued to invest in improving and updating
the technology underpinning them. We have
completed the implementation of a
ScienceLogic-based support platform for

Group Delivery – London, United Kingdom
Group Delivery extended leadership team meeting.

our infrastructure operations and continued
development of our Artificial Intelligence,
Automation and Analytics (AIMY) collection
of tools.

We are also making a significant investment
in a ServiceNow-based global solution to
modernise the way in which we can deliver
workplace services, including Device-as-a-
Service (DaaS), integrating our services from
Service Centers, Integration Centers and field
engineering. We expect this solution to be
supporting key customers from 2022.

While the pandemic demonstrated the
resilience of our Services and infrastructure,
we are also investing to ensure that our core
IT Service Management (ITSM) systems are
modernised and allow us to provide the
capabilities our customers will need in the
future. Our new ITSM systems will start to be
available to some customers from 2022 but
the full replacement and migration
programme will take over three years,
minimising disruption to customers.

Our people have continued to show enormous
resilience and commitment in responding to
customer challenges through 2021, despite
the changing Covid-19 situation and
regulations in different countries. We are very
proud of what they have achieved. We have
continued to demonstrate the resilience of
our infrastructure, the benefits of scale of our
operations and the skills and commitment of
our people.

Strategic ReportAnnual Report and Accounts 2021Managed Services and Professional Services
continued

PROFESSIONAL SERVICES
We provide structured solutions and expert
resources to help our customers select,
deploy and integrate digital 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
clients 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 includes
some of our 5,000 engineering employees 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.

We see significant opportunity to grow our
Professional Services business across all our
portfolio areas, which are; workplace, data &
analytics, cloud & data center, networking,
and security.

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.

2021 highlights include:
• Our Professional Services revenue

exceeded £550 million for the first time.
• We delivered over 1,000 projects in 2021 for

the first time.

• We opened Professional Services hubs in

Romania and India and plan to scale these
to 400 people by the end of 2022.

MARKHAM, ON, CANADA

SAN FRANCISCO, CA, USA

LIVERMORE, CA, USA

DALLAS, TX, USA

MEXICO CITY, MEXICO

ATLANTA, GA, USA

ALPHARETTA, GA, USA

BODEGRAVEN, NETHERLANDS

POZNAN, POLAND

BRUSSELS, BELGIUM

HATFIELD, MILTON KEYNES,
NOTTINGHAM, SHEFFIELD, UK

HATFIELD, BRAINTREE, UK

HATFIELD, UK, EMEA

BARCELONA, SPAIN

GONESSE, PARIS, FRANCE

LYON, MONTPELLIER,
PARIS, PERPIGNAN, FRANCE

BANGALORE, INDIA

KUALA LUMPUR, MALAYSIA

KUALA LUMPUR, MALAYSIA, APAC

CLUJ, ROMANIA

BUDAPEST, HUNGARY

BERLIN, DRESDEN, ERFURT,

KERPEN, GERMANY

CAPE TOWN, SOUTH AFRICA

ZURICH, SWITZERLAND

OUR SERVICE CENTERS

SERVICE CENTERS

INTEGRATION CENTERS
SERVICE CENTERS

INTEGRATION CENTERS

COMPUTACENTER’S COVERAGE

REGIONAL HEADQUARTERS

MARKHAM, ON, CANADA

SAN FRANCISCO, CA, USA

DALLAS, TX, USA

MEXICO CITY, MEXICO

ATLANTA, GA, USA

HATFIELD, MILTON KEYNES,
NOTTINGHAM, SHEFFIELD, UK

HATFIELD, UK, EMEA

BARCELONA, SPAIN

LYON, MONTPELLIER,
PARIS, PERPIGNAN, FRANCE

SERVICE CENTERS

COMPUTACENTER’S COVERAGE

REGIONAL HEADQUARTERS

POZNAN, POLAND

CLUJ, ROMANIA

BUDAPEST, HUNGARY

BERLIN, DRESDEN, ERFURT,
KERPEN, GERMANY

CAPE TOWN, SOUTH AFRICA

BANGALORE, INDIA

KUALA LUMPUR, MALAYSIA

KUALA LUMPUR, MALAYSIA, APAC

Strategic Report
Annual Report and Accounts 2021

Group annual sales event – Berlin, Germany
Our customers and technology partners depend on our breadth of services skills and experience to deploy the latest digital technology at scale.

Engineering and Maintenance Services
We help customers support and maintain their technology across the world.

Our performance in 2021

GROUP

Revenue £m
+23.6%

6,725.8

Adjusted1 profit before tax £m
+27.5%

255.6

Revenue by business type

1. Source
78.4%

2. Transform

8.2%
3. Manage
13.4%

Financial performance
Our strong financial and operational
performance in 2021 saw the Company deliver
its 17th consecutive year of adjusted1 diluted
earnings per share growth. This continues to
demonstrate the resilience of our business
model, and reinforces our position as having
the largest Services business of any VAR,
as well as the largest VAR capability of any
Services business worldwide.

The Group’s revenues increased by 23.6 per
cent to £6,725.8 million (2020: £5,441.3 million)
and were 26.9 per cent higher in constant
currency2. This is the first time that the Group
has exceeded £6 billion of revenues in a year,
and saw revenues in the second half of the
year higher than any of the annual revenues
recorded by the Group up to and including
2016. Gross invoiced income4 increased by
21.1 per cent to £6,923.5 million (2020:
£5,715.0 million).

The Group has more than doubled its
adjusted1 profit before tax over the last three
years. This is the first time that we have
achieved such an increase since we have been
a public company. The Group made a profit
before tax of £248.0 million, an increase of
20.0 per cent (2020: £206.6 million). The
Group’s adjusted1 profit before tax increased
by 27.5 per cent to £255.6 million (2020:
£200.5 million) and by 31.5 per cent in
constant currency2. The adjusted1 profit
before tax results for both the first and
second halves of the year are individually
greater than any full-year adjusted1 profit
before tax we achieved prior to 2019 and each
would be the third-largest annual profit in the
Group’s history.

The difference between profit before tax and
adjusted1 profit before tax relates to the net
charge of £7.6 million (2020: gain of £6.1
million) from exceptional and other adjusting
items. In the current year, this comprises the
amortisation of the acquired intangible
assets resulting from the Group’s 2018

acquisition of FusionStorm and the 2020
acquisition of Pivot. Further information on
these can be found on page 73.

With the increase in the Group’s profit after
tax, the diluted earnings per share (EPS)
increased by 20.3 per cent to 160.9 pence for
the year (2020: 133.8 pence). Adjusted1 diluted
EPS, the Group’s primary EPS measure,
increased by 31.0 per cent to 165.6 pence
(2020: 126.4 pence) in 2021.

The result has benefited from £1,105.1 million
of revenue (2020: £232.6 million), and £13.9
million of adjusted1 profit before tax (2020:
£3.3 million), from all acquisitions made since
1 January 2020. All figures reported
throughout this Annual Report and Accounts
include the results of these acquired entities.
Excluding the impact of the acquisitions made
since 1 January 2020, revenues grew
organically by 10.9 per cent on a constant
currency2 basis.

Trading across all of our major geographies,
apart from France, was pleasing throughout
the year, with particular strength at the end
of the second quarter, and in our traditionally
strongest month of December.

The Group only received €0.2 million of
government employment-related assistance
during the year, which was entirely related
to the Group’s Belgian operations and ceased
in May 2021. A further $1.3 million was
recognised as a credit to the income
statement in North America during the year,
due to funds received relating to a payroll
protection programme in Pivot that was
applied for prior to acquisition. This has
subsequently been converted to a permanent
grant by the US Federal Government. The year
saw continuing, but reduced, challenges from
Covid-19, with most of our major geographies
experiencing lockdowns or restrictions on
office-based working during the year. The
vast majority of our employees worked from
home for significant periods during the year,

although we were generally able to perform
services on customer sites as required. We
thank all of our people for the flexibility and
dedication they have shown to cope with the
continually changing external environment
and acknowledge their successes, as they
have driven the Company to new heights
of performance.

The Group has seen business with key
industrial customers return to near pre-
pandemic levels, after this spend was largely
suppressed during 2020. Combined with
strong public sector activity, this has
continued to create organic revenue growth
opportunities for the Group. As in 2020, we
benefited from some Covid-19-related cost
savings, but to a much lower extent.
Additionally, there was no further pandemic-
related surge in spend on Technology
Sourcing, compared to the prior year. Whilst
demand has remained high, the driver has
shifted from short-term pandemic responses
to more medium-term re-engineering of IT
structures, as organisations employ digital
transformation to cope with the ever-evolving
technology landscape and increasing
cyber threats.

Revenues from public sector customers, such
as local and central government, increased by
10.1 per cent, against growth with non-public
sector customers of 29.9 per cent. Public
sector accounts have grown less than last
year, whereas demand from other customer
sectors has recovered strongly as the
marketplace normalises towards pre-
Covid-19 patterns. The public sector now
accounts for 28.2 per cent of our revenues
(2020: 32.0 per cent). While significant
volumes of this public sector business were at
lower than normal gross margins, particularly
through the first quarter of the year, we
maintained efficiencies and reduced costs
within business delivery areas, so that
margins remained very close to the record
levels seen in 2020.

Strategic Report
Annual Report and Accounts 2021

Throughout the year, product shortages
have materially impacted the supply of key
equipment for our customers, with some
orders being materially delayed or only partly
fulfilled. Whilst product availability increased
during December, the unexpected impact on
working capital through the year was
significant. Inventory levels have increased
across the business, as a result of carrying
stock for orders that we cannot deliver
without a critical part or, increasingly through
the year and particularly in North America,
where customers have ordered early and
subsequently delayed delivery, as data center
facilities are not ready. We do not expect
inventory to return to normal levels until there
is a longer-term supply improvement.

The Group had £341.3 million of inventory as
at 31 December 2021, an increase of 61.5 per
cent on the balance sheet as at 31 December
2020 of £211.3 million. Over three quarters of
this increase was attributable to our North
American Segment, which had closing
inventory of £212.5 million (2020: £103.2 million).

While supply has been restricted, demand
has continued to rise, with our product order
backlogs across all geographies at all-time
highs and considerably larger than at the end
of 2020. This gives us a high degree of
confidence that the Technology Sourcing
business will be well placed to benefit in the
year ahead.

The Group has seen significant currency
translation headwinds as the pound sterling
has strengthened against other currencies,
particularly the US dollar and the euro. This
has reduced profitability in the year. Had
exchange rates in 2021 been equivalent to the
average rates seen in 2020, adjusted1 profit
before tax would be £7.6 million higher, with
revenues £234.0 million higher in 2021.
Further information on currency impacts is
available on page 78 of the Group Finance
Director’s review.

We remain alert to ongoing product
shortages, and further strengthening of
the pound would create a stronger FX
translation headwind.

Looking at our performance by geography, the
UK in particular has seen very strong demand
continue from both public and private sector
customers, with increased software sourcing
and enterprise technology orders driving
growth. Professional Services growth has
surged, as customers have restarted delayed
projects and invested in the ongoing
transformation of their IT environments.

The German business has seen similar growth
patterns to the UK. Technology Sourcing
delivered good growth as large industrial
customers, particularly in automotive, have
returned to normal trading patterns with less
disruption from Covid-19. We were pleased to
sign a new supply framework agreement with
our largest customer in Germany, ensuring
that the partnership remains central to the
success of both businesses.

In North America, the mid-market customers
who materially reduced spend during 2020
continued to return and complemented our
ongoing and growing success with hyperscale
(data center-based) customers, driving good

Our strong financial
and operational
performance in 2021
saw the Company
deliver its 17th
consecutive year
of earnings per
share growth.

Mike Norris
Chief Executive Officer

Members of the Group
Executive team

Our performance in 2021
continued

overall organic revenue and profit
performance. The addition of the Pivot
acquisition in the second half of 2020 has
further contributed to the Segment, with a full
year of performance and complementary
capabilities that support our overall North
American growth ambitions.

The French business had a slightly
disappointing 2021, with reductions in
Technology Sourcing performance
compounding the impact of the previously
announced non-renewal of the Group’s largest
Managed Services contract. The integration
of Computacenter NS remains on track, with
the transition to our Group ERP system
successfully completed. Computacenter NS
performed in line with our forecasts and
contributed an adjusted1 loss before tax of
£3.8 million, which also worsened the overall
French Segment result. As we have noted
previously, we recognised an exceptional gain
of £14.0 million on consolidation of the
subsidiary in the 2020 Annual Report and
Accounts, following the acquisition of the
business. This gain arose from cash
maintained by the vendor within the acquired
balance sheet that was primarily to
compensate the Group for future losses.
Under IFRS it is not possible to allocate the
exceptional gain against future incurred
operating losses, but it is important to
remember when considering the commercial
context of the Computacenter NS
performance and our short to medium-term
expectations for the business. We consider
that the exceptional gain reflects the losses
that the acquired business will incur over the
medium term, as it is brought onto a
sustainable footing.

The International Segment has improved
significantly on 2020, with a good finish to
the year. All of the primary European trading
entities saw improved performance with
Belgium, Switzerland and the Netherlands
all experiencing encouraging growth in
both revenues and profitability, and the
commencement of a global contract with
a large industrial customer led from
the Netherlands.

With both organic and acquired revenues
increasing during the year, profits increased
as costs across the Group remained lower
than pre-Covid-19 levels and margins
remained high. Overall, Group gross margins
were broadly flat at 12.9 per cent of revenues
(2020: 13.2 per cent).

Administrative expenses increased by 20.5
per cent in constant currency2, significantly
behind the growth in gross profit as pre-
pandemic costs continued to return in a
controlled manner. As offices once again
re-open across our major geographies, we
expect costs to return but at a lower level
than before the Covid-19 crisis, with the
business having learned to be leaner and
more efficient.

Technology Sourcing performance
The Group’s Technology Sourcing revenue
increased by 26.2 per cent to £5,274.9 million
(2020: £4,180.1 million) and by 29.7 per cent
on a constant currency2 basis.

The result benefited from £977.5 million of
revenue from the acquisitions made since
1 January 2020 (2020: £212.0 million) with
£967.7 million of this as a result of the Pivot
acquisition (2020: £209.5 million). Excluding
these revenues, Technology Sourcing organic
revenue growth was 11.5 per cent on a
constant currency2 basis.

The UK Technology Sourcing business saw
continued excellent growth, with the focus
moving from workplace contracts driven by
the remote working needs of the Covid-19
environment to the higher margin
enterprise product.

In Germany, Technology Sourcing revenue
returned strongly to growth, in particular as
automotive and other industrial customers
increased spend through large framework
agreements, following the sector-related
Covid-19 and supply chain issues. We signed
a key framework agreement with our biggest
customer in Germany, allowing us to approach
2022 with confidence.

The French Technology Sourcing revenue
declined on an organic basis, due to
reduced demand in the year from some
major customers.

The North American Technology Sourcing
business saw revenues improve on an organic
basis. Our hyperscale customers have
significantly increased demand, and the
mid-market core of the business has
remained stable after a slowdown in 2020.
The acquisition of Pivot has added material
volume to the Segment, with the business
lines, geographical footprint and technical
capabilities almost entirely complementary
to the pre-acquisition US business. The
combined operation provides opportunities
to reach a wider addressable market and
to cross-sell across our portfolio.

Overall Group Technology Sourcing margins
reduced by 33 basis points during the year,
partially due to customer and product
mix changes.

Services performance
During the year we experienced the highest
growth in our Services revenue for the last 20
years. The Group’s Services revenue increased
by 15.0 per cent to £1,450.9 million (2020:
£1,261.2 million) and by 17.8 per cent on a
constant currency2 basis. Within this, the
Group’s Professional Services revenue
increased by 29.9 per cent to £552.4 million
(2020: £425.4 million), and by 33.1 per cent on
a constant currency2 basis, while the Group’s
Managed Services revenue increased by 7.5
per cent to £898.5 million (2020: £835.8
million), and by 10.1 per cent on a constant
currency2 basis.

The overall Services result benefited from
£127.6 million of revenue from the acquisitions
made since 1 January 2020 (2020: £20.6
million). Excluding these revenues, Services
organic revenue growth was 9.2 per cent
on a constant currency2 basis.

UK Services revenue saw good growth,
primarily due to a significant increase in
Professional Services with some new
Managed Services customers adding
momentum during the second half of the year.
Professional Services continued its strong
start to the year, as customers re-engaged
with our consultancy expertise to assist their
post-pandemic IT requirements. Managed
Services strengthened through the year, as
we converted opportunities within the still
healthy pipeline into contracts and continued
to realise efficiencies across the existing
portfolio.

Our German Managed Services have grown
strongly, as customer volumes have returned
to pre-Covid-19 levels with further contract
wins and expanded scopes within some
existing contracts. The Professional Services
business continues to see very strong growth
year after year, with the limiting factor being
the supply of appropriate resource. This has
been helped by the recent investment in our
near-shoring initiative in Romania.

Our French Services business saw further
sharp falls in Services revenue on an organic
basis. The French Professional Services
business is more reliant on on-site activity
than the equivalent businesses in the UK or
Germany and continues to face significant
disruption from Covid-19 and the resulting
government response. The French Managed
Services business declined, as expected,
following the non-renewal of a large global
outsourcing contract at the end of the
contract term in 2019, which did not impact
revenues until the second half of 2020.

While we live in uncertain times and much work
remains to be done, these investments and
current market conditions make us confident
that 2022 will be a year of further progress.

Given the profile of our profitability in 2021,
we have a more challenging comparison in the
first half of 2022 compared to the second,
due to the fact that an abnormally high
percentage of our profits came in the first
half of the year.

As a business, we feel as confident as we have
ever been about our target market, competitive
position and investment strategy, and we look
forward to the future in 2022 and beyond with
enthusiasm and excitement.

In North America, Professional Services
revenue has recovered as projects delayed by
Covid-19 restarted. Mid-market customers,
which generate much of the Professional
Services revenue in the US, were the weakest
business area during the pandemic and
experienced a recovery during 2021.

Overall Group Services margins increased by
60 basis points during the year. The continued
reduction of travel costs, lower subcontractor
costs and improved Professional Services
utilisation, coupled with improving Managed
Services volume, have all contributed to this
increase.

Outlook
The more than doubling of profits that
Computacenter has achieved over the last
three years has been the result of deliberate
actions that we have previously taken to
enable growth. Our acquisitions in North
America and Western Europe have materially
increased our total addressable market. The
organic investments we have made, including
the expansion of our sales force, recruiting
technical expertise and investing in systems
to enhance our productivity, have been
substantial. Collectively, these have put us in
a position to take advantage of the ongoing
buoyant market conditions, as our customers
invest in digitalising their businesses.

Group annual sales event – Manchester, United Kingdom
Mike Norris presenting to Computacenter teams.

Strategic ReportAnnual Report and Accounts 2021Our performance in 2021
continued

UNITED KINGDOM

Revenue £m
+9.9%

1,948.6

2021
2020
2019
2018
2017

Adjusted1 operating profit £m
+14.0%

102.9

Services Contract Base £m
+3.7%

311.2

1,948.6
1,773.4
1,597.0
1,611.3
1,468.2

Revenue by business type

1. Source
75.3%

2. Transform

7.9%
3. Manage
16.8%

Financial performance
Revenues in the UK business increased by
9.9 per cent to £1,948.6 million (2020:
£1,773.4 million) with gross invoiced income4
increasing by 5.8 per cent to £2,063.7 million
(2020: £1,949.8 million).

The UK business increased revenues in both
Technology Sourcing and Services. While the
global pandemic continues to create
challenges in some of our core markets,
we have seen acceleration in demand for
consultancy and project services, and in
software sourcing needs. We have also
secured some significant Managed Services
contracts, which will deliver benefit in the long
term. Although some existing contracts were
not renewed, overall, Managed Services
revenue saw good growth during the year.

During 2021, our customers increasingly
benefited from our expanded international
presence, to meet their global Technology
Sourcing and Services requirements.

We have continued to invest in our people,
further expanding our sales force to engage
new customers and drive growth through
existing customers. While we are already
seeing the benefit of new trading
relationships arising from this expansion,
the return will be realised through the
longer-term development of a broader client
base. This investment has helped to increase
the number of customers where we generate
greater than £1 million of gross profit, from
52 to 55 in 2021.

Our hybrid-working approach has proved
successful, which is reflected in our recent
employee engagement survey results. We are
pleased to have retained our unique culture
despite the challenges of remote working,
and proud to have been recognised as a Top
Employer in the UK. We continue to make
changes to our facilities to allow the gradual
return of our people to the office, whilst
our people continue to work flexibly and
collaboratively in line with our customers’ needs.

Overall margins in the UK reduced slightly by
29 basis points, with the gross profit margin
decreasing from 14.1 per cent to 13.8 per cent
of revenues. Gross profit grew by 7.6 per cent
to £268.2 million (2020: £249.2 million).
Adjusted1 administrative expenses increased
by only 4.0 per cent to £165.3 million (2020:
£158.9 million), significantly behind the
growth of the business. This is an increase
on the 1.3 per cent growth in adjusted1
administrative expenses seen in 2020,
following additional investments in the sales
force during 2021 to better target our
addressable customer opportunity.

This resulted in adjusted1 operating profit
growing by 14.0 per cent to £102.9 million
(2020: £90.3 million).

Technology Sourcing performance
Technology Sourcing revenue increased by
10.4 per cent to £1,466.4 million (2020:
£1,328.0 million).

Revenues increased in line with expectations.
While demand for workplace technology has
remained higher than pre-pandemic levels,
the exceptional spend attributed to
customers’ Covid-19 responses has softened,
resulting in a decline in workplace technology
during the year, as expected. The enterprise
Technology Sourcing business has seen the
predicted return to growth, with customers
investing in networking, security and data
center hardware and software solutions,
with a particular focus on international
Technology Sourcing.

While supply chain constraints in some
product categories have led to unpredictable
availability, we have been able to meet the
needs of our customers and, in parallel, we
have built a strong product order book for the
year ahead. The Technology Sourcing order
book as at 31 December 2021 was 26 per cent
higher than at 31 December 2020.

Technology Sourcing margins reduced by
62 basis points compared to the prior year.
However, Technology Sourcing gross profit
increased by 3.5 per cent, reflecting the
higher revenue.

Strategic Report
Annual Report and Accounts 2021

Services performance
Services revenue increased by 8.3 per cent
to £482.2 million (2020: £445.4 million).
Professional Services grew 19.8 per cent to
£154.6 million (2020: £129.1 million). Managed
Services grew by 3.6 per cent to £327.6 million
(2020: £316.3 million).

While the pandemic has continued to affect
where customers are focusing their
investment in some of our core markets, we
are pleased with the increase in demand for
our Professional Services skills and resources,
with a notable increase in cloud advisory and
transformation services, as well as
networking and security project activity.

We have developed a strong Professional
Services pipeline for 2022, which should result
in continued growth in enterprise Professional
Services in particular.

Managed Services revenues grew moderately
during the year, with some significant
long-term contracts secured in the financial
services sector. We have successfully
implemented the contracts awarded during
2020, giving us confidence in the long-term
value of these arrangements.

We have experienced increased competitive
pressure in our public sector Managed
Services business, with some losses during
this period. Our competitive position improves
when the scope includes Technology Sourcing
embedded within a Managed Services
opportunity. We are pleased to have won
a significant Managed Services contract with
a large financial services customer, with a
worldwide support coverage requirement
including Technology Sourcing embedded in
the contract, in a ‘Device-as-a-Service’ model.

While the in-year growth has been pleasing,
the losses during the year combined with
longer buying cycles for significant Managed
Services campaigns currently underway will
make continued growth challenging in 2022.

Services margins increased by 97 basis points
over the year, as we continue to operate an
efficient blend of expert resources and
automated solutions. The use of our off-shore
capabilities has increased materially, with
customers keen to benefit from a right-shore
model. One major contract which commenced
during the year added approximately 150
employees in Bangalore, India. Service quality
and innovation in our Bangalore Service
Center has been high and we anticipate
further leverage of this capability.

Our customers have
increasingly benefited
from our expanded
international presence,
to meet their global
Technology Sourcing and
Services requirements.

Neil Hall
Managing Director, UK and Ireland

Members of the UK
leadership team

Our performance in 2021
continued

GERMANY

Revenue €m
+11.6%

2,352.5

2021
2020
2019
2018
2017

Adjusted1 operating profit €m
+27.8%

160.7

Services Contract Base €m
+0.1%

370.3

2,352.5
2,108.2
2,161.9
2,115.7
1,954.2

Revenue by business type

1. Source
69.2%

2. Transform

13.5%
3. Manage
17.2%

The overall economic situation in Germany
has largely stabilised with only a few sectors,
such as the tourism and retail industries, still
struggling with pandemic-related problems.
Industries relevant to our business, such
as automotive, healthcare, consulting,
technology and the public sector, are almost
all back in IT investment mode, as they
accelerate their digitisation efforts to assist
with solving their business IT challenges.
This has led to an increased demand for
infrastructure refreshes and digitisation
projects. In addition, the expansion of existing
network infrastructure, implementation of
ever-increasing security requirements and
the continual modernisation of workplace
environments are all positive factors for
our business.

We recorded some pleasing successes with
developing our customer base and concluding
renewals and new business. We again
increased the number of customers
contributing more than £1 million of gross
profit from 51 to 55. In the public sector, we
were able to renew some very large volume
framework contracts and win new ones. In
addition, we achieved further important
successes and concluded long-term
contracts in the emerging application
development business line.

In the automotive sector, we renewed and
concluded long-term contracts with one of
our most important customers, for both
worldwide network operations and field and
on-site workplace services. We secured and
expanded a workplace services contract for
one of the world’s largest global chemical
groups. In addition, we won an infrastructure
Managed Services contract with a federal
state bank, and a workplace Managed
Services contract with a telecommunications
provider. Towards the end of the year, we
again concluded a long-term contract with a
very large German hyperscaler and software
provider. This contract secures significant

Technology Sourcing and Services volumes
in the area of data center and networking.

We see the potential for top-line growth in
2022, which should also lead to an increase in
earnings. We will invest significantly in our
sales capacity, to support long-term
customer development and, above all, to
expand our customer base. In addition, we
plan to significantly expand our Professional
Services resources (consulting, project and
engineering), although this will certainly be a
challenge in the current labour market. These
investments will have an impact on the
short-term overall result, but from a medium
to long-term perspective, they are the right
actions to ensure growth.

Financial performance
Total revenue increased by 11.6 per cent to
€2,352.5 million (2020: €2,108.2 million) and
by 7.7 per cent in reported pound sterling
equivalents2. Gross invoiced income4
increased by 12.1 per cent to €2,386.0 million
(2020: €2,129.2 million).

The 2021 financial year was characterised by
revenue growth in all three business areas.
We recorded significant growth of 11.8 per
cent in Technology Sourcing, which is a
pleasing result considering the availability
problems with almost all hardware products.
The strong relationships with our technology
partners, as well as the skills and experience
in our Computacenter teams, had a very
positive effect on performance. In addition,
we were able to ensure availability for our
customers for important projects and plans
through significantly increased stocking of
products at our Integration Center in Kerpen.

We also showed good growth in both
Professional Services and Managed Services.
We are seeing continued high demand for
technology refreshes and digitisation
projects. This growth was made possible by
the actions we started in the previous year
to expand our near-shore and off-shore

capacity, as well as the expansion of our
German capacity, especially in consulting.
The good growth in Managed Services was
particularly pleasing. In a persistently difficult
and demanding market segment, we gained
new clients and expanded existing contracts.

Overall margins in Germany increased by
52 basis points, with gross profit increasing
from 14.9 per cent to 15.4 per cent of revenues.
Gross profit grew by 15.7 per cent to €363.2
million (2020: €313.8 million) and by 11.5 per
cent in reported pound sterling equivalents2.

Along with the growth in revenue, we also
recorded good contribution growth. While we
maintained product margins at a level in line
with the previous year, we significantly
increased the Services margin, especially in
Managed Services. This was due in particular
to actions to optimise existing contracts, as
well as the significantly reduced number of
problem contracts. In addition, almost all new
take-on projects were completed within or
below the expected range of costs. In
Professional Services, we maintained healthy
margin levels, benefiting from a continuing
high remote delivery level and from strong
utilisation. However, the measures to retain
existing employees and recruit new
employees have increased costs and will
require further investments in the future.

Adjusted1 administrative expenses
increased by 7.7 per cent to €202.5 million
(2020: €188.1 million), and by 4.1 per cent in
reported pound sterling equivalents2.

Indirect costs were in line with expectations.
We again benefited from lower travel, event
and meeting costs which had a positive
impact on the cost base. However, increased
commissions due to the higher contribution,
as well as proportionate costs for the planned
expansion in sales employees, have increased
the cost base. Stocking costs also increased,
as we maintained product availability within
Technology Sourcing.

Strategic Report
Annual Report and Accounts 2021

Margins remained at a very high level in all
areas, with slight improvements in the
workplace business offsetting minor reductions
elsewhere, and leading to a slight overall
decrease of 24 basis points.

We are continuing with our plan of having
400 extra people in the area of consulting
and engineering in 2022 and have once again
significantly expanded our recruiting
activities for this purpose.

Our Managed Services business also
developed positively over the year. We see a
stagnating market dominated by a few global
participants, but we were able to hold our
ground, win new contracts and expand our
existing business. Profitability also increased
thanks to good contract management and the
stabilisation or expiry of some of our problem
or loss-making contracts. Nevertheless, this
business will continue to be challenging in the
future and growth will only be possible by
winning new contracts.

Overall, the Services margin was 225 basis
points higher than last year.

Services performance
Services revenue grew by 11.2 per cent to
€723.6 million (2020: €650.8 million) and by
7.5 per cent in reported pound sterling
equivalents2. This included Professional
Services growth of 21.2 per cent to
€318.4 million (2020: €262.8 million), an
increase of 17.1 per cent in reported pound
sterling equivalents2, and an increase in
Managed Services of 4.4 per cent to
€405.2 million (2020: €388.0 million), an
increase of 1.0 per cent in reported pound
sterling equivalents2.

We achieved good growth and a significant
improvement in earnings in both Professional
Services, which is our project and consulting
business, and in Managed Services, our
maintenance and management business.

As in previous years, we benefited from our
strong consulting and project business in
2021. Here, we see increasing demand for the
support of international projects in field,
home office and on-site services, as well as
continuing high demand for the realisation
of digitalisation projects. We were able to
successfully leverage the near-shore services
in Cluj, Romania, which we started in the
second quarter of 2021 and have since
expanded to more than 80 people.

Adjusted1 operating profit for the German
business increased by 27.8 per cent to €160.7
million (2020: €125.7 million) and by 22.4 per
cent in reported pound sterling equivalents2.

The growth in earnings for the year was
primarily due to good overall business growth
and an increase in the Services margin.

For 2022, it is important to continue to develop
in Services, to use market demand to grow the
Technology Sourcing business and to profit
from the new contracts won in Managed
Services. We will also invest in the sales force
and in scaling the capacity of our Professional
Services business.

Technology Sourcing performance
Technology Sourcing revenue grew by 11.8 per
cent to €1,628.9 million (2020: €1,457.4 million)
and by 7.8 per cent in reported pound sterling
equivalents2. Technology Sourcing margins
decreased by 24 basis points over last year
but remained at a high level.

This area delivered a pleasing performance,
despite the worldwide supply problems for
hardware products. We again benefited from
good growth in the public sector and
healthcare sector. Compared to the previous
year, we saw increased demand, especially
from customers in the automotive and related
supplier industries. We recorded very good
growth in workplace, saw good network and
security business and slight growth in data
center business.

The Technology Sourcing order book at
31 December 2021 was 138.6 per cent higher
than at 31 December 2020.

We will invest significantly
in our sales capacity,
to support long-term
customer development
and, above all, to expand
our customer base.

Reiner Louis
Managing Director, Germany

Members of the German
leadership team

Our performance in 2021
continued

FRANCE

Revenue €m
+0.8%

760.0

2021
2020
2019
2018
2017

Adjusted1 operating profit €m
-70.8%

4.2

Services Contract Base €m
+1.8%

149.8

760.0
753.9
715.8
557.4
581.3

Revenue by business type

1. Source
73.7%

2. Transform

5.8%
3. Manage
20.5%

In November 2020, we completed the
acquisition of BT’s domestic services
operations in France. This subsidiary has been
renamed Computacenter NS. Our 2021 results
therefore include the full-year financial
performance of Computacenter NS, whereas
we only had two months in the 2020 results.

Financial performance
Total revenue increased by 0.8 per cent to
€760.0 million (2020: €753.9 million). In
reported pound sterling equivalents2,
total revenue was down 2.9 per cent.

As noted in our first half results, we were
determined to deliver a positive operational
result for the full year. Thanks to a good
second half performance, we achieved this
goal. However, the year as a whole was
challenging for our French business. We have
seen declining performance in all areas of
the business and as Computacenter NS was
loss-making on acquisition, it further reduced
our profit for 2021, as expected.

The acquired business, Computacenter NS,
recorded revenues of €69.6 million (2020:
€15.0 million) with an adjusted1 operating loss
of €4.9 million (2020: €1.6 million), which was
broadly in line with our plan for the year.

Excluding the revenues earned within
Computacenter NS, Computacenter France
total revenue declined by 6.6 per cent to
€690.4 million (2020: €738.9 million).

Throughout the year, we were confronted
by the challenge of worldwide component
shortages, and corresponding delivery issues
in Technology Sourcing, mainly in the
workplace area. This impacted our public
sector business, as we fulfil multiple public
sector framework contracts in this area. Our
private sector performance was not immune
from the worldwide shortages but it showed
encouraging growth in the networking area
and therefore compensated better for the
shortages in other areas.

We continued to integrate Computacenter
NS, strengthening our capabilities in our
networking and security offerings. In
November 2021, we reached an important
milestone by finalising the migration of
Computacenter NS into our Group ERP
systems, giving us the opportunity to further
align processes and resources. As anticipated
at the time of the acquisition, we had to
relocate some office locations for
Computacenter NS. In June 2021, we opened
our new sales and administrative office in the
centre of Paris. Despite difficult circumstances
due to Covid-19, this office has been
welcomed by customers, employees and
technology partners as a perfect location to
meet and collaborate. We continue to review
our strategy for another three locations in the
Paris region and aim to reach a conclusion
towards the end of 2022. From a business
integration point of view, we celebrated
winning some pleasing network maintenance
contracts towards the end of the year.

We remain confident that our strategy to
target large public and private sector
organisations, the further development of our
Group offerings and the continued focus on
cost control offer the best route to reach
growth in 2022.

Overall, margins in France decreased by
64 basis points, with gross profit decreasing
from 11.1 per cent to 10.4 per cent of revenues.
Excluding the impact of Computacenter NS,
margins increased by 15 basis points, with
gross profit increasing from 10.9 per cent to
11.0 per cent of revenues.

Overall gross profit decreased by 4.9 per cent
to €79.2 million (2020: €83.3 million) and
reduced by 8.5 per cent in reported pound
sterling equivalents2. Excluding the
€3.2 million of gross profit earned within
Computacenter NS (2020: €3.1 million), the
Computacenter France gross profit
decreased by 5.2 per cent to €76.0 million
(2020: €80.2 million).

Adjusted1 administrative expenses increased
by 8.9 per cent to €75.0 million (2020: €68.9
million), and by 5.2 per cent in reported pound
sterling equivalents2 as we have continued to
invest to support growth. Excluding the
€8.2 million of adjusted1 administrative
expenses incurred within Computacenter NS
(2020: €4.7 million), Computacenter France
administrative expenses increased by 4.0 per
cent to €66.8 million (2020: €64.2 million).

Adjusted1 operating profit for the combined
French business decreased by 70.8 per cent
to €4.2 million (2020: €14.4 million), and by
73.1 per cent in reported pound sterling
equivalents2. As noted in our 2020 Annual
Report and Accounts, the Computacenter NS
business was loss-making on acquisition, and
it therefore reduced our combined profit for
2021 as expected. Excluding the €4.9 million
operating loss from the activities of
Computacenter NS (2020: €1.6 million),
the Computacenter France business made
€9.1 million of operating profit in 2021
(2020: €16.0 million).

Technology Sourcing performance
Technology Sourcing revenue decreased by
5.1 per cent to €560.0 million (2020: €590.0
million) and by 8.5 per cent in reported pound
sterling equivalents2. Excluding the €11.3
million of Technology Sourcing revenues
within Computacenter NS (2020: €2.7 million),
Computacenter France Technology Sourcing
revenues decreased by 6.6 per cent to
€548.7 million (2020: €587.3 million).

Despite a decline in revenues, it was a very
busy year in Technology Sourcing. The volume
of outstanding Technology Sourcing orders
placed with us by our customers increased
significantly across the whole year, due to the
worldwide component shortages. If we had
been able to ship all products within normal
timescales and thereby maintain a back-
order position comparable with 2020, we
would have generated good growth in overall
revenues. The Technology Sourcing order book

at 31 December 2021 was 74.6 per cent higher
than at 31 December 2020.

(2020: €123.9 million), an increase of 21.0 per
cent in reported pound sterling equivalents2.

Despite the challenge of product shortages,
the private sector showed a revenue increase
in Technology Sourcing, mainly thanks to
some networking contracts. Towards the end
of the year in particular we saw increased
activity within our customer base, albeit still
lower than before Covid-19. Our public sector
business had a challenging year in Technology
Sourcing, as we noticed a declining spending
pattern for the majority of these customers.

We expect that the worldwide shortages will
remain a challenge in 2022 but are hopeful
that we will be able to provide better visibility
of delivery dates for our customers and
eventually see an overall reduction in delays.
To ensure this, we are staying in close contact
with technology partners, both at local and
Group levels.

Overall, Technology Sourcing margins
increased by 36 basis points. Excluding the
impact of Computacenter NS, Technology
Sourcing margins increased by 39 basis points.

Services performance
Services revenue increased by 22.0 per cent
to €200.0 million (2020: €163.9 million) and by
17.5 per cent in reported pound sterling
equivalents2. Professional Services revenue
increased by 10.3 per cent to €44.1 million
(2020: €40.0 million), which was an increase
of 6.4 per cent in reported pound sterling
equivalents2. Managed Services revenues
increased by 25.8 per cent to €155.9 million

Excluding the Services revenues within
Computacenter NS, the Computacenter
France Services revenues decreased by 6.5
per cent to €141.7 million (2020: €151.6 million).
Professional Services revenue decreased by
15.4 per cent to €31.3 million (2020: €37.0
million), with Managed Services revenues
decreasing by 3.7 per cent to €110.4 million
(2020: €114.6 million).

The main impact on Services revenue came
from a global outsourcing contract that
ended in the first half of 2020, which we knew
was going to reduce 2021 revenues compared
to last year. Apart from a loss-making
contract in the network operations area,
we have been able to maintain our Managed
Services margins.

In 2020, the first year of the Covid-19 crisis,
many customers postponed or cancelled
their upcoming Managed Services tenders.
As expected, many of these campaigns
restarted in 2021. We have been very busy
responding to tenders and won a significant
number of new contracts. We are in the
process of onboarding these contracts. Once
fully operational, they will allow us to maintain
our 2022 Contract Base, by compensating for
a Computacenter NS contract that we knew
on acquisition would end in 2021.

We remain confident that
our continued customer
focus on large public and
private sector organisations,
the further development of
our Group offerings and the
continued focus on cost
control offer the best route
to reach growth in 2022.

Lieven Bergmans
Managing Director, France

Members of the French
leadership team

Strategic Report
Annual Report and Accounts 2021

In addition to winning new contracts, we
have been able to extend our Services scope
in three of our largest existing Managed
Services contracts.

Our Professional Services business in the
private sector faced a challenging year with
a decline in revenues, mainly due to the
complicated Covid-19 situation and the lack of
additional project opportunities we normally
have within our Managed Services contracts.
Public sector performance was flat in
Professional Services.

With the Computacenter NS business now
integrated further into our organisation, we
believe we have a good opportunity to grow
our Professional and Managed Services
businesses significantly in 2022. With the
integration and our continued effort to
further develop and train our entire Services
teams, we should be able to position skilled
professionals in a market with high demand
for specialised resources.

Services margins decreased by 351 basis
points over last year. Excluding the impact
of Computacenter NS, Services margins
decreased by 74 basis points.

Our performance in 2021
continued

NORTH AMERICA

Revenue $m
+114.3%

2,623.1

2021
2020
2019
2018
2017

Adjusted1 operating profit $m
+131.5%

42.6

Services Contract Base $m
+26.3%

24.0

2,623.1
1,223.8
957.8
351.6
32.5

Performance in the year was heavily
influenced by the acquisition of Pivot on
2 November 2020. 2021 includes a full year of
Pivot, with revenues of $1,432.4 million and
adjusted1 operating profit of $25.2 million
recorded in the year, whereas the prior year
included $292.7 million of revenue and
adjusted1 operating profit of $6.8 million,
arising from the two months of trading
between the acquisition date and 31
December 2020.

During 2021, we completed the migration of
the non-Pivot part of our North American
operations onto our Group ERP system, which
was a more challenging implementation than
expected, due to most of the preparation
being managed remotely from Europe as
a result of the Covid-19 travel impacts. We are
entering the next phase of the implementation,
which will bring the Pivot operation onto the
Group ERP platforms, at which point the North
American business can be fully integrated.
This integration is not expected to complete
until 2023.

Financial performance
Total revenue increased by 114.3 per cent to
$2,623.1 million (2020: $1,223.8 million). In
reported pound sterling equivalents2, total
revenue was up 102.4 per cent. Gross invoiced
income4 increased by 103.4 per cent to
$2,696.8 million (2020: $1,325.8 million).

Pivot Canada (now Computacenter TeraMach)
is included within our North America Segment.
We are very pleased with the growth achieved
in Canada during the year, where revenue
increased to $144.1 million in 2021 from
$20.7 million in the two months of ownership
in 2020. Growth was approximately 13 per
cent in 2021, compared to the full-year results
in 2020.

Excluding the Pivot acquisition, our organic
North American revenue growth was 27.9 per
cent. This is due to continued growth of
hyperscale customers, while spending by our
mid-market customers was flat, primarily
because of the ongoing Covid-19 pandemic.
Overall, revenue was ahead of forecast for the
year on an organic basis, primarily due to
Technology Sourcing.

Margins in North America increased by
29 basis points, with gross profit increasing
from 9.2 per cent to 9.4 per cent of revenues.
Excluding the impact of Pivot, margins fell
by 103 basis points, with gross profit
decreasing from 8.8 per cent to 7.8 per cent
of revenues, as the increased volumes with
lower-margin hyperscale customers drove
the revenue performance.

The Technology Sourcing margin remained
consistent overall. The acquisition of Pivot
was beneficial to margins, as Pivot’s
Technology Sourcing margins are
approximately 2-3 percentage points higher
than the previously acquired FusionStorm
business. This is because Pivot’s customer
mix is not as focused on hyperscale
customers, who tend to drive lower margins.
Excluding Pivot, Technology Sourcing margins
decreased by 85 basis points, primarily due
to customer mix, as the lower-margin
hyperscale customers comprised a larger
portion of revenue.

Professional Services margins were up
compared to the prior year, as revenue
recovered from a low in 2020, when customer
projects were deferred due to Covid-19, and
were further increased by Pivot, which has
a larger Professional Services business.
The increased revenue resulted in higher
utilisation of Services personnel. The Managed
Services business reported lower margins
year-on-year, due to lower margins on
start-up efforts on new programmes.

Revenue by business type

1
2 3

1. Source
95.0%

2. Transform

4.1%
3. Manage
1.0%

Overall gross profit grew by 120.7 per cent to
$247.6 million (2020: $112.2 million) and by
108.8 per cent in reported pound sterling
equivalents2. Excluding the $154.5 million of
gross profit earned by Pivot in the year (2020:
$29.8 million), gross profit grew organically
by 13.0 per cent to $93.1 million (2020:
$82.4 million).

Adjusted1 administrative expenses increased
by 118.6 per cent to $205.0 million (2020:
$93.8 million), and by 106.4 per cent in
reported pound sterling equivalents2. This was
due to the acquisition of Pivot, which added
$129.3 million of adjusted1 administrative
expenses for 2021, compared to $23.0 million
for the two months in the prior year. Excluding
Pivot, adjusted1 administrative expenses
increased only 6.9 per cent to $75.7 million
(2020: $70.8 million). Higher variable
remuneration was the primary driver of the
increased costs, due to the increase in
margins. Travel costs rose, although they
remained lower than pre-Covid-19 levels.

Adjusted1 operating profit for the North
American business increased by 131.5 per
cent to $42.6 million (2020: $18.4 million),
and by 121.4 per cent in reported pound
sterling equivalents2.

The increase in operating profit was due in
part to the full-year contribution from Pivot.
Pivot contributed $25.2 million of operating
profit in 2021, compared to $6.8 million of
operating profit for the two months of 2020.

Excluding Pivot, North America’s adjusted1
operating profit was up by 50.0 per cent to
$17.4 million (2020: $11.6 million), as hyperscale
customers continued to purchase in volume
and cost synergies from the acquisition
were realised.

Project activity recovered after a slow 2020,
when customers either delayed expected
spend or cancelled projects while they
responded to Covid-19. The increase was also
driven by a Managed Services win in the
United States market, representing the first
significant Managed Services contract win led
from North America.

Services margins decreased by 592 basis
points and are now 1,082 basis points below
the overall combined Group Services margin.
While contribution from Services increased
with the greater volume and the addition of
a full year of Pivot, margins were down from
the prior year, as the new Managed Services
contract was in the first year, where we often
earn lower margins, and deployment services
average margins are lower than other parts
of the Services portfolio.

Technology Sourcing performance
Technology Sourcing revenue increased by
109.5 per cent to $2,490.8 million (2020:
$1,189.2 million) and by 97.8 per cent in
reported pound sterling equivalents2.

The addition of Pivot resulted in significant
growth in our Technology Sourcing business.
Pivot contributed $1,327.9 million of
Technology Sourcing revenue (2020:
$280.0 million for the two months from
acquisition). Excluding Pivot, Technology
Sourcing revenue increased by 27.9 per cent
on an organic basis, as hyperscale customers
increased their volumes, and mid-market
customers remained consistent. We benefited
from significant continuing investments by
our customers, as they digitise their operations
and modernise their infrastructure.

Excluding the impact of Pivot, North American
Technology Sourcing margins decreased by
85 basis points on an organic basis over the
same period last year, as a result of the
growth in revenue being driven by hyperscale
and large customers, which generally have
lower margins. Partially offsetting this
decrease was the addition of Pivot volume,
which generally has higher margins due
primarily to customer mix. We also continue to
evolve our partner management organisation
with the larger scale provided by Pivot and are
seeing an improvement in margins as a result.
Including the results of Pivot, Technology
Sourcing margins increased by 38 basis
points overall.

Services performance
Services revenue increased by 282.4 per cent
to $132.3 million (2020: $34.6 million) and by
258.6 per cent in reported pound sterling
equivalents2. Professional Services increased
by 316.0 per cent to $106.5 million (2020:
$25.6 million), which was an increase of
295.4 per cent in reported pound sterling
equivalents2. Managed Services increased
by 186.7 per cent to $25.8 million (2020:
$9.0 million), an increase of 158.3 per cent in
reported pound sterling equivalents2. Services
revenue growth was driven by having a full
year of Pivot, combined with significant
growth in Pivot’s deployment services,
which are part of our Professional Services.

Pivot recorded Services revenues of
$104.5 million (2020: $12.8 million) comprising
Professional Services revenues of $87.4 million
(2020: $10.2 million) and Managed Services
revenues of $17.1 million (2020: $2.6 million).

Excluding the Services revenues within Pivot,
the North American Services revenues
increased by 27.5 per cent to $27.8 million
(2020: $21.8 million). Professional Services
revenue increased 24.0 per cent to
$19.1 million (2020: $15.4 million) with
Managed Services revenues up 35.9 per cent
at $8.7 million (2020: $6.4 million).

Revenue growth in North
America was driven by
the acquisition of Pivot;
however, organically,
excluding the Pivot
business, North American
revenue was up a strong
27.9 per cent.

Kevin Shank
President, North America

Members of the North
American leadership team

Strategic ReportAnnual Report and Accounts 2021Our performance in 2021
continued

INTERNATIONAL

Revenue £m
+9.6%

191.0

2021
2020
2019
2018
2017

Adjusted1 operating profit £m
+213.9%

11.3

Services Contract Base £m
+15.1%

51.7

191.0
174.3
193.0
102.2
75.3

The International Segment comprises a
number of trading entities and near-shore
and off-shore Service Center locations.

The trading entities include Computacenter
Switzerland, Computacenter Belgium and
Computacenter Netherlands. In addition
to their operational delivery capabilities,
these entities have in-country sales
organisations, which enable us to engage
with local customers.

These trading entities are joined in the
Segment by entities where we operate
near-shore and off-shore Service Centers
and fulfil business for our clients in Spain,
Malaysia, India, South Africa, Hungary, Poland,
Romania, China and Mexico. These entities
have limited external revenues.

Early in 2020, we set up offices in Madrid and
Barcelona with the aim of developing our
business in Spain through a local sales team.
After careful consideration, we reviewed our
international sales strategy towards the end
of 2021 and decided to serve our customers in
Spain through our other European operations.
While we remain active in Spain with a support
team of over 500 service agents and
engineers, we will no longer have a dedicated
sales team in the country.

Financial performance
Revenues in the International Segment
increased by 9.6 per cent to £191.0 million
(2020: £174.3 million) and by 13.6 per cent
in constant currency2.

Our trading entities in the International
Segment produced a good performance in
2021. Whilst 2020 was challenging due to the
Covid-19 crisis, the business bounced back
to healthy volumes and profitability in all
countries in 2021. We have not benefited from
any government support related to Covid-19 in
2021, apart from a very small amount for a
reduced period in our Belgian operations,
which ceased with effect from 1 May 2021.

Gross profit increased by 28.0 per cent to
£39.3 million (2020: £30.7 million), and by
32.8 per cent in constant currency2.

Adjusted1 administrative expenses
increased by 3.3 per cent to £28.0 million
(2020: £27.1 million) and by only 6.5 per cent
in constant currency2.

Overall adjusted1 operating profit
increased by 213.9 per cent to £11.3 million
(2020: £3.6 million) and by 242.4 per cent in
constant currency2.

Revenue by business type

1. Source
59.1%

2. Transform

4.5%
3. Manage
36.5%

The Belgian business saw a significant
increase in profitability during 2021, thanks
to a combination of good workplace and
infrastructure projects and an excellent
performance in the Managed Services area.

As expected, the Swiss business had to cope
with a significant scope change in two major
Managed Services contracts, but
compensated for this by identifying other
projects within the contracts, winning new
contracts with large organisations and a
continued focus on cost control.

After a difficult 2020, our business in the
Netherlands saw a remarkable profit
increase. We have a traditionally strong Dutch
public sector business, and we were able to
extend this, with a significant win in the
private sector, delivering promising
contributions in 2021.

Technology Sourcing performance
Technology Sourcing revenue increased by 2.1
per cent to £112.8 million (2020: £110.5 million)
and by 5.9 per cent in constant currency2.

The International Segment was affected by
worldwide component shortages, and we
faced challenges to deliver goods on time to
our customers. Despite these difficult
circumstances, our teams worked hard to
keep customers informed about the
availability of goods and possible alternatives.

As part of one of the world’s largest VARs, we
are well supported by the Group to address
local priorities with our technology partners.
We have also been successful in delivering
extended Services to local customers by
leveraging Group capabilities, both on a local
and international scale.

We have invested locally in partnerships and
certifications to strengthen our relationships
with technology partners. For example, we
have strengthened our relationship with Apple
in both the Netherlands and Switzerland.
Our Belgian operation was the first partner in
Belgium to achieve the Cisco IOT Advantage
Specialization and was rewarded with the
Cisco Customer Experience award.

As in all other regions, we expect that the
worldwide component shortages will continue
to challenge us in 2022 but we are committed
to working closely with our customers and
technology partners to keep the impact to
a minimum.

Services performance
Services revenue increased by 22.6 per cent
to £78.2 million (2020: £63.8 million) and by
26.9 per cent in constant currency2.
Professional Services revenue increased by
18.1 per cent to £8.5 million (2020: £7.2 million),
which was an increase of 23.2 per cent in
constant currency2, whilst Managed Services
increased by 23.1 per cent to £69.7 million
(2020: £56.6 million), which was an increase
of 27.4 per cent in constant currency2.

In general, we were pleased with the
performance of our Services business.

Our Professional Services business suffered
from the Covid-19 crisis in 2020 and
recovered well in 2021, although we estimate
that activity has still not returned to
pre-pandemic levels.

In Belgium, we secured and extended our
main Managed Services contracts. In
Switzerland, we have fully optimised our
delivery model and identified project
extensions in our largest Managed Services
contracts. Our Dutch operations also grew in
Services, although we see opportunities to do
significantly better in 2022.

2020 was a difficult year for the International
Segment, and we were pleased by the way we
returned to good business levels in 2021.
Furthermore, we see good opportunities to
grow our business. In each of the operations,
we have identified opportunities to grow by
exploring new business sectors (such as the
public sector in Belgium and private sector in
the Netherlands), or customers, for example
by further developing international
customers, based on our success in this area
in 2021. We therefore have confidence that
there is still plenty of scope to grow further
in 2022.

We have invested
locally in partnerships
and certifications
to strengthen our
relationships with
technology partners.

Lieven Bergmans
Managing Director, Rest of Europe

Members of the Rest of
Europe leadership team –
part of International

Strategic ReportAnnual Report and Accounts 2021Sustainability strategy

WINNING TOGETHER
FOR OUR PEOPLE
AND OUR PLANET

Our Purpose is Enabling Success by building long-term
trust with our customers, our partners, our people and
our communities. To achieve this, we have been actively
committed for many years to a leading environmental,
social and governance (ESG) approach, which we
recognise is essential to ensuring the long-term future
of our Company, our people and our planet. We are now
bringing together our various ESG activities into a single
sustainability strategy.

1981-2021

We’re proud of what
we’ve achieved and
we’ll continue to
improve, invest and
innovate. We’ll be the
best that we can be
– a company that our
people, customers,
partners and
communities can
be proud of.

Mo Siddiqi
Group Development Director

Strategic Report
Annual Report and Accounts 2021

2021 HIGHLIGHTS

WE AIM TO BE

CARBON NEUTRAL

FOR SCOPES 1 AND 2 EMISSIONS
IN 2022

Group emissions performance over time (metric tonnes)

Total Scopes 1 and 2 emissions

Per £1 million of revenue

Per employee

2021
2020
2019
2018
2017

5,210
13,856
19,808
19,741
22,662

2021
2020
2019
2018
2017

0.78
2.55
3.91
4.53
6.20

2021
2020
2019
2018
2017

0.30
0.84
1.23
1.30
1.54

74%

reduction in carbon
emissions per employee
since 2019

1.8m kWh

of electricity generated by
Hatfield solar farm

73%

of Group electricity usage
is now from green energy
sources

3,200

new people hired

50,000

candidate applications
received

128,000

tonnes of carbon avoided
through reuse of assets
(redeployment and
remarketing)

82%

Sustainable engagement
in employee survey

TOP EMPLOYER
INSTITUTE
CERTIFICATION
in the United Kingdom
and Germany

455,000

600

assets (main and peripheral)
redeployed to customers
saving them £50 million

tonnes of reusable raw
materials generated through
industrial recycling

Sustainability strategy
continued

This strategy, ‘Winning Together for our people
and our planet’, is underpinned by Our Values
and Our Purpose and is a fundamental part
of how we work day-to-day. We focus on the
areas that are most important to us and our
stakeholders, and where we can make the
biggest difference.

The strategy is based on three pillars (people,
planet and solutions) and underpinned by
communications, governance, and standards
and frameworks. Each area is owned by the
appropriate member of the Group Executive,
to ensure alignment and accountability
across the organisation and to engage and
empower our people to achieve our
sustainability objectives.

SUSTAINABILITY STRATEGY FRAMEWORK

WINNING TOGETHER
FOR OUR PEOPLE AND OUR PLANET

PEOPLE

PLANET

SOLUTIONS

Supporting people and communities
Delivering positive social impact, with
a focus on our people.

Ensuring sustainable operations
Taking a responsible approach across
our operations, including our direct and
indirect environmental impact and
oversight of our supply chain.

Offering sustainable customer solutions
Helping our customers with their
sustainability goals through our
service offerings with a focus on
Circular Services.

Exec owner: Sarah Long

Exec owner: Tony Conophy

Exec owner: Mo Siddiqi

COMMUNICATION

Communication across all stakeholder groups and channels.
Exec owner: Mo Siddiqi

GOVERNANCE

Underpinning accountability, investment plan, compliance and reporting.
Exec owners: Tony Conophy and Mike Norris

STANDARDS AND FRAMEWORKS

Strategic Report
Annual Report and Accounts 2021

STANDARDS AND FRAMEWORKS

Our sustainability strategy is aligned to the below global standards and
frameworks that are essential for compliance or most relevant to our
key stakeholders. In addition, we align to other standards and
initiatives as appropriate in specific countries.

Task Force on
Climate-related
Financial Disclosures
This is now a mandatory
reporting requirement and is
covered in detail on page 62.

Science Based
Targets Initiative
Computacenter has committed to this
standard for carbon reduction plans
aligned to the Paris agreement. We will
make an SBTi submission in 2022 and
the feedback will support our carbon
reduction roadmap for the next few
years. We expect to be Carbon Neutral for
Scopes 1 and 2 in 2022. We have a Net
Zero (Scopes 1, 2 and 3) target by 2040,
but we will aim to achieve this earlier, as
the measurement standards for Scope 3
emissions and our corresponding
roadmap become clearer.

EcoVadis
EcoVadis is an overall
sustainability framework
selected by some of our
customers, which we have
also chosen to use as a
key benchmark.

We have achieved Silver and
Gold EcoVadis ratings in
different countries and
expect to progress further
over the next two years.

UN Global Compact
Computacenter has been a proud
signatory of the UNGC since 2007 and we
are committed to supporting the 10 core
principles of the UNGC, including
embedding them within our supply chain.

Principles 1-6 cover human rights and
labour. We support these through our
people-related policies within the ‘people’
section of our sustainability strategy on
page 44.

Principles 7-9 cover the environment and
we discuss this in detail in the ‘planet’
section of our sustainability strategy.

Principle 10 covers anti-corruption and
our zero-tolerance approach to bribery
and corruption is discussed on page 48.

UN Sustainable Development Goals
We are focused on where we can take meaningful
action aligned to nine of the UN Sustainable
Development Goals.

Ensure healthy lives and promote
wellbeing for all at all ages
We will support the mental and
physical wellbeing of our employees
by ensuring that our people have
quality working lives and feel safe
and protected.

Promote sustained, inclusive,
and sustainable economic growth,
full and productive employment,
and decent work for all
We will maintain high standards of
employment for our people and will
work with our supply chain to build
resilience and decent work.

Ensure sustainable consumption
and production patterns
We will work with our technology
partners and customers to promote
sustainable technology sourcing,
supported by our own Circular
Services solutions.

Ensure inclusive and equitable quality
education and promote lifelong
learning opportunities for all
We will work to remove barriers that
exist in our local societies, creating
employment, training and educational
opportunities.

Build resilient infrastructure,
promote inclusive and
sustainable industrialisation,
and foster innovation
We will be responsible as a business to
make a positive impact in our industry
and wider communities.

Take urgent action to combat climate
change and its impacts
We will continue to take action to
reduce our climate impacts both
direct and indirect, aligned to science
based targets.

Achieve gender equality and
empower all women and girls
We will continue to work towards
achieving a balanced gender mix in
a male-dominated industry.

Reduce inequality within and
among countries
We will continue to foster an
environment which 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.

Sustainability strategy
continued

PEOPLE

Supporting people
and communities

Our people are key to our success and the first pillar of
our approach to sustainability. Our social value strategy
primarily focuses on supporting our people, ensuring
effective leadership, promoting our values and
rewarding and recognising performance. We also
promote initiatives that support our communities,
both inside and outside our business.

Our Group headquarters – Hatfield, United Kingdom

PEOPLE VISION
Our business is about technology. But first
of all, it’s about people.
The desire to deliver great outcomes for our
customers drives our people and underpins
our people vision and culture. We aspire to
recruit and retain the best talent. We then
help our people to be their best through
development and training, fostering
engagement and inspiring leadership.
Each of these aspects is discussed below.

Our culture is underpinned by our values and
directly supports Our Purpose, which enables
our people to understand how we deliver
successfully for our customers and the
business and the role they play in doing so.

Attracting talent
Our Future Talent programme develops the
next generation of professionals through an
innovative, focused and flexible approach to
apprenticeships and graduates. In 2021, we
increased our intake to this programme with
403 hires, of which 31 per cent were women.

We continued to recruit significantly in 2021,
with more than 3,200 new hires, an increase
of approximately 50 per cent from 2020.
Recruitment has been significant in Germany
and India in particular, with the United
Kingdom, South Africa and North America
also increasing headcount. We also started

business operations in Romania as a
near-shore Professional Services hub and
have built a team of over 80 people, with
a focus on software development.

In an increasingly competitive talent market,
we have invested in our in-house sourcing
capacity, employer branding and marketing,
and run several campaigns, enabling us to
increase applications by around 50 per cent
in the fourth quarter of 2021. In total we
received over 50,000 candidate applications.
Our blended learning training for professional
interviewing helps us to secure talent and
ensure we have robust and fair hiring processes
and decision-making, which in turn promotes
diversity. This is supported by a Group-wide
AI-based language testing solution.

We use premium analytical tools to support
our workforce planning and talent acquisition
strategy, allowing us to significantly
accelerate recruitment and improve the
candidate experience. We also rolled out our
Group applicant tracking system to the United
States, with India, South Africa, Romania and
the Netherlands to follow. Due to the pandemic,
fewer apprentices were able to work on
customer sites during 2021. We therefore
increased e-learning, contributing to an
exceptional exam pass rate of 98 per cent.

3,200

new people hired

50,000

candidate applications
received

82%

Sustainable engagement
in employee survey

TOP EMPLOYER
INSTITUTE
CERTIFICATION
in the United Kingdom
and Germany

A highlight from our
recent employee
survey was that
people felt ‘able to
be themselves’ at
Computacenter,
reflecting the work
done on diversity and
inclusion by teams
across the Company.

Sarah Long
Chief People Officer

To attract diverse talent, we continue to
run outreach programmes with schools,
universities and charities. Examples include
promoting awareness of women in tech,
attracting black and minority ethnic
talent and people with disabilities, and
programmes targeting young people from
disadvantaged backgrounds.

We have continued to receive external
recognition as an employer, including Top
Employer Institute certification in the United
Kingdom and Germany. We have also been
ranked among the top five per cent of
companies on Kununu, a German employer
rating platform.

Talent management and learning
Computacenter’s positive and customer-
focused culture contributes to an average
length of service of over nine years, with many
people returning after taking roles elsewhere
or having career breaks.

Future Focus, our continuous performance
management tool, continued its global rollout
in 2021. The process enables continuous
dialogue and feedback, especially when
working remotely, and specifically addresses
personal wellbeing under stress during the

pandemic. We have published education and
communication material for managers and
our people, to help them make the most of
the system.

In 2021, we designed an approach to develop
and retain talent, aligned with Future Focus.
This allows employees to drive their own
development plans, with the support of their
managers. We also conducted a global rollout
of several e-learning platforms and initiated a
project to find a Group-wide learning partner
to act as a strategic adviser for content and
partner management.

Our Winning Together Values
Our Company values are at the core of
what we do and bind us across our global
community. They are the values on which
we built this Company and they are the
values on which we will continue to grow
Computacenter. Our values are integral to
shaping our culture and building a common
sense of purpose, and they are critical to our
ability to scale. We continue to monitor and
reinforce our values, while respecting and
embracing local cultures and ways of working.

OUR WINNING TOGETHER VALUES

These are the values on which we built this Company and they are the values on which we will continue to grow Computacenter.

WE WIN BY

WE DO IT TOGETHER BY

Putting customers first
We work hard to get to know our
customers and really understand their
needs. This lets us use our experience
to help them in the right way at the
right time.

Being straightforward
We’re practical and pragmatic.
We believe in solutions over talk.
We express ourselves in the clearest
possible way. And we’re open and honest
in all of our dealings.

Keeping promises
We do our very best to keep our promises.
And when that’s difficult, we help our
customers find other ways of solving
their problems.

Putting customers first

Being straightforward

Keeping promises

Winning

Together

Understanding people matter

Considering the long term

Inspiring success

Understanding people matter
We’re committed to being diverse and
inclusive. We build strong, rewarding,
supportive relationships. And we treat
people as we expect them to treat us.

Considering the long term
We’re building a sustainable business for
the long term. This leads our decisions and
actions and helps people really trust us.

Inspiring success
We’re proud of the people we work with.
We do our best to support each other
through the downs and we always
celebrate the ups.

Strategic ReportAnnual Report and Accounts 2021Sustainability strategy
continued

Fostering engagement
We know that engagement is key to our
success and that a highly engaged workforce
helps us deliver better outcomes for our
customers. We have a number of different
forums for engaging with our people. These
include our People Panel, surveys, unions
and our employee assistance programmes.
We also have Works Councils in several
European countries, as well as an overall
European Works Council. These meet regularly
with the Group Executive team and other
senior managers.

Ros Rivaz is our nominated Non-Executive
Director aligned to our people. She engages
with groups such as our European Works
Councils and our UK National Forum and
attends People Panel and Employee Impact
Group sessions. This allows her to gain direct
insight from our people and share it with the
Board, ensuring that their input is taken into
account. These interactions are highly
appreciated by the employee groups and
feedback regarding Ros’s engagement is
unanimously positive.

The pandemic has required us to remain
connected with our people in different ways,
recognising the pressures they face at home
and at work. We communicate regularly on
any changes to working practices, following
government guidance, while also
implementing our hybrid-working principles.
These balance the need to be together for
collaboration, learning, development and
engagement, while enabling home and
remote working, and recognising our peoples’
preferences. This process is supported by
local ‘spotlight’ surveys, which we run to
collect feedback from groups of our people.

During November 2021, we ran a
comprehensive global employee survey, which
reviewed all aspects of how our people feel
about working at Computacenter. We were
pleased with the results, gaining a score of
82 per cent for sustainable engagement.
Sustainable Engagement includes traditional
engagement (connection to the Company) as
well as enablement (support for productivity)
and energy (overall wellbeing).

The positives we took from the survey are that
our people:

• feel well supported and respected by

their managers;

• trust the decisions made by our leadership

and management teams;

• feel they have good opportunities for
personal growth and development;

• feel ‘able to be themselves’ at

Computacenter, reflecting our work on
diversity and inclusion and the surveys we
run to listen to employee opinion; and

• feel positive about being part of

Computacenter and have high expectations

of an ongoing career, recognising
Computacenter as a good employer.

employees have been designed to help manage,
implement and communicate change.

At a Group level, areas for improvement are:

• creating a clear understanding of strategy

at the team and individual level;

• better communication and management

of change;

• better communication and promotion of
our environmental responsibilities and
actions; and

• ensuring systems and processes
are geared to providing excellent
customer service.

The detailed results of the employee survey
down to team level have been shared with all
team managers across the Group. They are
being supported by the Human Resources
(HR) team to develop action plans for their
specific areas, based on the feedback from
their teams.

At a Group level, we will launch a plan to
address the main areas for improvement
which will include:

• improved cascade messaging on strategy,
ensuring we help all teams understand the
value they add;

• launch of the new sustainability strategy
with regular updates, supported by a
communication programme for individual
areas throughout the year; and
• communication of an IT systems

development and update roadmap for
the next few years, which we have
already started.

Developing leaders
We expect leaders to be role models and to
drive responsible business for the long term.
Our values underpin our leadership principles
of collaboration, being inclusive, having an
open mindset, innovation and leading as
a coach. These attributes are used when
recruiting future leaders and in our
development programmes. In 2021, we
continued to develop our ‘Culture at CC’
workshops, to reflect on our leadership
principles, discuss what it means to be
a leader and communicate the support
available to leaders to help achieve their goals.

Almost 500 leaders completed development
courses during 2021. We also enhanced our
Leadership Suite, launching Leadership Basics
for aspiring leaders and the New Leaders
Roadmap, which includes Mastering Personal
Leadership training. Purposeful Leader, our
flagship senior programme, rolled out globally
and our Experienced Leader roadmap was
finalised for delivery in 2022.

In addition, we piloted a Leadership Excellence
course, to help leaders assess their strengths
and development needs with their teams.
Other pilot programmes for both leaders and

We ran cultural awareness training to ensure
our people have the right knowledge and skills
to work effectively and collaboratively across
cultures. Exploring ‘How We Work’ also equips
leaders to manage employees across
different countries, including legislative
elements and best practice.

During 2021, we ran our enhanced succession
planning process and completed plans for
all executives, leaders and critical roles.
The programme will continue in 2022.

Diversity and inclusion (D&I) and wellbeing
One of the most important factors in
Computacenter’s growth is ensuring that all
our people are valued and supported to reach
their full potential. We are therefore
committed to improving workforce diversity
and preventing discrimination on grounds of
age, race, religion and nationality, and we
have policies to support this. The Group has
a dedicated D&I manager, who works closely
with our HR managers and business partners
to embed D&I into our people plans.

To focus our D&I work we target six pillars,
which were developed by our people. These
pillars are: gender, culture, age, accessibility
and wellbeing, LGBTQ+, and life balance.
Key themes that run alongside the six pillars
are recruitment and retention, and
organisational culture.

Our key objectives this year include improving
our gender balance and promoting ethnic
diversity and inclusion, and we made
significant progress in 2021. We launched new
development programmes, including our
‘Leading Together’ programme for our most
senior women, to focus on their development
and how they can inspire future female
leaders. Our ‘Ethnic Diversity Development’
Programme resulted in a new pilot in the
United Kingdom to develop and advance our
people from ethnic minority backgrounds.
We also completed one of two pilots for a D&I
programme to make our people more aware
of their behaviours and how they can create
an equitable and inclusive environment.

Another priority is to promote wellbeing.
Each country has an ‘Employee Assistance’
programme, enabling everyone to get
specialist wellbeing support. We have also
launched our Group-wide wellbeing app,
Be Well. This offers content ranging from live
exercise classes to mindfulness tips and
healthy recipes, helping our people to stay
physically and mentally healthy. In 2021,
we ran a global step challenge, to drive
engagement, promote wellbeing and
encourage people to get active. This challenge
saw great participation from all countries.

Strategic Report
Annual Report and Accounts 2021

EIGs are a great way
to give employees a
voice that is not only
heard but acted on by
the business. They
change the narrative
by enabling employees
to be at the heart of
solutions and drive
beneficial change via
actions over words.

Colin Williams
Ethnic Diversity Steering Group member

We also continued our online training on
mental health for line managers and offered
courses on subjects such as stress. Our
awareness programme for our people runs
quarterly campaigns on wellbeing topics.

Gender diversity
The table below shows our gender diversity at
the year end:

2021

2020

Women
3

Men Women
2

Men
7

4,726 13,135
4,757 13,235

4,196 12,340
4,223 12,445

Board
Senior
managers
Other
employees
Total

Although the proportion of women we employ
is in line with industry norms, we are committed
to increasing it. Initiatives specifically aimed
at improving gender diversity include our
‘Growing Together’ programme of activity
designed to create a gender-diverse talent
pool in middle and senior-level roles by
providing development opportunities
specifically focused on our female employees.
In 2021, we were proud to have reached more
than 100 delegates who had attended the
programme since it began. We have seen good

growth in the number of female senior leaders
across the Group, with an increase of 4.4 per
cent in the year.

We were proud to have two winners at the
2021 CRN Women in Channel Awards and to
receive two corporate awards, the Health
and Wellbeing Recognition Award and the
Best Community Outreach Programme, for
our commitment to school and community
outreach with a focus on diversity. In
Germany, we had two winners in the Women’s
IT Network awards. We were also recognised
by Brigitte Magazine as one of the best places
in Germany for women to work.

One of our key successes this year was the
growth of our first Employee Impact Group
(EIG), focusing on ethnic diversity. Its
members come from across the Company
and it helps employees to create sustainable
change. The EIG has hosted a range of
activities including our Breaking Barriers
event, co-hosted with CRN, which saw over
180 professionals from the sector join expert
speakers and industry leaders to share
advice and best practice on making our
industry more inclusive to people from ethnic
minority backgrounds.

We have now launched two new EIGs on
Gender, and Wellbeing and Accessibility.
Their steering groups have begun to design
a Group-wide approach to these topics,
which can be delivered locally.

EMPLOYEE IMPACT GROUPS

Our Employee Impact Groups help give our people the opportunity to influence and create a working culture they are proud to be part of.

Speak FREELY
Create an environment which enables
employees to speak openly, and to identify
actions to improve employee experience.

Promote WELLBEING
Proactively promote our people
to look after their own physical
and mental wellbeing.

DATA
Ensure we have
the data that enables
us to measure the
success of
ongoing work.

Help EDUCATE
Facilitate the delivery of targeted
education to every Computacenter
employee, to equip them with the
knowledge they need to promote
a positive and inclusive environment
for all.

Be ACCESSIBLE
Support and drive initiatives to improve
the accessibility of Computacenter,
removing any barriers that prevent
people achieving their potential.

Sustainability strategy
continued

In our recent employee survey, we achieved
positive results for the inclusion questions,
showing that our people believe we support
equality of opportunity and that they can be
themselves at work without worrying about
not being accepted.

Our investment in wellbeing has been further
supported with the introduction of a dedicated
wellbeing manager. This has allowed us to
focus our wellbeing strategy on the areas that
our people need and has already led to further
Mental Health First Aiders being trained, the
launch of menopause guidelines and support
network, and signing up to participate in the
Mind Workplace Wellbeing Index.

Reward and recognition
Pay for performance is at the heart of our
reward philosophy. As well as ensuring that
our people are paid in line with any legislative
requirements, including national minimum
wages and equal pay, our goal is to align pay
with each employee’s contribution. As part of
this, we carry out annual pay reviews for all
our employees across the globe.

In March 2020, we launched a global peer-to-
peer recognition tool called ‘Bravo!’ This allows
our people to immediately recognise and
thank one another for their valuable
contributions in the workplace. The tool also
allows managers to award points for
exceptional performance and practice, which
are redeemable with selected retailers or may
be donated to selected charities in-country.
The next step in our journey with Bravo! was
the launch of Bronze, Silver and Gold awards in
2021. These rewards are specifically targeted
at those who demonstrate our values to the
highest possible standard.

Supporting communities
We recognise the importance of delivering
social value for our communities and we
support our people to take part in activities
where they can make the most difference.

Our main aims are to:

• demonstrate our commitment to the

wider community;

• motivate employees by encouraging

team-building activities in a worthwhile
cause; and

• promote Computacenter’s Winning

Together Values to customers, our people
and other stakeholders.

We continue to support initiatives to raise
money for local charities, as well as
supporting activities proposed and run by
our employees. Some examples are below.

The impact of the floods in Western Europe
was particularly relevant to our employees
this year. In response, we donated a total of
€25,000 to ‘Aktion: Deutschland hilft’ and the
German Red Cross. We also supported
affected employees and the wider
community, establishing a platform where
employees could offer practical help and
allowing 220 days of paid time off for those
supporting the recovery effort.

In the UK, we support the charity partners
selected by employees – Make-a-Wish
Foundation, British Heart Foundation and
Dementia UK – through fundraising steered by
the Charity Committee. We also offer a Give as
You Earn scheme, through which employees
can make monthly contributions to any UK
charity. Our Bravo! employee recognition
scheme also allows employees to donate their
voucher rewards to our chosen charities.

Our work with potential future talent is a key
part of our strategy for delivering social value
in our wider communities. Over the last few
years, we have developed strong partnerships
with a number of schools, universities and
charities in the UK, with our community
education outreach programme continuing to
grow in 2021 and winning CRN’s award for
‘Best Community Outreach Programme’ in the
UK tech channel.

In 2021 we reached over 5,000 students and
young adults, and of those:

• 53 per cent identified as female;
• 45 per cent identified as male;
• 2 per cent identified as non-binary;
• 35 per cent were from an ethnic minority

background;

• 55 per cent came from a disadvantaged

background;

• 25 per cent were in the care system; and
• 20 per cent were disabled.

We committed further support for our wider
communities when we first signed the UK
Armed Forces Covenant. As part of our
commitment to this and our investment in
military service leaders, January 2022 saw
the launch of our new Veteran Transition
Programme in the UK. This is an exciting,
frontline sales development programme that
provides carefully selected rotations across
key business functions. After successful
completion, it leads to a role as a Solution
Sales Specialist.

Ethics and conduct
Computacenter has a range of people-related
polices, covering topics such as equality and
respect at work, health and wellbeing,
recognition and reward, and whistleblowing.
Together, they are designed to ensure that our
people are supported, protected and suitably
recognised for the contribution they make,
and that we are an inclusive and ethical
employer, with a diverse, talented and
motivated workforce.

Our people can report any HR policy
compliance issues to their line manager or HR,
or they can call our Safecall whistleblowing
hotline, which allows them to report in
confidence. All calls to the hotline are handled
by an independent third party and the issues
are monitored, resolved and reported to the
Audit Committee. All other issues are dealt
with operationally, through the HR function.

We also monitor other indicators of policy
compliance, such as the number of grievance
or disciplinary proceedings, which we
aggregate at a country level. Our HR managers
review this data to see if there are trends
requiring management action. No material
policy breaches were identified during the
year, either through the whistleblowing
hotline or our other compliance processes.

Anti-bribery and corruption
Computacenter has a well-established
Anti-Bribery and Corruption compliance
framework. This is underpinned by our Ethics
Policy which, together with specific Anti-
Bribery and Corruption and Fraud policies,
provides a clear set of rules and expectations
that are applied across our business. This is
supported by employee training and
guidance documentation.

The Anti-Bribery and Corruption compliance
framework is overseen by the Group Legal and
Compliance Director and our Compliance
Steering Committee. It is regularly audited by
our Internal Audit function. The framework is
supported by our externally managed
confidential whistleblowing hotline provided
by Safecall, an industry recognised provider
of such services. No material breaches of our
policies were identified during the year.

We continued to reinforce our zero-tolerance
approach to bribery and corruption
throughout 2021, providing training as an
integral part of our induction process and
ensuring continued awareness of our
whistleblowing hotline across the Group. This
ensures that all employees, contractors, third
parties and suppliers know that they are able
to report any issues on a confidential basis.

Strategic Report
Annual Report and Accounts 2021

INSPIRING FUTURE GENERATIONS
In partnership with schools, universities and charities we have reached
over 5,000 students in 2021 providing:

• Advice on careers in STEM and promoting women and ethnic

diversity in tech

• On-site visits at Computacenter
• Speak to the expert days
• Lessons about technology
• Work experience for students
• Assessment centre preparation workshops
• Mock interviews and CV writing
• Social media safe workshops
• Apprenticeship challenges
• Guidance to ensure work readiness
• Career fairs
• School employability strategy support, including those

with disabilities

In October 2021 we
were proud to be
recognised at the
CRN Women in
Channel Awards 2021
for our Community
Outreach Programme.

Computacenter Group
Collection of Computacenter images illustrating the range of activities our people are involved with.

Sustainability strategy
continued

WINNING
TOGETHER

A selection of our people from across the
Group, sharing their stories about what 2021
has meant for them and their customers.

1981-2021

Working at Computacenter is
truly exciting. My co-workers
are excellent – they know
what needs to get done and
how to do it. What I like most
about working here is obvious
– the people!

Rob Deluca
Service Manager,
North America

From day one, Computacenter
felt like home to me. Working
here has allowed me to
develop so much and good
work is appreciated. I’m
honoured to be working at a
respected company with an
incredible people culture.

Sylvie Knuth
Transition & Take-on Specialist
Associate, Germany

I’ve been with Computacenter
for 17 years and I’ve developed
with this Company into a Group
leadership role. I’m inspired to
see our people come together
to deliver the best possible
services for our colleagues and
customers around the world.

Inga Opel
Delivery Enablement Director,
Germany

I love our company and I feel
privileged to say that. Energy
is part of our DNA and that’s
what makes Computacenter
so special and admired by
our customers, vendors
and partners.

Robbie Degen
Client Director,
United Kingdom

Computacenter shows how
leadership with vision and
people with commitment
can win together. I share my
workplace with wonderful
people and we strive every
day to live up to our values
and deliver for customers.

Pradeep Kumar
Delivery Director,
India

I’m proud that Computacenter
is regularly recognised as a
great place to work and I’m
lucky to be surrounded by real
and talented people, in a
company that encourages us
to explore our full potential.

Christian Sigrist
Divisional Head, Operations,
Switzerland

Computacenter is the first
company that has empowered
me to do the work that I love.
I feel responsible and motivated,
and it is really great to be part
of a collaborative and
supportive team.

Adam Pfliegel
Delivery Excellence Manager,
Source & Deploy, Hungary

I’ve worked for
Computacenter for a
year on some demanding
projects, full of challenges.
I really enjoy the job,
because I can break my
own limits and improve
my skills every day.

Weronika Maślak
Lead Analyst,
Poland

I love that my role allows me to
work with people from different
cultures and backgrounds.
Understanding that people
matter is a core Computacenter
value and I’m grateful for
the personal growth and
development I’ve experienced.

Yomi Bello
Global Service Director,
United Kingdom

I joined Computacenter in
2001 and my role has never
stopped evolving. During my
time here, I’ve understood
that embracing change and
sharing knowledge with
others allows you to develop
skills and to grow, personally
and professionally.

Delphine Begue
Executive Assistant, Human
Resources, France

Sustainability strategy
continued

PLANET

Ensuring sustainable
operations

We take a responsible approach to reducing our direct and
indirect environmental impacts and overseeing our supply
chain, as part of our commitment to sustainable operations.

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. We are not
aware of any breaches of the policy in 2021.

Our Climate Committee leads our approach
to reducing our environmental footprint. It is
chaired by the Group Finance Director and
includes Group managers and senior
employees with specific environmental
interests. The Committee debates and
proposes initiatives, with material
investments then approved at Group
Executive level. The Committee met four
times during 2021.

Our environmental commitment
We aim to be Carbon Neutral in 2022 for
Scopes 1 and 2 emissions. Scopes 1 and 2
emissions include all our direct emissions
such as our facilities and some of our indirect
emissions such as electricity purchased. This
will be achieved by a combination of increases
in our own renewable energy generation,
continued investment in energy-efficient
lighting and equipment, the purchase of
electricity generated by renewable sources
and the purchase of carbon offsetting credits

The Board has agreed a target of being Net
Zero for Scopes 1, 2 and 3 emissions by 2040,
ten years ahead of our previous target. 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.

Our first report on the requirements of the
Task Force on Climate-related Financial
Disclosures (TCFD) can be found on pages
62 to 64.

Kerpen, Germany
Solar panels in our car park at the
Kerpen headquarters.

Hatfield, United Kingdom
Volume laptop redeployment with packaging
removed at our Integration Center.

74%

reduction in carbon
emissions per employee
since 2019

1.8m kWh

of electricity generated by
Hatfield solar farm

73%

of Group electricity usage
is now from green energy
sources

Being Carbon Neutral
(Scopes 1 and 2) in
2022 will be a major
milestone, based
on a number of
years of carbon
reduction efforts
across the business.
We will be one of the
first companies in
our industry to
achieve this.

Tony Conophy
Group Finance Director

Energy usage
In 2021, the Group consumed 38.5 million kWh
of electricity, of which the UK accounted for
50 per cent. 73 per cent of the Group’s
electricity usage came from renewable
sources, a significant improvement from
approximately 30 per cent in 2020.

We benefited from a full year of electricity
generation from the 6,308 solar panels
installed at our Hatfield (United Kingdom)
Integration Center in 2020, which generated
approximately 1.8 million kWh in 2021 and
saved around 400 tonnes of annual CO2e
(based on UK conversion factors). On
1 October 2021, the 1,700 solar panels
installed at our Kerpen (Germany) Integration
Center became operational. In addition, we
have covered approximately 500 parking
spaces at Kerpen with carports that include
solar panels. These went live in the first
quarter of 2022. In total, the solar installation
at Kerpen can generate around 1.5 million kWh
per annum. The car park structures at Kerpen
have the additional benefit of protecting cars
from sun and snow and will have car charging
points attached to them. We have agreed a
proposal for installation of solar panels at our
Integration Center in Livermore, California,
which will have the potential to generate
around 0.75 million kWh per annum.

In addition to generating our own electricity,
we source green energy for our operations in
the UK and Germany. These agreements were
in place throughout the prior year in Germany
and for two months in 2020 in the UK, meaning
we have had a full-year benefit in 2021 from
the UK agreement. In total, we used 27.9
million kWh of renewable energy in 2021,
resulting in a further reduction in our CO2e
of approximately 4,953 tonnes.

We continue to find ways to reduce our energy
usage. For example, as IT equipment in our
offices needs replacing, we are rolling out
display screens that also power users’ laptops
and other devices, saving 50 to 60 per cent of
the power of having separate chargers. This
also results in cost savings from not buying
docking stations. All new offices will have
enhanced energy efficiency, and, for example,
we have included energy efficient lighting in
our new Paris office and our existing Roissy
and Gonesse locations, after refurbishment.

In 2020, we refreshed the air conditioning
system at our Manchester data center, so it
uses free cooling from the environment when
the outside temperature is low. This reduced
energy consumption there by 14 per cent
in 2021.

Hatfield, United Kingdom
The solar panels on the roof of our Hatfield Integration Center were one of the largest installations of its type in the UK in 2020.

Strategic ReportAnnual Report and Accounts 2021Sustainability strategy
continued

Greenhouse gas (GHG) emissions
The Company is required to state the annual
quantity of emissions from Group 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 corporate website:
computacenter.com.

Global GHG emissions
(metric tonnes of CO2e)

Year
Scope 1
Scope 2
Total

2021
1,908
3,302
5,210

2020
5,640
8,216
13,856

Scope 1: combustion of fuel and
refrigerants usage

Scope 2: electricity, heat, steam and
cooling purchased for own use

Scopes 1 and 2 emissions fell from 13,856
metric tonnes of CO2e in 2020 to 5,210 metric
tonnes in 2021, a reduction of 62 per cent. This
reflects the benefits of the UK green energy
contract, the Kerpen solar installation and the
other initiatives we have undertaken, partially
offset by a full year of the acquisitions the
Group completed in 2020. Our UK business
accounts for 22.1 per cent of total emissions.

The Group’s chosen intensity measurements
for emissions as reported above are:

• 0.78 metric tonnes per £m of Group revenue
(2020: 2.55 metric tonnes), a reduction of
69 per cent.

• 0.30 metric tonnes per Group employee

(2020: 0.84 metric tonnes), a reduction of
63 per cent.

We have a target to achieve Net Zero for
Scopes 1, 2 and 3 emissions by 2040. Our
roadmap to achieve this is underpinned by
Science Based Targets and includes the
following initiatives:

• Continued investment in green energy,
self-generating power solutions and
reducing consumption through both
implementing better technology products
in our own environment and enhancing the
efficiency of our facilities.

• Managing post-Covid-19 Group travel

through a mixture of incentives, travel
levies and technology-supported hybrid
working and collaboration.

• Working with our technology partners on

their own journey to Net Zero, to ensure that
the products we purchase for resale do not
increase our carbon footprint. Most of our
technology partners are among the leaders
in the global industry and share our
commitment to Net Zero.

• Working with our wider supply chains to

ensure they are aligned to our 2040 target
and hence reducing emissions in areas
such as transportation.

• Utilisation of our Circular Services

operations to avoid carbon consumption
with the reuse of technology assets and
extraction of raw materials through
redeployment, remarketing and recycling.

• Widening the adoption of our Circular

Services portfolio with our customers,
to enhance their carbon avoidance.

• Offset remaining emissions that cannot 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.

We will regularly review and refine our
roadmap based on Science Based Targets,
to ensure that the evolution of standards in
this area is reflected.

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 DEFRA. We
have different factors for each country, as
electricity generation and CO2e 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.

Emissions performance over time (metric tonnes)

Group
Total Scopes 1 and 2 emissions
Per £1 million of revenue
Per employee

2015
24,795
8.11
1.92

2016
25,518
7.86
1.80

2017
22,662
6.20
1.54

2018
19,741
4.53
1.30

2019
19,808
3.91
1.23

2020
13,856
2.55
0.84

2021
5,210
0.78
0.30

Kerpen, Germany
Solar panels covering our car park area.

Kerpen, Germany
Solar panels on the roof of our Integration Center.

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 per cent of emissions were
estimated or based on an average energy
usage per square foot of space occupied.

Commitment to Science Based Target
initiative (SBTi)
In 2021, the Group joined the global movement
of leading companies aligning their businesses
with the most ambitious aim of the Paris
Agreement, to limit the global temperature
rise to 1.5°C above pre-industrial levels.
We will submit our targets to SBTi in 2022
for validation.

Carbon Disclosure Project (CDP)
We participated in the CDP and improved our
score from D to C in the most recent
submission. We continue to target further
improvements in our rating.

Procurement Policy Notice submission
As a supplier to the UK Government, we are
required to have a robust and documented
carbon reduction plan. We therefore made
the necessary Procurement Policy Notice
submission during 2021. This is part of a
broader pattern of government and public
sector customers adding criteria for
companies to meet, in order to remain eligible
to supply goods or services to them.

Energy Savings Opportunity Scheme (ESOS)
Computacenter complied with this legislation
by submitting its energy report, which
covered the period 1 April 2018 to 31 March
2019. The next submission is required in 2023.

Travel
Although travel is a necessary part of
conducting business, we want to ensure that
all trips are truly needed. We have a target to
reduce emissions from business travel by up
to 35 per cent by 2025, compared to 2019.
Covid-19 restrictions meant that we easily
met this target in 2021, using 0.63 million kg
of CO2 during business travel compared to
5.2 million kg in 2019. However, this is a
challenging target to achieve in a normal year,
given the Group’s growth. We are continuing to
encourage the use of technology such as
video conferencing as an alternative to travel
and conducting a communications campaign
to urge people to travel less.

From 1 October 2021, we have introduced a
travel levy for all trips and hotel bookings
across the Group. The levy is £10, €12 or $14,
depending on the booker’s local currency. The
levy raised around €50,000 during the fourth
quarter of 2021. The money raised will be used
to offset the travel element of our Scope 3
emissions. In addition, when people book
flights, they can see the associated carbon
emissions on the flight booking system,
so they understand the impact and are
encouraged to use alternatives. In Germany,
where internal business flights are common,
we have implemented a pilot programme to
substitute flights for first class train travel, as
the national railway company Deutsche Bahn
achieves Net Zero emissions through offsets.
This is expected to further reduce our CO2e
impact in 2022.

Our employees have responded well to
our introduction of a 110g/km CO2e limit for
new company cars, with compliance at
approximately 53 per cent in the United
Kingdom and approximately 60 per cent in
France. Our German and Dutch fleets will
follow as the transition from legacy fleets
evolves to more electric vehicles and plug-in
hybrid cars and vans. We are installing electric
vehicle charging points at our sites, as the
need arises.

Service Center – Cape Town, South Africa
We used the opportunity of a new building in Cape Town to move to a more energy-efficient facility, built to high environmental standards.

Strategic ReportAnnual Report and Accounts 2021Sustainability strategy
continued

Materials usage
Materials include the packaging we use in our
Integration Centers and the packaging our
technology partners use when transporting
goods to us. This category also includes items
we mail and our use of single-use plastics.

Packaging materials
A number of customers are taking an
increased interest in reducing the packaging
that is supplied with their purchases,
particularly single-use plastics. Some
manufacturers are already supplying more
cardboard-based internal packaging and
have significantly reduced their plastic
content and are looking to remove it
completely in the next few years. Others have
made progress in this area during 2021 but
are still supplying plastic packaging. We have
further improved our recycling channels and
nearly all plastic bags are now either retained
to be re-used or separated and collected for
dedicated plastics recycling.

We regularly hold discussions with our
technology partners about their use of
packaging materials, to encourage them
to reduce the volume of packaging and to
substitute materials for those which can
be reused or more easily recycled.

e-invoicing
We send around 100,000 sales invoices each
month. Our investment in IT tools and
programmes in recent years mean that, for
example, in excess of 90 per cent of our UK
invoices are now sent electronically, which
reduces costs and our environmental impact.
The implementation of an e-invoicing system
in Germany is now in full effect, with the result
that approximately 88 per cent of invoices in
Germany are sent electronically.

Removal of pre-printed stationery
We have largely removed pre-printed
stationery across our offices and continue
to work to minimise the need for printed
documents, supported by our investments
in systems and collaboration tools.

Single-use plastics
Having already eliminated single-use items
such as plastic cups and bottles at Hatfield
and Kerpen in 2020, we have continued to
prevent similar usage at our other major sites
in 2021. As a result, we are substantially
eliminating the use of these items across
the Group.

Waste diverted from landfill
We look to send as little waste as possible
to landfill and closely monitor recycling
performance for materials such as plastics,
paper and cardboard. In 2021, 34 per cent
of waste in the United Kingdom was sent
to landfill.

Packaging waste regulation
Computacenter UK is registered as a
distributor of product via the compliance
company Paperpak, ensuring we have fully
complied with this regulation since 2000.

Logistics
We use logistics services to deliver products
to our customers. Minimising the environmental
footprint and the cost of these services
requires us to employ the Integration Center
nearest to the customer’s premises.
As previously noted, we have negotiated with
many UK customers to fulfil deliveries to their
EU operations from Kerpen rather than
Hatfield. This has the additional benefit of
avoiding post-Brexit challenges at the border.

We are working with our various logistics
suppliers to ensure that they are maximising
the impact of their own sustainability
strategies through, for example, the use
of low emissions vehicles.

Hatfield, United Kingdom
Laptop configuration as part of lifecycle asset management services from our Integration Center.

Regulatory changes, particularly in Germany,
will require us to be able to monitor supplier
status on certain issues on a regular basis,
in addition to the on-boarding process. We are
therefore evaluating tools that will support
our ability to do this. As part of this process,
we will replace the existing questionnaire with
a more concise set of questions covering only
what we need to operate effectively and
measure compliance. This will be combined
with a refreshed Supplier Code of Conduct,
which suppliers will either be asked to sign or,
for major suppliers, confirm that their own
ways of working align with the Code.

Human rights and modern slavery
For Computacenter, human rights falls into
two areas: protecting the rights of our
employees and those within our supply chain.
The human rights of our employees are
covered by our Health & Safety policies and
our Ethics & Conduct policies.

Human rights in the supply chain primarily
relate to the risk of modern slavery.
We published our most recent Modern
Slavery Statement, covering our 2020
financial year, in the first half of 2021, with
our report covering the 2021 year due to be
published imminently.

The Group publicises its whistleblowing
hotline to suppliers, to enable reporting of any
suspected human rights issues. There were
no such issues reported during the year.

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.

We have continued to support our people in
workplaces by providing appropriate face
masks, cleaning materials and hand
sanitisers throughout these facilities.

Performance
The table below shows the health and safety
performance of our UK, 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.

AIR

AFR

2021
0.87
1.99
0.69

2020
0.58
1.62
0.64

2021
0.07
0.42
0.14

2020
0.11
0.34
0.14

UK
Germany
France

We have continued to offer health and safety
training, for example covering display screen
equipment, manual handling, environmental
awareness, and safe driving.

In Germany, we have implemented a new
Environment, Health and Safety (EHS)
organisation, expanding the team and
providing necessary training. The function
covers Computacenter facilities and
approximately 300 on-site locations and
ensures there are dedicated contacts and
responsibilities in place for all operations.
Creating a central team has helped to deliver
synergies and simplify processes. Among a
wide range of initiatives, the function has
implemented a new software solution, and
carried out internal audits on EHS issues and
occupational health and safety inspections at
customer sites and in our offices. It has also
trained fire safety officers, who will create
fire safety regulations and evacuation
training during 2022 and take over
responsibility for fire safety from 2023.

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. This in turn
is governed by the Group Compliance Manager
and Compliance Steering Committee.

Responsible business
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 Contract
Management team. The team uses a
standardised on-boarding process. Among
other things, this validates that the request to
add the supplier complies with our Business
Ethics Policy, obtains a supplier self-
assessment on several topics, including
sustainability issues, and highlights to
prospective suppliers key Computacenter
policies, such as IT security, anti-bribery and
corruption and our Supplier Code of Conduct.
The Code of Conduct sets out the 10 principles
in the UNGC, which include human rights,
modern slavery, anti-bribery and corruption,
and environmental matters.

Strategic ReportAnnual Report and Accounts 2021Sustainability strategy
continued

SOLUTIONS

Offering sustainable
customer solutions

Our customers not only expect Computacenter to be a
sustainable supplier and partner but also to help them
to achieve their own sustainability goals. Our activities
here are in three areas: Circular Services, Technology
Advisory and Asset Lifecycle services.

RDC has put huge effort into ensuring the
accuracy of our recycling management,
with whole recycling facilities dedicated to
testing, measuring and filming of controlled
batches of our customers’ scrap, including
systems, screens, servers, networking
devices and printers. This has enabled us to
provide detailed records of metal, circuit
board and plastic material extracted from
the waste stream.

Combining redeployment, remarketing and
recycling with secure logistics and data
management into an integrated package
is at the core of Circular Services.

RDC’s capabilities are backed up by Circular
Services delivered in Germany from our
Kerpen Integration Center and recent
acquisition, ITL. We extend these capabilities
with partners worldwide to align with
Computacenter’s global coverage.

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 whilst in use,
then recover and regenerate products and
materials at the end of each service life.

Our subsidiary R.D. Trading Limited (RDC) is
responsible for our Circular Services offering.
The bedrock of the service is the audit,
data-wiping and safety testing of every
customer asset. Once in our system, the
circular journey can then begin, bringing to
customers the benefits, both financial and
environmental, of redeploying, remarketing
or recycling their old equipment. Putting
customer assets to good use elsewhere
within their business through redeployment
saves money and carbon against purchasing
new. Likewise, remarketing all functional
assets that are no longer required generates
cash, as well as reducing the carbon footprint
of third parties buying new. In addition,
recycling all the equipment that is too old or
damaged removes potentially harmful
materials from landfill, whilst extracting
metal and plastic products that can be reused
in manufacturing.

128,000

tonnes of carbon avoided
through reuse of assets
(redeployment and
remarketing)

455,000

assets (main and
peripheral) redeployed
to customers saving
them £50 million

600

tonnes of reusable raw
materials generated
through industrial recycling

Asset volume up 13% to

2.2 million

(main and peripheral) with
7% increase in weight to
4,450 tonnes

870,000

assets remarketed (main
and peripheral) to third
parties, returning over
£22 million in cash to
our customers

Braintree, United Kingdom
Our Circular Services Integration Center in Braintree is supplemented by facilities
in Germany and partners worldwide.

By using our Circular
Services, including
redeployment,
remarketing and
recycling, our
customers can avoid
carbon emissions,
helping them on
their own journey
to Net Zero.

Gerry Hackett
Managing Director, RDC
(Computacenter subsidiary)

REDEPLOYMENT

REMARKETING

RECYCLING

On-site data sanitisation

Technical processing

Secure transport

Secure environment

Strategic ReportAnnual Report and Accounts 2021Sustainability strategy
continued

Technology advisory
Our role as both a trusted independent
technology advisor and provider of
Technology Sourcing for our customers puts
us in a unique position to help customers
drive their sustainability strategies through
a number of services.

Selection of the most sustainable
technology products
As one of the world’s largest VAR, we work
with all the leading technology suppliers and
make available EPEAT and EnergyStar energy
usage ratings for the products we supply to
our customers.

Supporting technology partners
We work closely with our technology partners
to understand their sustainability strategies,
help them to achieve their sustainability
goals and help our customers to make
informed decisions. We are proud to have
been recognised by HP as a 5 Star
Sustainability Partner.

Sustainable supply chain options
We are the VAR with the best international
capability in the world and this allows us to
help both our customers and technology
partners to leverage our Integration Centers
in different regions for local supply rather
than export, where possible. We still have
much to do to minimise the need for export
solutions but will continue to build the local
capabilities and work with our technology
partners to do so over the coming years.

Ways of working for users
Technology is a huge enabler for our
customers to allow different ways of working
for their users. We can provide workstyle
analysis to support the design of optimum
options, as well as helping to deploy and run
solutions such as Tech Centers and secure
locker collection, which can all contribute to
a sustainable hybrid working strategy.

Data privacy and security
As new ways of working are deployed, these
need to be underpinned by a strong security
and compliance environment, which we can
help to design, deploy and support.

Asset lifecycle
Our role in helping customers to deploy and
manage their technology assets also allows
us to introduce sustainable processes and
services into our core offerings.

Sustainable deployment
We offer a range of services to allow
customers to deploy technology with the
minimum environmental impact. These
include our trolley services, which allow us
to deploy at scale in offices but remove
packaging from technology (laptops, network
devices and servers) at our Integration
Centers, allowing environmentally friendly
disposal at scale.

Asset management
Using our new SmartHub, we will provide
customers with better data on the assets
including length of life, configuration and
update status, to allow them to make more
informed choices on redeployment and
replacement, usually extending the life of
most assets covered.

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Device as a Service
Our asset lifecycle services are being brought
together into our DaaS offering, which will
allow us to manage the lifecycle of assets for
our customers, underpinned by the highest
sustainability standards.

Computacenter’s Device as a Service (DaaS) Lifecycle

Hatfield, United Kingdom
By using our asset lifecycle services, customers can consolidate shipments, reduce packaging on-site and take advantage of our increasingly green energy facilities.

Data center and network deployment

Volume configuration

Total solution configuration e.g. ‘store in a box’

Mobile device configuration

Data center and network deployment

Strategic ReportAnnual Report and Accounts 2021Task Force on Climate-related Financial Disclosures

The Audit Committee is updated quarterly on
discussions and outcomes from the Group
Risk Committee meetings and the Board is
updated at least annually on all risk matters,
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.

Strategy
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 VAR. Our ability to procure technology
products through leading technology
partners, add value for our customers through
our Professional Services expertise, and then
ship or hold that product depends on:

• the resilience of our technology partners;
• 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 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 have set out below those
climate-related risks which we think could
reasonably result in that happening, 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. Whilst none of these
risks has yet impacted our business, we have
also set out how we have responded to them
in our strategy and financial planning.

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
partners’ 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 partners are
substantial international businesses,
who 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 partners, 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
ensure 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 from sea level rises and, like
many organisations during the Covid-19
pandemic, we have reduced our reliance on
physical offices.

Transition Risk: Compliance and
reputational risk
As we move towards a low-carbon economy,
there are increasing compliance requirements
emanating from the UK Government,
regulatory authorities and standard-setters,
as well as pressure from business stakeholders
and market initiatives related to sustainability
reporting, such as the TCFD. 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 mitigate against this
risk. We have had a Climate Committee in
place since 2020. Recent initiatives have
included the installation of a large number
of solar panels at our Hatfield and Kerpen
Integration Centers and we have contracts
in place to use only green energy in our
businesses in Germany and the UK. These and
other initiatives (detailed on pages 52 to 61)
have contributed to a reduction of our Scopes
1 and 2 emissions of 73 per cent since 2019
(see page 54). We have a target to be Carbon
Neutral for our Scopes 1 and 2 emissions in
2022 and to reducing our Scopes 1, 2 and 3
emissions to Net Zero by 2040, backed by
Science Based Targets. Our progress towards
these targets will be monitored and reported
on in future Annual Reports.

Climate-related risks and opportunities
We support the aims of the Task Force on
Climate-related Financial Disclosures (TCFD)
in communicating the risks and opportunities
arising from climate change. In accordance
with the Financial Conduct Authority’s Policy
Statement PS20/17, we are making disclosures
consistent with the TCFD’s recommendations
and recommended disclosures having
considered all sector guidance, with the aim
of providing all of our stakeholders with useful
information relating to climate-related risks
and opportunities relevant to our business.
An exception relates to Scope 3 emissions, for
which we aim to submit Science Based Targets
during H1 2022; we have yet to define the
basis of these emissions for which we will
seek external support.

We supply technology products and services
to our customers, which 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 our Integration
Centers across Europe and North America to
enable us to fulfil product more locally.
Following our Brexit preparations, we have the
ability to despatch products from our Kerpen
Integration Center to customers in the
European Union, which had previously been
shipped from our Hatfield Integration Center.
While we have been a net beneficiary of this
change in terms of export administration and
shipping cost, it has also helped to reduce
global emissions.

Governance
As outlined on page 81, the Board has overall
responsibility for managing risks and
opportunities, including climate change risk.
The Board has considered the risk to the
business relevant to climate change but does
not yet believe it is sufficiently material to be
classed as a principal risk in its own right. The
Board continues to monitor climate-related
risk. It does so through its review of the
Group’s principal risks related to any failure
to meet our commitments or comply with
applicable laws and regulations in relation
to ESG matters.

The Board has delegated day-to-day oversight
of climate change risk to the Climate Committee.
This committee meets quarterly and leads on
all climate-related initiatives. It consists of
senior Managers and is chaired by the Group
Finance Director, who also chairs the Group
Risk Committee. The Group Risk Committee
considers emerging risks, such as climate
change, as necessary.

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.

Short term (to 2030)
Higher transition risks associated with
moving to a low-carbon economy
• Reputational risk with investors,

customers and employees, if we do not
adequately address climate change.

• Compliance risk if we fail to meet

regulatory requirements, including
emissions reporting obligations.

• Increased cost of climate-related levies/
increased pricing of greenhouse gas
(GHG) emissions.

• Changing customer behaviour.
• Travel curbs.

Opportunities
• Customers will continue to invest in their

IT infrastructure, to enable hybrid working
practices which are carbon-reducing,
and also to reduce the carbon footprint
of their IT infrastructure. We will
therefore continue to see high demand
for modern, lower-carbon footprint
technology products.

• Our Circular Services (redeployment,

remarketing and recycling of technology
products) will become increasingly
important to our customers.

Slight increase in transition and physical
risks in the short term
• Isolated and manageable business

disruptions caused by extreme weather
events, such as flooding or drought.

• Ad-hoc supply chain interruptions.
• Increased insurance costs due to

natural disasters.

Opportunities/Resilience
• 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.

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Medium term (2030 to 2040)
Continued transition risks
• Increasing reputational risk with

investors, customers and employees,
if we do not adequately address
climate change.

• Continuing compliance risk if we fail
to meet regulatory requirements,
including emissions reporting
obligations.

• Increased cost of climate-related
levies/increased pricing of GHG
emissions.

• Changing customer behaviour.
• Travel curbs.

Opportunities
• Continuing customer investment in

their IT infrastructure with continued
high demand for modern, lower-
carbon footprint, technology products.

• Our Circular Services will remain
important to our customers.

Long term (beyond 2040)
Less significant increase in physical risks
• Continued isolated extreme weather events
causing manageable business disruptions.

• Higher summer temperatures and rapid

changes in temperature and humidity causing
challenges for data center cooling.

Opportunities
• Our ability to provide Circular Services by
ourselves will help us to differentiate, as
customers will expect these services to be
integrated into more of the technology
products and services they procure, e.g.,
through ‘Device as a Service’ (DaaS).
• Customers will require our advice on the
selection and deployment of technology
products, to help them achieve their carbon
reduction strategies.

Increasing physical risks due to
a failure to adequately transition to
a low-carbon economy
• Power outages due to restrictions on

use of fossil fuels.

• Increasing cost of power.
• Flooding due to increased sea level

(no strategic locations are at
material risk).

• Increasing transport costs.
• Telecoms and internet disruptions.

Opportunities/Resilience
• We will continue to maintain

operational resilience through the
geographical dispersion of our
Service Centers.

• Our existing strengths as one of the
world’s most international and
Services-led VAR give us the
opportunity to establish a leadership
position in helping both customers
and technology partners to achieve
their sustainability goals.

Increased physical risks due to a failure to
adequately transition to a low-carbon economy
• Power outages due to restrictions on use of

fossil fuels.

• Increased cost of power.
• Flooding due to increased sea level (no
strategic locations are at material risk).
• Pandemics due to new diseases caused by

climate and population changes.

• Population changes – controls on population
growth, increasing migration, the need for
automation etc.

• Increased transport costs.
• Telecoms and internet disruptions.

Opportunities/Resilience
• We will continue to maintain operational

resilience through the geographical dispersion
of our Service Centers.

• Our existing strengths as one of the world’s
most international and services-led VAR give
us the opportunity to establish a leadership
position in helping both customers and
technology partners to achieve their
sustainability goals.

The less than 2°c scenario assumes that we act responsibly, in line with business and society globally, to reduce GHG emissions. This may include
the introduction of carbon pricing by national governments. In this scenario, we expect that transition risks pose the biggest threat to our
business, with only a limited and manageable impact on our operations from physical risks. The greater than 2°c scenario assumes climate policy
is less effective and emissions cause climate change above that envisaged in the Paris Agreement. Under this scenario, we would expect physical
risks to become much more apparent in the longer term.

Strategic ReportAnnual Report and Accounts 2021

Task Force on Climate-related Financial Disclosures
continued

Our strategy to address climate-related issues includes our commitment to be Carbon Neutral for our Scopes 1 and 2 emissions in 2022 and
Net Zero for our Scopes 1, 2 and 3 emissions by 2040, with both commitments to be backed by Science Based Targets.

Risk management
Our risk management and control framework enables us to effectively identify, assess and manage climate-related risks. As summarised on
page 81, the Board reviews climate change risk as part of its review of our principal risk relating to complying with our commitments and
applicable laws and regulations in relation to environmental, social and governance matters. The process for identifying and assessing climate-
related risk is the same as for all principal risks, as described on page 81. Each of our principal risks has an assigned risk owner, who is responsible
for its management. This includes ensuring the effectiveness of internal controls and for overseeing risk mitigation plans. Each risk owner
presents the controls and mitigations for peer review at least annually to the Group Risk Committee meetings. The Board also reviews the
principal risks annually. We do not currently recognise climate change as a principal risk to the business.

The Group Finance Director chairs the Climate Committee that was established in 2020. The Climate Committee consists of Group managers and
senior employees with specific environmental interests. The Committee’s aim is to debate and propose initiatives to continue to reduce our
environmental impact, with some material investments to be approved at Group Executive level.

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 taken into account 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.

Target
We aim to reduce our Scopes 1 and 2 emissions to Carbon Neutral in 2022 and our Scopes 1, 2 and 3
emissions to Net Zero by 2040, backed by Science Based Targets.
We have considered transition risks to achieving our strategic objectives across the Group as
a whole. However, they are not considered material at this stage.
We have assessed the Company’s locations close to water sources at risk of flooding or at risk
of sea level change. None of the locations are strategic to our operations.
Customers will need us to:

• supply and deploy modern, lower-carbon footprint technology products;
• provide Circular Services for their technology estate and increasingly integrate these into

our Services;

• provide local supply solutions, to minimise shipment-related carbon footprint; and
• advise on selecting and deploying lower-carbon IT infrastructure, to help them meet their

sustainability goals.

In recent years we have made significant investments to reduce our carbon footprint. These include
the following initiatives:

• Installing 6,308 solar panels at our Hatfield Integration Center at a cost of approximately £1.2
million; installing 1,764 solar panels at our Kerpen Integration Center and installing 2,016 solar
panels over our Kerpen car park spaces at a cost of approximately €1 million. Combined, these will
result in annual power generation of approx. 3.3 million kWh and the reduction in Scope 2 emissions
of approximately 1,100 tonnes, based on a combination of UK and German conversion factors.
• Installing a further 1,200 solar panels on the roof of our Livermore Integration Center, which will
complete in 2022, and is expected to generate 750,000 kWh and reduce Scope 2 emissions by
140 tonnes, based on local conversion factors.

• Purchasing ‘green’ electricity across our UK and Germany businesses at an incremental cost

of £100,000, resulting in emissions reductions of 4,953 tonnes.

• Introducing electric vans in some of our logistics business areas and electric cars.
• Acquisition of our RDC Circular Services subsidiary.

Overall, our GHG emissions are now 21 per cent of the 2015 number.
While we have not introduced internal carbon pricing across our business as a whole, from
1 October 2021, we have introduced 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 CO2e emissions generated from these activities.
For the year ended 31 December 2021, no executive discretionary bonus was linked to climate
considerations, other than the Group Finance Director, who has one objective related to climate
change management. However, this is being kept under review by the Remuneration Committee.

Metric category
GHG emissions

Transition risk

Physical risk

Climate-related opportunities

Capital deployment

Internal carbon prices

Remuneration

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 as 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 its
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 the sections set out in the table below,
we explain how the Company’s programme
of engagement with our key stakeholders
enables our Board members to do so.

In some cases, this engagement directly
involves the Board or its members, and this is
almost exclusively how engagement with our
investors takes place. Given the size and
geographic diversity of our business, the
majority of engagement with our customers,
technology partners, people and communities
takes place at an operational level across the
organisation. Where this is 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 91 to 92. 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.

Sections incorporated into Section 172 statement

Relevant information
• Our approach to market
• Business model at a glance
• Technology Sourcing, Managed Services and Professional Services
• Our sustainability strategy
• TCFD disclosures
• Non-financial information statement and stakeholder engagement
• Viability statement and going concern
• Principal risks and uncertainties
• Board activity in 2021

Page
10 to 16
17
18 to 25
40 to 61
62 to 64
65 to 69
78 to 79
80 to 85
91 to 92

Non-financial information statement

Computacenter aims to comply with the Non-Financial Reporting Directive requirements contained in Sections 414CA and 414CB of the Companies
Act 2006. The table below sets out where more information on non-financial matters can be found within this Annual Report and Accounts (as well
as on our website: computacenter.com). The due diligence carried out for each policy is contained within each respective policy’s documentation.

Reporting requirement
1. Business model

2. Principal risks and impact of business activity

3. Employees

4. Social matters
5. Human rights

6. Anti-bribery and corruption

7. Environmental matters

Relevant information
• Strategic priorities
• Business model
• Viability Statement
• Principal risks and uncertainties
• Employees
• Diversity policy
• Health and safety
• Stakeholder engagement
• Supporting charity and community
• Human rights
• Suppliers
• Details of our Supplier Code of Conduct, as well as our approach

to protecting human rights, can be found on our website

• Whistleblowing
• Our Code of Business Conduct and other related policies, can be

found on our website
• Environmental matters
• Energy use and emissions
• Greenhouse gas emissions

Page
8
17
78
80
44
46
57
66
48
57
57

52
53
54

Strategic ReportAnnual Report and Accounts 2021Stakeholder engagement

OUR KEY STAKEHOLDERS ENABLE COMPUTACENTER TO CREATE VALUE FOR THEM.
Our people and technology partners provide us with leading digital
technology and expertise that underpins the competitiveness of our
customer offering. Our customers place their trust in us to Source,
Transform and Manage their digital technology to support their
organisations. Our investors support us by taking the decisions and
providing us with the capital support that allows us to build a
sustainable business for the long term, whilst the communities in

which we operate support the social, economic and personal interests
of our other key stakeholders. Collectively, they are an indispensable
part of how we do business. Having their support, and ensuring that we
address their views, interests and concerns where we can do so, is of
paramount importance to us.

Our customers

Why we engage and what matters to them:
Our Winning Together Values are unambiguous: we put our customers
first, we keep our promises to them, and we always prioritise the long
term in our dealings with them.

Our Purpose includes enabling the success of our customers by
helping them to navigate the complex digital environment and to
Source, Transform and Manage their digital technology. One of our
principal risks is that we fail to invest appropriately to maintain
our competitiveness. We can only support our customers and
mitigate against this risk through a deep understanding of their
current and likely future needs and views, ensuring that our
offerings and investment decisions are aligned with these, and that
we deliver a positive customer experience which drives long-term
customer relationships.

Our collaboration with customers requires continuous two-way
engagement, so we can adapt with them as their digital environments
and related technology needs evolve. They expect us to be responsive
and flexible to their requirements, delivering services to them in
a way which reflects agreed terms and is safe and sustainable.
Through clear communication with our customers, we are able to
ensure that we have the capability to deliver what they are asking
from us.

Our principal forms of engagement with them during the year were:
• Day-to-day engagement through a wide variety of channels,

generally covering our performance and future opportunities, and
including face-to-face and virtual meetings, customer training and
workshops, as well as dialogue through dedicated client directors
and account managers, our service support functions and, where
necessary, our country-unit and Group Management teams.
• Regular meetings between our Chief Executive Officer and key

customers, to discuss their view of Computacenter.

• Customer surveys and other structured mechanisms for obtaining

feedback on our performance.

• Through the publication of supporting materials, including those
on our website (computacenter.com) which summarise and
provide further information on our customer offerings.

How the Board was kept informed of engagement outcomes, and
considered the interests of our customers during discussions and
decision making:
In 2021, the Board received frequent updates on customer
engagement from the Chief Executive Officer, which included details
of significant contract bids and wins, and material customer issues
where they arose.

These were supplemented by presentations from our in-country
business leadership teams on key customers and their issues,
including the management teams of our German and UK businesses.
Subjects covered included maintaining and expanding long-term
customer relationships, the impact of Covid-19 on significant
customers, their demand and investment capacity for IT
infrastructure and systems, and a review of independently-produced
customer satisfaction data. The Board also completed a ‘deep-dive’
on a topic related to the Group’s strategic priorities at each of its
scheduled meetings, which are based on likely future trends in
customer behaviour and demand, and ensuring that the Group can
adapt to these with its customer offerings.

Feedback and discussion from these engagement activities
informed the Board’s decision to approve the Group’s three-year
strategic plan for 2022-2024, the associated investment
requirements required by that plan, the Group’s financial
performance targets for 2022, as well as its review of potential
acquisition and material contract bid opportunities.

The Board also approved an investment into our core IT Service
Management (ITSM) systems, which will allow us to address the
capabilities that our customers will need in the future, and reviewed
and approved the Group’s ESG strategy having considered the
expectations of our key customers in that area, and received
regular ESG updates from the Group Finance Director and Group
Development Director.

Further details of how the Board considered the interests of our
customers in its decision-making can be found on pages 91 to 92.

Our people

Why we engage and what matters to them:
Our people are at the centre of what we do and are essential for
our future growth. They implement and promote our culture, as set
by the Board, on a day-to-day basis. Externally, they represent
Computacenter when interacting with our other key stakeholders,
building relationships, generating long-term trust, and developing
knowledge of their requirements and preferred ways of operating.

We want to attract, retain and develop people who understand and
promote our strategy, performance, culture, values and purpose.
Failure to recruit and retain the right calibre of people to our talent
pool is one of our principal risks (as set out on page 85). Clear,
consistent and frequent engagement with our people, and the groups
that represent them, helps us to mitigate this risk.

Our people expect us to provide fair and safe working conditions for
them, and to help create an environment where they can get the best
out of themselves. Engagement allows us to understand how we can
continually strive to do this better.

Our principal forms of engagement with them during the year were:
• The programme of engagement completed by Ros Rivaz, the

nominated Non-Executive Director for Workforce Engagement.

• Weekly communications to all of our people from the Chief
Executive Officer, covering topics such as recent business
performance and trends, as well as Board and senior Management
views on those areas.

• Engagement with our Works Councils across Europe, including

Germany, France, Spain, Belgium, Switzerland and the Netherlands,
and additionally our European Works Council.

• The Group-wide Management structure and Whistleblowing hotline,
and the activities of our Human Resources function, all of which
ensure that issues and feedback raised by our people are
considered and escalated, including to members of the Board and
the Group Executive Committee if appropriate.

• Through our policies and training, which provide guidance on
how we expect our people to represent Computacenter and
conduct themselves.

• Through our biennial Group-wide employee survey.

Strategic Report
Annual Report and Accounts 2021

How the Board was kept informed of engagement outcomes,
and considered the interests of our people during discussions
and decision-making:
The Board received frequent updates during the year from Ros Rivaz
on the outcomes of the Workforce Engagement Programme, which
included feedback from our people on the Company’s response to the
Covid-19 pandemic, indicating that it had been clear and timely with
related communications, and had provided our people with
appropriate support, both in respect of their needs relating to their
role undertaken for Computacenter, and the provision of resources
to support their mental wellbeing, particularly during Covid-19-
related lockdowns.

Ros summarised the views provided to her on the effectiveness of
working relationships between Management and our Works Councils,
and noted that over time there would be appetite for the Company
to provide clarity on its post-Covid-19 future working arrangements.
She reported on her meeting with the Computacenter Employee
Impact Group (EIG) for Ethnicity, including feedback that the EIG had
received from our people on their views and experiences of how
Computacenter ensures diversity and equality across the Group.
Feedback provided informed the Board’s deep-dive review on the
Group’s culture, including discussion of how this had developed over
recent years, had been impacted by the Covid-19 pandemic and how
it supported the implementation of the Group’s strategy.

The Board also received presentations from our in-country senior
Management teams, which included detail on employee engagement
activities and outcomes, as well as specific updates from the Chief
People Officer on negotiations between the Group and its Works
Councils related to matters of interest to both parties.

The Chief Executive Officer provided an update of progress made
against internal gender diversity targets for senior Management
positions throughout the organisation, which was considered by
the Board when reviewing our Gender Pay Gap (GPG) reporting,
the causes for the remaining GPG that exists, how this is linked to
diversity and inclusion and actions required to reduce our GPG.

As part of his regular updates to the Board on financial and
operational performance, the Chief Executive Officer also reported
on common themes and trends from employee feedback, especially
concerning the impact of Covid-19 on our people. During the year,
and on the recommendation of the Chief Executive Officer, the Board
approved the expansion of the Group’s Performance Share Plan to
allow the issue of awards within additional jurisdictions following
recent acquisitions made. Prior to the publication of the 2021 Annual
Report and Accounts, the Board also reviewed and discussed the
results of our biennial Group-wide employee survey, which was
completed in the fourth quarter of the year. Detail of the outcomes
of that survey can be found in the people section on page 46.
Feedback from each of these engagement activities above also
informed the Board in its discussions and decision-making around
Computacenter’s Modern Slavery Act Statement and ESG strategy.

Further details of how the Board considered the interests of our
people in its decision-making can be found on pages 91 to 92.

Stakeholder engagement
continued

Our technology partners

Our communities

Why we engage and what matters to them:
Our technology partners are critical for us and we invest time and
effort in ensuring that our relationships with them remain robust
and healthy, for mutual benefit. We aspire to be their preferred
route to market for our chosen customer segments, and they
benefit from our customer intimacy, which comes from our focus
on long-term, multi-level strategic relationships.

Through engagement with our customer teams and by working in
partnership, we add value and drive end-user satisfaction with our
technology partners’ products. To facilitate that and enable us to
grow together, we need to maintain strong and sustainable working
relationships, on both a day-to-day and strategic level, covering
operational, engagement and commercial support.

Our principal forms of engagement with them during the year were:
• Our technology partners’ customer-aligned sales and technical
personnel, and our sales, technical and services teams engage
regularly to ensure strong working partnerships, on a customer-
by-customer basis.

• The Group technology services team formally engages with our

technology partners on a day-to-day basis, as well as at
management and executive level, to maintain strong partnerships
and to continue to deliver operationally and strategically.

• Technology partners 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.
This requires both technical and commercial engagement across
Computacenter and includes inviting representatives of our
technology partners to speak at our Group-wide annual sales
meeting, where they communicate their latest technical
innovations and their view of how our organisations can most
effectively work together.

How the Board was kept informed of engagement outcomes,
and considered the interests of our technology partners during
discussions and decision-making:
The majority of our engagement with technology partners takes
place at an operational level. The Board received updates from the
Chief Executive Officer, Chief Commercial Officer and other
members of the senior Management team on the views of our
technology partners, and reviewed the Group’s Technology Sourcing
strategy and tooling capabilities with the Chief Commercial Officer.
The Board reviewed specific project workstreams aimed at
ensuring that the Group’s Technology Sourcing tooling systems and
capabilities adequately supported the wider business, provided
differentiation against the Group’s competitors and were able to
support likely future customer demand and purchasing behaviours.

The updates it received informed the Board’s discussions and
decision-making when approving the Group’s strategy and associated
investments, and setting financial targets for the Group in 2022.

Further explanation on how we build powerful partnerships with our
technology partners can be found on pages 18 to 21.

For further detail on how the Board considered the interests of our
technology partners in its decision making during the year, please
see pages 91 to 92.

Why we engage and what matters to them:
Our Purpose is Enabling Success by building long-term trust with
our stakeholders. These include the communities in which we, and
our other key stakeholders, live and work. Our local communities
support our ability to do business and supporting them in return is
a responsibility. Through doing so, we aim to inspire our people, to
illustrate more widely our commitment to act like ‘people matter’
(one of our core values as an organisation), and to maintain and
enhance our corporate reputation. Our local communities are
interested in ensuring that our operations are sustainable and safe,
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 the social and environmental
issues that matter to them, including in areas like equality, diversity
and inclusion and the sustainable use of resources within our
business operations. They also expect us to act ethically, to treat
our stakeholders fairly and, where possible, to support them
financially or with our time.

Our principal forms of engagement with them during the year were:
• Our engagement is focused on school, community and university
outreach programmes with a focus on encouraging young people
to take up Science, Technology, Engineering and Mathematics
(STEM) careers, thereby addressing skills shortages, increasing
diversity across STEM, improving social mobility and raising
aspirations. Our school, community and university outreach
programme won best Community Outreach Programme at the
2021 CRN Women in Channel Awards.

• Our employee volunteers have completed over 1,700 hours

of community outreach volunteering.

• Most of our community engagement is through direct

engagement between our people and our local communities,
across all of our main operating geographies.

• For further information on our engagement with our local
communities, please see our sustainability section on
pages 44 to 61.

How the Board was kept informed of engagement outcomes,
and considered community interests during discussions and
decision-making:
The Board received frequent updates from the Group Finance
Director and the Group Development Director on our sustainability
strategy, and the progress being made in implementing it. As part
of these updates, it reviewed activities being undertaken by the
Group to engage with and support our local communities, and our
commitments and reporting relating to the environment and
climate change. The Board considered the interests of our local
communities, and the impact of our operations on them, when
approving our revised targets for carbon emissions as set out on
page 52, discussing the Group’s approach and objectives related to
diversity and inclusion, and reviewing our Gender Pay Gap Reporting
metrics and Modern Slavery Act Statement.

For further examples of where the Board has considered the
interests of our local communities in its decision-making during the
year, please see pages 91 and 92.

For further detail on actions we are taking to contribute towards
the long-term future of our people and our planet, and to provide
sustainable solutions for our customers, please see pages 44 to 61.

Our investors

Why we engage and what matters to them:
Our investors want an appropriate return on their investment
in Computacenter.

To help them achieve this, they want to understand our strategy,
our current or projected operational and financial performance, and
our approach to environmental, social and governance (ESG) matters.
Investors have different risk appetites, and different preferences for
capital or income-based returns and the time horizon for delivering
those returns.

Two-way engagement helps Management and the Board to
understand shareholders’ range of views on specific issues and
allows current and potential investors to make informed decisions
concerning investment in Computacenter.

Our principal forms of engagement with them are:
• The Chair and Company Secretary’s governance roadshow with

significant shareholders, following the release of the Annual Report
and Accounts, and the Executive Director investor meetings and
roadshows held throughout the year.

• The annual and interim results presentations to sell-side research

analysts and institutional shareholders.

• The Company’s Annual General Meeting, although this was

impacted by Covid-19-related restrictions in 2021.

• The Remuneration Committee Chair’s engagement with significant
shareholders, proxy firms and other interested parties regarding
Executive remuneration proposals, with further engagement
alongside the Company Secretary after receiving responses.

• Through our investor website at investors.computacenter.com, our
regulatory news service announcements, which include our annual
and interim results, and our Annual Report and Accounts.

Strategic Report
Annual Report and Accounts 2021

How the Board was kept informed of engagement outcomes,
and considered the interests of investors during discussions and
decision-making:
The Board received updates from the Executive Directors on key
issues raised at their investor roadshow meetings, and from the
Chair on the governance roadshow.

Feedback from institutional shareholders was also reviewed through
formal reports provided to the Board from the Company’s brokers,
Credit Suisse and Investec. These summarised movements in
institutional investor holdings in the Company and provided investors’
thoughts on their meetings with the Executive Directors following the
release of the Company’s annual and interim results. The reports
included existing and potential investors’ articulation of the
investment case relating to the Company’s shares, and any perceived
attractions or barriers to investing.

Feedback received from our investors focused on several areas,
including the performance of the business and opportunities for
future growth in the United States, the priorities for the Group’s use
of cash including a range of views around the attractiveness of share
buybacks and further acquisitions, and on the Group’s current
valuation against peers across relevant sectors.

There was investor interest in understanding the extent to which
increased demand for our Source, Transform and Manage
propositions had been due to changed customer working behaviours
related to Covid-19 (such as remote working capabilities), the likely
sustainability of these changed behaviours, and understanding wider
trends in customer preferences and behaviour which were likely to
drive future demand, including the location and method by which the
Group delivers its Managed Services offerings, amongst others.

The views of our investors informed Board discussions and decision-
making concerning the quantum of dividend declarations (which the
Board considered and balanced against other stakeholder interests
concerning our balance sheet strength, investment capacity and
long-term viability of the Group), resulting in a 2020 final dividend of
38.4 per share and a 2021 interim dividend of 16.9 per share being
paid; the Board’s review of potential uses for the Group’s existing
treasury shares, including their potential cancellation or use relating
to the vesting of employee share option schemes, following which the
Board decided to retain these as treasury shares and review options
moving forward; approval of the Group’s dividend policy, which the
Board decided to leave unchanged; three-year strategy plan; cash
deposit and reserve strategy; and a review of the Group’s capital
allocation, ESG strategy and Executive Director succession plans.

Through updates from the Remuneration Committee Chair, the Board
was also made aware of the views of significant shareholders
concerning the Company’s proposals for Executive remuneration in
2022. As set out in the Remuneration Committee report on page 106,
shareholders who responded to the consultation process were
broadly supportive of the change related to the increase in the Chief
Executive Officer’s base salary for 2022.

For further examples of how the Board considered the interests of
our investors during the year, please see pages 91 to 92.

Group Finance Director’s review

ENABLING
SUCCESS
BY CONTINUED
INVESTMENT

We remain very
encouraged by
the resumption of
longer-term IT
transformations, on a
scale and timeline that
appear strengthened
by the experiences of
the last two years.

Tony Conophy
Group Finance Director

During 2021, the Group benefited from
continued strong organic revenue growth,
balanced evenly between Technology
Sourcing and Services. Growth across the
Segments was excellent, apart from France
where market conditions are weaker and
some of our customers spent less. On top of
the organic growth, the revenue increases
from the acquisitions made in 2020
significantly boosted the top-line
performance during the year.

The Technology Sourcing growth was driven
by robust public sector activity in the UK and
Germany, where the Group has a strong track
record, and by the industrial enterprise sector
in the UK and Germany, as these large sectors
returned to more normal spending patterns
and expanded their requirements. In addition,
the rebound of the mid-market sectors in
North America complemented the sustained
growth seen in the hyperscale markets.
As customers have less need to address
immediate requirements caused by Covid-19,
we remain very encouraged by the resumption
of longer-term IT transformations, on a scale
and timeline that appear strengthened by the
experiences of the last two years. The
strength of the overall Technology Sourcing
result is driven by the spread of the customer
base across multiple Segments and
geographies, which create durability and
sustainability within the business model.

Professional Services in Germany has continued
its excellent recent track record, with another
period of rapid growth, and the UK also saw
robust Professional Services growth.

Our recently established presence in Cluj,
Romania, has had a successful start as it
builds towards a specialist offering of up to
500 professionals within Computacenter
Romania. This will expand our Professional
Services capacity and allow us to continue to
capture the opportunities in this business line.

Reconciliation to adjusted1 measures for the year ended 2021

Revenue
Cost of sales
Gross profit

Administrative expenses
Operating profit

Finance income
Finance costs
Profit before tax

Income tax expense
Profit for the year

Reconciliation to adjusted1 measures for the year ended 2020

Revenue
Cost of sales
Gross profit

Administrative expenses
Operating profit

Gain on acquisition of subsidiary
Finance income
Finance costs
Profit before tax

Income tax expense
Profit for the year

Adjustments

Reported
results
£m
6,725.8
(5,858.0)
867.8

Amortisation
of acquired
intangibles
£m
–
–
–

Exceptionals
and others
£m
–
–
–

(612.6)
255.2

0.3
(7.5)
248.0

(61.5)
186.5

Reported
results
£m
5,441.3
(4,720.8)
720.5

(522.0)
198.5

14.0
0.5
(6.4)
206.6

(52.4)
154.2

7.6
7.6

–
–
7.6

(2.1)
5.5

–
–

–
–
–

–
–

Adjustments

Amortisation
of acquired
intangibles
£m
–
–
–

Exceptionals
and others
£m
–
–
–

7.4
7.4

–
–
–
7.4

(1.7)
5.7

0.5
0.5

(14.0)
–
–
(13.5)

(0.7)
(14.2)

Adjusted1
full-year
results
£m
6,725.8
(5,858.0)
867.8

(605.0)
262.8

0.3
(7.5)
255.6

(63.6)
192.0

Adjusted1
full-year
results
£m
5,441.3
(4,720.8)
720.5

(514.1)
206.4

–
0.5
(6.4)
200.5

(54.8)
145.7

Over 80 consultants within the
Computacenter Romania Professional
Services ‘Centre of Excellence’ are providing
agile application services to customers in
Germany, including software development,
application migration and application
support. In time, we will expand this
capability to all other countries across
the Computacenter Group.

Managed Services saw robust revenue
increases in all geographies, apart from
France. A number of contracts which are
based on price times quantity, rather than a
fixed periodic fee, resumed growth as call
volumes began to return to pre-pandemic
levels and the field engineer workforce saw
significant increases in activity, as customer

sites began to reopen. In addition, we won
a number of new deals during the year, with
contracts signed and initial transitions
progressing well. These contracts will support
future growth in this area.

Services margins remained healthy and
increased overall. We continued to enjoy
increased utilisation of our now remote-
working engineers, who no longer have to
spend otherwise billable time travelling to
customer sites, and a substantial reduction
in the use of external contractors. We expect
both of these trends to continue in the short
to medium term, as more efficient ways of
working have proven effective for the Group,
our customers and our people. More
importantly, the quality of the contract

portfolio continues to increase, as older
underperforming contracts improve, and
enhanced bid governance processes result in
better margins on new contracts. Our French
business suffered on an organic basis, as the
full effect of the non-renewal of the Group’s
largest Managed Services contract affected its
year-on-year performance for the first time.

The business remains agile and innovative,
enabling us to continue to adapt and support
our customers, as they move beyond remote
working towards the complexity of hybrid
working and the required structural
adaptations of their IT environments.

Strategic ReportAnnual Report and Accounts 2021

Group Finance Director’s review
continued

The revenue performance was driven through
our biggest markets, the UK, Germany and
North America, and was supported by strong
gross margins across all business lines.
Technology Sourcing margins were slightly
reduced from 2020, as increasing volumes of
lower-margin software sourcing deals diluted
an otherwise excellent return from the
higher-margin complex product lines. Both
Technology Sourcing and Services continued
to benefit from the ongoing reduction of
expenses within costs of goods sold. Whilst
some of these costs, such as travel, fleet and
contractors, have partially come back as the
Group increasingly returns to its pre-Covid-19
operational footing, we continue to carefully
manage certain cost categories to ensure a
permanent reduction in the overall cost base.
We have implemented an internal carbon levy
on travel, as part of our commitment to
reduce business travel emissions by 35 per
cent when compared to pre-Covid-19 levels
in 2019. This emphasis on post-Covid-19 cost
control is also reflected by the increase in
gross profit (20.4 per cent) materially
outstripping the growth in administrative
expenses (17.7 per cent).

The Group result saw significant organic
increases in adjusted1 operating profit across
the UK, Germany, North America and the
International Segments, with the decline in
France the only disappointing result.

On 30 April 2021, we acquired ITL logistics
GmbH (ITL), which employees 80 people in
three locations in Germany. ITL provides IT
logistics services, as well as IT services, for
large companies and public sector clients
in Europe. Through the acquisition,
Computacenter is expanding its IT logistics
services and now operates its own IT logistics
fleet, with technical couriers who deliver and
collect IT products across Europe. ITL also
operates small regional warehouses, where
IT products are held locally to meet customer
service-level agreements. We intend to invest
further in ITL, to strengthen its business in Europe.

The acquisition of Pivot and Computacenter
NS on 2 November 2020 continues to add
capability to the Group. Pivot increases the scale
and breadth of our North American business,
allowing us to serve a wider range of customers
and products in more locations in the United
States and Canada. Computacenter NS will,
over time, enhance the network Services
offering of our existing French business,
improving our go-to-market propositions and
aligning the business with our capabilities in
Germany, albeit on a smaller scale. Much
remains to be done to transform the business
and bring it back to break-even and beyond.

The integration of Pivot and Computacenter
NS continues, with significant projects
underway to migrate to our Group ERP
systems. In North America, FusionStorm and
the legacy US business transitioned to the

Group ERP in early September 2021 and this
was largely completed by 31 December 2021.
Computacenter NS successfully completed its
migration in the fourth quarter of 2021. Pivot
will follow in 2023. Having these entities on
our leading ERP platform technologies and
toolsets will further unlock their potential for
growth and efficiencies.

Combined, these acquisitions added
£1,105.1 million of revenue (2020: £232.6
million) and £13.9 million of adjusted1 profit
before tax (2020: £3.3 million) to the Group’s
reported results.

A reconciliation to adjusted¹ measures is
provided on page 71 of this Group Finance
Director’s review. Further details are provided
in note 2.5 to the Consolidated Financial
Statements, adjusted measures. For the
avoidance of duplication, further information on
the Group’s financial performance can be found
on pages 26 to 39 of this Strategic Report.

Profit before tax
The Group’s profit before tax for the year
increased by 20.0 per cent to £248.0 million
(2020: £206.6 million). Adjusted1 profit before
tax increased by 27.5 per cent to £255.6 million
(2020: £200.5 million) and by 31.5 per cent in
constant currency2.

The difference between profit before tax
and adjusted1 profit before tax relates to the
Group’s net costs of £7.6 million (2020: net
gain of £6.1 million) from exceptional and
other adjusting items, which is the
amortisation of acquired intangibles as a
result of the acquisition of FusionStorm on
30 September 2018 and Pivot on 2 November
2020. Further information on these items can
be found on page 73.

The Group adopted IFRS 16 ‘Leases’ from
1 January 2019, which has resulted in changes
in accounting policies and adjustments to the
amounts recognised in the Consolidated
Financial Statements, as disclosed in the 2019
Annual Report and Accounts. The current
period results include an overall decrease in
profit before tax of £2.3 million, including on
an adjusted1 basis, due to the impact of IFRS
16 (2020: £2.0 million).

Net finance charge
Net finance charge in the year amounted to
£7.2 million (2020: £5.9 million). The main
items included within the net charge for the
year are £5.2 million of interest charged on
lease liabilities recognised under IFRS 16
(2020: £4.5 million) and £1.5 million for the
Pivot facility (2020: £0.4 million). Pivot was
only part of the Group for two months of the
prior year, so whilst overall the debt position
is reduced at year end compared to the
prior-year position, there is a full year of
interest expense from the Pivot debt facility
incurred in the current year.

There were no interest items excluded on an
adjusted1 basis.

Taxation
The tax charge was £61.5 million
(2020: £52.4 million) on profit before tax
of £248.0 million (2020: £206.6 million).
This represents a tax rate of 24.8 per cent
(2020: 25.4 per cent).

In 2020, the tax rate reduced primarily due to
the inclusion of the gain on acquisition of BT
Services France of £14.0 million, recognised on
consolidation of the acquired entity. This was
not taxable, as no chargeable gain had been
realised in any legal entity. During 2020, a tax
credit of £0.7 million was recorded due to
post-acquisition activity in FusionStorm. This
benefit derived from payments which were
settled by the vendor, out of the consideration
paid, via post-acquisition capital contributions
to FusionStorm. As this credit was related to
the acquisition and not operational activity
within FusionStorm, this is a one-off and
material to the overall tax result, we classified
this as an exceptional tax item, consistent
with the treatment in 2018 and 2019.

The tax credit related to the amortisation
of acquired intangibles was £2.1 million
(2020: £1.7 million). The £7.6 million of
amortisation of intangible assets is almost
entirely a result of the recent North American
acquisitions (2020: £7.4 million). As the
amortisation is recognised outside of our
adjusted1 profitability, the tax benefit on the
amortisation is also reported outside of our
adjusted1 tax charge.

The adjusted1 tax charge for the year was
£63.6 million (2020: £54.8 million), on an
adjusted1 profit before tax for the year
of £255.6 million (2020: £200.5 million).
The effective tax rate (ETR) was therefore
24.9 per cent (2020: 27.3 per cent) on an
adjusted1 basis.

During the second half of the year a number
of one-off tax items were processed that
substantially reduced the tax charge, and
therefore the adjusted1 ETR, for the year as a
whole. Rebasing certain deferred tax assets
for the adjustment in the UK Corporate Tax
rate from 19 per cent to the 25 per cent rate
that was substantively enacted on 11 March
2021, with effect from 1 April 2023, has
resulted in a one-time credit to the tax
expense of £3.1 million. Several other one-off
items incurred in the year have reduced the
tax expense by a further £2.4 million in
aggregate. These include a programme of
recharging the costs of our share-based
payment schemes, our Sharesave and LTIP
awards, to those jurisdictions outside of the
UK that also benefit from these schemes
which resulted in a positive tax impact for
the Group in 2021 from catching up the 2020
recharging, and the closure of a number of
historical tax positions in North America.

Together, these combined items have resulted
in a one-time credit benefit to the tax expense
of £5.5 million. Excluding these items, the
underlying adjusted1 tax expense would be
£69.1 million, resulting in an adjusted1 ETR of
27.0 per cent. Had the one-off items not
impacted during the year, and the Group result
reflected an adjusted1 ETR of 27.0 per cent, the
adjusted1 diluted EPS would have been 160.9
pence per share. Assuming an unchanged
dividend payment policy from that described
on page 74, the proposed final dividend, and
the total dividend for the year, would have been
47.5 pence per share and 64.4 pence per share
respectively. The ETR during the year was also
lower than the previous year due to the large
increase in profitability in the UK, which has
lower tax rates than the Group average,
particularly Germany and the US. The adjusted1
ETR is therefore outside the full-year range
that we indicated in our 2021 Interim Results,
which showed an ETR of 28.6 per cent (H1 2020:
28.1 per cent), due to the unforecasted positive
impacts described above.

We expect that the ETR in 2022 will be subject
to upwards pressure, due to an increasing
reweighting of the geographic split of

adjusted1 profit before tax away from the UK
to Germany and the US, where tax rates are
substantially higher, and also as governments
across our primary jurisdictions come under
fiscal and political pressure to increase
corporation tax rates. Looking further ahead,
substantially enacted tax increases will take
effect in the UK from 1 April 2023, with a rise
from 19 per cent to 25 per cent.

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 in. 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 2021 was incurred in either
the UK, German or US tax jurisdictions, as it
was in 2020. Computacenter France, which
now includes the BT Services France
acquisition within a tax group, has returned to
a lossmaking position, reducing 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 2021, the Group
Transfer Pricing policy implemented in 2013
resulted in a licence fee of £30.3 million (2020:
£27.9 million), charged by Computacenter UK
to Computacenter Germany, Computacenter
France and Computacenter Belgium. The
licence fee is equivalent to 1.0 per cent 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 adjusted1
operating profit.

The table below reconciles the tax charge to the adjusted1 tax charge for the years ended 31 December 2021 and 31 December 2020.

Statutory tax charge
Adjustments to exclude:
Exceptional tax items
Tax on amortisation of acquired intangibles
Adjusted1 tax charge
Effective Tax Rate
Adjusted1 Effective Tax Rate

2021
£m
61.5

–
2.1
63.6
24.8%
24.9%

2020
£m
52.4

0.7
1.7
54.8
25.4%
27.3%

Profit for the year
The profit for the year increased by 20.9 per cent to £186.5 million (2020: £154.2 million). The adjusted1 profit for the year increased by 31.8 per
cent to £192.0 million (2020: £145.7 million) and by 35.7 per cent in constant currency2.

Exceptional and other adjusting items
The net loss from exceptional and other adjusting items in the year was £5.5 million (2020: gain of £8.5 million). Excluding the tax items noted
above, which resulted in a gain of £2.1 million (2020: gain of £2.4 million), the profit before tax impact was a net loss from exceptional and other
adjusting items of £7.6 million (2020: gain of £6.1 million).

There were no exceptional items in the year to 31 December 2021 (2020: gain of £13.5 million).

We have continued to exclude, as an ‘other adjusting item’, the amortisation of acquired intangible assets in calculating our adjusted1 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 amortisation of acquired intangible assets was £7.6 million (2020: £7.4 million), primarily relating to the amortisation of the intangibles
acquired as part of the recent North American acquisitions. The prior-year value includes the amortisation of a number of short-term acquired
intangibles relating to the valuation of Pivot order backlogs, due to the expiration of the valued assets.

The acquisition of BT Services France on 2 November 2020 resulted in an exceptional gain of £14.0 million, which was recognised on consolidation
of the subsidiary in the 2020 Annual Report and Accounts. The gain arose because the net assets acquired for consideration of €1 totalled
£14.0 million after fair value adjustments, including £27.6 million of cash. The business acquired comprised BT’s domestic French services
operation which, on acquisition, was loss making on a standalone basis. The Company considers that the exceptional gain reflects the future
losses that the acquired business will incur over the medium term, as it is brought onto a sustainable footing through a combination of upskilling
employees, cross-selling into the Group’s customers, alignment with Group processes and systems, and the general improvement of its
operating activities.

Strategic ReportAnnual Report and Accounts 2021Group Finance Director’s review
continued

Where possible, future charges relating to this reconfiguration of the business will be disclosed separately to the Group’s adjusted1 results.
This will mean that, over time, the future costs incurred can be attributed against the exceptional gain on acquisition recognised in the prior year.
There have been no such costs incurred during the year to 31 December 2021.

An exceptional loss during 2020 of £0.7 million resulted from the acquisition of Pivot and primarily related to fees paid to the Company’s advisors.
This cost was non-operational, unlikely to recur and is consistent with our prior-year treatment of acquisition costs on material transactions as
exceptional items. It was therefore classified as outside our adjusted1 results.

In 2020, an exceptional gain of £0.2 million related to the release of accrued costs for the French Social Plan. Whilst not material, this was
classified outside our adjusted1 results to be consistent with where the cost was recognised in 2016, as an additional provision for the effect
of winding down the Social Plan.

Earnings per share
Diluted EPS increased by 20.3 per cent to 160.9 pence per share (2020: 133.8 pence per share). Adjusted1 diluted EPS increased by 31.0 per cent
to 165.6 pence per share (2020: 126.4 pence per share).

Basic weighted average number of shares (excluding own shares held) (m)
Effect of dilution:
Share options
Diluted weighted average number of shares

Profit for the year attributable to equity holders of the Parent (£m)
Basic earnings per share (pence)
Diluted earnings per share (pence)

Adjusted1 profit for the year attributable to equity holders of the Parent (£m)
Adjusted1 basic earnings per share (pence)
Adjusted1 diluted earnings per share (pence)

2021
113.0

2.2
115.2

185.3
164.0
160.9

190.8
168.6
165.6

2020
112.9

2.0
114.9

153.8
136.2
133.8

145.3
128.7
126.4

Dividend
The Board recognises the importance of
dividends to shareholders and the Group
prides itself on a long track record of
paying dividends and other special one-off
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 remains highly
cash generative and adjusted net funds3
continues to increase on the Consolidated
Balance Sheet, which allows acquisitions such
as FusionStorm in 2018 and Pivot in 2020,
alongside a number of other small acquisitions.

If further funds are not required for
investment within the business, either for
fixed assets, working capital support or
acquisitions, and the distributable reserves
are available in the Parent Company, we will
aim to return the additional cash to investors
through one-off returns of value, as we did in
February 2018.

Dividends are paid from the standalone
balance sheet of the Parent Company and,
as at 31 December 2021, the distributable
reserves were £199.3 million (31 December
2020: £268.1 million).

The Board is pleased to propose a final
dividend for 2021 of 49.4 pence per share
(2020: 38.4 pence per share). Together with
the interim dividend, this brings the total
ordinary dividend for 2021 to 66.3 pence per
share, representing a 30.8 per cent increase
on the 2020 total dividend per share of
50.7 pence.

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 adjusted1
diluted EPS. In 2021, the cover was 2.5 times
(2020: 2.5 times).

Subject to the approval of shareholders at our
Annual General Meeting on 19 May 2022, the
proposed dividend will be paid on Friday 8 July
2022. The dividend record date is set as Friday
10 June 2022 and the shares will be marked
ex-dividend on Thursday 9 June 2022.

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 as
a separate column, 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
adjusted1 administrative expenses.

During the year, total Central Corporate Costs
were reduced at £23.7 million (2020: £27.1 million).

Within this:

• Board expenses, related public company

costs, costs associated with Group
Executive members not aligned to a
specific geographic trading entity, and
certain one-off costs in relation to the
cancellation of Group-wide central
meetings, increased to £9.1 million (2020:
£6.8 million) partially due to the Executive
Directors waiving their salaries in the
second quarter of 2020 and both Founder
Non-Executive Directors waiving their fees
from 1 April to 31 December 2020;

• share-based payment charges associated

with the Group Executive members
identified above, including the Group
Executive Directors, increased from
£3.2 million in 2020 to £3.8 million in 2021,
due primarily to the increased value of
Computacenter plc ordinary shares and
the overall increased performance of the
Group; 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
£10.8 million (2020: £17.1 million), primarily
due to reduced spend on projects that
completed in the second half of 2020 and
lower than planned spend on certain other
projects, which is expected to be incurred
in the first half of 2022. In addition, during
2021 there was a significant review of
certain large software implementations,
which will increase spend during 2022.

Cash flow
The Group delivered an operating cash inflow
of £224.3 million for the year to 31 December
2021 (2020: £236.9 million inflow).

As noted in the 2020 Annual Report and
Accounts, there were certain Covid-19-related
one-off benefits included in the 2020 cash
flow and net cash positions, including
extended free-of-charge supplier credit with
a major technology partner as well as
improvements arising from customer mix.
Most of these benefits had expired by
31 December 2020 and were material factors
in the reduction in operating cash flow in the
first half of 2021, when compared to the first
half of 2020.

Net cash positions no longer include extended
free-of-charge supplier credit with a major
technology partner, as this temporary
Covid-19-related arrangement was fully
repaid during the year (31 December 2020:
£15.0 million).

Other components of the working capital
increase are explained below.

During the year, net operating cash outflows
from working capital, including inventories,
trade and other receivables and trade and
other payables, were £77.1 million (2020:
£28.3 million outflow).

As noted in our 2020 Annual Report and
Accounts the year-end cash position was
abnormally high, as a number of our
customers paid ahead of normal payment
cycles, partly, we believe, where overseas
customers looked to avoid sometimes
negative interest rates. This was exacerbated
by a shift towards government customers
during the year, resulting in improvements in
cash collection as governments, particularly
in Europe, have been settling debts as quickly
as possible and well ahead of industry
standard payment terms. Whilst the Group,
in turn, paid a number of its suppliers early,
to reduce the temporary excess cash on the
balance sheet at the year end, the volume
of early payments from customers received
in the final days of the prior year was
unprecedented. The Company estimated,
broadly, that unforeseen receipts from

customer payments in advance of the due
date exceeded the Company’s ability to pay
its own suppliers early by roughly £50 million.
These positions have largely unwound
through the year, and this is reflected in the
working capital movements seen.

In 2021, working capital cash flows were
further impacted by both the revenue
growth and the increased inventory levels,
in particular within our North American
business. Due to the significant product
shortages seen during the year, a number of
hyperscale customers have made advance
orders of product with delayed delivery, to
ensure continuity of supply. Additionally,
inventory has increased as we have
deliberately invested in working capital by
pre-ordering inventory, thereby using the
strength of our balance sheet to support our
customers during product shortages.
Further, a number of rack build orders were
incomplete at the year end, sometimes due to
shortages of smaller components required to
complete the rack build. Finally, the transition
of the FusionStorm business to the Group ERP,
whilst now complete, did result in short-term
operational issues that impacted working
capital, as the picking and shipping of
complex inventory items, invoicing and cash
collection in particular experienced
significant delays late in the third quarter and
early in the fourth quarter. By the end of the
year there was an improving position, as the
FusionStorm entity has gained experience in
using the system and tools and learned how
to leverage their advantages. Considerable
improvement is still required, although at the
date of this report, the working capital
impacts of the system migration have
reduced materially.

The Group had £341.3 million of inventory as
at 31 December 2021, an increase of 61.5 per
cent on the balance as at 31 December 2020
of £211.3 million. Over three quarters of this
increase was attributable to our North
American Segment, which had closing inventory
of £212.5 million (2020: £103.2 million).

At the end of 2021, the Group again saw record
levels of early payments from suppliers.
However, we elected to retain the cash on the
Group’s balance sheet rather than make early
payments to suppliers, to offset the
extraordinary investments in working capital
throughout 2021, as reflected in the closing
inventory levels.

Capital expenditure in the year was
£30.3 million (2020: £27.5 million)
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 £25.5 million (2020:
£19.0 million) to satisfy maturing PSP awards
and Sharesave schemes and to re-provision
the EBT in advance of future maturities.
During the year the Company received savings
from employees of £6.2 million to purchase
options within the Sharesave schemes (2020:
£5.7 million).

During the year the Group made two
acquisitions. The first was ITL, as described
above, for £1.1 million. The second was to
acquire a further 5.0 per cent of the total
voting rights within R.D. Trading Ltd, taking
the Group’s ownership to 95 per cent.

The Group reduced loans and credit facilities
during the year by £89.0 million (2020:
£19.7 million). We retired the facility
associated with the FusionStorm acquisition,
made regular repayments towards the loan
related to the construction of the German
headquarters in Kerpen and significantly
reduced the amount drawn under the Pivot
credit facility, as detailed below.

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 standard 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, who 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 2021 was £53.7 million
(31 December 2020: £38.9 million). The Group
had no other debt factoring at the end of the
year, outside this normal course of business.

Strategic ReportAnnual Report and Accounts 2021Group Finance Director’s review
continued

Cash and cash equivalents and net funds
Cash and cash equivalents as at 31 December 2021 were £285.2 million, compared to £309.8 million at 31 December 2020. Net funds as at
31 December 2021 were £95.3 million (31 December 2020: £51.1 million). Adjusted net funds3 as at 31 December 2021 were £241.4 million,
compared to adjusted net funds3 of £188.6 million as at 31 December 2020.

Net funds as at 31 December 2021 and 31 December 2020 were as follows:

31 December
2021
£m
285.2
(12.0)
273.2
(31.8)
241.4
(146.1)
95.3

31 December
2020
£m
309.8
–
309.8
(121.2)
188.6
(137.5)
51.1

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.

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.

Cash and short-term deposits
Bank overdraft
Cash and cash equivalents
Bank loans
Adjusted net funds3 (excluding lease liabilities)
Lease liabilities
Net funds

For a full reconciliation of net funds and
adjusted net funds3, see note 31 to the
Consolidated Financial Statements.

The Group had four specific credit facilities
in place during the year and no other
material borrowings.

The Group drew down a £100 million term loan
on 1 October 2018 to complete the acquisition
of FusionStorm. This loan was on a seven-year
repayment cycle, with a renewal of the loan
facility due on 30 September 2021. The Group
has made further unplanned repayments of
this loan during the year, in addition to the
unplanned repayment of £30 million in the
second half of 2019, which reduced the
interest cost differential between loan rates
and cash deposit rates. As at 31 December
2020, £41.6 million remained of the loan and
the Group has now retired the credit facility by
paying the remaining balance in full during
the first half of the year.

At the start of the year, Pivot had a
substantially unutilised $225.0 million senior
secured asset-based revolving credit facility,
from a lending group represented by
JPMorgan Chase Bank, N.A. To reduce bank
fees, this was reduced to $100 million during
the year. The residual facility can be used for
revolving loans, letters of credit, protective
advances, over advances, and swing line
loans. During the year, the Group has
continued to reduce the amount drawn on the
facility and only £7.0 million remained drawn
as at 31 December 2021 (31 December 2020:
£58.4 million). In addition, Pivot has £9.4
million financed with a major technology
partner for hardware, software and resold
technology partner maintenance contracts
that the Company has purchased as part of
a contract to lease these items to a key North
American customer.

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 £14.7 million
at 31 December 2021 (31 December 2020:
£20.9 million).

For further information on these facilities,
see note 23 to the Consolidated
Financial Statements.

The Group excludes lease liabilities from its
non-GAAP adjusted net funds3 measure,
due to the distorting effect of the capitalised
lease liabilities on the Group’s overall
liquidity position under the IFRS 16
accounting standard.

There were no interest-bearing trade
payables as at 31 December 2021
(31 December 2020: nil).

The Group’s adjusted net funds3 position
contains no current asset investments
(31 December 2020: nil).

Trade creditor arrangements
Computacenter has a strong covenant and
enjoys a favourable credit rating from
technology partners and other suppliers.
Some suppliers provide standard credit
directly on their own credit risk, whereas
other suppliers decide to sell the debt to
banks, who 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. The finance providers
offer extended credit terms at relatively low
interest rates. However, these rates are
always higher than the rate at which we
deposit and therefore we do not currently
use these facilities.

Revenue

2019
2020
2021
2021/20

Adjusted1 profit before tax

2019
2020
2021
2021/20

Revenue by Segment

UK
Germany
France
North America
International
Total

Adjusted1 operating profit by Segment

UK
Germany
France
North America
International
Central Corporate Costs
Total

Half 1
£m
2,427.0
2,462.2
3,180.0
29.2%

Half 2
£m
2,625.8
2,979.1
3,545.8
19.0%

Total
£m
5,052.8
5,441.3
6,725.8
23.6%

Half 1

Half 2

Total

£m
53.5
74.6
118.9
59.4%

Half 1
£m
939.5
926.5
313.1
910.1
90.8
3,180.0

Half 1

£m
51.7
61.1
(2.0)
18.7
4.1
(11.1)
122.5

Half 1

£m
45.9
35.6
3.8
4.7
0.2
(12.9)
77.3

% Revenue
2.2%
3.0%
3.7%

2021

Half 2
£m
1,009.1
1,094.7
340.3
1,001.5
100.2
3,545.8

% Revenue
5.5%
6.6%
(0.6%)
2.1%
4.5%

3.9%

% Revenue
5.3%
4.2%
1.2%
1.2%
0.3%

3.1%

£m
92.8
125.9
136.7
8.6%

% Revenue
3.5%
4.2%
3.9%

£m
146.3
200.5
255.6
27.5%

% Revenue
2.9%
3.7%
3.8%

Total
£m
1,948.6
2,021.2
653.4
1,911.6
191.0
6,725.8

Half 1
£m
858.8
843.7
304.3
378.2
77.2
2,462.2

2020

Half 2
£m
914.6
1,032.6
368.5
566.3
97.1
2,979.1

2021

Half 2

£m
51.2
76.7
5.5
12.3
7.2
(12.6)
140.3

2020

Half 2

£m
44.4
77.0
9.2
9.3
3.4
(14.2)
129.1

% Revenue
5.1%
7.0%
1.6%
1.2%
7.2%

4.0%

% Revenue
4.9%
7.5%
2.5%
1.6%
3.5%

4.3%

Total

£m
102.9
137.8
3.5
31.0
11.3
(23.7)
262.8

Total

£m
90.3
112.6
13.0
14.0
3.6
(27.1)
206.4

Total
£m
1,773.4
1,876.3
672.8
944.5
174.3
5,441.3

% Revenue
5.3%
6.8%
0.5%
1.6%
5.9%

3.9%

% Revenue
5.1%
6.0%
1.9%
1.5%
2.1%

3.8%

Strategic ReportAnnual Report and Accounts 2021

Group Finance Director’s review
continued

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 Group’s
$100 million North American facility and the
undrawn committed facility of £60 million are
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 2021 and at the year end was
£273.2 million, with net funds of £95.3 million
after including the Group’s three specific
borrowing facilities and lease liabilities
recognised under IFRS 16. Excluding lease
liabilities, adjusted net funds3 was
£241.4 million 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 £60.0 million, which was extended in
September 2020 and now has an expiry date
of 7 September 2023. The Group has never
drawn on this committed facility.

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 of America, with smaller operations in
Belgium, Canada, China, Hungary, India,
Ireland, Malaysia, Mexico, the Netherlands,
Poland, Romania, South Africa, Spain and
Switzerland. The Company also maintains
entities in Singapore and Hong Kong, in order
to transact in those local markets with
Services and Technology Sourcing operations
delivered from elsewhere in the Group.

The Group uses an informal cash pooling
facility to ensure that its operations outside
the UK are adequately funded, where principal
receipts and payments are denominated in
euros and US dollars (USD). For those 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 USD.

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 2021, the Group recognised a loss of
£0.9 million (2020: loss of £1.9 million) 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 strength of sterling against most
currencies during 2021, in particular the euro,
has begun to impact our revenues and
profitability as a result of the conversion of
our foreign earnings. The USD exchange rates
during the year, in particularly the second
half, were not materially dissimilar to those
seen in 2020.

The impact of restating 2020 results at 2021
exchange rates would be a reduction of
£142.9 million in 2020 revenue and a decrease
of £6.1 million in 2020 adjusted1 profit before tax.

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, consists of entities
under the control of the UK Government.
The maximum credit risk exposure relating
to financial assets is represented by their
carrying value as at the balance sheet date.

Going Concern
Computacenter’s business activities,
business model, strategic priorities and
performance are set out within this Strategic
Report from the inside front cover to page 85.

The financial position of the Group, its cash
flows, liquidity position and borrowing
facilities are set out within this Group Finance
Director’s review on pages 75 to 78.

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 145 of this
Annual Report and Accounts, a reasonable
expectation that the Group has adequate
resources to continue in operational
existence for a period of 12 months from the
date of approval of the Consolidated Financial
Statements, as set out on pages 140 to 193 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 Statement.

Viability timeframe
The Directors have assessed the Group’s
viability over a period of three years from
31 December 2021. 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.

The combined effect of the potential
occurrence of several of the most impactful
risks and uncertainties is then compared to
the cash position generated throughout the
sensitised Plan, to assess whether the
business will be able to continue in operation.

For the current period, the primary downside
sensitivity relates to a modelled, but not
predicted, severe downturn in Group
revenues, beginning in 2022, simulating a
continued impact for some of our customers
from the Covid-19 crisis together with the
Group’s revenues being impacted by supply
shortages. This sensitivity analysis models
a continued market downturn scenario for
some of our customers, whose businesses
have been affected by Covid-19, and a similar
downturn occurring for the remainder of our
customer base alongside a further impact on
the Group’s Technology Sourcing revenues
throughout the first half of 2022 from
possible ongoing technology partner-related
supply shortage issues.

Additionally, the risks related to continued
disruption from the departure of the UK from
the European Union, and the potential for a
suspension or termination of the EU-UK Trade
and Cooperation Agreement have been reflected
within our underlying business plans.

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 2024.

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.

Further, the Directors’ monitor conditions in
the environment external to the Group and
have concluded that the current factors
continue to support the timeframe selected:

• the continuing macro-economic, 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;

• the prolonged impact of Covid-19, and in
particular the effect on certain of our
customers from the worsening global
economic outlook, and the current
increasing pace of change of technology
adoption as a result;

• continuing short-term product shortages,

resulting primarily from the Covid-19
impact on supply chains; and

• the likely short to medium-term impact of
the Russian invasion of Ukraine on the
global macro-economic environment,
including an exacerbation of supply chain
issues currently being experienced.

Whilst 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 80 to 85, 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 partners alike, as described on
pages 18 to 21. The Group has seen significant
business growth in the UK throughout the
Covid-19 pandemic, due to the end-to-end
Technology Sourcing capability that it can
deliver from its UK Integration Center,
which is a significant differentiating factor
in this market.

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, who prepare
the detailed bottom-up financial target for
the following year. This financial target is
reviewed and agreed by Management before
presentation 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 (2022) and
forecast information for two further years
(2023 and 2024), which is driven by top-down
assumptions overlaid on the detailed target
year. Key assumptions used in formulating the
forecast information include organic revenue
growth, margin improvement 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 2022
was considered and approved by the Board on
9 December 2021, with amendments and
enhancements to the target as part of the full
Plan considered and approved by the Board on
8 March 2022.

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 80 to 85,
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.

Strategic ReportAnnual Report and Accounts 2021Principal risks and uncertainties

OUR RISK GOVERNANCE MODEL

The Board

Nomination
Committee

Remuneration
Committee

Executive
Committee

Audit
Committee

First line of defence

Risk ownership and application
of internal controls

Second line of defence

Third line of defence

Compliance, oversight
and assurance functions

Independent assurance

Group Internal Audit

Country-specific Management
Group Delivery
Group Commercial Management
Group Finance
Group Information Security
Group Human Resources

Group Legal and Compliance
Group Information Assurance
Country-specific Take-On
Group Quality Management
& Assurance

Group Risk Committee

Group Compliance
Steering Committee

Anti-bribery & Corruption
Competition Law
Export Control
Whistleblowing
Data Protection
Environmental
Health & Safety

1. 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 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.

2. Risk trends
The overall risk landscape has changed due
to specific threats and our response to them
as discussed below. In addition, we have
continued to monitor the effects of the
Covid-19 pandemic for its potential impact
on our business, specifically in relation to the
health and wellbeing of our employees, our
global supply chain and in changing customer
requirements, both in relation to the pandemic
and the longer-term evolution of the delivery
of IT services.

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 in the
globalisation of customer demand. Our
response continues to mature in line with
market and customer changes, ensuring that
the risk remains at the same level.

Contractual/Operational: Our main focus
remains on the effective governance of
contracts, both in the pre-deal phase and in
delivery. This includes our emphasis on data
privacy. We continue to extend the use of our
Service Quality Management Framework to
improve the underlying quality of sales, bid
governance and operations. We have
recognised compliance/reputational risk
as a principal risk for the first time this year.
Overall, while we believe the main contractual
and operational risks have remained at the
same level, underlined by the robust
governance structures we have in place, the
risk of personal data loss has increased in line
with the heightened cyber threat.
Infrastructure: Cyber security remains at the
forefront of discussions at the Board and 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. Our defensive
systems and processes have, to date, ensured
that these attacks have been identified and
mitigated without any material impact on our
financial or operational performance.
Financial: We continue to concentrate on the
fundamentals important to our business,
including the effective management of
working capital. This risk has increased over
the year, particularly in relation to the level of
inventory held.
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 there has been an increased risk in
relation to recruitment and retention during
2021 due to the post-Covid-19 economic
recovery and the effects of inflation.

3. Risk appetite
Our risk appetite is strongly influenced by
our experience in the 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.

4. 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.

5. Risk identification and impact
Risk assessment and reporting are designed to
provide the Board with a Group-wide perspective
of the key risks faced by the business.

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. 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 78 to 79).

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, which is
completed by over 100 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. 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.

The risks presented below are the principal
risks that existed during 2021, as reported in
the Annual Report and Accounts 2020 and
modified during the year through the risk
identification and impact process.

Strategic ReportAnnual Report and Accounts 2021Strategic
priority 1:
To lead with and grow
our Services business

Strategic
priority 2:
To improve our
Services productivity
and enhance our
competitiveness

Strategic
priority 3:
To retain and
maximise the
relationship with our
customers over the
long term

Strategic
priority 4:
To innovate our
Services offerings to
build future growth
opportunities

Principal risks and uncertainties
continued

Our four Strategic Priorities

RISK CATEGORIES:

Strategic Risks

Market shift in technology usage

Geo-political risk

Increasing globalisation of customer demand
Contractual and Operational Risks

Lack of effective pre-contract processes

Lack of effective post-contract delivery

Loss of personal data

Acquisition integration

Compliance/reputational risk
Infrastructure Risks

Cyber threat

Integrity failure of critical systems
Financial Risk

Ineffective working capital management
People Risks

Poor employee recruitment and retention

Inadequate succession planning

Group risk log 2021 heat map

1. Strategic Risks
2. Contractual and Operational Risks
3. Infrastructure Risks
4. Financial Risk
5. People Risks

Unchanged risk
Increased risk
Increased risk
Increased risk
Increased risk

d
o
o
h

i
l

e
k
i
L

Impact

Unchanged risk
Decreased risk
Increased risk

1. Strategic Risks

Alert status
No change.

Risks
• Market shift in technology usage, making what we do less

relevant or superfluous and we fail to invest appropriately to
defend our competitiveness

• Geo-political risk arising from our increasingly global operations
• Increasing globalisation of customer demand, resulting in a

changing global competitive landscape

Principal impacts
• Reduced margin
• Excess operational employees

• Contracts not renewed
• Missed business opportunities

Mitigation
• Well-defined Group strategy, backed by an annual strategy

• Group Investments and Strategy Board, which considers

process that considers our offerings against market changes

strategic initiatives

• Additional measures including CEO-led country, sector and

win/loss reviews

Risk owners
• Chief Executive Officer
• Group Development Director
• Group Delivery Director

2. Contractual and Operational Risks

Alert status
Increased risk of loss, corruption or unauthorised disclosure of personal data commensurate with the increased cyber threat.

Risks
• Lack of effective pre-contract processes, resulting in poor

design, costing and pricing

• Lack of effective post-contract delivery
• Loss, corruption or unauthorised disclosure of personal data

Principal impacts
• Customer dissatisfaction
• Financial penalties
• Contract cancellations
• Reputational damage

Mitigation
• Mandatory governance processes relating to bids and new
business take-ons, including risk-based decision-making
assessments and new tooling
• Board oversight of significant bids
• Early Warning System and assurance provided by the Group
Quality Management & Assurance function over key bids and
delivery programmes

• Regular commercial ‘deep dives’ into troubled contracts and

challenging transformation projects

• Data privacy audit programme

• Lack of effective acquisition integration and failure to deliver on

acquisition objectives

• Failure to meet our commitments or comply with applicable laws

and regulations in relation to environmental, social and
governance matters

• Reduced margins
• Loss-making contracts
• Reduced service and technical innovation

• Appropriate due diligence and acquisition integration plans in
place, with ongoing monitoring of key risks to ensure success

• Board-endorsed sustainability strategy
• Climate Committee oversees initiatives to reduce environmental

impact (see pages 52 to 61)

• TCFD disclosure (see pages 62 to 64)
• Strong Company culture and values (see pages 44 to 51)
• Oversight by the Compliance Steering Committee
• Strong corporate governance, risk management and ethics,

including policies and/or training for anti-bribery and
corruption, export compliance, competition law, HSE and HR in
addition to a whistleblowing hotline

Risk owners
• Group Delivery Director
• Group Commercial Management Director
• Group Legal and Compliance Director

• Group Development Director
• Group Finance Director
• Group Chief People Officer

Strategic ReportAnnual Report and Accounts 2021Principal risks and uncertainties
continued

3. Infrastructure Risks

Alert status
Increasing due to the worldwide activity of cyber threat actors including nation states, and the need to replace a number of core systems
in the coming years.

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

Principal impacts
• Inability to deliver business services
• Reputational damage
• Customer dissatisfaction

• 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, leading to damage to our reputation and ability
to win business. Failure to plan and execute effectively the
replacement of our core internal systems, leading to loss of
business control

• Financial penalties
• Contract cancellations

Mitigation
• Well-communicated Group-wide information security and virus

protection policies

• Specific inductions and training for employees working on

customer sites and systems

• All Group standard systems built and operated on high-

availability infrastructure, designed to accommodate failure
of any single technical component

• All centrally-hosted systems built and operated on high-

• Specific policies and procedures for employees working behind

availability infrastructure, with multiple levels of redundancy

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

• All centrally-hosted systems benefit from dual network

connectivity into core data centers designed to accommodate
loss of network service

• Standing agenda item for each meeting of the Group

• Regular review of cyber security controls and threat analysis by

Risk Committee

Computacenter’s Group Information Assurance team

Risk owner
• Chief Information Officer

4. Financial Risk

Alert status
Increased in line with the higher level of inventory held due to chip and other shortages as well as some ERP implementation issues
in North America.

Risk
• Failure to manage working capital effectively

Principal impacts
• Financial impact through bad debts, obsolete inventory and/or

other working capital movements

Mitigation
• Implementation of debt management best practice, after

centralising Europe-wide collection functions at the Budapest
finance Shared Service Center (excluding recent North
American acquisitions)

Risk owner
• Group Finance Director

• Inventory management controls and monitoring
• Increasing use of direct delivery

5. People Risks

Alert status
Increased risk in recruitment and retention due to the post-pandemic recovery, resulting in labour shortages.

Risks
• Failure to recruit and retain the right calibre of employees to our
talent pool, which includes acting as an inclusive employer, with
a focus on senior positions in sales, services and projects

• Inadequate succession planning or insufficient depth within key

Senior Executive positions

Principal impacts
• Lack of adequate leadership
• Customer dissatisfaction
• Financial penalties

• Contract cancellations
• Reputational damage

Mitigation
• Succession planning in place for the top 50 managers across

the Group

• Regular employee surveys to understand and respond to

employee issues

• Regular remuneration benchmarking
• Incentive plans to aid retention
• Investment in management development programmes

• Specific diversity projects in place relating to accessibility and
wellbeing, life balance, LGBT+ and allies, future talent, focus on
women and culture

Risk owners
• Group Chief People Officer
• Chief Executive Officer

This Strategic Report was approved by the Board on 23 March 2022 and was signed on its behalf by:

MJ Norris
Chief Executive Officer

FA Conophy
Group Finance Director

Strategic ReportAnnual Report and Accounts 2021GOVERNANCE

Chair’s governance overview
87
Board of Directors
88
Corporate governance report
90
Nomination Committee report
95
Risk and internal control
97
99
Audit committee report
106 Directors’ remuneration report
126 Directors’ report
131 Directors’ responsibilities

Chair’s governance overview

Governance Report
Annual Report and Accounts 2021

Peter Ryan
Non-Executive Chair

Our governance framework
is intended to provide an
appropriate balance between
ensuring that the Board and
its Committees provide
effective leadership for the
Group, whilst enabling
colleagues throughout the
organisation to operate with
the speed and agility required
to support our customers
and other stakeholders.
Peter Ryan
Non-Executive Chair

Dear Shareholder,

On behalf of the Board, I am pleased to
introduce Computacenter’s Corporate
Governance Report for the year ended
31 December 2021.

Computacenter’s purpose is to enable the
success of our customers, people, technology
partners and the communities in which we
operate, by building long-term trust. I am
in no doubt that the clarity of this message,
supported by the values and culture set
by the Board, has helped the organisation to
navigate the unfamiliar, and sometimes
difficult, conditions in which it has had to
operate since the onset of the Covid-19
pandemic, in March 2020. Our Purpose, Values
and culture all prioritise and support the
consideration of long-term consequences in
our decision-making, and relationships with
our key stakeholders. They have helped
Computacenter to prioritise its actions and
decision-making throughout the Covid-19
pandemic, including at Board level.

Our governance framework is intended to
provide an appropriate balance between
ensuring that the Board and its Committees
provide effective leadership for the Group,
and have sufficient oversight and decision-
making involvement in areas such as strategy,
performance, governance and risk, whilst
enabling our colleagues throughout the
organisation to act with sufficient
independence and agility to respond to and
work effectively with our stakeholders.

As a Board, we are mindful of our
responsibility to ensure that our activities
and decision-making are consistent with,
and enable Computacenter to achieve, its
purpose. We employ over 18,000 people,
our customers depend on us to help them
navigate complex digital environments and
deliver high levels of service that effectively
support their business needs, and we
provide our technology partners with an
important route to market for their products.
A significant number of people and
organisations, many of whom sit outside of
Computacenter, are impacted by and depend
on our continued success and growth.

It is therefore critical that the Board is able to
understand the views and interests of our key
stakeholders – our customers, employees,
technology partners, investors and
communities in which we operate – and that
these are factored into and considered in the
decisions that it makes. Further detail on how
the Company and Board have engaged with
our key stakeholders, why that engagement is
important, and how the Board has considered
them and other Section 172 factors in its
decision-making, is set out on pages 66 to 69
and on pages 91 to 92.

Effective decision-making also requires the
Board to have the right balance of skills,
experience, knowledge and diversity. Our
Nomination Committee has focused on Board
and Executive succession planning during the
year, considering both the Company’s current
and likely future requirements. We are pleased
to have increased our female director
representation on the Board to just over 33
per cent, meaning that we are now compliant
with the recommendations of the Hampton-
Alexander review. Diversity at Board and Group
Executive Committee level will remain very
much on the Board’s agenda in 2022, to
ensure that Computacenter has the best
possible talent available to it in seeking to
deliver value for its stakeholders.

There have been two changes to the Board
since our last Annual Report. Minnow Powell
retired from the Board after six years of
service, having worked to lift the performance
of the Company across compliance, financial
reporting and governance, and offering wise
counsel and guidance in his role as a
Non-Executive Director. Pauline Campbell
joined the Board in August and is already
adding a fresh perspective and significant
value to Board discussions, as well as recent
and relevant financial experience from her
role at PwC. Pauline’s profile can be found on
page 89, which sets out in more detail her
current and previous roles, and the skills and
experience that she will bring to the Board as
a Non-Executive Director.

Given the time constraints of its annual
programme, and corporate governance and
regulatory requirements for UK listed
companies, the Board delegates a number of
its responsibilities to its principal Committees,
so that it can focus on those areas deemed to
be of particular operational, financial or
reputational importance to the Group. The
Board reviewed and approved the Terms of
Reference for each of these Committees
during the year, as well as the authorities that
it delegates to Management to run the
organisation on a day-to-day basis.

An internal evaluation of the Board and its
Committees took place during the year. Further
details of the process and outcomes can be
found on page 98. Following consideration of
its findings, I am satisfied that the Board
continues to function effectively, and that its
current constitution and range of skills are
appropriate for promoting the long-term
interests of the Company.

Peter Ryan
Non-Executive Chair
23 March 2022

Board of Directors

The Board has an appropriate
balance of independence,
knowledge and experience
which allows it to perform its
role effectively, providing
effective and entrepreneurial
leadership to the Group, and
promoting its long-term
sustainable success.
Peter Ryan
Non-Executive Chair

Committee membership key
A – Audit Committee
N – Nomination Committee
R – Remuneration Committee

Peter Ryan

Non-Executive
Chair and Chair
of the
Nomination
Committee

Mike Norris

Chief
Executive
Officer

Committee membership: N, R
Board meeting attendance: 8/8

Peter has, since 1980, had a successful
international career in technology
encompassing all dimensions of the industry,
including software, services, systems
integration, outsourcing and infrastructure.
Over the last 10 years, 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.

Board meeting attendance: 8/8

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.

Philip Hulme

Founder
Non-Executive
Director

Tony Conophy

Group Finance
Director

Board meeting attendance: 7/8

Board meeting attendance: 8/8

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.

Tony has been a member of the Chartered
Institute of Management Accountants since
1982. He qualified with Semperit (Ireland) Ltd
and then worked for five years at Cape
Industries plc. He joined Computacenter in
1987 as Financial Controller, rising in 1991 to
General Manager of Finance. In 1996, he was
appointed Finance and Commercial Director
of Computacenter (UK) Limited with
responsibility for all financial, purchasing and
vendor relations activities. In March 1998 he
was appointed Group Finance Director.

Governance Report
Annual Report and Accounts 2021

Peter Ogden

Founder
Non-Executive
Director

Pauline
Campbell

Independent
Non-Executive
Director and
Chair of the Audit
Committee

Ros Rivaz

Senior Independent
Non-Executive
Director and Chair
of the Remuneration
Committee

Board meeting attendance: 8/8

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.

Committee membership: A, N, R
Board meeting attendance: 4/4

Committee membership: A, N, R
Board meeting attendance: 8/8

Pauline is a recently retired
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 is a Non-Executive Director of Micro
Focus International plc.

Ljiljana Mitic

Independent
Non-Executive
Director

Rene Haas

Independent
Non-Executive
Director

Committee membership: A, N, R
Board meeting attendance: 8/8

Committee membership: A, N, R
Board meeting attendance: 7/8

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.

Rene is a US national. He has over 30 years’
experience in executive and general
management, marketing and sales. He is
currently the Chief Executive Officer of Arm
Limited, the world leader in semiconductor IP
and provider of IoT device and data management
platforms. Prior to his current role, Rene led
Arm’s Intellectual Property Group and was,
amongst other appointments, Chief
Commercial Officer and Executive Vice
President Sales and Marketing at Arm. He
spent seven years as Vice President and
General Manager Computing Products at
NVIDIA Corporation.

Ros was appointed as the Group’s Designated
Non-Executive Director for Workforce
Engagement in 2017. She is a Senior
Independent Non-Executive Director at Victrex
plc. Ros is Chair of the Nuclear Decommissioning
Authority and a Non-Executive Director of the
Ministry of Defence – Defence Equipment and
Support Board, where she is a member of the
Remuneration and Nomination Committees
and is the Lead Non-Executive Director at
Luxembourg-based Aperam SA. She was a
Non-Executive Director of ConvaTec plc, RPC
Group plc, CEVA Logistics AG, Rexam plc and
Deputy Chair of the Council of the University of
Southampton for 10 years. Ros was previously
Chief Operating Officer for Smith & Nephew plc
and held senior management positions in
global companies including Exxon, Diageo,
ICI and Tate & Lyle Group.

Corporate governance
report

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 (FRC) in 2018.
A description of how it has done so
is set out on pages 90 to 131, which
includes the reports of the Board
Committees and the Directors’ Report.
The Board confirms that the Company
complied with the provisions of the
Code throughout 2021. A copy of the
Code is available at www.frc.org.uk.

The pages that follow aim to provide
our stakeholders with an understanding
of how our Corporate Governance
Framework (the Framework) operated
during the year, and the outcomes
that it produced during that time.
The Framework ensures 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. In doing so,
it helps us to set and deliver our
strategy, manage our risks, safeguard
long-term shareholder value and
protect our reputation with our
key stakeholders.

The Group’s Viability Statement is set out
on pages 78 and 79, within the Finance
Directors’ review.
BOARD LEADERSHIP AND COMPANY PURPOSE
The role of the Board
The Group is led by the Board, which is
responsible for promoting its long-term
sustainable success, with a focus on
generating value for our shareholders and the
wider interests of our key stakeholders. It
discharged this responsibility in 2021 through
the completion of its annual programme, with
eight scheduled meetings covering areas
relating to strategy, operational and financial
performance, risk management and corporate
governance. Further details of the Board’s
principal activities that it undertook during
the year can be found on pages 91 and 92.

Under the Framework, the Board retains
oversight and sole decision-making authority
over a number of key matters which are
likely to be operationally, financially or
reputationally material to the Group. These
are set out in a clearly defined schedule of
matters reserved, which was reviewed during
the year, and includes decisions concerning
acquisitions, major capital expenditure and
the Group’s strategy, budgets, consolidated
financial statements and dividend policy. The
schedule can be found on our investor website
at investors.computacenter.com.

APPLICATION OF CODE PRINCIPLES
• Board Leadership and Company Purpose

– page 90

• Division of Responsibilities – page 93
• Composition, Succession and Evaluation

– pages 95, 96 and 98

• Audit, Risk and Internal Control – pages 97

to 105

• Remuneration – page 106 to 125

RELATED STATEMENTS AND
CONFIRMATIONS
The Directors are required to include the
following in the Annual Report and Accounts,
in accordance with the Code. Please see:

• page 79 for the Board’s statement on the
Annual Report and Accounts being fair,
balanced and understandable and
providing the information necessary for
shareholders to assess the Group’s position
and performance, business model
and strategy;

• page 78 for the statement on the status

of the Company and the Group as
a going concern;

• the Strategic Report from the inside front
cover to page 85, for an explanation of the
Group’s business model and the strategy
for delivering the Group’s objectives; and
• the statement on risk and internal control
for confirmation that the Directors have
carried out a robust assessment of the
principal and emerging risks facing the
Group, including those that would threaten
its business model, future performance,
solvency or liquidity.

Our Corporate Governance Framework

Shareholders

The Board

Board Committees

Nomination
Committee

Audit
Committee

Remuneration
Committee

Chief Executive Officer*

Group Executive Team

The Board delegates authority for managing the Group on a day-to-day basis to the Chief Executive Officer.

Board activity in 2021

The Board held eight scheduled meetings during 2021 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 the Board’s activities set out below is not exhaustive, it provides
an understanding of its main areas of focus, and of the Section 172 factors that it considered in its discussions and decision-making,
including the views and interests of our stakeholders. This section is incorporated by reference into the Board’s Section 172 statement for
2021, as set out on page 65.

During the year, the Board:

Strategy

Stakeholders and Section
172 factors considered

• Held a dedicated strategy day to review and approve the Group’s three-year plan. Areas reviewed include the

Group’s Technology Sourcing, Managed Services and Professional Services propositions; competitive positioning
and differentiation; growth potential and opportunities; and future strategic investment requirements.
Further information on the Group’s current strategy is available on pages 8 to 17.

• Conducted seven strategy-related deep dives across the year on topics of material importance to

achieving progress against the Group’s strategic objectives. Approved investment in the Group’s IT Service
Management tooling.

• Reviewed and approved acquisition opportunities, the integration of recent acquisitions and considered

shareholder feedback on our strategy.

• Received regular updates on the status of our environmental, social and governance (ESG) strategy and progress
made against our ‘Winning Together for our People and our Planet’ objectives. Further information on the Group’s
ESG areas of focus and strategy is available within the sustainability section on pages 40 to 41.

• Reviewed the Group’s financing, cash deposit and cash reserve strategy. For further detail on the outcomes

of these discussions, please see the Group Finance Director’s review on pages 70 to 79.

Our People and Culture

• Conducted a ‘deep dive’ into Computacenter’s culture, including discussing its development over recent years,

its alignment with our ‘Winning Together’ values, strategy and purpose, and the impact of Covid-19.

• Reviewed succession planning for members of the Group Executive Committee, and the process for talent

management throughout Computacenter.

• Reviewed and approved Non-Executive Directors’ Remuneration, considering the limits set in the Company’s

Articles of Association, and relevant benchmarking data.

• Received regular updates from the Group’s Designated Non-Executive Director for Workforce Engagement,

highlighting matters of concern and importance to employees, and reviewed the results of the 2021 Group-wide
employee survey providing the Board with insight into employee views of our culture, strategy, response to
Covid-19 and ESG activities. Commentary on the outcomes of our workforce engagement programme and
employee survey can be found on page 46.

• Received updates from the Chief People Officer on Management’s interactions with the Group’s Employee

Works Councils.

• Reviewed and discussed targets for Group Executive Committee members concerning diversity and inclusion.
Our wider approach to diversity and inclusion, and ensuring we have the best talent available to generate value
for our stakeholders, can be found on page 46.

Financial and Operational Performance

ENV

• Received regular reports from the Chief Executive Officer, and considered business performance against Board
and market expectations, material issues impacting our key stakeholders, and progress against the Group’s
strategic objectives and key performance indicators. For further detail on the Group’s performance during 2021,
please see pages 26 to 39.

• Reviewed senior Management presentations from each of the in-country and Group Function leadership teams,
providing the Board with insight into financial performance and the outcomes of stakeholder engagement.
• Considered and approved the budget and performance-related targets for 2022 and approved the 2021 interim

and final dividends. For our 2021 final dividend and details of our dividend policy, please see page 74.

• As a standing item on its agenda, reviewed data relating to the performance and competitiveness of the Group’s

Managed Services business. Commentary on our Managed Services business can be found on page 22.

Governance ReportAnnual Report and Accounts 2021

Board activity in 2021
continued

• Received a presentation on Computacenter’s principal growth drivers between 2018-2021.

• Approved the Group’s full-year and interim results announcements and ad hoc trading updates. Our results

announcements and trading updates can be found on our website at investors.computacenter.com.

Governance, compliance and risk management

• Approved the Group’s principal and emerging risks, and considered the effectiveness of the risk management

and internal control system. Reviewed the Company’s reporting against the recommendations of the Task Force
on Climate-related Financial Disclosures. Our principal risks and uncertainties can be found on page 80.

• Received updates on stakeholder engagement, a regulatory update from the Company Secretary, and approved
the Group’s Modern Slavery Statement and Gender Pay Gap Reporting. Reviewed various corporate governance
matters, including Director conflicts of interest, the Board Matters Reserved document and the Terms of
Reference for the Board’s Committees.

• Conducted an internally facilitated evaluation of the Board, its principal Committees and each Director.

The results of our Board Evaluation, and an explanation of the process undertaken, can be found on page 98.

• Reviewed recommendations from the Nomination Committee regarding Board succession planning and

approved the appointment of Pauline Campbell as a Non-Executive Director. The activities of our Nomination
Committee in 2021 are set out on pages 95 and 96.

• Received and considered reports from the Chairs of the Board’s Committees, and matters recommended

to it for approval by those Committees, particularly in respect of financial reporting, risk management and
Board appointments.

Our key stakeholders

Other Section 172 factors

Customers

People

Investors

Technology partners

Community

Long-term consequences of decision-making

ENV Considering the environment

HS Maintaining a reputation for high standards of business conduct

Acting fairly between members of the Company

SP Suppliers (excluding our technology partners)

Delegated authorities
So the Board can give key matters sufficient
attention and consideration within the time
constraints of its programme, the Framework
allows it to delegate those powers and
responsibilities which it deems necessary,
subject to UK corporate governance
requirements. Other Board-level matters are
delegated to the Nomination, Audit and
Remuneration Committees. The membership,
responsibilities and activities of these
Committees can be found on pages 95 to 125
and their Terms of Reference can be found
on our investor website. The Board also
delegates day-to-day management and
operational activities to the Chief Executive
Officer, who is assisted by the Group Executive
Committee, which reports directly into him.

Purpose, strategy and business model
The Board is responsible for establishing Our
Purpose, which is to enable the success of our
customers, people, technology partners and
communities through building long-term
trust. It reviewed Our Purpose during the
year, as part of its deep dive review of
Computacenter’s culture.

Our strategy is the means by which we can
achieve Our Purpose. The Framework provides
the Board with a central role in discussing,
reviewing and approving the Group’s strategic
priorities, and then measuring the progress
made against them. Our strategy is set out on
pages 10 to 17, and our strategic priority
measures, which the Board reviews, are set
out on pages 8 and 9.

ensures that adequate resources are
available to meet related objectives, whilst
maintaining capital discipline. The Board
reviews the performance of the Executive
Directors and senior Management team
against targets relating to these agreed
objectives, including a monthly review of
the financial performance of each of the
Group’s Segments.

The Strategic Report, from the inside front
cover to page 85, 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. In addition to
reviewing a strategy-related topic at every
scheduled Board meeting during the year, the
Board also holds a dedicated strategy day,
during which it comprehensively assesses
Computacenter’s competitive positioning
within its markets, its strategic options and
related three-year plan. Through its review of
the business plans and budgets submitted by
the Executive Directors and senior
Management, including challenging the
assumptions underpinning them, the Board

The Framework also allows the Board’s
principal Committees to help support the
successful execution of Computacenter’s
strategy. The responsibilities of the
Nomination Committee include ensuring that
the Board, its Committees, and together with
the Chief Executive Officer, the senior
Management team, have the right skills and
strength in depth to set and approve 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 strategic delivery.

Culture and Values
The Board views culture as a competitive
differentiator in our key markets, as it can
impact the appetite of our key stakeholders to
work with us as an organisation. It affects the
way that they view us, the way our people
behave when representing us, and our wider
corporate reputation. The Board assessed
and monitored the Group’s culture in several
ways during the year. It is underpinned by our
Code of Ethics Policy (Ethics Code), which
defines the rules, principles and behaviours
that the Group expects those who conduct
business on its behalf to adhere to, and on
which our supplementary workforce policies
and practices are based. The Board approves
the Ethics Code, ensuring that it is aligned with
our stated culture, values and strategy.

It also receives updates from the Audit
Committee on potential breaches of the Ethics
Code, which indicate behaviours inconsistent
with our culture and values. By monitoring
these reports, the Board can assess whether
there are common themes around behaviour
and therefore how embedded Computacenter’s
culture and values are across the organisation.
Some of these reports are initially made
through our independent and confidential
whistleblowing hotline, Safecall. The Board is
satisfied that arrangements are in place for
the proportionate and independent
investigation of these reports, and for
follow-up action, where required.

The work of the Workforce Engagement
Director, Ros Rivaz, is described on page 67.
She updated the Board regularly on her
engagement and discussions with our
workforce and their representative groups
in 2021, and the key outcomes and findings.
This helps the Board to understand the
approach, views, interests and activities of
our workforce, what it understands the
Group’s culture to be, and how well it thinks
that culture is embedded into different areas
of the organisation.

The Board also learned about our employees’
views on our culture, values and behaviours
when it reviewed the results of the Group-
wide employee survey completed in 2021.
Further details of the survey findings are set
out on page 46.

The Board received presentations from the
leadership teams of the Group’s operating
country units and central functions. Through
related discussions with senior Management
the Board is able to identify cultural variances
across the Group, including those driven by
geography, remoteness from the Group’s
headquarters or local customs and norms.
The Chief People Officer also presented to the
Board on the development of the Group’s
culture, with the aim of ensuring we can
attract, retain and promote the best talent
available. The Board also discussed the

impact of the Covid-19 pandemic on our
culture, and the general importance of
leadership messaging in reflecting and
reinforcing our culture.

The Board confirms it is satisfied that the
Group’s purpose, values, strategy and culture
are aligned.

Investing in and rewarding our workforce
Further detail on how we invest in and reward
our workforce is set out in the Directors’
Remuneration Report on pages 106 to 125,
and on page 48 of the Strategic Report.

Engagement with our investors
The Board recognises the importance of
meeting and engaging with our shareholders,
and places significant value on understanding
their views and interests. In 2021, the Board
completed a programme of engagement with
the Company’s institutional investors, to
ensure they understand our strategy,
performance and governance arrangements,
and can make informed investment decisions
relating to Computacenter.

Committee Chair. Pauline Campbell joined the
Board as a Non-Executive Director on 16
August 2021. She is a member of each of the
Board’s Committees, and became Audit
Committee Chair with immediate effect upon
Minnow’s departure.

The Board has considered the independence
of each Director, taking into account the
guidance provided by the Code. The Board
considered that the Chair, Peter Ryan, met the
Code’s independence criteria on appointment,
and considers that Pauline Campbell, Ros Rivaz,
Ljiljana Mitic and Rene Haas 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
remained on the Board in either an Executive
or Non-Executive capacity since that time.

The Framework ensures that there is no
dominant individual or group of individuals on
the Board influencing its decision-making.
The Board is comfortable that each Director
makes a valuable contribution in their role.

Further detail on engagement with our investors
during the year, and how the outcomes of that
engagement were fed back to the Board and
considered in its discussions and decision-
making, are set out on pages 69, 91 and 92.

Board appointments and development
The Nomination Committee leads the process
for Board appointments. Further detail on the
Committee’s role, membership and work
during the year is set out on pages 95 to 96.

The Company’s Annual General Meeting (AGM)
will be held on Thursday 19 May 2022 at
Computacenter House, 100 Blackfriars Road,
SE1 8HL. The AGM Notice of Meeting sets out
each of the resolutions being proposed.
The notice will shortly be available at
investors.computacenter.com, and will be
mailed to shareholders who have elected to
receive hard copies.

Stakeholder engagement
Details of the Group’s engagement with its
other key stakeholders, including our
customers, employees, technology partners
and communities, and how its outcomes were
considered by the Board in its discussions
and decision-making, are set out on pages
66 to 69.

DIVISION OF RESPONSIBILITIES

Board composition and independence
The membership of the Board as at 31
December 2021 is set out on pages 88 and 89.
On that date, the Board included seven
Non-Executive Directors and two Executive
Directors. The Directors’ attendance at Board
and Committee meetings is set out on pages
88 to 89, 95, 99 and 114. The diversity and
experience of the Board enables it to
discharge its functions effectively.

There were two changes to the Board during
the year. On 30 September 2021, Minnow
Powell stepped down as a member of the
Board and its Committees, and as Audit

Non-Executive Directors are appointed to
the Board for an initial three-year term, the
renewal of which is timed to be at the close of
an Annual General Meeting. The Executive
Directors are appointed for a rolling 12-month
term. The terms and conditions of appointment
of all Directors are available for inspection at the
Company’s registered office and at each AGM.

The Company’s Articles of Association require a
Director to be subject to election at the first AGM
following his or her appointment and every
third year thereafter. However, in accordance
with the Code, the Board has decided that all
Directors should be subject to election or
re-election at the Company’s 2022 AGM, and
each AGM thereafter. If the shareholders do
not elect or re-elect a Director, or a Director
is retired from office under the Articles, the
appointment terminates immediately and
without compensation.

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. New Directors are
also given the opportunity to meet with
major shareholders.

Governance ReportAnnual Report and Accounts 2021Corporate governance
report continued

The Chair regularly liaises with each Director
to discuss and agree their training and
development needs. The Board is confident
that all of its members have the knowledge,
ability and experience to perform the functions
required of a Director of a listed company.

Insurance and indemnities
The Company arranges insurance cover in
respect of legal action against the Directors
and, to the extent allowed by legislation, has
issued an indemnity to each Director against
claims brought by third parties.

Role of the Chair and Chief Executive Officer
The roles of the Chair and Chief Executive
Officer (CEO) are separate, and their
responsibilities are clearly set out in writing,
reviewed annually and agreed by the Board.
They are available from the Company’s
website at investors.computacenter.com.

In summary, the Chair’s role is to lead and
manage the Board, set its agenda, be
responsible for its effectiveness in all aspects
of its role and ensure the Board has sufficient
time to address all areas of responsibility,
particularly strategic issues. The Chair
actively encourages contributions from all
Directors and is responsible for ensuring
constructive interaction between the
members of the Board. The CEO is responsible
for the day-to-day management of the
Group’s operations and for the proper
execution of strategy, as set by the Board.

Senior Independent Director
Ros Rivaz is the Senior Independent Director.
She acts as a sounding board for the Chair
and, where necessary, as an intermediary
between the Chair and other Directors.
She is available to take representations from
shareholders who do not want to raise the
issue with the Chair. Ros also leads the annual
appraisal of the Chair’s performance, in
consultation with the other Non-Executive
Directors and without the Chair being present.

Non-Executive Directors
The Non-Executive Directors provide an
external perspective, constructively
challenge the Executive Directors and senior
Management, and monitor and scrutinise the
Group’s performance against agreed goals
and objectives. Their biographies, skills and
experience, which allow them to offer
strategic guidance and specialist advice
in areas such as remuneration, audit and
accounting and corporate governance, are
set out on pages 88 and 89.

Conflict of interest procedure
The Company’s Articles of Association allow
the Board to review and authorise situations
where a Director has an interest that
conflicts, or may conflict, with those of
Computacenter, and to impose conditions
on that authorisation.

The Board has formal procedures to
appropriately manage any actual or potential
conflicts of interest identified. These include
considering each conflict from a competitive
and commercial perspective, which includes
identifying supplier or customer relationships
between Computacenter and the third party,
and also identifying if there are any areas
where it competes with Computacenter.
The Board also considers the conflict in
accordance with the requirements of the
Companies Act 2006.

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 commitment, a commitment of up to
two days per month is expected, including
attendance at and preparations 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 2021, 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.

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 the Chair of such a company.
No such positions have been taken by the
Executive Directors.

Information and support
To enable the Directors to discharge their
duties, they receive appropriate documentation
in advance of each Board and Committee
meeting, including detailed briefings on
all matters.

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 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 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.

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. The
appointment or removal of the Company
Secretary requires Board approval.

The Corporate Governance Report, from
pages 87 to 125 was approved, by order of
the Board, and signed on its behalf by:

Simon Pereira
Company Secretary
23 March 2022

Nomination committee
report

Governance Report
Annual Report and Accounts 2021

Peter Ryan
Chair of the
Nomination
Committee

During the year, the
Committee continued to
focus on ensuring that there
are plans in place for Board
and senior Management
succession.
Peter Ryan
Non-Executive Chair

Current members
1. Peter Ryan (Chair)

2. Pauline Campbell
3. Rene Haas
4. Ljiljana Mitic
5. Ros Rivaz
Former member
5. Minnow Powell (until 30 September 2021)

Role
Non-Executive Chair
of the Board
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director

Non-Executive Director

Attendance
record
3/3

1/1
3/3
3/3
3/3

2/2

Membership and attendance
The members of the Nomination Committee
are the independent Non-Executive Directors
and the Chair of the Board.

Minnow Powell stepped down from the
Committee and the Board on 30 September
2021, having attended the Committee’s two
meetings held during the year prior to his
departure. Pauline Campbell joined the
Committee on 16 August 2021, immediately
upon her appointment as a Non-Executive
Director. Further detail on the Committee’s
membership and attendance at its meetings
can be found directly above.

The Company Secretary is the secretary to the
Committee, and upon invitation, the meetings
are also attended by the Chief Executive
Officer and the Chief People Officer.

The Chair of the Committee reports to the
Board on its activities.

Responsibilities of the Nomination Committee
The key responsibilities of the Nomination
Committee are to:

• lead the process for Board appointments;
• ensure the Board and its Committees have

a combinations of skills, experience,
diversity and knowledge appropriate for
leading the Group, given its size and the
markets in which it operates;

• review the structure, size and membership
of the Board and its Committees to ensure
that they are able to function effectively;
• review succession planning for the Board
and Senior Executives of the Group; and
• review whether each Director has sufficient

time to discharge his or her duties to
the Company.

The Committee’s full terms of reference are
available on the Company’s website at
investors.computacenter.com.

COMPOSITION AND SUCCESSION

Main activities of the Committee in 2021
The Nomination Committee met three times
during 2021 and its work included:

Succession planning
The Committee continued to focus on its
responsibility under the 2018 UK Corporate
Governance Code (the Code) to ensure that

plans are in place for Board and senior
Management succession, and to oversee the
development of a diverse pipeline for that
succession. To inform its work in this area, the
Committee received an update from the Chief
People Officer, during which it reviewed the
processes in place for succession planning
and talent management throughout the
organisation, including defined managerial
responsibilities for implementation.

The Committee reviewed succession options
for the Executive Directors and other
members of the Group Executive Committee,
which included understanding the criticality
of each role to the long-term sustainable
success of the Group, and the relative
availability of internal and external candidates
for the roles over various time horizons.

Succession planning for Group Executive
positions, including the Executive Directors,
was presented to the Board by the Chief
Executive Officer and the Chief People Officer
later in the year.

To help it understand succession planning
requirements, and to ensure that the Board
and its Committees are able to function
effectively on an ongoing basis, the
Committee reviewed and discussed the
composition of the Board and its Committees,
and the skills, diversity and knowledge that
each individual Director brings. It considered
how the leadership needs of the Group may
change over time, influenced by factors
including its strategy, plans for growth and
geographic footprint, and likely future
corporate governance requirements.

The Committee also recognises the
importance of effective Non-Executive
Director succession planning, given that the
Board currently includes our two founder
Non-Executive Directors, who continue to
contribute significantly and appropriately
to Board discussions, particularly around
strategy and performance. The Board does
not consider Sir Philip Hulme and Sir Peter
Ogden to be independent for the purposes
of the Code.

It is therefore important that the Committee
is prepared for unexpected or emergency
independent Non-Executive Director
succession so that the Company is able

Nomination Committee
report continued

to remain in compliance with Provision 11 of
the Code, which requires at least half of the
Directors, excluding the Chair, to be considered
independent by the Board, with reference to
the factors set out in the 2018 Code.

The Committee also recognises that
Non-Executive Director succession planning
needs to continually be re-assessed against
updated corporate governance requirements
and best practice, and also the guidelines of
proxy advisors, and our largest institutional
shareholders, many of whom now have
individual requirements as part of their own
investment stewardship programmes. As a
result, a significant part of the Committee’s
agenda involved independent Non-Executive
Director succession planning, including the
impact of the Board changes that took place
during the year.

To facilitate the Committee’s planning, the
Chair had regular conversations with Board
members as to their future intentions
regarding tenure, closely reviewed the results
of the Board and Committee evaluations, and
consulted with the Company Secretary to
ensure that relevant governance considerations
were taken into account.

Following the completion of its review
processes during the year, the Committee
confirms it is satisfied that plans are in place
for the orderly succession to both Board and
senior Management positions, and that these
are based on merit and objective criteria.

Following the departure of Minnow Powell
from the Board during the year, and the
appointment of Pauline Campbell, the average
tenure of our Chair and independent
Non-Executive Directors is now less than
three years.

Process for Board appointments
There is a formal, rigorous and transparent
procedure for the appointment of new
Directors to the Board. It is led by the
Committee, and is 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
starts with the appointment of an
independent search firm by the Committee,
and the creation of a role specification which
it then approves. This highlights necessary
skills and areas of competence required.

Following further Committee discussion, a
shortlist of candidates is produced, all of
whom are interviewed by Board members.
Following consideration of feedback provided
from those interviews, the Committee then
identifies its preferred candidate for Board
approval. The process varies slightly for

Executive Director roles, given that the
Committee will also consider internal
candidates, with whom it is already familiar,
given its role in succession planning. Only
external candidates will be considered for
Non-Executive roles.

Board changes
There were two changes to the Board during
the year, with Minnow Powell retiring from the
Board after just over six years of service, and
Pauline Campbell joining the Board as a
Non-Executive Director, and taking over as
Audit Committee Chair effective from the date
of Minnow’s departure. The full process by
which Pauline was appointed was set out in
this Committee’s 2020 report. We are grateful
to Minnow for his period of excellent service,
and are delighted to have appointed
somebody of Pauline’s calibre. As set out in our
2020 Annual Report and Accounts, the
Company used Russell Reynolds to assist with
the search for this position. Russell Reynolds
has no other connection with the Company,
other than the provision of this type of service.

Performance of the Committee
During the year, the Company Secretary
facilitated an internal review of the Committee,
in accordance with its Terms of Reference.
The review concluded that the Committee
continued to function effectively during the
year, but will continue to further increase its
focus in 2022 on Management’s plans to ensure
that the Group has a diverse pipeline for
succession to senior Management positions.

The Committee has responded to
observations made on its performance in
recent years, and has increased its oversight
of succession planning during the year,
including over the pipeline of internal
candidates for Executive Director succession.

Further detail on how the Committee
evaluation was conducted is disclosed on
page 98.

Election and re-election of Directors
In accordance with the provisions of the Code,
and as recommended by the Committee, all
Directors in office as at 31 December 2021 will
be put forward for election or re-election at
the AGM to be held in May 2022. Pauline
Campbell is being put forward for election by
shareholders for the first time. The Committee
made its recommendation following its review
of Board and Committee composition and the
2021 evaluations.

Diversity
The Board recognises the benefits that
diverse skills, experience and thought can
bring to an organisation, and how it can assist
the Board’s decision-making and
effectiveness. 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 it for selection.

The Board is also of the view that
appointments to it must be made primarily on
merit, with regard to the benefits of diversity.
As such, the Committee does not view it as
appropriate to have in place a formal diversity
policy which specifically applies to the Board
and Group Executive Committee.

The Committee is aware of related corporate
governance requirements and suggested
best practice in this area, including the Sir
John Parker review on ethnic diversity and the
Hampton-Alexander review on gender
diversity. As at 31 December 2021, the Board
was compliant with the Hampton-Alexander
recommendations with one-third female
representation, and it is currently anticipated
that it will be compliant with the Sir John
Parker recommendations by 2024.

The Board and the Committee endorse
Computacenter’s wider approach to diversity,
including its six pillars of diversity, as set out
in more detail on page 46, and 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, their communication
and in their day-to-day actions.

The Group will further enhance its
commitment and approach to diversity and
inclusion in 2022, with the creation of a Group
Inclusion Statement, which will be reviewed by
the Committee. This inclusion statement will
be published on our website and will underpin
our country-specific inclusion policies.

Further detail on the Group’s approach to
diversity and inclusion can be found on
page 46.

Female representation at Board level has
increased from 22.2 per cent in 2020 to
33.3 per cent in 2021. Female representation
in our Group leadership has improved from
20.5 per cent in 2020 to 22.8 per cent in 2021.
Leadership teams are comprised of members
of the Executive Committee and those senior
leaders who are direct reports to Executive
Committee members (excluding
administration and support roles).

Peter Ryan
Chair of the Nomination Committee
23 March 2022

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 80 to 85 for further information
on the Group’s principal risks and
uncertainties, including how they 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 is chaired by the
Group Finance Director and whose members
include the Group Head of Internal Audit and
Risk and senior operational managers from
across the Group. Throughout the year each
meeting has been attended by at least one
independent Non-Executive Director as a
guest of the Chair of the Committee.

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.

As a sales-led and customer-focused
organisation, 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
priorities. These strategic priorities are
focused on improving the Services business
and maintaining the longevity of the Group’s
customer relationships, which in turn rely
heavily on the contribution made by the
Group’s customer-facing staff and those
involved in Services innovation and design.
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 apply the internal controls
necessary for managing risks day-to-day.

• The second line of defence comprises
functions such as internal compliance

and assurance, which 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 Priorities.

• 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.

Recent enhancements to the risk framework
and processes, have now been embedded
and include:

• Risk owners report to the quarterly meetings
of the Group Risk Committee, ensuring that
they consider risk appetite, non-financial
risks and potential risk triggers.

• While all principal risks are reviewed at

least annually by the Group Risk Committee,
higher-level risks are considered more
frequently. Contract risks, cyber risk and
data privacy are reviewed bi-annually while
acquisition integration risk is considered at
each meeting.

• The Compliance Steering Committee, which
reports to the Group Risk Committee, has
completed the rollout of a Compliance
Management System to assess risk and
compliance more thoroughly.

• Monitoring the effects of the Covid-19

pandemic for its potential impact on our
business, specifically in relation to the
health and wellbeing of our employees, our
global supply chain and in changing
customer requirements.

The Group has detailed business interruption
contingency plans for all key sites. These are
regularly tested, in accordance with an
agreed schedule.

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.

The Board conducts an annual review of the
effectiveness of the systems of internal
control, including financial, operational and
compliance controls and risk management
systems. In the Board’s opinion, the Group
complied with the Code’s internal control
requirements throughout the year. Where
material weaknesses or opportunities for
improvement are identified, changes are
implemented and monitored.

All systems of internal control are designed to
identify continuously, 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.

Governance ReportAnnual Report and Accounts 2021Risk and internal control
continued

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.

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 Group Finance
Director, with regular reporting to the
Audit Committee.

The Group Treasury Committee enhances
Management oversight. It is chaired by the
Group Finance Director 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 provisions relating
to the Audit Committee, Group auditor and
Internal Audit, please refer to the Audit
Committee report on pages 99 to 105.

Board and Committee evaluation
The Board recognises the importance of
continually monitoring its performance,
and that of its Committees. It therefore
undertakes an annual review of its own and
its Committees’ performance and
effectiveness, with an external evaluation
being completed on at least a triennial basis,
in accordance with the Code. Between
December 2021 and January 2022, the
Company Secretary facilitated an internal
evaluation looking at areas of Board
responsibility such as strategy, risk
management and governance. The evaluation
also reviewed wider Board processes,
including the quality of information provided
to it in advance of meetings, 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 Committee. The Chairs of the Board and
the Committees were able to review and

shape both the questionnaire and the list of
non-Board respondents, to make best use of
the process. The questionnaire responses
were collated and analysed, before inclusion
in a report to the Board. In February 2022, 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 one-to-one discussions
with each of the remaining 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-related
activities, including its discussions and
decision-making, during the year.

The review concluded that the Board, its
Committees and individual Directors were
performing effectively, found there to be open
and constructive dialogue between Board
members, and confirmed that a sound
relationship between Executive and Non-
Executive Directors existed, which allowed
constructive challenge to take place between
members. The Board believes that it has

a good mix of skills and experience and
that members work well together to achieve
objectives. The Board is also satisfied that
it sufficiently considers long-term
consequences when making decisions,
and that the Group has a clearly articulated
strategy. Following the review, it was agreed
that increased time will be allocated within
the Board’s annual agenda to rolling ‘deep
dive’ reviews of the Company’s principal risks.
It was further agreed that the Board’s views
on the principal risks, and associated
likelihood and impact of risk, would be
communicated in greater detail to the Group’s
Risk Committee, in order to frame discussions
at its quarterly meetings. The Board also
requested that there be a continued focus
on the quality and form of information
provided to it, underpinned by concise and
focused pre-reading for members, and a
focus within presentations given by senior
Management to direct the Board towards
key points for discussion.

The review of the Chair’s performance by the
Senior Independent Director found that he
continued to lead the Board effectively,
encouraging a culture of openness and
debate amongst members.

Audit Committee report

Governance Report
Annual Report and Accounts 2021

Pauline Campbell
Chair of the
Audit Committee

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.
Pauline Campbell
Chair of the Audit Committee

Current members
1. Pauline Campbell (Chair from 30 September 2021)
2. Rene Haas
3. Ljiljana Mitic
4. Ros Rivaz
Former member
5. Minnow Powell (Chair until 30 September 2021)

Role
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director

Attendance
record
2/2
3/4*
4/4
4/4

Non-Executive Director

3/3

Rene Haas was unable to travel from the United States to attend the meeting of the Audit Committee on the morning of
9 December 2021 due to Covid-19 travel implications and could not join by video conference due to incompatible time
zones with a suitable alternative date unable to be found. Rene had a briefing call with the Chair prior to the meeting to
discuss the agenda and papers ensuring that his views were able to be considered.

Composition of the Committee
On 30 September 2021, Minnow Powell retired
from the Board and as Chair of the Audit
Committee. Pauline Campbell, who joined the
Board on 16 August 2021, was afforded a full
induction to the Board and the Company and
received a handover from Mr Powell during the
overlap of their tenure. All activities below,
noted as carried out by the Chair, refer to
either Mr Powell or Ms Campbell depending on
the timing of the event through the annual
Audit Committee cycle.

As at 31 December 2021, the Audit Committee
(the ‘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 88 to 89.

Meetings of the Committee
The Committee met four times during 2021.
Meetings are attended routinely by the Chair
of the Board, Group Finance Director, Group
Head of Financial 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. From time to time, on
an ad hoc basis, members of the Committee,
including the Chair, also attend meetings of
the Group Risk Committee.

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, reappointment 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;

Audit Committee report
continued

• develop and implement 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 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, KPMG LLP.

Technology Sourcing agent versus principal
revenue recognition
Since the finalisation of the revised Group
revenue recognition accounting policies and
adoption of IFRS 15 on 1 January 2018,
Management has continued to keep under
review the nature of the finely balanced
judgement on whether certain lines of
Technology Sourcing revenue are to be
recognised on an agent versus principal basis.
On occasion, on a deal-by-deal basis,
Management may conclude that a particular
deal is to be recognised as agent rather than
as principal. Typically, technology partners
and customers approach us with an
opportunity where the technology partner is
taking the contract and performance risks,
sets the selling price and uses Computacenter
as a pass-through agent in the channel, to
transact the deal for a set fee. Since adoption
of IFRS 15, these have been primarily large
software deals where there is no ongoing
obligation of service on us following the
transaction. We have no say in the pricing or
selection of the product and are merely
standing in the sales channel between the
technology partner and customer, for the
pre-determined fee. Based on the facts and
circumstances of each deal, we assess how
the terms and conditions of the deal are
applied in practice against our revenue
recognition policies, by reviewing the
weighting applied to the agent/principal

100

indicators. As a result, we have classified
several of these deals as being on an agency
basis, concluding that the fee received should
be booked as net revenue.

In addition to these existing treatments,
Management has performed an initial review
of the tentative agenda decision of the
International Accounting Standards Board’s
(IASB) IFRS Interpretations Committee that
was released on 1 December 2021. The
tentative agenda decision considered the
specific recognition criteria for standalone
software licences resold by value-added
resellers. Management has produced an initial
analysis of the impacts of the agenda decision
on the Group, outlining the potential eventual
change to agent revenue recognition for the
majority of our software and resold services
Technology Sourcing business lines that are
currently recognised as principal.

The Committee reviewed the initial
accounting memorandum produced by
Management, supported its proposed
programme of further investigatory analysis
in this area and concluded that, if the
tentative agenda decision is finalised in a
manner reflective of the current position,
the change to future revenue recognition
policies was appropriate.

Technology Sourcing revenue recognition
and ‘bill and hold’ cut-off procedures
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
continued 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 contract
terms. Management highlights to the
Committee any contracts that may be of
interest, including the process by which such
contracts are identified.

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 Technology Sourcing. Management will
consider process improvements as part of the
change expected in the area of agent versus
principal revenue recognition described above.

Risk of impairment of FusionStorm and Pivot
goodwill and acquired intangible assets
The valuation of the goodwill and acquired
intangible assets is assessed annually. The
size and nature of the balances, coupled with
the inherent complexity of the underpinning
valuation methodology, results in a high degree
of estimation uncertainty with significant
judgement required in determining and
applying assumptions to assess the fair value.

Management reviewed the value of goodwill
and acquired intangibles in the FusionStorm
and Pivot cash-generating units (CGU). This
review assessed factors which could affect
the recoverability of these assets and
whether they could give rise to an impairment.
This included:

• assessing the discount rates used in the

cash flow forecasts;

• referencing the discount rates used by

comparable companies;

• comparing the projected long-term growth

rates to externally derived data;

• considered management’s track record in
forecasting versus actual outcomes; and

• reviewing sensitivity analysis on the

assumptions noted above.

Management’s review highlighted the inherent
uncertainty involved in forecasting and
discounting future cash flows, which are the
basis of the assessment of the value-in-use.
Management’s assumptions, which are based
on the Board’s approved budget for 2022 and
the Plan for 2023 and 2024, included that
FusionStorm would be integrated with Pivot to
form a new CGU being Computacenter USA
during this timeframe.

The Committee considered the outcome of
Management’s assessments including the
sensitivity of the outcome to changes in key
assumptions. The Committee, further,
reviewed the adequacy of the Group’s
disclosures, including the key estimates and
judgements related to the carrying amount.
The Committee considers that the carrying
value of the goodwill and acquired intangible
assets remains supported.

FusionStorm and Computacenter NS ERP
Migration and Transition
During the year, the FusionStorm business
within Computacenter North America and the
Computacenter NS business within
Computacenter France transitioned to the
Group’s primary Enterprise Resource Planning
(ERP) system, continuing the programme of
integration following acquisition.

Implementation of the ERP system has
allowed Management better visibility of the
operations and results of the business and
will yield ongoing synergistic benefits from
the commonality of approach across the
primary geographies.

In order to provide insight into the integrity
of information that may become part of the
Annual Report and Accounts, Management
outlined the implementation programme to
the Committee prior to commencement and
provided reports on the progress of the
implementation of the transition. Following
the cutover to the ERP, the Committee was
updated on the reconciliation of the legacy
system to the ERP, including issues detected,
resolution programmes and ongoing
operational impacts. The Committee is
satisfied that there are no unreconciled
differences, or other financial items that
will/would impact the Group’s reporting.

Acquisition accounting
During 2020, the Group acquired Pivot, a large
Technology Sourcing reseller in the United
States and Canada, and a portion of the BT
Services French business. The initial accounting
for the acquisitions was determined, by
Management, provisionally at the end of the
2020 reporting period and the Committee
reviewed the final position close to the
anniversary of the acquisition. Management
considers the accounting for the acquisitions
as now complete, which was presented to the
Committee. There were no changes to the fair
values or the book values at acquisition for
either entity.

Exceptional and other adjusting items
There were no exceptional items raised by
Management for disclosure outside its
alternative performance measures during
the year.

Management considered the presentation of
adjusted1 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 adjusted1 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.

Management continued to exclude the
amortisation of acquired intangible assets,
and the tax effect thereon, as an ‘other
adjusting item’ outside of adjusted1 profit
after tax in the Group’s 2021 Annual Report
and Accounts. Management highlighted that
this charge had materially increased with the
acquisition of FusionStorm and Pivot.

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 understanding of
the Group and Segmental operating results.

The Committee considered the nature and
quantum of items disclosed as exceptional or
as other adjusting items that are excluded
from the Group’s adjusted1 profit before tax,
and other alternative performance measures,
in the Group’s 2021 Annual Report and
Accounts. The Committee concluded that
the presentation of adjusted1 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. 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 9 December 2021 Board meeting.

In making its assessment Management
assessed factors which could affect the
modelling of the Group’s financial plans and
its impact on the Going Concern assessment.

This included:

• Key financial performance forecasts for the
next 12 months and the predicted impact
on cash generation.

• Supporting models with rigorous downside
sensitivity analysis, which involves flexing a
number of the main assumptions
underlying the forecasts.

• Further downside scenario testing where the
potential impact of the principal risks and
uncertainties are applied to the forecasts.
• Management’s assessment included 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.

• For the current year, the primary downside
sensitivity relates to a modelled, but not
predicted, severe downturn in the Group’s
revenues, beginning in 2022, simulating a
continued impact for some of our customers
from the Covid-19 crisis together with the

Group’s revenues being impacted by supply
shortages. This sensitivity analysis models
a continued market downturn scenario,
with slower than predicted recovery
estimates, for some of our customers
whose businesses have been affected by
Covid-19 and a similar downturn occurring
for the remainder of our customer base.
A further impact on the Group’s Technology
Sourcing revenues through 2022 from
possible ongoing technology partner-related
supply shortage issues has also been
included in the sensitivity analysis.
• Forecast high and low points of cash

generation.

• Availability of Management to implement

leveraging or factoring to offset the impacts
of the severe downsides modelled above.

The Committee considered the assessment
described above, 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 78 and the
Basis of Preparation with the Notes to the
Consolidated Financial Statements on page 145.

Viability Statement
The Code requires the Directors to explain in
the Annual Report and Accounts how they
have assessed the prospects of the Group,
taking into account the Group’s current
position and principal risks, over what period
they have done so and why they consider that
period to be appropriate. The Directors are
further required to state whether they have a
reasonable expectation that the Group will be
able to continue in operation and meet its
liabilities as they fall due over the assessment
period they have chosen, drawing attention
to any qualifications or assumptions as
necessary. This requirement is known as
a Viability Statement.

Following review by the Group Risk Committee,
Management presented its conclusions to
the Audit Committee. 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 macro-economic 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.

101

Governance ReportAnnual Report and Accounts 2021Audit Committee Report
continued

Management considered additional
contingencies within the forecast, due to a
market downside sensitivity scenario that
continues throughout the assessment period
and relates to a modelled, but not predicted,
severe downturn in Group revenues, beginning
in 2022 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 ranges 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 78 to 79.

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 the carrying value
of these investments annually or when an
indicator of impairment is identified, as 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.

102

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: computacenter.com.
The purpose of the Tax Strategy is to
communicate the policy for the management
of tax within Computacenter. It is important
to ensure that consistent and effective tax
standards are maintained across the Group
as tax, if poorly managed, can have a
significant cash and profitability impact on
the Group’s business activities, as well as
cause reputational damage.

Management presented to the Committee on
all aspects of business taxation in all territories
in which the Group is currently operating,
excluding environmental taxes. The Group Tax
Strategy and Policy is subject to approval 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 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 supported.

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 auditors.

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:

• Litigation-related contingent liability

disclosures.

• Ongoing implementation of a Group-wide
Accounting Policy Handbook, to ensure
consistency in the application of the
Group’s primary accounting policies.

• The improvement of IFRS 9 Expected Credit

Loss provisioning methodologies and
disclosures.

• Accounting treatment for certain one-off
commercial contracts with particularly
unusual or non-recurring terms.

• The implementation of recommendations
contained within advisory publications
from the FRC relating to, amongst others,
best practice disclosures for revenue.
• Consideration of the latest minutes of the

IFRS Interpretations Committee with
regards to revenue recognition for
software sales and the impact on future
reported revenues for the Group.

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 and includes
all relevant information. Following a review,
the Committee advised the Board that
appropriate procedures had been applied.

Management prepared an analysis of the
Company’s compliance with the provisions of
the Corporate Governance Code and did not
identify any deficiencies or breaches. The
Committee considered the analysis presented
within the Annual Report and Accounts.

Management prepared a presentation on the
BEIS Report on Governance and Audit Reform
and provided a response on behalf of the
Company for the consideration of the
Committee. Management continued to
monitor regulatory developments in this area
and updated the Committee as required.

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 minutes, or a
summary thereof, are circulated to the
Committee for review, with any matters of
note highlighted and explained to the
Committee by the GRC Chair. This includes an
analysis of how the Group’s exposure to these
risks may have moved during the previous
three months and how mitigations to the risks
have been introduced or developed, and also
provides the GRC’s assessment of the
effectiveness of the process. To assist the
Board, the Committee monitors the risk
management processes and reports from
Internal Audit.

Compliance Steering Committee
The Compliance Steering Committee (CSC)
reports to the GRC. It meets quarterly, two
weeks before the GRC, and is chaired by the
Group Compliance Manager. The Group Head of
Legal & Contracting, the Chief People Officer,
the Group Data Protection Officer, the Group
Head of Internal Audit & Risk Management and
the Company Secretary make up the rest of
the CSC. The CSC determines which areas of
law or regulation apply to the Group, assigns
these to members of Management and
identifies levels of compliance and associated
risk, with the aim of ensuring that these are
appropriate to the Group. Critical areas within
the CSC’s remit include anti-bribery and
corruption, whistleblowing, data protection
and export control. The CSC reviews and
promotes major Group internal governance
enhancement initiatives. The Committee
receives regular reports from the CSC on
its activities.

During the year, the Committee reviewed the
CSC’s progress with bringing the entities
acquired by the end of 2020 into the Group’s
compliance framework, noting with
satisfaction that the work was now complete,
with follow-up remote reviews conducted by
Internal Audit to Pivot and CC NS confirming
the efficacy of the implementation.

Internal control oversight
Periodically the Committee received reports
on the operation of internal controls from
various Group functions. These included:

• The implementation of agreed

improvements on the compliance and
control environment within recently
acquired entities including FusionStorm,
Pivot and Computacenter NS. Internal Audit
reviewed the control environment of
material acquired entities and the ongoing
integration plans of the recent acquisitions,
including the provision of the Group’s
Enterprise Resource Planning systems and
the wider internal control, risk
management and compliance frameworks,
including items such as whistleblowing
and GDPR.

• 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
inevitably detected by the GIA, it reports to
the Committee on the mitigations and
outcomes of any investigation, including
plans for remediation and improvements.

• Treasury Reporting, Policy and Controls
including the Group Treasury Strategy &
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 Covid-19 pandemic and
the associated collection risk.

• Trade payables and other creditors control
environment, to review procedures and
payment timeliness analysis.

• Annual survey results, where all members

of the Group Executive and other key senior
Management conduct a controls self-
certification exercise and the control
environment is reviewed and graded.

• Export controls compliance.
• The effectiveness of controls over bid
management and contract reporting

• Updates on litigation matters.
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, and for the proportionate
and independent investigation of such
concerns, including assessment of the
financial impact and any appropriate follow-up
action. 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,
including the recent acquisitions of Pivot and
BT Services France, 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 members of the Committee
and 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 2021.

103

Governance ReportAnnual Report and Accounts 2021Audit Committee Report
continued

Auditor’s remuneration:
– Audit of the Financial Statements
– Audit of subsidiaries
Total audit fees

Audit-related assurance services including the review of the Interim Report and Accounts
Taxation compliance services
Total non-audit services
Total fees

2021
£m

0.1
1.7
1.8

0.1
0.1
0.2
2.0

2020
£m

0.2
1.1
1.3

0.1
0.1
0.2
1.5

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 80 to 85. 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.

Performance 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 review the way in which it assesses the
development and performance of the Internal
Audit function. Refer to page 98 for further
details on the 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 KPMG LLP as the Group’s
auditor, for approval by the Company’s
shareholders at its 2022 AGM. KPMG LLP was
first appointed as the Group’s auditor with
effect from May 2015, following a competitive
tender process. The Committee will continue
to review the performance of KPMG LLP, 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 2021 was Mr David
Neale, who completed his second 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.

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 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;

• reviewing the planned audit hours of each
component, including hours by audit area
and on IT controls;

• 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 KPMG LLP at each reporting
period, for both the audit of the Group and
its key audit components;

• attending KPMG LLP’s annual ‘Academy Day’

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 KPMG LLP.

The Committee reviewed the audit plan for the
acquired entities for the part-year ended 31
December 2021 with KPMG LLP, to ensure audit
coverage was appropriate.

The Committee reviewed the year-end report
to the Committee 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, the degree of scepticism,
challenges and competency of the KPMG LLP
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 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 KPMG LLP.
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 £0.5 million
(2020: £0.1 million) to Ernst & Young LLP to
perform audit procedures to meet the
requirements as a component auditor on
the Group audit, reporting to KPMG LLP.

104

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 11.1 per cent
of KPMG LLP’s overall audit fee during 2021
(2020: 15.4 per cent), as set out above.
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 per cent 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, KPMG LLP provided only trivial
non-audit services to the Group. Any trivial
non-audit services provided were subject to
KPMG LLP’s review of the impact on its own
independence against the Group’s non-audit
services policy. None of the trivial engagements
constituted a prohibited non-audit service
and the Committee was satisfied that the
independence of KPMG LLP, as Group auditor,
was not affected.

Pauline Campbell
Chair of the Audit Committee
23 March 2022

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.

105

Governance ReportAnnual Report and Accounts 2021Directors’ remuneration
report

Ros Rivaz
Chair of the
Remuneration
Committee

The Committee believes
that the amount paid to the
Executive Directors should
be clearly linked to their
performance and the value
delivered to shareholders.
Ros Rivaz
Chair of the Remuneration Committee

106

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
financial year ended 31 December 2021.

The report is split into three sections:

• this Annual Statement;
• the Annual Report on Remuneration on pages

114 to 125, which includes information
concerning the amount paid to the Executive
and Non-Executive Directors in respect of
2021 and details of how the Policy will be
implemented in 2022, which will be subject
to an advisory vote by shareholders at the
Company’s 2022 AGM; and

• a summary of the Directors’ Remuneration
Policy, which was subject to a binding vote
by shareholders at the Company’s Annual
General Meeting held on 14 May 2020, has
been included on pages 109 to 113 so that
shareholders can refer to this easily when
reviewing the Annual Report on Remuneration.

The Committee believes that the amount paid
to the Executive Directors should be clearly
linked to their performance and the value
delivered to shareholders. Remuneration for
the Chief Executive Officer (CEO) and Group
Finance Director (FD) is heavily weighted
towards variable pay, which is based on the
achievement of stretching targets set by the
Committee. Broader strategic factors,
including diversity metrics, are included as
part of the overall assessment of performance.
The Committee monitors closely the link
between the amount paid to the Executive
Directors, their performance and the value
delivered to shareholders and how this relates
to the broader workforce. The Committee
considers that the remuneration
arrangements promote the Company’s
long-term success within a suitable risk
framework, are suitably aligned to
shareholder interests and that the actual
remuneration earned by the Executive
Directors continues to be a fair reflection
of their individual and the Group’s overall
performance. The Committee is therefore
comfortable that the Policy has operated as
intended. The Board remains committed to
retaining a remuneration framework which
is simple, transparent and can be understood
by all of the Group’s stakeholders.

Share ownership by Executive Directors is
considered to be a key principle to support
shareholder alignment. The CEO and FD both
have a significant interest in Computacenter
shares, with holdings equivalent to
approximately 58- and 147-times salary
respectively, which is significantly above our
minimum shareholding policy. This ensures
that there is a material alignment of interests
between the Executive Directors and

shareholders. In the Policy approved at the
14 May 2020 AGM, we also introduced a post-
cessation of employment shareholding policy.

Business context – the year under review
2021 saw another year of record growth for
the Company against an operating
environment that remains challenging.
Computacenter’s Executive team has ensured
that the business remained well-managed
and continued to deliver on the Group’s
strategy, generating growth, supporting our
employees, and delivering to our customers
during a period of increased demand over
the year.

During the reporting period, the Group has
performed well in all its core geographical
markets and has seen excellent progress
from the recent acquisitions in North America,
highlighting the ongoing growth opportunity
created by Management. We have again seen
strong growth and improving margins in
Germany, driven by the public sector in
Technology Sourcing and a Professional
Services business operating at full capacity.
UK margins remain strong and have
contributed to an increase in adjusted¹ profit
before tax when coupled with good revenue
growth balanced across our business lines.
As a whole, Technology Sourcing margins have
remained strong whilst Services margins have
continued to improve, driving an increase in
profit as Group revenue reached record highs,
exceeding £6 billion for the first time.

Overall, Group adjusted¹ profit before tax
increased by 27.5 per cent during 2021. Our
adjusted net funds³ significantly increased as
we continued to strengthen our balance sheet
by removing debt, whilst making significant
investments in working capital to continue to
grow the business and support our customers
through the short-term supply disruptions. We
continue to keep costs on a permanently
reduced footing from that seen prior to the
impact of the Covid-19 pandemic. Adjusted¹
diluted EPS, our primary EPS measure,
increased by 31.0 per cent to 165.6 pence per
share (2020: 126.4 pence per share) and our
proposed 2021 full year dividend has
increased by 30.8 per cent to 66.3 pence per
share (2020: 50.7 pence per share).

Our shareholders have enjoyed significant
returns when compared to the wider market,
with shareholder value tripling over the
three-year period from 2019 to 2021. Further
details can be found on page 122.

Remuneration outcomes
The Committee reviewed performance
against the conditions set for the potential
bonus opportunity in 2021. The targets set for
the financial performance measures of profit,
Services contribution growth, cash and costs
were all met in full, resulting in a full payout
for these elements. The bonus also takes into

account performance against personal
objectives set to reflect the key priorities for
the year. For 2021 these included objectives
linked to integration of the US business and
progress on diversity in the senior team.
Taking into account performance across both
elements, the CEO received 96.0 per cent and
the FD 95.2 per cent respectively of their total
potential bonus for the year. Fifty per cent of
the bonus will be deferred into Computacenter
shares. Further detail of the metrics and
performance delivered is set out on page 116.

The Performance Share Plan (PSP) awards
granted in March 2019 were based on growth
in the Company’s adjusted1 diluted EPS and
growth in Group Services revenue for the
three financial years ended 31 December
2021. In reviewing the outcome, the
Committee was mindful of the positive impact
on adjusted1 profits of the one-off tax items
noted on page 72 of the Group Finance
Director’s Review within this Annual Report
and Accounts and agreed that this benefit
should be excluded from the assessment of
performance. The EPS and Group Services
revenue targets were met in full, and
therefore 100 per cent of the awards will vest
in March 2022 subject to a two-year holding
period. The value delivered from these awards
reflects the performance delivered over the
period including the significant share price
growth since grant. Further detail is set out
on page 118.

The Committee considered the bonus and PSP
formulaic outturns in the context of the current
external environment, the strong financial
performance delivered by 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.

The year ahead
The Committee undertook an interim review
of the Remuneration Policy during the year to
ensure that it continued to be fit for purpose,
taking into account the sustained
performance and significant growth in the
business since the last policy vote, further
detail of which is set out earlier on in this
letter. This included consideration of the
expanded geographic footprint of the
business as a result of strategic acquisitions,
including Pivot Technology Solutions Inc. and
BT Services France in 2020, which have
created the platform to grow a sustainable,
scalable business in North America and
expanded the capabilities of our existing
French business.

The Committee concluded that, whilst the
overall remuneration framework used
continues to be appropriate, the positioning of
our CEO’s salary no longer reflects the scale
and complexity of the role, the individual
performance delivered and the sustained
performance of the Group. The Committee was
also mindful of the historically conservative
approach to pay for the CEO, including no
salary increase in five of the last 10 years.

The Board believes that Mike Norris, as CEO of
the business since 1994, has played a
fundamental role in Computacenter’s
success, demonstrating exceptional
leadership in delivering significant
shareholder value through targeted
acquisitions and organic growth. The Board
also noted the CEO’s significantly increased
role in mentoring the North American
leadership and driving the cultural and
operational integration of the recently
acquired businesses.

During 2021, the Company invited shareholders
and other stakeholders to provide feedback on
a proposal to increase the salary of the CEO for
2022. I am pleased to report that those who
provided feedback on the proposal have been
largely supportive and that we did not receive
any negative responses.

Following this consultation process, the
Committee determined that the salary of the
CEO would be set at £650,000 with effect from
1 January 2022 (an increase of 13.4 per cent).
This positions the salary of the CEO in line with
practice for the top 50 companies in the FTSE
250, reflecting the scale and complexity of the
business today. Following this adjustment, we
anticipate returning to our regular approach
to salary increases for the CEO being in line
with the broader workforce.

Aside from the proposed approach on salary,
the Committee is not proposing any other
significant changes to the approach on
remuneration for 2022.

The basic salary of the FD will be increased by
2.7 per cent for 2022, consistent with the
average increase for the wider UK workforce.
The Committee intends to keep the salary
positioning of the Group Finance Director
under review.

Award levels under the annual bonus plan for
2022 will be set at 150 per cent and 125 per
cent of salary for the Chief Executive Officer
and Group Finance Director respectively.

Award levels under our Performance Share
Plan will once again be set at 200 per cent of
salary for the Chief Executive Officer and 175
per cent of salary for the Group Finance
Director. PSP awards will continue to be based
on stretching targets set out against our
Earnings per Share and Services Revenue
Growth metrics.

Further details on how our Directors’
Remuneration Policy will be applied for the
2022 financial year are set out on page 125.

Wider workforce
In line with the Committee’s broader
responsibilities, during the year the
Committee reviewed information on broader
workforce pay and practices, as well as the
Company’s gender pay gap reporting. This
information provided important context for
the decisions taken during the year.

We continue to ensure that employees have
an opportunity to share in our success
through our Sharesave plan which we have
operated in the UK and Germany for a number
of years. Following the launch of the most
recent scheme in 2021, the employee
participation rate in these schemes, where
an employee is in at least one active savings
scheme, is 55.0 per cent of all employees in
the UK (2020: 53.0 per cent) and 21.8 per cent
in Germany (2020: 17.3 per cent). This is the
third year of operation within the US business,
with the opportunity to participate extended
to colleagues in our Pivot USA business for the
first time, with an overall participation rate of
16.7 per cent of the combined US workforce.

Committee evaluation
During the year, a review of the Committee
was internally facilitated. The results of this
evaluation have been analysed and reflect
that the Committee continues to be effective
in its role. The latest review has highlighted
the Committee’s intention to continue to
consider the way in which environmental,
social and governance factors are taken into
account for the purposes of remuneration.

Looking ahead
During 2022, the Committee will undertake a
comprehensive review of the Policy for our
Executive Directors, taking into account the
Company’s strategy and values, evolving
shareholder expectations and any
developments in best practice since the Policy
was last approved at our AGM in May 2020. We
look forward to engaging in further dialogue with
shareholders as appropriate and presenting
the results for approval at our 2023 AGM.

The Committee’s role is to ensure that the
remuneration paid out to Executive Directors
reflects and underpins 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 you may have on the
contents of this report.

Ros Rivaz
Chair of the Remuneration Committee
23 March 2022

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Governance ReportAnnual Report and Accounts 2021Directors’ Remuneration
Report continued

Alignment of our policy with the UK Corporate Governance Code
The Committee considers that the current Remuneration Policy and its implementation appropriately addresses the following principles, as set
out in the UK Corporate Governance Code.

Principle
Clarity

How the Committee has addressed this
• The Committee is committed to providing open and transparent disclosures with regards to Executive

remuneration arrangements.

•

• As part of the review of the Remuneration Policy undertaken in 2019, we consulted with shareholders in order to allow
their feedback to be considered by the Committee. The Committee consulted with shareholders in late 2021 and early
2022 with respect to the CEO’s salary increase.
In terms of workforce engagement, the Remuneration Committee Chair took questions from employees on Executive
pay matters as part of Works Council and other employee events during the year.
In determining the remuneration framework, the Committee was mindful of avoiding complexity and ensuring that
arrangements are easy to understand.

•

• Our remuneration arrangements are simple in nature, comprising three main elements – fixed pay (comprising 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.

• 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, and personal shareholding guidelines applying
both during employment and post-employment.
In addition, malus and clawback provisions apply to both the annual bonus and PSP awards.

•
• 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.

• 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.

• 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.
• The performance measures that are used for the annual bonus and PSP are clearly linked to delivery of the Group’s
strategic priorities. In addition, 20 per cent of the annual bonus is based on achievement against non-financial
strategic targets, which ensures both financial and non-financial strategic goals are considered.

Simplicity

Risk

Predictability

Proportionality

Alignment to culture

108

Computacenter’s Remuneration Policy table
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 14 May 2020. The full Policy can be found on the Company’s website at investors.computacenter.com.

Details of the way in which the Policy will be implemented in 2022 are set out in blue in the table below.

Policy table

Base salary
Purpose and link to strategy
Operation

Supports the recruitment and retention of Executives of the calibre required to deliver the Group’s strategy.
Base salaries are paid in cash and reflect an individual’s responsibilities, performance, skills and experience.

Normally reviewed annually with any changes effective on 1 January, taking into account 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
a major acquisition.

Salary levels for the current Executive Directors for the 2022 financial year are:

Chief Executive Officer: £650,000

Maximum opportunity

Group Finance Director: £381,000
There is no prescribed maximum base salary or maximum annual increase. Ordinarily any salary increase will reflect
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:

Performance measures

Annual bonus
Purpose and link to strategy

Operation

• an increase in scope of role or responsibility;
• performance in role; or
• an Executive Director being moved to appropriate market positioning over time.
Individual and business performance are taken into consideration when deciding salary levels.

To incentivise the delivery of annual, short-term, stretching financial and non-financial objectives. To align pay costs to
affordability and the value delivered to shareholders.
Performance measures and targets are set at the beginning of each financial year. Performance is normally assessed
over one financial year.

50 per cent will be paid in cash and 50 per cent will be deferred into Computacenter shares, with half the shares
payable after one year and the remaining half after two years.

Deferred awards will include the right to receive dividend equivalents in respect of dividends paid over the period from
grant of the award 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.

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 the performance achieved by the Group and/
or the Executive Director(s). To the extent that this discretion is exercised, this will be disclosed in the relevant
Directors’ Remuneration Report and may be the subject of shareholder consultation if deemed appropriate.

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Maximum opportunity

The maximum annual bonus opportunity in respect of any financial year is 150 per cent of base salary.

In respect of 2022, the maximum bonus opportunity will be 150 per cent of salary for the CEO, Mike Norris and 125 per
cent of salary for the FD, Tony Conophy.

Performance measures

Increases above the current opportunities, up to the maximum limit, may be made to take account of individual
circumstances, which may include an increase in the size or scope of role or responsibility.
Financial measures will normally be used to calculate at least a majority of bonus achievement and the remainder
of the annual bonus will normally be attributed to non-financial measures.

Performance Share Plan (PSP)
Purpose and link to strategy

Operation

Financial measures may include profitability, cost management, cash management and other appropriate measures.

Non-financial targets will be stretching targets set by the Committee, linked to the delivery of our strategy and the
Executive Directors’ personal objectives for the year.

Targets are 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 per cent of the maximum opportunity.

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.
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 of at least three years.

PSP shares 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 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 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 plan cycle.

Maximum opportunity

Awards are subject to malus and clawback provisions, as set out in the notes to this table.
The maximum opportunity under the plan in respect of any financial year is 200 per cent of annual base salary
or 400 per cent of annual base salary in exceptional circumstances.

The maximum face value of annual awards granted in respect of 2022 will be 200 per cent of salary for the CEO and
175 per cent of salary for the FD.

Performance measures

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 per cent of the award will vest.
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 Report on Remuneration for the relevant year.

110

Retirement benefits
Purpose and link to strategy
Operation

Maximum opportunity

Performance measures

Other benefits
Purpose and link to strategy
Operation

To provide an income for retirement.
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.
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 relevant to the country where they are employed, if different. For UK
employees this is currently 5.0 per cent of salary.
N/A

To provide a competitive level of employment benefits.
No special arrangements are generally made for Executive Directors.

Benefits currently include:

• a car benefit appropriate for the role performed;
• participation in the Company’s private health and long-term sickness schemes;
•
• participation in all-employee share plans, on the same basis as other eligible employees.

life insurance and income continuance schemes; and

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.

Maximum opportunity

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.
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.

Performance measures

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.
N/A

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Chair and Non-Executive Director fees
Purpose and link to strategy
Operation

To ensure that the Group is able to attract and retain experienced and skilled Non-Executive Directors.
Fee levels are determined with reference to those paid by other companies of similar size and complexity and taking
into account the scope of responsibilities and the amount of time that is expected to be devoted during the year.
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 basis, to take into
account changes in the working of the Board.

The Chair of the Board receives a fixed fee. Other Non-Executive Directors receive a basic fee and additional fees are
payable for Chairing Board Committees and for the additional responsibility of being the Senior Independent Director
and may also be paid 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.

2022 fee levels for the incumbents are as follows:
Non-Executive Chair: £220,000
Non-Executive Director base fee: £57,600
Founder Non-Executive Director base fee: £52,370

Supplementary fees:
Senior Independent Director: £8,370
Audit Committee Chair: £18,850
Remuneration Committee Chair: £10,480
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 in line with the Company’s Articles of Association.
N/A

To strengthen alignment between Executives and shareholders.
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 extend 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.

Maximum opportunity

Performance measures

Share ownership guidelines
Purpose and link to strategy
Operation

Maximum opportunity

The Committee will regularly review the minimum shareholding guidelines.
There is no maximum, but minimum levels have been set at 200 per cent of base salary for both the current CEO and FD.
Non-Executive Directors are not required to hold shares in the Company.

Performance measures

Executive Directors who have not yet met their shareholding requirement will be expected to retain at least 50 per cent of
any deferred bonus awards and PSP awards which vest (net of tax) until such time as this level of holding is met.
N/A

112

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 staff representative
bodies in each of our major geographies.

The Remuneration Committee Chair, Ros
Rivaz, was appointed as the Designated
Non-Executive Director on 9 November 2017 to
facilitate engagement with the wider workforce,
to assist the Board in understanding the views
of Computacenter’s employees. During 2021,
this involved attending Works Council
meetings and other employee events,
virtually, and feeding back the views raised
by employees to the Board. Whilst Executive
pay has not been a specific topic in these
discussions, these events have provided a
valuable opportunity for employees to share
their views freely on a range of topics and Ros
welcomed questions on a broad range of
topics including Executive remuneration
and how the Company measures success.
Further information on the role and the
activities of the Designated Non-Executive
Director is on page 67.

Remuneration arrangements across
the Group
When setting Executive remuneration,
consideration is given to pay policies and
employment conditions of employees of the
Company and elsewhere in the Group.

The remuneration of employees across
the Group is based on three fundamental
principles. First, that it allows the Group to
retain the level of talent necessary to
implement the strategy as set by the CEO and
Board. Second, that levels of remuneration
should be sufficient to achieve this aim, but
should never be higher than is necessary to do
so. Finally, with limited exceptions, the more
significant the ability of an employee to
influence the Company’s financial results
through their individual performance, the
higher the proportion of their remuneration
should be performance based.

The level and design of variable pay takes into
account the need to avoid incentivising the
Group’s employees to act in a manner that is
inconsistent with the Group’s risk appetite,
as set by the Board.

Consistent with the policy for Executive
Directors, where annual bonuses are in place
across the Group, they are linked to business
performance with a focus on underlying Group
or divisional profit and other relevant metrics.

Whilst only Executive Directors and senior
executives participate in the PSP, other
employees can participate in the Company’s
all-employee share schemes, which are
designed to incentivise participants to build
a shareholding in the Company, thus aligning
their interests with those of the Company’s
shareholders. This plan is not subject to
performance conditions, but requires the
employee to remain employed at the end
of the term of the scheme which they
have joined.

In line with local country practices, all
employees are encouraged to contribute
appropriate savings toward their retirement.
In the UK, the Company operates pension
arrangements within the Occupational and
Personal Pension Schemes (Automatic
Enrolment) Regulations 2010.

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 outlined within 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 measures used to motivate
and incentivise our Management team
through the annual bonus and PSP.

The Committee reviews potential
performance criteria and targets for the
annual bonus and PSP annually, resulting in
the performance criteria structure outlined in
the Policy. The measures for 2022 are outlined
on page 125.

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.

113

Governance ReportAnnual Report and Accounts 2021Directors’ Remuneration
Report continued

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 our website at
investors.computacenter.com.

Membership and attendance
The Remuneration Committee is made up of the 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 below.

Current members
1. Ros Rivaz
2. Peter Ryan
3. Pauline Campbell*
4. Rene Haas
5. Ljiljana Mitic
Former member
6. Minnow Powell**

Role
Senior Independent Director
Non-Executive Chair of the Board
Non-Executive Director
Non-Executive Director
Non-Executive Director

Non-Executive Director

Pauline Campbell was appointed to the Board and the Committee on 16 August 2021.

** Minnow Powell stepped down as a Non-Executive Director of the Company on 30 September 2021.

Attendance record
7/7
7/7
3/3
7/7
7/7

6/6

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.
Minnow Powell receives a pension from Deloitte and, as such, recused himself from all discussions relating to the appointment of Deloitte.

The total fees paid to Deloitte in relation to advice to the Committee in 2021 were £71,100 (2020: £50,250). 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.

Audited information
The audited tables and related notes are identified within this report, using an A key.

114

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 2021 and 2020, is set out in
the table below.

Year ended 31 December 2021

Executive
Mike Norris
Tony Conophy
Non-Executive
Peter Ryan
Pauline Campbell4
Rene Haas
Philip Hulme5
Ljiljana Mitic
Peter Ogden5
Minnow Powell6
Ros Rivaz
Total (£’000)

Year ended 31 December 2020

Executive
Mike Norris
Tony Conophy
Non-Executive
Peter Ryan
Pauline Campbell4
Rene Haas
Philip Hulme5
Ljiljana Mitic
Peter Ogden5
Minnow Powell6
Ros Rivaz
Total (£’000)

Salary or fees
£’000

Benefits
£’000

Pension
£’000

Total
Fixed Pay
£’000

Annual bonus
£’000

PSP awards
£’000

Total
Variable Pay
£’000

573.0
371.2

214.2
25.8
56.1
51.0
56.1
51.0
55.8
74.5
1,528.7

8.11
16.22

–
–
–
–
–
–
–
–
24.3

25.2
16.3

–
–
–
–
–
–
–
–
41.5

606.3
403.7

214.2
25.8
56.1
51.0
56.1
51.0
55.8
74.5
1,594.5

825.1
441.7

2,496.03
1,415.53

3,321.1
1,857.2

–
–
–
–
–
–
–
–
1,266.8

–
–
–
–
–
–
–
–
3,911.5

–
–
–
–
–
–
–
–
5,178.3

Total
£’000

3,927.4
2,260.9

214.2
25.8
56.1
51.0
56.1
51.0
55.8
74.5
6,772.8

Salary or fees
£’000

Benefits
£’000

Pension
£’000

Total
Fixed Pay
£’000

Annual bonus
£’000

PSP awards
£’000

Total
Variable Pay
£’000

Total
£’000

421.57
273.07

210.0
–
55.0
12.5
55.0
12.5
73.0
73.0
1,185.5

19.31
15.72

–
–
–
–
–
–
–
–
35.0

24.7
16.0

–
–
–
–
–
–
–
–
40.7

465.5
304.7

210.0
–
55.0
12.5
55.0
12.5
73.0
73.0
1,261.2

674.4
342.2

1,398.98
792.78

–
–
–
–
–
–
–
–
1,016.6

–
–
–
–
–
–
–
–
2,191.6

2,073.3
1,134.9

–
–
–
–
–
–
–
–
3,208.2

2,538.8
1,439.6

210.0
–
55.0
12.5
55.0
12.5
73.0
73.0
4,469.4

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 Mike Norris.
This benefit, from 1 July 2021, replaced the previously provided driver service which ceased during 2020.

2. 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 Tony Conophy.

This relates to the 2019 PSP awards which will be paid out in March 2022 and had a performance period of 1 January 2019 to 31 December 2021. The relevant performance criteria were
fully achieved and therefore 100 per cent of the award vested for each of the Executive Directors. This calculation is based upon the average value of Computacenter plc shares over
the last quarter of 2021 being £27.55. The PSP value attributable to share price growth since the awards were granted is £1,416,000 and £803,000 for the CEO and FD 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.

4. Pauline Campbell was appointed to the Board on 16 August 2021, and assumed the Chair of the Audit Committee on 30 September 2021.

The Company announced on 6 April 2020 that Philip Hulme and Peter Ogden waived their basic fees due to them as Founder Non-Executive Directors from 1 April 2020 until 31 December
2020, showing solidarity with staff that had been furloughed across the business.

6. Minnow Powell stepped down from the Board on 30 September 2021.

The salary figure for Mike Norris and Tony Conophy reflects the voluntary reduction to zero for the period 1 April 2020 until 30 June 2020 as described further below. Note that other
elements of remuneration, namely benefits, pension, annual bonus and PSP awards, continued to be calculated by reference to the salaries the Directors were eligible for in 2020,
being £562,000 and £364,000 for Mike Norris and Tony Conophy respectively.

The value of the 2018 PSP awards has been updated to reflect the actual share price at vesting on 23 March 2020 of £22.51.

115

Governance ReportAnnual Report and Accounts 2021

Directors’ Remuneration
Report continued

Remuneration paid in 2021: Executive Directors
2021 base salary
The annual salaries of the Executive Directors were increased by 2.0 per cent in 2021 to £573,000 for the CEO and £371,200 for the FD.

2021 annual bonus
The maximum bonus opportunity in 2021 was 150 per cent of base salary for the CEO and 125 per cent of base salary for the FD. Half of the bonus
will be deferred into Computacenter shares, with half payable after one year and half payable after two years.

The 2021 annual bonus opportunity was driven by the financial performance of the business and individual targets for each Director. For the year
ended 31 December 2021, 80 per cent 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 priorities,
integration of acquisitions and certain people-related objectives, including progress on diversity and inclusion.

The Committee considered the formulaic outturns in the context of the current external environment, 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 considers that the annual bonus outcomes are a fair reflection of individual and Group performance in
the year. As such, the Committee has not exercised its discretion to adjust the awards.

A
The table below sets out details of the annual bonus criteria which applied for the Executive Directors for 2021 and performance delivered:

Measure
Financial criteria
Profit before tax (£m)
Percentage payout
Services contribution
growth (£m)
Percentage payout
Cash balance (£m)
Percentage payout
Costs 2021 (%)
Percentage payout
Costs 2022 (%)
Percentage payout
Non-financial criteria
Personal objectives
Total

As a percentage of
Maximum Bonus
Opportunity

Performance required

Threshold

Target

Stretch

Maximum

Actual %
achieved

Payout £’000

CEO

50%

10%

20%
100%

195.0
10%

288.7
5%
192.7
5%
33.3%
3%
34.3%
3%

0%
26.0%

202.6
20%

304.8
7.5%
224.9
7.5%
33.6%
4%
34.7%
4%

7.5%
50.5%

210.2
35%

320.8
10%
257.0
10%
33.9%
5%
35.0%
5%

15%
80.0%

220.7
50%

320.8
10%
257.0
10%
33.9%
5%
35.0%
5%

20%
100%

262.81
50%

350.7
10%
259.1
10%
39.0%2
5%
36.4%3
5%

429.8

232.0

85.9

46.4

85.9

46.4

43.0

23.2

43.0

23.2

16%
15.2%
96.0% 95.2%

137.5
825.1

70.5
441.7

1. Profit before tax represents Group adjusted1 profit before tax on a currency adjusted basis excluding the results of the entities acquired during the year.

2. The measure represents the actual percentage of gross profit retained as adjusted1 operating profit, after costs, within the core UK, German and French geographies for 2021.

The measure represents the targeted percentage of gross profit to be retained as adjusted1 operating profit, after costs, within the core UK, German and French geographies for 2022,
in accordance with longer-term cost reduction, and margin improvement, objectives.

116

The personal objectives for the Executive Directors are subject to a profit performance underpin and are related to the following:

Objectives
CEO
Drive the agenda for a diverse and inclusive workforce, with particular
emphasis on gender and ethnicity

Develop the North America Business

Focus on Managed Services growth

Increase competitiveness in Services

Implementation of new systems

Objectives
FD
Continued progress towards corporate gender diversity objective

Implement the Group ERP systems within Computacenter NS in France to
enable reporting consistent with Group standards and to allow transition
away from legacy systems from the vendor of the business
Implement Group ERP systems in North America to align with Group
operating procedures, simplify reporting

Combine legal entities to create a single North America business
Drive cost reductions through ongoing travel and operational efficiencies

Continue to develop and implement the formal climate change impact
initiatives and reporting

Progress in the year

Gender diversity improved at all levels in Computacenter during 2021, with
female representation in Group leadership increasing from 20.5 per cent in
2020 to 22.8 per cent in 2021 when tracking our progress through FTSE
Women Leaders (Hampton-Alexander) reporting. Establishment of an
Employee Impact Group for ethnicity has been highly successful in building
awareness, understanding and contributing to sustainable change across
the business. A number of events were hosted during the year including
open-mic sessions and development programmes. 91 per cent of UK staff
have shared their ethnicity data to date which provides the Company with
a robust platform from which to analyse representation across the UK
business and identify areas for improvement.
Re-branding of the acquired businesses was completed in early 2021.
The Group ERP systems for the legacy and FusionStorm elements of the
business was implemented during the year. Effective integration of the
two acquired businesses was achieved with operating models settling
down to deliver a strong EBIT performance in 2021 that was significantly
higher than the internal targets set at the start of the year.
Managed Services business grew strongly during 2021. On an organic
basis, revenue increased by 4.8 per cent in constant currency2 and by 7.5
per cent on a reported basis. The Services Contract Base, representing the
annual value of the committed Managed Services contract spend grew by
2.9 per cent in constant currency2.
Improved our end-user workplace services created with our modern
workplace offerings which bring together product and services capability.
Improved the win rate for Managed Services business across core
countries and increased the percentage of business delivered through
near-shore and off-shore locations to help drive competitive solutions
enabling customers to select from a mix of service delivery options.
Continuing to reduce the cost to serve through location mix and the use
of technology.
Good progress made on enhancements to systems and tools utilised by
the Technology Sourcing business to enable continued leverage of this
capability as a competitive advantage. A robust programme of further
upgrades has been planned for 2022 to ensure we remain competitive for
our customers.

Progress in the year

Gender diversity has improved at all levels in Computacenter during 2021,
with female representation in Group leadership increasing from 20.5 per
cent in 2020 to 22.8 per cent in 2021 when tracking our progress through
FTSE Women Leaders (Hampton-Alexander) reporting.
Group ERP Systems have been effectively implemented. Teams integrating
to operate as one business and scaling opportunities to sell a combined
solution offering.
Progress has been made in implementing Group ERP systems across the
North American business despite delays caused by Covid-19 travel
restrictions. Legacy legal entities have been reduced in number to aid the
integration of the operating models.
Cost targets have been over-achieved in the year, in part helped by ongoing
restrictions on travel. Internal carbon travel charge implemented to
increase visibility of CO2 at time of travel request, to ensure continued
focus on reducing costs and CO2 emissions in future years.
2021 TCFD and sustainability reporting with large reductions in CO2
emissions from the multilevel investments made in 2020 and 2021.
62 per cent year on year reduction in Scope 1 and Scope 2 emissions
providing a strong platform for the 2022 aim of carbon neutral for Scope 1
and Scope 2 using some carbon offsets.

117

Governance ReportAnnual Report and Accounts 2021Directors’ Remuneration
Report continued

PSP
The PSP awards granted to Executive Directors with a performance period ending on 31 December 2021 vested at 100 per cent, pursuant to the
2019 PSP Scheme, as the relevant performance criteria were fully achieved. The vested awards are subject to a two-year holding period before
release to the Executive Directors.

Vesting of these awards to each Executive Director was dependent upon the achievement of the following performance measures over
a three-year period:

The compound annual growth rate of the Group’s adjusted1 diluted earnings per share (EPS) – 70 per cent weighting

Performance level*
Maximum (100 per cent vesting)
In line with expectations (50 per cent vesting)
Threshold (10 per cent vesting)

Vesting occurs on a straight-line basis in between these thresholds.

Adjusted1 diluted
EPS growth CAGR
12.50%
8.33%
5.00%

During its review of performance, the Committee considered the impact of the one-off tax items noted on page 72 of the Group Finance Director’s
review within this Annual Report and Accounts and agreed that the disclosed unrepeatable nature of the tax benefit within the adjusted1 profit for
the year had materially increased the adjusted diluted EPS in 2021 and should therefore be excluded from the assessment of performance. The
2021 adjusted1 diluted EPS figure used to determine vesting was therefore 160.9p per share. The EPS number used for the base year of this award
(i.e. EPS in 2018) is consistent with the EPS number that was used to calculate the vesting of the 2016–2018 PSP. On this basis, the growth in
adjusted diluted EPS during the period 1 January 2019 to 31 December 2021 was 28.57 per cent per annum. This resulted in 100 per cent of this
element vesting.

Services revenue growth – 30 per cent weighting (measured on a constant currency2 basis)

Performance level*
Maximum (100 per cent vesting)
In line with expectations (50 per cent vesting)
Threshold (25 per cent vesting)

Vesting occurs on a straight-line basis in between these thresholds.

Services revenue
growth CAGR
7.5%
5.5%
3.5%

The Services revenue growth during the period 1 January 2019 to 31 December 2021 was 7.96 per cent per annum. This resulted in 100 per cent of
this element vesting. As set out in the Annual Statement from the Chair of the Remuneration Committee on page 106, 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.

Remuneration awards granted in 2021: Executive Directors

A
Share scheme interests awarded during the year
The table below details awards made during 2021 under the PSP scheme. The performance conditions for these awards are set out in more detail
below. Any awards that vest will be subject to a two-year holding period.

Scheme/type
of award

Number of
shares

Face value at
time of grant

PSP – nil
cost option

51,678

£1,123,9971

PSP – nil
cost option

29,287

£636,9921

CEO

Performance
conditions
applied
Compound growth of
Company EPS (70%)
Compound growth of
Services revenue (30%)
Compound growth of
Company EPS (70%)
Compound growth of
Services revenue (30%)

Amount vesting related to threshold of
performance

Threshold
performance
(% of face value)

Maximum
performance
(% of face value)

10%

25%

10%

25%

100%

Performance
period set

Three financial years
from 1 January 2021

1. This is based on the average mid-market share price of Computacenter plc on the three immediately preceding business days from grant, being £21.75.

118

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 adjusted1 diluted earnings per share (EPS) (70 per cent weighting)

Performance level*
Maximum (100 per cent vesting)
In line with expectations (50 per cent vesting)
Threshold (10 per cent vesting)

* Vesting occurs on a straight-line basis in between these thresholds.

The compound annual growth rate of the Group’s Services Revenue (GSR) (30 per cent weighting) measured on a constant currency2 basis

Performance level*
Maximum (100 per cent vesting)
In line with expectations (50 per cent vesting)
Threshold (25 per cent vesting)

* Vesting occurs on a straight-line basis in between these thresholds.

The table below details awards made during 2021 under the Deferred Bonus Plan (DBP) scheme.

Adjusted1 diluted
EPS growth CAGR
12.5%
8.33%
5.0%

Services revenue
growth CAGR
7.5%
5.5%
3.5%

CEO

Scheme/type of award

Number of
shares

Face value

DBP2 – Conditional Share

15,503

£337,1901

DBP2 – Conditional Share

7,866

£171,0861

Vesting date
50% – 21 March 2022
50% – 21 March 2023
50% – 21 March 2022
50% – 21 March 2023

1. This is based on the average mid-market share price of Computacenter plc on the three immediately preceding business days from grant, being £21.75.

2. These are not subject to any other performance conditions.

119

Governance ReportAnnual Report and Accounts 2021Directors’ Remuneration
Report continued

A
Executive Director outstanding Share Awards as at 31 December 2021
Directors’ interests in share schemes

Mike Norris

Tony Conophy

Schemes
Sharesave*
PSP
PSP
PSP
PSP
DBP
DBP
DBP
Sharesave*
PSP
PSP
PSP
PSP
PSP
DBP
DBP
DBP

Note
1
2,3
3
3
3
4
4
4
1
3
2,3
3
3
3
4
4
4

Exercise/
share price
1011.0p
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1054.0p
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil

Exercise period
01/12/24 – 31/05/25
21/03/23 – 20/03/28
21/03/24 – 20/03/29
23/03/25 – 22/03/30
22/03/26 – 21/03/31
21/03/20 – 21/03/21
21/03/21 – 21/03/22
21/03/22 – 21/03/23
01/12/23 – 31/05/24
22/03/20 – 21/03/27
21/03/23 – 20/03/28
21/03/24 – 20/03/29
23/03/25 – 22/03/30
22/03/26 – 21/03/31
21/03/20 – 21/03/21
21/03/21 – 21/03/22
21/03/22 – 21/03/23

At
1 January
2021
2,967
88,782
90,604
110,977
–
11,698
32,068
–
2,846
65,260
50,310
51,384
62,915
–
6,433
16,538
–

Granted
during the
year
–
–
–
–
51,678
–
–
15,503
–
–
–
–
–
29,287
–
–
7,866

Exercised
during the
year
–
–
–
–
–
11,698
16,034
–
–
–
–
–
–
–
6,433
8,269
–

Lapsed
during the
year
–
26,635
–
–
–
–
–
–
–
–
15,093
–
–
–
–
–
–

At
31 December
2021
2,967
62,147
90,604
110,977
51,678
–
16,034
15,503
2,846
65,260
35,217
51,384
62,915
29,287
–
8,269
7,866

Issued under the Rules of the Computacenter 2018 Sharesave Plan, which is available to employees and full-time Executive Directors of the Computacenter Group. 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 scheme term. There are no conditions relating to the
performance of the Company for this scheme.

These awards vested during the year at 70 per cent, and accordingly 30 per cent of the shares under award lapsed.

Issued under the terms of the Computacenter Performance Share Plan 2005, as amended at the AGM held on 19 May 2015, or as amended at the AGM held on 18 May 2018.

(a) In respect of 70 per cent of the total award: 10 per cent of this portion of the award will vest if the compound annual EPS growth over the Performance Period equals 5 per cent per

annum. If the compound annual EPS growth rate over the Performance Period is between 5 per cent and 8.33 per cent, 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 cent per annum, with straight-line vesting between 50 per cent and
100 per cent.

(b) In respect of 30 per cent 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 per cent. If the
compound annual Services revenue growth rate over the Performance Period is 7.5 per cent, this portion of the award will vest in full. If the compound annual Services revenue
growth rate over the period is between 3.5 per cent and 7.5 per cent, then this portion of the award will vest on a straight-line basis between 25 per cent and 100 per cent.

PSP awards from 2018 onwards are subject to the 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.

* The Sharesave scheme only requires that an employee remains employed by the Group at the end of the term of the scheme. There are no performance conditions attached.

Director gains
PSP

Director
Mike Norris
Tony Conophy

Date of vesting
22/03/2021
22/03/2021

Scheme
PSP
PSP

Number of
shares
62,147
35,217

Exercise price
Nil
Nil

Market price at
exercise
£22.51
£22.51

Notional gain
made
£1,398,898
£792,717

The closing market price of ordinary shares at 31 December 2021 (being the last trading day of 2021) was £29.10 (31 December 2020: £24.48).

The highest price during the year was £30.30 and the lowest was £20.86.

Minimum shareholding requirements
In accordance with the Group’s minimum shareholding guidelines, the CEO is required to build up a shareholding that is equal to 200 per cent of
his/her gross salary. In respect of the FD, the threshold that is expected to be achieved is 200 per cent of his/her gross salary. It is also expected
that the Executive Director will achieve these levels within five years of appointment. For the purposes of these requirements, deferred bonuses,
shares subjected to the holding period and options which have vested unconditionally, but are as yet unexercised, will be included on a net basis,
for the purposes of calculating shareholdings, as will shares held by an Executive’s spouse or dependants. 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. This policy will be supported by the use of nominee accounts.

120

The Committee has the discretion to disapply or reduce this requirement in extenuating circumstances, for example in compassionate
circumstances.

Both the CEO and the FD substantially exceed their shareholding requirement.

A
Directors’ shareholdings
The beneficial interest of each of the Directors in the shares of the Company, as at 31 December 2021, is as follows:

Current Directors
Mike Norris
Tony Conophy
Peter Ryan
Pauline Campbell
Rene Haas
Philip Hulme
Ljiljana Mitic
Peter Ogden
Minnow Powell
Ros Rivaz

Number of shares in
the Company as at
31 December 2021
1,134,214
1,873,556
900
–
–
9,196,695
–
18,699,389
1,340
2,181

Percentage of
requirement
achieved
2,880%3
7,344%3
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a

Interests in shares

SAYE
2,9671
2,8461
–
–
–
–
–
–
–
–

PSP
315,4062
244,0632,4

–
–
–
–
–
–
–
–

DBP
31,5371
16,1351
–
–
–
–
–
–
–
–

Total
1,484,124
2,136,600
900
–
–
9,196,695
–
18,699,389
1,340
2,181

Note: There has been no grant of, or trading in, shares of the Company between 1 January 2022 and 15 March 2022.

1. There are no conditions relating to the performance of the Company or individual for the vesting of this scheme.

2. There are performance conditions for this scheme as set out within the table on page 120.

Based on the Company’s closing share price as at 31 December 2021, being £29.10, and the approved 2021 base salaries.

Includes 65,260 options that have vested but remain unexercised at 31 December 2021.

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 schemes. In line with best practice, the use of new or treasury shares to satisfy awards made under all share schemes is restricted to
10 per cent in any 10-year rolling period, with a further restriction for discretionary schemes of 5.0 per cent in the same period. The Company’s
current position against its dilution limit is under 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.

Payments to past Directors and payments for loss of office
There were no payments made to past Directors and no payments made for loss of office during the period.

Executive service contracts
A summary of the Executive Directors’ contracts of employment is given in the table below:

Director
Mike Norris
Tony Conophy

Start date
23/04/1998
23/04/1998

Expiry date
n/a
n/a

Unexpired term
None specified
None specified

Notice period
(months)
12
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 2021, 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 Board has agreed that all
Directors will be subject to re-election at the AGM on 19 May 2022.

121

Governance ReportAnnual Report and Accounts 2021Directors’ Remuneration
Report continued

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
Peter Ryan
Pauline Campbell
Rene Haas
Philip Hulme
Ljiljana Mitic
Peter Ogden
Ros Rivaz

Date of latest letter of
appointment
16 May 2019
9 March 2021
20 August 2019
4 May 2019
16 May 2019
4 May 2019
11 November 2019

Expiry date
Close of the Company’s Annual General Meeting in 2022
Close of the Company’s Annual General Meeting in 2025
Close of the Company’s Annual General Meeting in 2022
Close of the Company’s Annual General Meeting in 2022
Close of the Company’s Annual General Meeting in 2022
Close of the Company’s Annual General Meeting in 2022
Close of the Company’s Annual General Meeting in 2022

Notice period
3 months
3 months
3 months
3 months
3 months
3 months
3 months

In 2022, the Chair will be paid a single consolidated fee of £220,000, an increase of 2.7 per cent on 2021, a rise consistent with average increases
made within the wider UK workforce. The Non-Executive Directors are paid a basic fee, plus additional fees for chairing Board Committees or
Senior Independent Director duties.

In 2022, Non-Executive Directors’ annual fees will increase by 2.7 per cent on 2021, a rise consistent with average increases made within the wider
UK workforce, and are set out in the table below:

Position
Independent Non-Executive Directors
Founder Non-Executive Directors
Additional fee for the Chairing the Audit Committee
Additional fee for the Chairing the Remuneration Committee
Additional fee for the position of Senior Independent Director

Performance of the Company

Total shareholder return performance
(Computacenter versus FTSE Software and Computer Services sector)

2021 Annual
fees (£)
56,100
51,000
18,350
10,200
8,150

2022 Annual
fees (£)
57,600
52,370
18,850
10,480
8,370

1,200

1,000

800

600

400

200

Dec
2011

Dec
2012

Dec
2013

Dec
2014

Dec
2015

Dec
2016

Dec
2017

Dec
2018

Dec
2019

Dec
2020

Dec
2021

Computacenter

FTSE All Share – Software and Computer Services

In this graph, TSR performance shows the value, in December 2021, of £100 invested in the Company’s shares in December 2011, assuming that all
dividends received between December 2011 and December 2021 were reinvested in the Company’s shares (source: Datastream).

122

CEO pay history
The table below shows the total remuneration figure for the CEO over the previous 10 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.

CEO single figure
of remuneration
Annual bonus payout (as a %
of maximum opportunity)
Annual bonus
PSP vesting (as a % of
maximum opportunity)
PSP vesting

58.5%

385,355

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

1,085,300

937,300

1,506,300

2,763,900

1,807,600

2,291,500

2,081,700

2,391,409

2,538,817

3,927,371

26.8%

61.2%

69.39%

84.54%

49.12%

92.35%

82.63%

92.5%

96.0%

161,000

367,000

451,035

803,200

319,280

606,047

557,753

636,863

674,400

35.34%

71.5%

85.13%

68.01%

65.68%

80.78%

70.00%

–

478,679

1,384,500

891,800

1,101,400

923,699

1,150,120

1,398,898

2,495,959

96.0%

825,120

100%

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 year ended 31 December 2020 and 31 December 2021.

Executive
Mike Norris
Tony Conophy
Non-Executive
Peter Ryan
Pauline Campbell
Rene Haas
Philip Hulme
Ljiljana Mitic
Peter Ogden
Minnow Powell
Ros Rivaz
Employees
Computacenter UK-based employees

% change in remuneration between 2019 and 2020

% change in remuneration between 2020 and 2021

Salary/Fee

Benefits9

Annual bonus

Salary/Fee

Benefits

Annual bonus

(23.47%)1
(23.53)%1

(34.35)%
(5.99)%

5.89%
4.20%

35.94%1
35.97%1

(24.32)%
2.52%

22.35%
27.73%

39.72%5
n/a2
172.28%6
(75.00)%3
59.42%7
(75.00)%3
3.69%4
3.69%

–
–
–
–
–
–
–
–

2.00%
n/a2
2.00%
308.00%3
2.00%
308.00%3
(23.56)%4
2.05%

–
–
–
–
–
–
–
–

3.26%5

(10.39)%

(3.48)%10

4.19%8

(4.71)%

(0.70)%

As disclosed last year, the base salary that the Directors were eligible for was increased by 2 per cent from 1 January 2021. The significant percentage increase for the CEO and Group FD
reflects the voluntary temporary reduction in base salary to nil for the period 1 April 2020 until 30 June 2020.

2. 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.

The significant percentage increase for Philip Hulme and Peter Ogden reflects their decision to waive the 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.

4. Minnow Powell stepped down from the Board on 30 September 2021.

5. 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.

6. Rene Haas was appointed to the Board on 20 August 2019.

Ljiljana Mitic was appointed to the Board on 16 May 2019.

The average change in salary for UK-based employees takes account of promotions, pay reviews, changed in terms and conditions, and benchmark increases across the year, excluding
Executive and Non-Executive Directors who have been reported separately above.

The reduction in benefits reflects reduced travel costs in the year, a lower number of employees with cars and those shifting to greener vehicles with lower benefit in kind values has
had the effect of reducing the average taxable benefit spend year on year.

10. Although total bonus spend was 4 per cent higher than 2019, increasing employee numbers overall has reduced the average spend per employee by 3.48 per cent. This figure includes

the one-off ‘EPS bonus’ as described in the Finance Directors’ Statement on page 63 of the 2020 Annual Report and Accounts.

On the basis that Computacenter plc (the Parent Company) does not employ any staff, 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.

123

Governance ReportAnnual Report and Accounts 2021Directors’ 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 two years and based on the
availability of data at the time the Annual Report and Accounts 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 to ensure that the figures
used were representative of an employee at these positions. Following this review the total pay and benefits figure for the 75th employee was
adjusted to include a car allowance as being more representative of an employee at that level.

The total remuneration for these individuals has been calculated based on all components of pay for 2021, 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, and no elements of employee remuneration have been excluded
from the pay ratio calculation.

The day by reference to which the Company determined the 25th, 50th and 75th percentile employees was 31 December 2021.

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.

From 2020 to 2021 the ratio between the total remuneration of the CEO and the total remuneration of UK employees has increased. This reflects
Company and share price performance, as the CEO’s remuneration is heavily performance linked. The increase in the pay ratio from 2020 to 2021
is primarily driven by the 189.3 per cent increase in share price over the three-year PSP performance period together with the higher level of
vesting under the PSP, both of which reflect performance delivered over the period. The pay ratio movement from 2020 has also been impacted by
Mike Norris and Tony Conophy’s election to reduce their salaries to zero from 1 April 2020 until 30 June 2020.

Year
2021
20201
2019

Method
Option B
Option B
Option B

25th percentile pay ratio
110:1
69:1
76:1

Median pay ratio
80:1
57:1
51:1

75th percentile pay ratio
53:1
34:1
36:1

The 2020 ratios have been updated to reflect the actual CEO’s 2020 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 115.

2021 salary and total pay and benefits – all employee figures

Employees

Total pay and benefits

Salary

25th percentile
£35,857
£31,153

Median
£49,353
£42,079

75th percentile
£73,618
£66,000

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

Shareholder distributions

Group adjusted1 profit before tax*

2021
2020

£906.3m
£809.6m

2021
2020

£62.4m
£13.9m

2021
2020

£255.6m
£200.5m

As well as information prescribed by current remuneration reporting regulations, Group adjusted1 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.

124

Statement of implementation of remuneration policy in the following financial year
Executive Director Remuneration for 2022 will be in accordance with the terms of our Directors’ Remuneration Policy table, as set out on pages
109 to 113 of this report.

2022 base salaries
The base salary of the CEO will increase by 13.4 per cent to £650,000. The rationale for the increase in the CEO’s base salary is described on page 107.
The base salary of the FD will increase by 2.6 per cent to £381,000 from 1 January 2022.

2022 annual bonus
The performance measures and weightings for the 2022 annual bonus will be as follows:

Mike Norris – CEO
(2022)

Tony Conophy – FD
(2022)

1. Group adjusted1 profit before tax (up to 50%)
2. Services contribution growth (up to 10%)
3. Cash balance (up to 10%)
4. Cost savings (up to 10%)
5. Personal objectives (up to 20%)

The measures for 2022 have been set to be challenging relative to our 2022 business plan. The targets themselves, as they relate to the 2022 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 so, and it currently anticipates including these in the Company’s 2022 Annual Report and Accounts.

The maximum bonus opportunity for the Executive Directors in 2022 will be 150 per cent of base salary for the CEO and 125 per cent of base salary for
the FD. These awards will be subject to deferral in line with our Policy on page 109.

2022 PSP
The award levels for the Executive Directors in the 2022 financial year are 200 per cent of salary for the CEO and 175 per cent of salary for the FD.
The 2022 financial year PSP awards will be subject to the same performance measures and targets as for the 2021 PSP awards as set out above.
The base year used to assess EPS performance will be consistent with that used to determine vesting of the 2019 PSP awards, and exclude the
impact of the one-off tax items noted elsewhere in the report. The 2022 financial year PSP awards will be subject to a two-year holding period.

Statement of voting
The results of voting on the Directors’ Remuneration Report at the Company’s 2021 AGM are outlined in the table below:

Votes cast in favour/discretionary
99.95%
98,562,392

Votes cast against

47,018

0.05%

Total votes cast
98,609,410

Votes withheld/abstentions
6,553

The results of voting on the Remuneration Policy at the Company’s 2020 Annual General Meeting are outlined in the table below:

Votes cast in favour/discretionary
98.65%
97,606,813

Votes cast against

1,339,845

1.35%

Total votes cast
98,946,658

Votes withheld/abstentions
2,153

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
23 March 2022

125

Governance ReportAnnual Report and Accounts 2021Directors’ 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 2021.

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
131 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 85. 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 priorities, 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 90 to 94, and the
reports of the Audit, Remuneration and
Nomination Committees on pages 99, 106 and
95 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.

126

Results and dividends
The Group’s Consolidated Income Statement is
on page 140. The Group’s activities resulted in
a profit before tax of £248.0 million (2020:
£206.6 million). The Group profit for the year,
attributable to equity shareholders, amounted
to £185.3 million (2020: £153.8 million).

The Directors recommend a final dividend
of 49.4 pence per share (2020: 38.4 pence
per share) totalling £56.4 million (2020:
£43.8 million). Subject to shareholder
approval, this will be paid on Friday 8 July
2022, to shareholders on the register at the
close of business on Friday 10 June 2022.
The shares will be marked ex-dividend on
Thursday 9 June 2022. 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 2021 of 16.9 pence per share on
22 October 2021, the total dividend for 2021
will be 66.3 pence 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 adjusted1 diluted
earnings per share. Further detail on the
Company’s dividend policy can be found
within the Group Finance Director’s review
on page 74.

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 2021 Annual Report and Accounts, as
described in note 14, is made up of the 2021
interim dividend (16.9 pence per share) and
the 2020 final dividend (38.4 pence 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.

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.

A copy of the Articles of Association is
available on the Company’s website at
investors.computacenter.com.

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 66 and 69 of the Strategic Report and
the statement of compliance with Section 172
is set out on page 65.

Directors and Directors’ authority
The Directors who served during the year
ended 31 December 2021 were Tony Conophy,
Pauline Campbell, Rene Haas, Philip Hulme,
Ljiljana Mitic, Mike Norris, Peter Ogden, Minnow
Powell, Ros Rivaz and Peter Ryan. Biographical
details of each Director, as at 31 December
2021, are given on pages 88 and 89.

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 re-election and recommends
their re-election. Further details on the
Committee’s recommendations for the
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.

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 2022 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 per cent 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 2022 or the conclusion of the
Company’s 2022 AGM. The Directors will seek to
renew each of the authorities at the 2022 AGM,
and full details are provided in the Notice of
AGM. As at 28 February 2022, none of these
authorities approved by shareholders at the
2021 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.
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:

Executive Directors
Mike Norris
Tony Conophy
Non-Executive Directors
Peter Ryan
Pauline Campbell*
Rene Haas
Philip Hulme
Ljiljana Mitic
Peter Ogden
Minnow Powell*
Ros Rivaz

As at 31 December 2021

As at 1 January 2021
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

1,134,214
1,873,556

900
–
–
9,196,695
–
18,699,389
1,340
2,181

–
–

1,119,504
1,858,812

–
–

–
–
–
9,198,293
–
8,103,356
–
–

900
N/A
–
9,361,695
–
18,699,389
1,340
1,382

–
N/A
–
9,033,293
–
8,103,356
–
–

* Pauline Campbell joined the Board on 16 August 2021 and Minnow Powell retired from the Board on 30 September 2021.

Major interests in shares and voting rights
As at 31 December 2021, 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 three per cent:

Name of major shareholder
JPMorgan Asset Management (UK) Limited
JPMorgan Asset Management (UK) Limited

Percentage of total voting rights held
5.44
5.36

Date of notification
13 December 2021
14 December 2021

Between 31 December 2021 and the date of this report, JP Morgan Asset Management (UK) Limited notified the Company on 11 January 2022 that
its holding had decreased to an interest over 5.19 per cent of the Company’s total voting rights, as at the date of notification.

An updated list of the Company’s major shareholders, based on information available to the Company, is available at investors.computacenter.com.

127

Governance ReportAnnual Report and Accounts 2021Employee share schemes
The Company operates a Performance Share
Plan (PSP) to incentivise employees. During
the year, 361,350 ordinary shares of 75/9 pence
each were conditionally awarded (2020:
647,430 shares). At the year end, 1,947,782
shares remained outstanding under this
scheme (2020: 1,883,164 shares). During the
year, 226,689 shares were transferred to
participants and 70,043 shares lapsed. In
addition, the Company operates a Sharesave
scheme for the benefit of employees. As at the
year end, 3,496,799 options granted under the
Sharesave scheme remained outstanding
(2020: 3,726,208).

On 21 March 2021, in accordance with the
rules of the Computacenter 2017 Deferred
Bonus Plan, the Company granted 23,369
conditional awards of ordinary shares of
75/9 pence each (2020: 48,606).

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 44 to 51, 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.

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 Group Finance Director’s review on pages
75 to 78. 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 schemes and plans, as
described above.

Financial instruments
The Group’s financial risk management
objectives and policies are discussed in the
Group Finance Director’s review on page 76.

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.

Directors’ Report continued

Capital structure and rights attaching
to shares
As at 28 February 2022, 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 per cent
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 28
February 2022, 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.

There are no specific restrictions on the transfer
of securities in the Company, which is governed
by its Articles of Association and prevailing
legislation. The Company is not aware of any
arrangements between shareholders which
may result in restrictions on the transfer of
securities or other voting rights.

Pursuant to the Company’s share plans, there
is an employee benefit trust which, as at the
year end, held a total of 920,218 ordinary
shares of 75/9 pence each, representing
approximately 0.75 per cent of the issued
share capital. During the year, the trust
purchased a total of 988,355 shares, so it
could satisfy the maturities occurring
pursuant to these share option plans. When
the trust holds shares before transferring
them to participants then, 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 2021, no ordinary shares in
the Company were issued for cash to satisfy
the exercise of options.

128

Viability Statement
The Directors’ statement regarding the
long-term viability of the Company is set out
within the Strategic Report on pages 78 to 79.

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. Details
can be found in the Strategic Report on pages
52 to 61. Further details of our environmental
policies and programmes can be found on our
corporate website computacenter.com. The
Group’s disclosure in response to the Task
Force on Climate-related Financial Disclosures
can be found on pages 62 to 64.

Auditor
A resolution to reappoint KPMG LLP as auditor
of the Group was approved by the Company’s
shareholders at the Company’s 2021 AGM.

Resolutions to reappoint KPMG 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 2022 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 aware; 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 19 May 2022 at 11.30am. The arrangements
for the Company’s 2022 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.

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 it meets
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 staff 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 scheme for eligible employees, who are
encouraged to save a fixed monthly sum for
a period of either three and/or five years.
When the scheme 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 44 to 51 covering employee
involvement and employee development, and in
the Stakeholder Engagement section on page
67, 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 and other stakeholders
can be found in the Stakeholder Engagement
section on pages 66 to 69.

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 78.

129

Governance ReportAnnual Report and Accounts 2021Directors’ 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
Publication of unaudited financial information
Details of performance share plans
Waiver of emoluments by a Director
Waiver of future emoluments by a Director
Non pre-emptive issues of equity for cash
Non pre-emptive issues of equity for cash in relation to major
subsidiary undertakings
Contracts of significance

Provision of services by a controlling shareholder
Shareholder waiver of dividends

Shareholder waiver of future dividends

Agreements with controlling shareholder

MJ Norris
Chief Executive Officer
23 March 2022

FA Conophy
Group Finance Director
23 March 2022

N/A
N/A
N/A
N/A
N/A
N/A
N/A

Details of significant contracts are set out in the Group Finance Director’s
review on pages 70 to 78. Details of transactions with related parties are
set out on page 193 in note 34 to the Consolidated Financial Statements.
N/A
The Trustees of the Company’s employee share schemes have a dividend
waiver in place in respect of shares which are the beneficial property of
each of the trusts.
The Trustees of the Company’s employee share schemes have a dividend
waiver in place in respect of shares which are the beneficial property of
each of the trusts.
Any person who exercises or controls on their own or together with any
person with whom they are acting in concert, 30 per cent 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 2021, but will keep the matter under review.

130

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 131 was approved by the Board of
Directors and authorised for issue on
23 March 2022 and signed for and on behalf
of the Board by:

Mike Norris
Chief Executive
Officer

Tony Conophy
Group Finance
Director

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 of the Group and Parent
Company and of the Group’s profit or loss 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.

131

Governance ReportAnnual Report and Accounts 2021FINANCIAL
STATEMENTS

133 Independent Auditor’s Report to the
members of Computacenter plc
140 Consolidated Income Statement
141 Consolidated Statement of
Comprehensive Income
142 Consolidated Balance Sheet
143 Consolidated Statement of Changes

in Equity

144 Consolidated Cash Flow Statement
145 Notes to the Consolidated Financial

Statements

194 Company Balance Sheet
195 Company Statement of Changes in Equity
196 Notes to the Company Financial

Statements

202 Group five-year financial review
202 Financial calendar
203 Corporate information
204 Principal offices

132

Independent Auditor’s Report
to the members of Computacenter plc

1. Our opinion is unmodified
We have audited the financial statements of Computacenter plc (“the Company”) for the year ended 31 December 2021 which comprise the
Consolidated income statement, Consolidated statement of comprehensive income, Consolidated balance sheet, Consolidated statement of
changes in equity, Consolidated cash flow statement, Company balance sheet and Company statement of changes in equity, and the related
notes, including the accounting policies in note 2.

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 2021 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 UK accounting standards, including FRS 101

Reduced Disclosure Framework; 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 are
described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is
consistent with our report to the Audit Committee.

We were first appointed as auditor by the shareholders on 19 May 2015. The period of total uninterrupted engagement is for the seven financial
years ended 31 December 2021. We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with,
UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that
standard were provided.

Overview
Materiality: Group financial statements as a whole

Coverage
Key audit matters
Recurring risks

£12.0 million (2020: £9.0 million)
4.8 per cent of profit before tax (2020: 4.7 per cent of normalised profit before tax)
96 per cent of Group profit before tax (2020: 95 per cent of Group normalised profit before tax)
vs 2020
< >
< >

Technology Sourcing bill and hold revenue cut-off
Recoverability of Parent Company’s investment in subsidiaries (Parent)

2. Key audit matters: our assessment of risks of material misstatement
When planning our audit we made an assessment of the relative significance of the key risks of material misstatement to the Group financial
statements initially without taking account of the effectiveness of controls implemented by the Group. As part of our audit planning procedures,
we presented and discussed our initial assessment of key risks to the Audit Committee and subsequently discussed changes to our assessment.
Our final risk map is shown below. We identified four key audit matters that were expected to have the greatest effect on our audit. Throughout
our audit we continually reassess the significance of each of these key audit matters. Key audit matters are those matters that, in our
professional judgement, were of most significance in the audit of the financial statements and include the most significant assessed risks of
material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy;
the allocation of resources in the audit; and directing the efforts of the engagement team. We summarise below, the key audit matters, in
decreasing order of audit significance, in arriving at our audit opinion above together with our key audit procedures to address those matters and
our findings from those procedures in order that the Company’s members as a body may better understand the process by which we arrived at
our audit opinion. These matters were addressed, and our findings are based on procedures undertaken, in the context of, and solely for the
purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion,
and we do not provide a separate opinion on these matters.

133

Financial StatementsAnnual Report and Accounts 2021Independent Auditor’s Report continued
to the members of Computacenter plc

Going Concern

Recoverability of Parent
Company’s investment in
subsidiaries (Parent)

Presentation
of alternative
performance measures

Technology Sourcing
revenue recognition

Principal versus Agent -
software license reselling

Fraud risk from Management
override of controls

Tax positions and
transfer pricing

Professional Services and
Managed Services - loss
making contracts

FusionStorm
ERP migration

Bad debt exposure

CC NS ERP migration
and accounting flows

Intangible assets useful
economic lives

Technology Sourcing
bill and hold revenue
cut-off

r
e
h
g
H

t
c
a
p
m

i
t
n
e
t
o
p
f
o
e
d
u
t
i

n
g
a
M

r
e
w
o
L

Lower

Likelihood of occurrence

Higher

Key audit matter

Presumed fraud risk per auditing standards

Other financial statement risk

Key audit matter & Presumed fraud risk per auditing standards

Revenue – Technology
Sourcing Bill and Hold
revenue cut-off
(£281.9 million; 2020:
£231.3 million)

Refer to page 100 (Audit
Committee Report), page
155 (accounting policy) and
page 155 (financial
disclosures).

The risk
Technology Sourcing
revenue includes revenues
from bill and hold
transactions. This is an
arrangement in which the
Group invoices a customer
and recognises the
associated revenue, but the
entity retains physical
possession of the product
until it is transferred to the
customer at a point in time
in the future.

A customer may have
obtained control of a
product before it has been
delivered and there is
judgement required to
determine if all of the
criteria have been met to
recognise a bill and hold
sale. This gives rise to a risk
that bill and hold revenue is
recognised too early.

Our response
Our procedures included:
• Tests of detail: A sample of sales was selected on the basis of a risk-based
sampling methodology combined with a statistical sample. For each invoice
sampled, component auditors inspected bill and hold agreements, evaluated
the segregation and readiness of inventory, and considered if the reason for
the arrangement was substantive, in order to assess whether revenue had
been recognised in the appropriate period.

We performed the detailed tests above rather than seeking to rely on any of the
Group’s controls because our knowledge of the design of these controls
indicated that we would be unlikely to obtain the required evidence to support
reliance on controls.

Our findings
• In determining the treatment of Technology Sourcing bill and hold revenue

cut-off there is room for judgement and we found that within that, the Group’s
judgement was balanced (2020: balanced).

134

Financial Statements
Annual Report and Accounts 2021

Recoverability of Parent
Company’s investment
in subsidiaries
(£443.0 million; 2020:
£397.1 million)

Refer to page 102 (Audit
Committee Report), page
197 (accounting policy) and
page 199 (financial
disclosures).

The risk
Low risk, high value:
The carrying amount of
the Parent Company’s
investments in subsidiaries
represents 93.8 per cent
(2020: 75 per cent) of the
Company’s total assets.
Their recoverability is not at
a high risk of significant
misstatement or subject
to significant judgement.
However, due to their
materiality in the context
of the Parent Company
financial statements, this is
considered to be the area
that had the greatest effect
on our overall Parent
Company audit.

Our response
Our procedures included:
• Tests of detail: We compared the carrying amount of a sample of the highest

value investments, representing 99.6 per cent (2020: 99.5 per cent) of the total
investment balance, to the relevant subsidiaries’ draft balance sheets to
identify whether their net assets, being an approximation of their minimum
recoverable amount, were in excess of their carrying amount and assessing
whether those subsidiaries have historically been profit-making.
• Assessing subsidiary audits: We assessed the work performed by

component audit teams of those subsidiaries sampled where audits are
performed and considered the results of that work on those subsidiaries’
profits and net assets.

• Our sector experience: For the investments where the carrying amount
exceeded the net asset value, we compared the carrying amount of the
investment with the expected value of the business based upon a discounted
cash flow model.

We performed the tests above rather than seeking to rely on any of the Group’s
controls because the nature of the balance meant that detailed testing is
inherently the most effective means of obtaining audit evidence.

We continue to perform procedures over
Professional Services and Managed Services
– loss-making contracts. However, as the
existing onerous contract base matures and
no new material loss-making contracts have
arisen in the period, we have not assessed
this as one of the most significant risks in our
current year audit and, therefore, it is not
separately identified in our report this year.

Last year, in response to a material
acquisition in the period, we reported the
valuation of Pivot Technology Solutions
intangible assets as a key audit matter. As
there are no material business acquisitions in
the period, we have not identified this as
a recurring risk of significant importance.

3. Our application of materiality and an
overview of the scope of our audit
Materiality for the Group financial statements
as a whole was set at £12.0 million (2020:
£9.0 million), determined with reference to
a benchmark of Group profit before tax of
£248.0 million (2020: £192.5 million
normalised for the gain on acquisition of a
subsidiary), of which it represents 4.8 per cent
(2020: 4.7 per cent).

In addition, we applied materiality of
£0.1 million (2020: £0.1 million) to related
party transactions for which we believe
misstatements of lesser amounts than
materiality for the financial statements as
a whole could be reasonably expected to
influence the company’s assessment of the
financial performance of the Group.

Our findings
• We found the Group’s assessment of the recoverability of the investment in

subsidiaries to be balanced (2020: balanced).

Materiality for the Parent Company financial
statements as a whole was set at £2.5 million
(2020: £2.5 million), determined with
reference to a benchmark of Company total
assets, of which it represents 0.5 per cent
(2020: 0.5 per cent).

In line with our audit methodology, our
procedures on individual account balances
and disclosures were performed to a lower
threshold, performance materiality, so as
to reduce to an acceptable level the risk
that individually immaterial misstatements
in individual account balances add up to
a material amount across the financial
statements as a whole.

Performance materiality was set at 75 per
cent (2020: 75 per cent) of materiality for the
Group and Parent Company financial
statements as a whole, which equates to
£9 million (2020: £6.7 million) for the Group
and £1.8 million (2020: £1.8 million) for the
Parent company. We applied this percentage
in our determination of performance
materiality because we did not identify any
factors indicating an elevated level of risk.

We agreed to report to the Audit Committee
any corrected or uncorrected identified
misstatements exceeding £0.6 million (2019:
£0.45 million), in addition to other identified
misstatements that warranted reporting on
qualitative grounds.

Group profit before tax
Group profit before tax of £248.0 million
(2020: Group profit before tax of £192.5 million,
normalised to exclude an exceptional item)

Group profit before tax, normalised
to exclude an exceptional item

Group materiality

Group materiality
£12.0 million (2020: £9.0 million)

£12.0 million (2020: £9.0 million)
Whole financial statements materiality

£9.0 million (2020: £2.5 million to £6.5 million)
Range of materiality at six (2020: six)
components (£2.5 million to £8.0 million)

£0.6 million (2020: £0.45 million)
Misstatements reported to the Audit Committee

135

Independent Auditor’s Report continued
to the members of Computacenter plc

Group revenue

Group profit before tax

97
96

97%

(2020: 96%)

96
95

96%

(2020: 95%)

Group total assets

Group profit before exceptional items and tax

95
95

95%

(2020: 95%)

96
95

96%

(2020: 95%)

Full scope for Group audit purposes 2021

Full scope for Group audit purposes 2020

Residual components

The Group operates a Shared Service Centre
(SSC) in Budapest, Hungary, the outputs of
which are included in the financial information
of three of the five reporting components it
services therefore it is not a separate
reporting component. The service centre is
subject to audit procedures, predominantly
the testing of trade receivables and trade
payables transaction processing. Additional
procedures are performed at certain
reporting components to address the audit
risks not covered by the work performed over
the shared service centres.

Of the Group’s 25 (2020: 21) reporting
components, we subjected six (2020: six) to
full scope audits for Group purposes. The
components within the scope of our work
accounted for the percentages illustrated
opposite. For the residual components, we
performed analysis at an aggregated Group
level to re-examine our assessment that
there were no significant risks of material
misstatement within these.

The Group team instructed component
auditors as to the significant areas to be
covered, including the relevant risks detailed
above and the information to be reported
back. The Group team approved the
component’s materialities, which ranged
from £2.5 million to £8.0 million (2020:
£2.5 million to £6.5 million), having regard to
the mix of size and risk profile of the Group
across the components. The work on four of
the six components (2020: four of the six
components) was performed by component
auditors and the rest, including the audit of
the Parent Company, was performed by the
Group team.

We were able to rely upon the Group’s internal
control over financial reporting in some areas
of our audit, where our controls testing
supported this approach, which enabled us
to reduce the scope of our substantive audit
work; in the other areas the scope of the audit
work performed was fully substantive.

The Group team held video calls with the
four (2020: four) overseas components
located in France, Germany, the US and
Canada, in addition to the Shared Service
Centre in Hungary (2020: France, Germany,
US, Canada and Shared Service Centre in
Hungary). At these meetings, the findings
reported to the Group team were discussed
in more detail, the audit documentation
reviewed, and any further work required by
the Group team was then performed by the
component auditor.

136

We considered whether these risks could
plausibly affect the liquidity in the going concern
period by comparing severe, but plausible
downside scenarios that could arise from
these risks individually and collectively against
the level of available financial resources
indicated by the Group’s financial forecasts.

We considered whether the going concern
disclosure in note 2.1 to the financial
statements gives a full and accurate
description of the Directors’ assessment of
going concern, including the identified risks
and related sensitivities.

Our conclusions based on this work:

• we consider that the directors’ use of the
going concern basis of accounting in the
preparation of the financial statements
is appropriate;

• we have not identified, and concur with the
directors’ assessment that there is not,
a material uncertainty related to events or
conditions that, individually or collectively,
may cast significant doubt on the Group’s or
Company’s ability to continue as a going
concern for the going concern period;
• we have nothing material to add or draw
attention to in relation to the directors’
statement on page 129 of the financial
statements on the use of the going concern
basis of accounting with no material
uncertainties that may cast significant
doubt over the Group and Company’s use of
that basis for the going concern period, and
we found the going concern disclosure in
note 2.1 to be acceptable; and

• the related statement under the Listing
Rules set out on page 130 is materially
consistent with the financial statements
and our audit knowledge.

However, as we cannot predict all future
events or conditions and as subsequent
events may result in outcomes that are
inconsistent with judgements that were
reasonable at the time they were made,
the above conclusions are not a guarantee
that the Group or the Company will continue
in operation.

4. The impact of climate change on our audit
In planning our audit we have considered the
potential impacts of climate change on the
Group’s business and its financial statements.

The Group’s business model does not include
extractive or high pollutive activities that are
a significant contributor to climate change.
The Group’s main exposure to climate risk is
the shifting expectations from business
stakeholders to transition to low-carbon
supply chains and greater emphasis on
climate related disclosures and in the annual
report, and severe weather events disrupting
key service delivery locations.

As part of our audit we made enquires of
management and inspected minutes from
the Climate Risk Committee meetings held
throughout the year, to understand the
Group’s assessment and preparedness for
climate change. We have performed a risk
assessment on how the impact of climate
change may affect the financial statements
and our audit, and taking into account
headroom on goodwill and nature of the
Group’s assets and liabilities, there was no
significant impact on our key audit matters,
including impairment forecasts, or key areas
of our audit.

We have also read the Group’s and Parent
Company’s disclosure of climate related
information in the front half of the annual
report as set out on pages 62 to 64 and
considered consistency with the financial
statements and our audit knowledge.

5. Going concern
The Directors have prepared the financial
statements on the going concern basis as
they do not intend to liquidate the Company or
the Group or to cease their operations, and as
they have concluded that the Company’s and
the Group’s financial position means that this
is realistic. They have also concluded that
there are no material uncertainties that could
have cast significant doubt over their ability to
continue as a going concern for at least a year
from the date of approval of the financial
statements (“the going concern period”).

We used our knowledge of the Group, its
industry, and the general economic
environment to identify the inherent risks to
its business model and analysed how those
risks might affect the Group’s and Company’s
financial resources or ability to continue
operations over the going concern period.
The risk that we considered most likely to
adversely affect the Group’s and Company’s
available financial resources over this period
was lower than expected trading volumes.

6. Fraud and breaches of laws and
regulations – ability to detect

Identifying and responding to risks of
material misstatement due to fraud
To identify risks of material misstatement due
to fraud (“fraud risks”) we assessed events or
conditions that could indicate an incentive or
pressure to commit fraud or provide an
opportunity to commit fraud. Our risk
assessment procedures included:

• Enquiring of directors, the audit committee,
internal audit and other key management
personnel, and inspection of policy
documentation as to the Group’s high-level
policies and procedures to prevent and
detect fraud, including the internal audit
function as well as whether they have
knowledge of any actual, suspected or
alleged fraud.

• Reading Board meeting minutes and
attending audit committee meetings.
• Reading and considering the content of
remuneration incentive schemes and
performance targets for management,
directors, and sales staff, including the EPS
target for management remuneration.
• Using analytical procedures to identify any

unusual or unexpected relationships.

We communicated identified fraud risks
throughout the audit team and remained alert
to any indications of fraud throughout the
audit. This included communication from the
Group to full scope component audit teams of
relevant fraud risks identified at the Group
level and request to full scope component
audit teams to report to the Group audit team
any instances of fraud that could give rise to
a material misstatement at Group level.

As required by auditing standards, we
performed procedures to address the risk of
management override of controls and the risk
of fraudulent revenue recognition, in particular
the risk that Technology sourcing bill and hold
sales are recorded in the wrong period and
the risk that Group and component
management may be in a position to make
inappropriate accounting entries. On this audit
we do not believe there is a fraud risk related to
revenue recognition of Managed Services,
Professional Services and non-bill and hold
Technology Sourcing because the revenue
recognition policy is simple and involves a low
degree of estimation and judgement.

We did not identify any additional fraud risks.

Further detail in respect of Technology
Sourcing Bill and Hold sales is set out in the
key audit matter disclosures in section 2 of
this report.

137

Financial StatementsAnnual Report and Accounts 2021Independent Auditor’s Report continued
to the members of Computacenter plc

We also performed procedures including:

• Identifying journal entries to test for all full
scope components based on risk criteria
and comparing the identified entries to
supporting documentation. These included
those posted to unusual accounts, those
with unusual descriptions, and round
number adjustments to provisions.

• Assessing whether the judgements made in
making recognising revenue are indicative
of a potential bias.

Identifying and responding to risks of
material misstatement due to non-
compliance with laws and regulations
We identified areas of laws and regulations
that could reasonably be expected to have
a material effect on the financial statements
from our general commercial and sector
experience, and through discussion with the
directors and other management (as required
by auditing standards). We also discussed
with the directors and other management the
policies and procedures regarding compliance
with laws and regulations.

As the Group is regulated, our assessment of
risks involved gaining an understanding of
the control environment including the entity’s
procedures for complying with regulatory
requirements.

We communicated identified laws and
regulations throughout our team and
remained alert to any indications of non-
compliance throughout the audit. This
included communication from the Group to
full-scope component audit teams of relevant
laws and regulations identified at the Group
level, and a request for full scope component
auditors to report to the Group team any
instances of non-compliance with laws and
regulations that could give rise to a material
misstatement at the Group level.

The potential effect of these laws and
regulations on the financial statements
varies considerably.

Firstly, the Group is subject to laws and
regulations that directly affect the financial
statements including financial reporting
legislation (including related companies
legislation), distributable profits legislation,
pension legislation, company legislation,
climate regulation, and taxation legislation,
and we assessed the extent of compliance
with these laws and regulations as part
of our procedures on the related financial
statement items.

Secondly, the Group is subject to many other
laws and regulations where the consequences
of non-compliance could have a material
effect on amounts or disclosures in the
financial statements, for instance through the
imposition of fines or litigation. We identified
the following areas as those most likely to
have such an effect: export legislation, GDPR
compliance, health and safety, contract
legislation, anti-bribery, employment law, and
certain aspects of company and environmental
legislation, recognising the nature of the
Group’s activities to export IT hardware and
provide global IT services. Auditing standards
limit the required audit procedures to identify
non-compliance with these laws and
regulations to enquiry of the directors and
other management, and inspection of
regulatory and legal correspondence, if any.
Therefore if a breach of operational
regulations is not disclosed to us or evident
from relevant correspondence, an audit will
not detect that breach.

Context of the ability of the audit to detect
fraud or breaches of law or regulation
Owing to the inherent limitations of an audit,
there is an unavoidable risk that we may not
have detected some material misstatements
in the financial statements, even though we
have properly planned and performed our
audit in accordance with auditing standards.
For example, the further removed non-
compliance with laws and regulations is from
the events and transactions reflected in the
financial statements, the less likely the
inherently limited procedures required by
auditing standards would identify it.

In addition, as with any audit, there remained
a higher risk of non-detection of fraud,
as these may involve collusion, forgery,
intentional omissions, misrepresentations,
or the override of internal controls. Our audit
procedures are designed to detect material
misstatement. We are not responsible for
preventing non-compliance or fraud and
cannot be expected to detect non-compliance
with all laws and regulations.

7. We have nothing to report on the other
information in the Annual Report
The directors are responsible for the other
information presented in the Annual Report
together with the financial statements. Our
opinion on the financial statements does not
cover the other information and, accordingly,
we do not express an audit opinion or, except
as explicitly stated below, any form of
assurance conclusion thereon.

Our responsibility is to read the other
information and, in doing so, consider
whether, based on our financial statements
audit work, the information therein is
materially misstated or inconsistent with the
financial statements or our audit knowledge.
Based solely on that work we have not
identified material misstatements in the
other information.

Strategic report and directors’ report
Based solely on our work on the other
information:

• we have not identified material

misstatements in the strategic report and
the directors’ report;

• in our opinion the information given in those
reports for the financial year is consistent
with the financial statements; and
• in our opinion those reports have been

prepared in accordance with the
Companies Act 2006.

Directors’ remuneration report
In our opinion the part of the Directors’
Remuneration Report to be audited has been
properly prepared in accordance with the
Companies Act 2006.

Disclosures of emerging principal risks and
longer-term viability
We are required to perform procedures to
identify whether there is a material
inconsistency between the directors’
disclosures in respect of principal risks and
the viability statement, and the financial
statements and our audit knowledge.

Based on those procedures, we have nothing
material to add or draw attention to in
relation to:

• the directors’ confirmation within the

viability statement on page 78 that they
have carried out a robust assessment of
the principal risks facing the Group,
including those that would threaten its
business model, future performance,
solvency and liquidity;

• the Principal Risks and Uncertainties

disclosures describing these risks and
explaining how they are being managed and
mitigated; and

• the directors’ explanation in the viability

statement of how they have assessed the
prospects of the Group, over what period
they have done so and why they considered
that period to be appropriate, and their
statement as to whether they have a
reasonable expectation that the Group will
be able to continue in operation and meet
its liabilities as they fall due over the period
of their assessment, including any related
disclosures drawing attention to any
necessary qualifications or assumptions.

138

10. The purpose of our audit work and to
whom we owe our responsibilities
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 and the terms of our engagement by
the Company. 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 the further matters we are
required to state to them in accordance with
the terms agreed with the Company, 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.

David Neale (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory
Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
23 March 2022

We are also required to review the viability
statement, set out on pages 78 to 79 under the
Listing Rules. Based on the above procedures,
we have concluded that the above disclosures
are materially consistent with the financial
statements and our audit knowledge.

Our work is limited to assessing these
matters in the context of only the knowledge
acquired during our financial statements
audit. As we cannot predict all future events
or conditions and as subsequent events
may result in outcomes that are inconsistent
with judgements that were reasonable at the
time they were made, the absence of anything
to report on these statements is not a
guarantee as to the Group’s and Company’s
longer-term viability.

Corporate governance disclosures
We are required to perform procedures to
identify whether there is a material
inconsistency between the directors’ corporate
governance disclosures and the financial
statements and our audit knowledge.

Based on those procedures, we have
concluded that each of the following is
materially consistent with the financial
statements and our audit knowledge:

• the directors’ statement that they consider

that the annual report and financial
statements 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 section of the annual report describing
the work of the Audit Committee, including
the significant issues that the audit
committee considered in relation to the
financial statements, and how these issues
were addressed; and

• the section of the annual report that

describes the review of the effectiveness of
the Group’s risk management and internal
control systems.

We are required to review the part of the
Corporate Governance Statement relating to
the Group’s compliance with the provisions of
the UK Corporate Governance Code specified
by the Listing Rules for our review. We have
nothing to report in these respects.

8. We have nothing to report on the other
matters on which we are required to report
by exception
Under the Companies Act 2006, we are
required 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.

We have nothing to report in these respects.

9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set
out on page 131, the directors are responsible
for: the preparation of the financial
statements including being satisfied that they
give a true and fair view; such internal control
as they determine is statements that are free
from material misstatement, whether due to
fraud or error; assessing the Group and
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
they 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
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 our opinion in an auditor’s report.
Reasonable assurance is a high level of
assurance, but does not 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 aggregate, they could
reasonably be expected to influence the
economic decisions of users taken on the
basis of the financial statements.

A fuller description of our responsibilities
is provided on the FRC’s website at
www.frc.org.uk/auditorsresponsibilities.

139

Financial StatementsAnnual Report and Accounts 2021Consolidated Income Statement
For the year ended 31 December 2021

Revenue
Cost of sales
Gross profit

Administrative expenses
Impairment loss on trade receivables and contract assets
Operating profit

Gain on acquisition of a subsidiary
Finance income
Finance costs
Profit before tax

Income tax expense
Profit for the year

Attributable to:
Equity holders of the Parent
Non-controlling interests
Profit for the year

Earnings per share:
– basic
– diluted

Note
4,5

18d
10
11

2021
£m
6,725.8
(5,858.0)
867.8

2020
£m
5,441.3
(4,720.8)
720.5

(612.0)
(0.6)
255.2

–
0.3
(7.5)
248.0

(61.5)
186.5

185.3
1.2
186.5

(521.6)
(0.4)
198.5

14.0
0.5
(6.4)
206.6

(52.4)
154.2

153.8
0.4
154.2

13
13

164.0p
160.9p

136.2p
133.8p

Impairment loss on trade receivables and contract assets of £0.4 million was included as part of ‘Administrative expenses’ in the prior year. The prior-year comparative has been
re-presented for this amount. There is no impact on reported ‘Operating profit’ of this change.

All of the activities of the Group relate to continuing operations.

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

140

Consolidated Statement of Comprehensive Income
For the year ended 31 December 2021

Profit for the year

Items that may be reclassified to the Consolidated Income Statement:
Loss arising on cash flow hedge
Income tax effect

Exchange differences on translation of foreign operations

Items not to be reclassified to the Consolidated Income Statement:
Remeasurement of defined benefit plan
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 145 to 193 form an integral part of these consolidated financial statements.

Note

2021
£m
186.5

(0.9)
0.2
(0.7)
(9.6)
(10.3)

1.2
(9.1)

2020
£m
154.2

(1.9)
0.3
(1.6)
3.2
1.6

(4.3)
(2.7)

177.4

151.5

176.2
1.2
177.4

151.1
0.4
151.5

141

Financial StatementsAnnual Report and Accounts 2021Consolidated Balance Sheet
As at 31 December 2021

Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Investment in associate
Deferred income tax assets
Prepayments

Current assets
Inventories
Trade and other receivables
Income tax receivable
Prepayments
Accrued income
Derivative financial instruments
Cash and short-term deposits

Total assets

Current liabilities
Bank overdraft
Trade and other payables
Deferred income
Financial liabilities
Lease liabilities
Derivative financial instruments
Income tax payable
Provisions

Non-current liabilities
Financial liabilities
Lease liabilities
Deferred income
Retirement benefit obligation*
Provisions*
Deferred income tax liabilities

Total liabilities
Net assets

Capital and reserves
Issued share capital
Share premium
Capital redemption reserve
Own shares held
Translation and hedging reserve
Retained earnings
Shareholders’ equity
Non-controlling interests
Total equity

Note

15
15
16
18a
12d
5

19
20

5
5
24
21

21
22
5
23a
23b
24

23a
23b
5
33
26
12d

29
29
29
29
29

2021
£m

90.0
138.1
273.7
0.1
30.2
16.6
548.7

341.3
1,275.2
8.8
103.0
148.1
3.6
285.2
2,165.2
2,713.9

12.0
1,410.4
249.3
15.1
43.0
2.5
47.9
3.5
1,783.7

16.7
103.1
8.3
21.8
9.7
25.8
185.4
1,969.1
744.8

9.3
4.0
75.0
(115.5)
5.4
762.3
740.5
4.3
744.8

2020
£m

107.0
129.6
274.7
0.1
10.1
23.6
545.1

211.3
1,095.9
10.0
102.8
125.4
1.6
309.8
1,856.8
2,401.9

–
1,116.7
273.9
105.5
41.7
5.1
39.2
4.1
1,586.2

15.7
95.8
18.6
23.3
12.5
18.9
184.8
1,771.0
630.9

9.3
4.0
75.0
(111.7)
15.7
635.5
627.8
3.1
630.9

Retirement benefit obligation of £23.3 million was included as part of ‘Provisions’ in the prior year. The prior-year comparative has been re-presented for this amount. There is no impact
on reported ‘Non-current liabilities’ and ‘Net assets’ from this change.

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

Approved by the Board on 23 March 2022.

MJ Norris
Chief Executive Officer

FA Conophy
Group Finance Director

142

Consolidated Statement of Changes in Equity
For the year ended 31 December 2021

At 1 January 2021
Profit for the year
Other comprehensive income/(expense)
Total comprehensive income/(expense)
Cost of share-based payments
Tax on share-based payments
Exercise of options
Purchase of own shares
Equity dividends
At 31 December 2021

At 1 January 2020
Relating to acquisition of subsidiary
Profit for the year
Other comprehensive income/(expense)
Total comprehensive income
Cost of share-based payments
Tax on share-based payments
Exercise of options
Purchase of own shares
Equity dividends
At 31 December 2020

Issued
share
capital
£m
9.3
–
–
–
–
–
–
–
–
9.3

9.3
–
–
–
–
–
–
–
–
–
9.3

Attributable to equity holders of the Parent

Share
premium
£m
4.0
–
–
–
–
–
–
–
–
4.0

Capital
redemption
reserve
£m
75.0
–
–
–
–
–
–
–
–
75.0

Own
shares
held
£m
(111.7)
–
–
–
–
–
21.7
(25.5)
–
(115.5)

Translation
and hedging
reserves
£m
15.7
–
(10.3)
(10.3)
–
–
–
–
–
5.4

4.0
–
–
–
–
–
–
–
–
–
4.0

75.0
–
–
–
–
–
–
–
–
–
75.0

(113.6)
–
–
–
–
–
–
20.9
(19.0)
–
(111.7)

14.0
–
–
1.7
1.7
–
–
–
–
–
15.7

Retained
earnings
£m
635.5
185.3
1.2
186.5
10.6
7.6
(15.5)
–
(62.4)
762.3

503.9
–
153.8
(4.4)
149.4
7.9
3.4
(15.2)
–
(13.9)
635.5

Share-
holders’
equity
£m
627.8
185.3
(9.1)
176.2
10.6
7.6
6.2
(25.5)
(62.4)
740.5

492.6
–
153.8
(2.7)
151.1
7.9
3.4
5.7
(19.0)
(13.9)
627.8

Non-
controlling
interests
£m
3.1
1.2
–
1.2
–
–
–
–
–
4.3

(0.1)
2.8
0.4
–
0.4
–
–
–
–
–
3.1

Total
equity
£m
630.9
186.5
(9.1)
177.4
10.6
7.6
6.2
(25.5)
(62.4)
744.8

492.5
2.8
154.2
(2.7)
151.5
7.9
3.4
5.7
(19.0)
(13.9)
630.9

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

143

Financial StatementsAnnual Report and Accounts 2021Consolidated Cash Flow Statement
For the year ended 31 December 2021

Operating activities
Profit before taxation
Net finance cost
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Amortisation of intangible assets
Share-based payments
Loss on disposal of intangibles
(Gain)/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)
Gain on acquisition of a subsidiary
Net cash flow from provisions
Other adjustments
Cash generated from operations
Income taxes paid
Net cash flow from operating activities

Investing activities
Interest received
Acquisition of subsidiaries, net of cash acquired
Purchases of property, plant and equipment
Purchases of intangible assets
Proceeds from disposal of property, plant and equipment
Net cash flow from investing activities

Financing activities
Interest paid
Interest paid on lease liabilities
Dividends paid to equity shareholders of the Parent
Proceeds from share issues
Purchase of own shares
Repayment of loans and credit facility
Payment of capital element of lease liabilities
New borrowings – bank loan
Net cash flow from financing activities

(Decrease)/increase in cash and cash equivalents
Effect of exchange rates on cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the year end

The accompanying notes on pages 145 to 193 form an integral part of these consolidated financial statements.

144

Note

15
15
16

18d

10
18
15
16

11
11
14

23b

21
21

2021
£m

248.0
7.2
24.8
50.6
15.3
10.6
0.5
(1.3)
(131.5)
(238.5)
292.9
–
(2.9)
1.8
277.5
(53.2)
224.3

0.3
(2.5)
(18.8)
(11.5)
7.5
(25.0)

(2.3)
(5.2)
(62.4)
6.2
(25.5)
(99.7)
(50.2)
10.7
(228.4)

(29.1)
(7.5)
309.8
273.2

2020
£m

206.6
5.9
24.0
45.2
14.6
8.0
0.3
0.2
(50.4)
48.3
(26.2)
(14.0)
1.9
0.1
264.5
(27.6)
236.9

0.5
(30.1)
(23.1)
(4.4)
1.6
(55.5)

(1.9)
(4.5)
(13.9)
5.7
(19.0)
(20.0)
(43.2)
0.3
(96.5)

84.9
7.1
217.8
309.8

Notes to the Consolidated Financial Statements
For the year ended 31 December 2021

1 Authorisation of Consolidated Financial Statements and statement of compliance with IFRS
The Consolidated Financial Statements of Computacenter plc (Parent Company or the Company) and its subsidiaries (the Group) for the year
ended 31 December 2021 were authorised for issue in accordance with a resolution of the Directors on 23 March 2022. The Consolidated Balance
Sheet was signed on behalf of the Board by MJ Norris and FA Conophy. Computacenter plc is a limited company incorporated and domiciled in
England whose shares are publicly traded.

2 Summary of significant accounting policies
The accounting policies adopted are consistent with those of the previous financial year, as disclosed in the 2020 Annual Report and Accounts.

Effective for the year ending 31 December 2022
Apart from the potential changes discussed within note 3.2.1, no new standards, interpretations or amendments not yet effective are expected
to have a material effect on the Group’s future financial statements.

2.1 Basis of preparation
The Consolidated Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS)
as adopted by the United Kingdom and in conformity with the requirements of the Companies Act 2006.

The Consolidated Financial Statements are prepared on the historical cost basis, other than derivative financial instruments, which are stated
at fair value.

The Consolidated Financial Statements are presented in pound sterling (£) and all values are rounded to the nearest hundred thousand, except
when otherwise indicated.

In determining whether it is appropriate to prepare the Financial Statements on a ‘going concern’ basis, the Group prepares a three-year Plan
(the ‘Plan’) annually by aggregating top down expectations of business performance across the Group in the second and third year of the Plan
with a detailed 12-month ‘bottom-up’ budget for the first year, which was approved by the Board. 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 also 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 Directors have identified a period of not less than 12 months as the appropriate period for the going concern assessment and have based
their assessment on the relevant forecasts from the Plan for that period.

The potential impact of the principal risks and uncertainties, as set out on pages 80 to 85 of the 2021 Annual Report and Accounts, 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.

For the current year, the primary downside sensitivity relates to a modelled, but not predicted, severe downturn in the Group’s revenues,
beginning in 2022, simulating a continued impact for some of our customers from the Covid-19 crisis, together with the Group’s revenues being
impacted by supply shortages. This sensitivity analysis models a continued market downturn scenario, with slower than predicted recovery
estimates, for some of our customers whose businesses have been affected by Covid-19 and a similar downturn occurring for the remainder of
our customer base. A further impact on the Group’s Technology Sourcing revenues through 2022 from possible ongoing vendor-related supply
shortage issues has also been included in the sensitivity analysis.

Our cash and borrowing capacity provides sufficient funds to meet the foreseeable needs of the Parent and Group. At 31 December 2021,
the Group had cash and short-term deposits of £285.2 million and bank debt, primarily related to the recently built headquarters in Germany
and operations in North America, of £43.8 million. The Group’s Pivot subsidiary has a revolving credit facility via JPMorgan Chase Bank, N.A. of
US$100.0 million which can be used for revolving loans, letters of credit, and swing line loans. In addition, the Group has a committed facility
of £60.0 million, which was extended in September 2020 and has an expiry date of 7 September 2023. The Group has never drawn on this
committed facility.

The Group has a resilient balance sheet position, with net assets of £744.8 million as at 31 December 2021. The Group made a profit after tax
of £186.5 million, and delivered net cash flows from operating activities of £224.3 million, for the year ended 31 December 2021.

As the analysis continues to show a strong forecast cash position, even under the severe economic conditions modelled in the sensitivity
scenarios, the Directors continue to consider that the Parent and Group are well placed to manage business and financial risks in the current
economic environment. Based on this assessment, the Directors confirm that they have a reasonable expectation that the Parent and Group will
be able to continue in operation and meet their liabilities as they fall due over the period of not less than 12 months from the date of signing this
Annual Report and Accounts and therefore have prepared the Financial Statements on a going concern basis.

145

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

2 Summary of significant accounting policies continued
Consolidated Balance Sheet and Notes – As at 31 December 2020
As at 31 December 2020, certain items relating to an operating lessor arrangement within the acquired Pivot business were incorrectly presented
on the balance sheet as follows:

• An amount of £12.6 million was incorrectly presented as accrued income of £2.6 million and non-current deferred costs, within prepayments,
of £10.0 million rather than as property, plant and equipment of £2.8 million, intangible assets – software of £4.6 million, accrued income of
£1.1 million and non-current deferred costs, within prepayments, of £4.1 million.

• An amount of £11.9 million was incorrectly presented as current deferred income of £2.9 million and non-current deferred income of
£9.0 million, rather than reflected as current financial liabilities of £2.2 million and non-current financial liabilities of £9.7 million.

• An amount of £15.3 million was incorrectly omitted from the disclosure of future amounts receivable under note 25 leases as a lessor.

Consolidated Cash Flow Statement for the year ended 31 December 2020
In relation to the above, the contract relating to the operating lessor arrangement was entered into prior to the acquisition of Pivot, therefore the
impact to the Consolidated Cash Flow Statement is limited to £0.4 million of financing repayments being incorrectly presented. This outflow was
recognised within net cash flow from trade and other payables within the operating cashflow caption, instead of as a repayment of loans and
credit facility within the financing cash flow caption.

Management has decided not to correct the prior year-end presentation of the differences relating to the above items, as they have no impact
on the Consolidated Income Statement for the year ended 31 December 2020 and individual reclassifications are either not significant compared
to the overall amount in the Consolidated Balance Sheet and/or Consolidated Cash Flow Statement captions affected by the mis-presentation or
to the Consolidated Balance Sheet or Consolidated Cash Flow Statement itself. The revision has no impact on the operating profit, profit for the
period, assets and liabilities or cash flows for the year ended 31 December 2021, where the correct accounting treatment has been adopted
in the year.

2.2 Basis of consolidation
The Consolidated Financial Statements comprise the Financial Statements of the Parent Company and its subsidiaries as at 31 December each
year. The Financial Statements of subsidiaries are prepared for the same reporting year as the Parent Company, using existing GAAP in each
country of operation. Adjustments are made on consolidation for differences that may exist between the respective local GAAPs and IFRS.

All intra-Group balances, transactions, income and expenses and profit and losses resulting from intra-Group transactions have been
eliminated in full.

Subsidiaries are consolidated from the date on which the Group obtains control and cease to be consolidated from the date on which the Group no
longer retains control. Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries that is not held by the Group
and is presented separately from Parent shareholders’ equity in the Consolidated Balance Sheet.

2.2.1 Foreign currency translation
Each entity in the Group determines its own functional currency and items included in the Financial Statements of each entity are measured using
that functional currency. Transactions in foreign currencies are initially recorded in the functional currency at the exchange rate ruling at the
date of the transaction or where relevant the rate of a specific forward exchange contract. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the functional currency rate of exchange ruling at the Consolidated Balance Sheet date. All differences are taken to
the Consolidated Income Statement except foreign currency differences arising from the translation of qualifying cash flow hedges, which are
recognised in the Consolidated Statement of Comprehensive Income, to the extent that the hedges are effective.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date
of initial transaction.

The functional currencies of the main overseas subsidiaries are euro (€), US dollar ($) and Swiss franc (CHF). The Group’s presentation currency
is pound sterling. As at the reporting date, the assets and liabilities of these overseas subsidiaries are translated into the presentation currency
of the Group at the rate of exchange ruling at the balance sheet date and their Consolidated Income Statements are translated at the average
exchange rates for the year. Exchange differences arising on the retranslation are recognised in the Consolidated Statement of Comprehensive
Income. On disposal of a foreign entity, the deferred cumulative amount recognised in the Consolidated Statement of Comprehensive Income
relating to that particular foreign operation is recognised in the Consolidated Income Statement.

2.3 Revenue
Revenue is recognised to the extent of the amount which is expected to be received from customers as consideration for the transfer of goods
and services to the customer.

In multi-element contracts with customers where more than one good (Technology Sourcing) or service (Professional Services and Managed
Services) is provided to the customer, analysis is performed to determine whether the separate promises are distinct performance obligations
within the context of the contract. To the extent that this is the case, the transaction price is allocated between the distinct performance
obligations based upon relative standalone selling prices. The revenue is then assessed for recognition purposes based upon the nature of
the activity and the terms and conditions of the associated customer contract relating to that specific distinct performance obligation.

The following specific recognition criteria must also be met before revenue is recognised:

146

2.3.1 Technology Sourcing
The Group supplies hardware and software (together as ‘goods’) to customers that are sourced from and delivered by a number of suppliers.

Technology Sourcing revenue is recognised when the Group’s performance obligations are fulfilled at a point in time when control of the goods
has been transferred to the customer. Typically, customers obtain control of the goods when they are delivered to and have been accepted at
their premises, depending on individual customer arrangements. Invoices are routinely generated at that point in time and payment for the goods
is generally received on, or before, industry-standard payment terms, ordinarily within 30 days. Refer to note 3.2.2 for ‘bill and hold’ transactions.

Revenue is recorded based on the price specified in sales invoices, net of any agreed discounts and rebates, and exclusive of value added tax on
goods supplied to customers during the year.

There are a variety of discounts and rebates provided to customers, which are assessed on a case-by-case basis as to whether the resulting
payment to customers is for a distinct good or service (such as marketing) or for a promotional discount.

Technology Sourcing principal versus agent recognition
Management assesses the classification of certain revenue contracts for Technology Sourcing revenue recognition on either an agent or principal
basis. Because the identification of the principal in a contract is not always clear and, for certain elements including standalone software licence
sales and standalone resold third party service, the level of judgement required can be high with the outcomes of assessments finely balanced,
Management makes a determination by evaluating the nature of our promise to our customer as to whether it is a performance obligation to
provide the specified goods or services ourselves, in that we are the principal, or to arrange for those goods or services to be provided by the
other party, where we are the agent. See note 3.2.1 Technology Sourcing principal versus agent recognition for further information on the critical
judgement. We determine whether we are a principal or an agent for each specified good or service promised to the customer by evaluating
the nature of our promise to the customer against a non-exhaustive list of indicators that a performance obligation could involve an
agency relationship:

• evaluating who controls each specified good or service before that good or service is transferred to the customer;
• the vendor retains primary responsibility for fulfilling the sale;
• we take no inventory risk before or after the goods have been ordered, during shipping or on return;
• we do not have discretion to establish pricing for the vendor’s goods, limiting the benefit we can receive from the sale of those goods; and
• our consideration is in the form of a, usually predetermined, commission.

2.3.2 Professional Services
The Group provides skilled professionals to customers either operating within a project framework or on a ‘resource on demand’ basis.

For contracts operating within a project framework, revenue is recognised based on the transaction price with reference to the costs incurred as
a proportion of the total estimated costs (percentage of completion basis) of the contract.

For those contracts which are ‘resource on demand’, revenue is billed on a timesheet basis. The Group elects to use the practical expedient in IFRS
15.B16, as we have a right to consideration from our ‘resource on demand’ Professional Services customers in an amount that corresponds directly
with the value to our customer of the Group’s performance completed to date. The practical expedient applied permits the Group to recognise these
‘resource on demand’ Professional Services revenues in the amount to which the entity has a right to invoice. Professional Services revenue is
therefore recognised throughout the term of the contract, as services are delivered, with amounts recognised based on monthly invoiced amounts,
as this corresponds to the service delivered to the customer and the satisfaction of the Group’s performance obligations.

Under either basis, Professional Services revenue is recognised over time. The vast majority of the Group’s Professional Services revenue is
constituted by ‘expert-leasing’ arrangements and recognised in this manner and represents the primary area of growth in this business line.
As the majority of Professional Services revenue is recognised as ‘resource on demand’, the overall balance of risks to recognition for this
business is decreased as compared to the scenario where the majority of Professional Services revenue would be recognised on a percentage of
completion basis. This is due to the monthly timesheet nature of the billing which is agreed regularly with the customer as the service is delivered.

A provision for forecast excess costs over forecasted revenue is made as soon as a loss is foreseen (see note 2.12.1 for further detail).

Unbilled Professional Services revenue is classified as a contract asset and is included within accrued income in the Consolidated Balance Sheet.

Unearned Professional Services revenue is classified as a contract liability and is included within deferred income in the Consolidated Balance
Sheet. Payment for the Services, which are invoiced monthly, is generally on industry standard payment terms.

2.3.3 Managed Services
The Group sells maintenance, support and management of customers’ IT infrastructures and operations.

The specific performance obligations and invoicing conditions in our Managed Services contracts are typically related to the number of calls,
interventions or users that we manage and therefore the customer simultaneously receives and consumes the benefits of the services as
they are performed. The Group elects to use the practical expedient in IFRS 15.B16, as we have a right to consideration from our Managed
Services customers in an amount that corresponds directly with the value to our customer of the Group’s performance completed to date.
The practical expedient applied permits the Group to recognise Managed Services revenue in the amount to which the entity has a right to invoice.
Managed Services revenue is therefore recognised throughout the term of the contract, as services are delivered, with amounts recognised
based on monthly invoiced amounts, as this corresponds to the service delivered to the customer and the satisfaction of the Group’s
performance obligations.

147

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

2 Summary of significant accounting policies continued
Unbilled Managed Services revenue is classified as a contract asset and is included within accrued income in the Consolidated Balance Sheet.

Unearned Managed Services revenue is classified as a contract liability and is included within deferred income in the Consolidated Balance Sheet.

Amounts invoiced relating to more than one year are deferred and recognised over the relevant period. Payment for the services is generally on
industry standard payment terms.

If the total estimated costs and revenues of a contract cannot be reliably estimated, revenue is recognised only to the extent that costs have
been incurred and where the Group has an enforceable right to payment as work is being performed. A provision for forecast excess costs over
forecasted revenue is made as soon as a loss is foreseen (see note 2.12.1 for further detail). On occasion, the Group may have a limited number
of Managed Services contracts where revenue is recognised on a percentage of completion basis, which is determined by reference to the costs
incurred as a proportion of the total estimated costs of the contract.

Costs of obtaining and fulfilling revenue contracts
The Group operates in a highly competitive environment and is frequently involved in contract bids with multiple competitors, with the outcome
usually unknown until the contract is awarded and signed.

When accounting for costs associated with obtaining and fulfilling customer contracts, the Group first considers whether these costs fit within
a specific IFRS standard or policy. Any costs associated with obtaining or fulfilling revenue contracts which do not fall into the scope of other IFRS
standards or policies are considered under IFRS 15. All such costs are expensed as incurred other than the two types of costs noted below:

1. Win fees – The Group pays ‘win fees’ to certain employees as bonuses for successfully obtaining customer contracts. As these are incremental
costs of obtaining a customer contract, they are deferred along with any associated payroll tax expense to the extent they are expected to be
recovered. These balances are presented within prepayments in the Consolidated Balance Sheet. The win fee balance that will be realised after
more than 12 months is disclosed as non-current.

2. Fulfilment costs – The Group often incurs costs upfront relating to the initial set-up phase of an outsourcing contract, which the Group refers to
as Entry Into Service. These costs do not relate to a distinct performance obligation in the contract, but rather are accounted for as fulfilment
costs under IFRS 15 as they are directly related to the future performance on the contract. They are therefore capitalised to the extent that
they are expected to be recovered. These balances are presented within prepayments in the Consolidated Balance Sheet.

Both win fees and Entry Into Service costs are amortised on a straight-line basis over the contract term, as this is equivalent to the pattern of
transfer of services to the customer over the contract term. The amortisation charges on win fees and Entry Into Service costs are recognised in
the Consolidated Income Statement within administration expenses and cost of sales, respectively.

Any bid costs incurred by the Group’s Central Bid Management Engines are not capitalised or charged to the contract, but instead directly charged
to selling, general and administrative expenses as they are incurred. These costs associated with bids are not separately identifiable nor can they
be measured reliably as the Group’s internal bid teams work across multiple bids at any one time.

2.3.4 Finance income
Income is recognised as interest accrues.

2.4 Exceptional items
The Group presents those material items of income and expense as exceptional items which, because of the nature and expected infrequency
of the events giving rise to them, merit separate presentation to allow shareholders to understand the elements of financial performance in the
year, so as to facilitate comparison with prior years and to assess trends in financial performance.

2.5 Adjusted1 measures
The Group uses a number of non-Generally Accepted Accounting Practice (non-GAAP) financial measures in addition to those reported in
accordance with IFRS. The Directors believe that these non-GAAP measures, set out below, assist in providing additional useful information on the
underlying trends, performance and position of the Group. The non-GAAP measures are also used to enhance the comparability of information
between reporting periods by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid the user in understanding
the Group’s performance.

Consequently, non-GAAP measures are used by the Directors and Management for performance analysis, planning, reporting and incentive
setting purposes and have remained consistent with the prior year.

These non-GAAP measures comprise: adjusted administrative expenses, adjusted operating profit or loss, adjusted profit or loss before tax,
adjusted tax, adjusted profit or loss for the year, adjusted earnings per share and adjusted diluted earnings per share. They are, as appropriate,
each stated before: exceptional and other adjusting items including gain or loss on business disposals, gain or loss on disposal of investment
properties, expenses related to material acquisitions, 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, as 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 71 of the Group Finance Director’s review which details the impact of exceptional and
other adjusting items when comparing to the non-GAAP financial measures, in addition to those reported in accordance with IFRS. Further detail
is also provided within note 4, Segment information.

148

2.6 Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when
annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. Where an asset does not
have independent cash flows, the recoverable amount is assessed for the cash-generating unit (CGU) to which it belongs. These assets are tested
across an aggregation of CGUs that utilise the asset. The recoverable amount is the higher of the fair value less costs to sell and the value-in-use
of the asset or CGU. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down
to its recoverable amount. In assessing value-in-use, the estimated future cash flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of
continuing operations are recognised in the Consolidated Income Statement in those expense categories consistent with the function of the
impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable
amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s
recoverable amount since the last impairment was recognised. The reversal is limited so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years. As the Group has no assets carried at revalued amounts, such reversal is recognised in the
Consolidated Income Statement.

2.7 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation, down to residual value, is calculated on a straight-line basis over the estimated useful life of the asset as follows:

• freehold buildings: 25-50 years
• short leasehold improvements: shorter of seven years and period to expiry of lease
• fixtures and fittings:

– head office: 5-15 years
– other: shorter of seven years and period to expiry of lease

• office machinery and computer hardware: 2-15 years
• motor vehicles: three years

Freehold land is not depreciated. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the item) is included in the Consolidated Income Statement in the year the
item is derecognised.

2.8 Leases
2.8.1 Group as lessee
Recognition of a lease
The contracts are assessed by the Group, to determine whether a contract is, or contains a lease. In general, arrangements are a lease when all
of the following apply:

• it conveys the right to control the use of an identified asset for a certain period, in exchange for consideration;
• the Group obtains substantially all economic benefits from the use of the asset; and
• the Group can direct the use of the identified asset.

The Group elects to separate the non-lease components.

Measurement of a right-of-use asset and lease liability
Right-of-use asset
The Group measures the right-of-use asset at cost, which includes the following:

• the initial amount of the lease liability, adjusted for any lease payments made at or before the lease commencement date;
• any lease incentives received; and
• any initial direct costs incurred by the Group as well as an estimate of costs to be incurred by the Group in dismantling and removing the

underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the lease contract.
Cost for dismantling, removing or restoring the site on which it is located and/or the underlying asset is only recognised when the Group incurs
an obligation to do so.

The right-of-use asset is depreciated over the lease term, using the straight-line method.
Lease liability
The lease liability is initially measured at the present value of the unpaid lease payments, discounted using the interest rate implicit in the lease,
or if the rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments included in the measurement comprise fixed
payments, variable lease payments that depend on an index or a rate, amounts to be paid under a residual value guarantee and lease payments
in an optional renewal period, if the Group is reasonably certain to exercise an extension option, as well as penalties for early termination of a
lease, if the Group is reasonably certain to terminate early. If there is a purchase option present, this will be included if the Group is reasonably
certain to exercise the option.

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For the year ended 31 December 2021

2 Summary of significant accounting policies continued
Leases of low-value assets and short term
Leases of low-value assets (<£5,000) and short term with a term of 12 months or less are not required to be recognised on the Consolidated
Balance Sheet and payments made in relation to these leases are recognised on a straight-line basis in the Consolidated Income Statement.

2.8.2 Group as a lessor
The Group entered in to lease agreements as a lessor on certain items of machinery and software. Leases for which the Group is a lessor are
classified as operating leases. Rental income arising from operating leases is accounted for on a straight-line basis over the lease term.

In cases where the Group acts as an intermediate lessor, it accounts for its interests in the head-lease and the sub-lease separately.

2.9 Intangible assets
2.9.1 Software and software licences
Software and software licences include computer software that is not integral to a related item of hardware. These assets are stated at cost less
accumulated amortisation and any impairment in value. Amortisation is calculated on a straight-line basis over the estimated useful life of the
asset. Currently software is amortised over four years.

The carrying values of software and software licences are reviewed for impairment when events or changes in circumstances indicate that the
carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount,
the assets are written down to their recoverable amount.

2.9.2 Software under development
Costs that are incurred and that can be specifically attributed to the development phase of management information systems for internal use
are capitalised and amortised over their useful life, once the asset becomes available for use.

2.9.3 Other intangible assets
Intangible assets acquired as part of a business combination are carried initially at fair value. Following initial recognition intangible assets are
carried at cost less accumulated amortisation and any impairment in value. Intangible assets with a finite life have no residual value and are
amortised on a straight-line basis over their expected useful lives, with charges included in administrative expenses as follows:

• order back log: within three months
• existing customer relationships: 10-15 years
• tools and technology: seven years.

The carrying value of intangible assets is reviewed for impairment whenever events or changes in circumstances indicate the carrying value may
not be recoverable and expected useful lives are reviewed on a yearly basis.

2.9.4 Goodwill
Business combinations are accounted for under IFRS 3 Business Combinations using the acquisition method. Any excess of the cost of the
business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised in
the Consolidated Balance Sheet as goodwill and is not amortised. Any goodwill arising on the acquisition of equity accounted entities is included
within the cost of those entities.

After initial recognition, goodwill is stated at cost less any accumulated impairment losses, with the carrying value being reviewed for impairment
at least annually and whenever events or changes in circumstances indicate that the carrying value may be impaired.

For the purpose of impairment testing, goodwill is allocated to the related CGU monitored by Management, usually at business Segment level
or statutory Company level as the case may be. Where the recoverable amount of the CGU is less than its carrying amount, including goodwill,
an impairment loss is recognised in the Consolidated Income Statement.

2.10 Inventories
Inventories are carried at the lower of weighted average cost and net realisable value after making allowance for any obsolete or slow-moving
items. Costs include those incurred in bringing each product to its present location and condition, on a first-in, first-out basis.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.
2.11 Financial assets
Financial assets are recognised at their fair value, which initially equates to the sum of the consideration given and the directly attributable
transaction costs associated with the investment. Subsequently, the financial assets are measured at either amortised cost or fair value,
depending on their classification under IFRS 9. The Group currently holds only debt instruments. The classification of these debt instruments
depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows.

2.11.1 Trade and other receivables
Trade receivables, which generally have 30 to 90-day credit terms, are initially recognised and carried at their original invoice amount less an
allowance for any uncollectable amounts. The business model for trade receivables is that they are held for the collection of contractual cash
flows, therefore they are subsequently measured at amortised cost. The trade receivables are derecognised on receipt of cash from the
customer. The Group sometimes uses debt factoring, without recourse, to manage liquidity and, as a result, the business model for factored trade
receivables is that they are not held for the collection of contractual cash flows. As a result, subsequent to initial recognition, they are measured
at fair value through other comprehensive income (except for the recognition of impairment gains and losses and foreign exchange gains
and losses, which are recognised in profit or loss). Factored trade receivables are derecognised on receipt of cash from the factoring party.

150

Given the short lives of the trade receivables, there are generally no material fair value movements between initial recognition and the
derecognition of the receivable.

The Group assesses for doubtful debts (impairment) using the expected credit losses model as required by IFRS 9. For trade receivables, the
Group applies the simplified approach, which requires expected lifetime losses to be recognised from the initial recognition of the receivables.
Material or high-risk balances are reviewed and provided for individually based on a number of factors including:

• the financial strength of the customer;
• the level of default that the Group has suffered in the past;
• the age of the receivable outstanding; and
• the Group’s trading experience with that customer.

For impairment assessment of other receivables, refer to note 2.6, Impairment of assets, which details the impairment approach adopted where
an asset considered to be impaired would be written down to its recoverable amount which, given the nature of the assets, would most likely be
its fair value less costs to sell.

2.11.2 Cash and cash equivalents
Cash and short-term deposits in the Consolidated Balance Sheet comprise cash at bank and in hand, and short-term deposits with an original
maturity of three months or less. Cash is held for the collection of contractual cash flows which are solely payments of principal and interest and
therefore is measured at amortised cost subsequent to initial recognition.

For the purpose of the Consolidated Cash Flow Statement, cash and cash equivalents consist of cash and short-term deposits as defined above,
net of outstanding bank overdrafts, where the overdrafts are repayable on demand and are part of the Group’s cash management.

2.12 Financial liabilities
Financial liabilities are initially recognised at their fair value and, in the case of loans and borrowings (including credit facility), net of directly
attributable transaction costs.

The subsequent measurement of financial liabilities is at amortised cost, unless otherwise described below:

2.12.1 Provisions (excluding restructuring provision)
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is
used, the increase in the provision due to the passage of time is recognised as a borrowing cost.
Customer contract provisions
A provision for forecast excess costs over forecasted revenue is made as soon as a loss is foreseen.

Management monitors continually the financial performance of contracts, and where there are indicators that a contract could result in a
negative margin, the future financial performance of that contract will be reviewed in detail. If, after further financial analysis, the full financial
consequence of the contract can be reliably estimated, and it is determined that the contract is potentially loss-making, then the best estimate
of the losses expected to be incurred until the end of the contract will be provided for.

The Group applies IAS 37 – ‘Provisions, Contingent Liabilities and Contingent Assets‘ (IAS 37) in its assessment of whether contracts are considered
onerous and in subsequently estimating the provision. In line with recent amendments to IAS 37, the Group’s approach has been and continues to
be to apply the ‘Full cost approach’ which considers total estimated costs (i.e. directly attributable variable costs and fixed allocated costs) as
included in the assessment of whether the contract is onerous or not and in the measurement of the provision.

2.12.2 Restructuring provisions
The Group recognises a ‘restructuring’ provision when there is a programme planned and controlled by Management that changes materially the
scope of the business or the manner in which it is conducted.

Further to the Group’s general provision recognition policy, a restructuring provision is only considered when the Group has a detailed formal plan
for the restructuring identifying, as a minimum: the business or part of the business concerned; the principal locations affected; the location,
function and approximate number of employees who will be compensated for terminating their services; the expenditures that will be undertaken;
and when the plan will be implemented. The Group will only recognise a specific restructuring provision once those affected have a valid expectation
that the Group will carry out the restructuring created by either the commencement of the restructuring implementation plan or the
announcement of its main features to those affected by it.

The Group only includes incremental costs associated directly with the restructuring within the restructuring provisions, such as employee
termination benefits and consulting fees. The Group specifically excludes from recognition in a restructuring provision any costs associated with
ongoing activities such as the costs of training or relocating staff that are redeployed within the business and costs for employees who continue
to be employed in ongoing operations, regardless of the status of these operations post-restructure.
2.12.3 Pensions and other post-employment benefits
The Group operates a defined contribution pension scheme available to all UK employees and similar schemes are operating, as appropriate for
the jurisdiction, for North America and Germany. Contributions are recognised as an expense in the Consolidated Income Statement as they
become payable in accordance with the rules of the scheme. There are no material pension schemes within the Group’s overseas operations.

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Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

2 Summary of significant accounting policies continued
The Group has an obligation to make a one-off payment to French employees upon retirement, the Indemnités de Fin de Carrière (IFC).

French employment law requires that a company pays employees a one-time contribution when, and only when, the employee leaves the
company on retirement at the mandatory age. This is a legal requirement for all businesses who incur the obligation upon departure, due to
retirement, of an employee.

Typically, the retirement benefit is based on length of service of the employee and his or her salary at retirement. The amount is set via a legal
minimum, but the retirement premiums can be improved by the collective agreement or employment contract in some cases. In Computacenter
France, the payment is based on accrued service and ranges from one month of salary after five years of service to 9.4 months of salary after
47 years of service.

If the employee leaves voluntarily at any point before retirement, all liability is extinguished, and any accrued service is not transferred to any
new employment.

Management continues to account for this obligation according to IAS 19 (revised). Refer to note 33 for further disclosure.

2.13 Derecognition of financial assets and liabilities
2.13.1 Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised where:

• the rights to receive cash flows from the asset have expired; or
• the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to

a third party under a ‘pass-through’ arrangement; or

• the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards
of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of
the asset.

2.13.2 Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired.
2.14 Derivative financial instruments and hedge accounting
The Group uses foreign currency forward contracts to hedge its foreign currency risks associated with foreign currency fluctuations affecting
cash flows from forecast transactions and unrecognised firm commitments.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply
hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of both
the hedging instrument and the hedged item or transaction and then the economic relationship between the two, including whether the hedging
instrument is expected to offset changes in cash flow of the hedged item. Such hedges are expected to be highly effective in achieving offsetting
changes in cash flows. The Group designates the full change in the fair value of the forward contract (including forward points) as the hedging
instrument. Forward contracts are initially recognised at fair value on the date that the contract is entered into and are subsequently remeasured at
fair value at each reporting date. The fair value of forward currency contracts is calculated by reference to current forward exchange rates for
contracts with similar maturity profiles. Forward contracts are recorded as assets when the fair value is positive and as liabilities when the fair
value is negative.

For the purposes of hedge accounting, hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows that is
either attributable to a particular risk associated with a recognised asset or liability, a highly probable forecast transaction, or the foreign
currency risk in an unrecognised firm commitment.

Cash flow hedges that meet the criteria for hedge accounting are accounted for as follows: the effective portion of the gain or loss on the hedging
instrument is recognised directly in other comprehensive income in the cash flow hedge reserve, while any ineffective portion is recognised
immediately in the Consolidated Income Statement in administrative expenses.

Amounts recognised within the Consolidated Statement of Comprehensive Income are transferred to the Consolidated Income Statement, within
administrative expenses, when the hedged transaction affects the Consolidated Income Statement, such as when the hedged financial expense
is recognised.

If the forecast transaction or firm commitment is no longer expected to occur, the cumulative gain or loss previously recognised in equity is
transferred to the Consolidated Income Statement within administrative expenses. If the hedging instrument matures or is sold, terminated or
exercised without replacement or rollover, any cumulative gain or loss previously recognised within the Consolidated Statement of Comprehensive
Income remains within the Consolidated Statement of Comprehensive Income until after the forecast transaction or firm commitment affects
the Consolidated Income Statement.

Any other gains or losses arising from changes in fair value on forward contracts are taken directly to administrative expenses in the
Consolidated Income Statement.

2.15 Taxation
2.15.1 Current tax
Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the
tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the
balance sheet date.

152

2.15.2 Deferred income tax
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts
in the Consolidated Financial Statements, with the following exceptions:

• where the temporary difference arises from the initial recognition of goodwill or from an asset or liability in a transaction that is not a business

combination that at the time of the transaction affects neither accounting nor taxable profit or loss;

• in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, where the timing of the
reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable
future; and

• deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available in the future against which

the deductible temporary differences, carried forward tax credits or tax losses can be utilised.

Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related
asset is realised or liability is settled, based on tax rates and laws enacted, or substantively enacted, at the balance sheet date.

Income tax is charged or credited directly to the Consolidated Statement of Comprehensive Income if it relates to items that are credited or
charged to the Consolidated Statement of Comprehensive Income. Otherwise, income tax is recognised in the Consolidated Income Statement.

2.16 Share-based payment transactions
Employees (including Executive Directors) of the Group can receive remuneration in the form of share-based payment transactions, whereby
employees render services in exchange for shares or rights over shares (equity-settled transactions).

The cost of equity-settled transactions with employees is measured by reference to the fair value of the award at the date at which they are
granted. The fair value is determined by utilising an appropriate valuation model, further details of which are given in note 30. In valuing equity-
settled transactions, no account is taken of any performance conditions, as none of the conditions set are market-related.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance
and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting date).

The cumulative expense recognised for equity-settled transactions at each reporting date, until the vesting date, reflects the extent to which
the vesting period has expired and the Directors’ best estimate of the number of equity instruments that will ultimately vest. The Consolidated
Income Statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of
that period. As the schemes do not include any market-related performance conditions, no expense is recognised for awards that do not
ultimately vest.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings per share (see note 13).

The Group has an employee share trust for the granting of non-transferable options to Executive Directors and senior Management. Shares in
the Group held by the employee share trust are treated as investment in own shares and are recorded at cost as a deduction from equity
(see note 29).

2.17 Own shares held
Computacenter plc shares held by the Group 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 reserves. No gain or loss is recognised in the performance statements on the purchase, sale, issue or cancellation of equity shares.

2.18 Fair value measurement
The Group measures certain financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Fair value-related disclosures for financial instruments that are measured at fair value or where fair values are disclosed, are summarised
in note 27.
2.19 IAS 20 – Accounting for government grants and disclosure of government assistance
IAS 20 defines government grants as assistance by government in the form of transfers of resources to an entity, in return for past or future
compliance with certain conditions relating to the operating activities of the entity. If the conditions are met, then a company recognises
government grants in profit or loss within administration expenses, in line with its recognition of the expenses that the grants are intended
to compensate.

The Group has recognised unconditional government grants relating to short-term schemes introduced by governments within Europe and the
United States as a result of Covid-19 crisis for the purpose of protecting employment. These grants compensate the Group for expenses incurred
and are recognised in the Consolidated Income Statement on a systematic basis in the periods in which the expenses are recognised.

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Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

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 an area of accounting to be no longer a critical estimate or judgement, an explanation
for this decision is found in note 3.3 to the Consolidated Financial Statements.

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. There 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 Technology Sourcing principal versus agent recognition
Management is required to exercise its judgement in the classification of certain revenue contracts for Technology Sourcing revenue recognition
on either an agent or principal basis.

Because the identification of the principal in a contract is not always clear, Management will make a determination by evaluating the nature of our
promise to our customer as to whether it is a performance obligation to pass control of the specified goods or services ourselves, in that we are
the principal, or to arrange for those goods or services to be provided by the other party, where we are the agent. We determine whether we are
a principal or an agent for each specified good or service promised to the customer by evaluating the nature of our promise to the customer
against a non-exhaustive list of indicators that a performance obligation could involve an agency relationship:

Management continues to monitor the primary indicators used to assess the ‘agent/principal’ presentation of our Software and certain Resold
Services revenue against our general contractual terms and conditions including, detailed analysis of how terms and conditions are applied in
practice, the weighting applied to the agent/principal indicators and evaluation of emerging practice. Management has concluded that whilst this
remains a finely balanced judgement, no change to the presentation of our Software and certain Resold Services revenues is currently required
and revenue for these items will continue to be presented gross where the underlying facts and circumstances remain the same. Management
continues to monitor the development of new methods of transacting business within the traditional vendor to reseller channel and the
emergence of best practice in the revenue recognition treatment and disclosure of all Technology Sourcing revenues.

Since the adoption of IFRS 15 on 1 January 2018, a line of business emerged within our Technology Sourcing business where vendors and
customers typically approach us with an opportunity where the vendor is taking the contract and performance risks and sets the selling price,
using Computacenter as a pass-through agent in the channel to transact the deal for a set fee. To date, these have been primarily large software
deals where there is no ongoing obligation of service on us following the transaction. We have no say in the pricing or selection of the product and
are merely standing in the sales channel between the vendor and customer for the predetermined fee. Management reviews the facts and
circumstances of these types of deals, case by case, with regards to its specific terms and conditions against the Group’s accounting policy to
determine whether our performance obligation is to provide the good or service itself, where we are acting as the principal in the deal, or to
arrange for another party to provide the good or service, where we are acting as an agent. Based on the facts and circumstances of each deal we
have classified several of these deals as agency, concluding that the fee received should be booked as net revenue. Such agency deals would have
increased revenue by £197.7 million during 2021 if recognised on a principal basis (2020: £273.7 million).

Following its meeting that concluded on 1 December 2021, the IFRS Interpretation Committee (the ‘Committee’) published a tentative 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).

The Committee did not reach a definitive conclusion on the submission received, as it maintained that an entity should apply judgement in making
its assessment under the principles contained within IFRS 15, using the specific facts and circumstances relevant to the entity and the
transactions or contracts entered into. However, the Committee did provide a number of discrete guidance points on the application of various
control criteria or indicators that entities should consider under their IFRS 15 agent and principal recognition criteria processes that specifically
relate to the resale of standard software and have an impact on those resellers within the industry. A finalised agenda decision is not expected
until the second quarter of 2022, following the consideration of public comments which closed on 8 February 2022.

154

The Group typically recognises standalone software licence revenue on a principal or gross invoiced income basis, with a small number of
material transactions, where the fact pattern remains different to the standard terms and conditions, recognised as an agent. Whilst the
Committee is finalising its decision, the Group is working towards assessing changes to its accounting policies that will result if the final agenda
decision remains broadly characteristic of the tentative decision. The resultant change in policies would reflect that standalone revenue from
standard software sales (software) would be recognised on an agency or ‘net’ basis where the margin earned on the contract would be
recognised as revenue with zero cost of goods sold. Other software revenues, particularly where the Group has performed configuration or
customisation services, as part of the software sales agreement, would most likely continue to be recognised on a principal basis. Similarly,
the Group has determined that third-party services agreements resold on a standalone basis (resold services), such as vendor-provided
maintenance support agreements, would also be changed to be recognised on an agent basis due to the similar fact pattern of the transaction
to that of software sales.

Such a change in policy would be accompanied by a programme of system enhancements required to be able to accurately report on the new
basis. These changes, as required, will be allowed sufficient time to be appropriately implemented in order that the reporting under the new basis
is as accurate as possible.

The Group’s current best estimate, without doing a detailed retrospective contract by contract review, is that the proposed potential changes in
policy would have the following impact on the Group’s Financial Statements:

• Revenue and cost of sales would decrease by the value of revenue assessed as being recognised on an agency basis. Whilst the work is not yet
complete to determine the value for 2021, the total value of the revenue categories under consideration for the change in policy is estimated to
be up to £1,800 million in 2021. We estimate that the majority of that revenue in those categories will be derecognised, leaving only the margins
earned on the transactions to be recognised as revenue.

• Gross profit, operating profit, and profit before and after taxes will be unchanged.

These estimates are preliminary and subject to further Management review. However, they provide an order of magnitude to assess the future
impact on reported revenues. These estimates are for the total amount in these software and resold services revenue categories as measured
on a principal basis and include elements that may, following Management review, continue to be recognised on a principal or gross basis.
The Group will continue to report, as an alternative performance measure, all revenue recognised on a principal basis as Gross Invoiced Income,
to allow the reader of the accounts to more accurately determine the linkage between revenue and cash flows.

3.2.2 Bill and hold
The Group generates some of its revenue through its ‘bill and hold’ arrangement with its customers. This arises 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 the
bill and hold arrangements, the following criteria must be 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 entity 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.

£281.9 million of product sold is ‘held’ by the Group for ‘bill and hold’ transactions as at 31 December 2021 (2020: £231.3 million).

3.3 Change in critical estimates and critical judgements
During the year, Management reassessed the critical estimates and critical judgements.

Accounting for business combinations and valuation of intangibles is no longer considered a critical estimate by Management and has therefore
been removed from the above disclosure, as there were no material acquisitions during the current year.

Percentage of completion Services revenue recognition is no longer considered a critical estimate by Management and has therefore been
removed from the above disclosure. The number of contracts accounted for on this basis is reducing and forms a small part of our overall
contract base and Services revenues. Therefore, it is no longer a major source of estimation uncertainty that has a significant risk of resulting
in a material adjustment within the next financial year.

Exceptional items is no longer considered a critical judgement by Management and has therefore been removed from the above disclosure,
as no exceptional items occurred during the current year.

Technology Sourcing principal versus agent recognition has been added as a critical judgement during the year, as noted above at 3.2.1.

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Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

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 operating Segments remain unchanged from those reported at 31 December 2020.

The Segmental reporting structure is the basis on which internal reports are provided to the Chief Executive Officer, as the CODM, for assessing
performance and determining the allocation of resources within the Group, in accordance with IFRS 8.25. Segmental performance is measured
based on external revenues, gross profit, adjusted1 operating profit and adjusted1 profit before tax. As noted on page 74, Central Corporate Costs
continue to be disclosed as a separate column within the Segmental note.

Segmental performance for the years ended 31 December 2021 and 31 December 2020 were as follows:

Total
£m

5,472.6
(197.7)
5,274.9

552.4
898.5
1,450.9
6,725.8

867.8
(605.0)
262.8
(7.2)
255.6
(7.6)
248.0

Total
£m
262.8
(7.6)
255.2

Year ended 31 December 2021

Revenue
Technology Sourcing revenue
Gross invoiced income
Principal element on agency contracts
Total Technology Sourcing revenue
Services revenue
Professional Services
Managed Services
Total Services revenue
Total revenue

Results
Gross profit
Adjusted1 administrative expenses
Adjusted1 operating profit/(loss)
Net interest
Adjusted1 profit/(loss) before tax
Amortisation of acquired intangibles
Profit before tax

UK
£m

Germany
£m

France
£m

North
America
£m

International
£m

Central
Corporate
Costs
£m

1,581.5
(115.1)
1,466.4

154.6
327.6
482.2
1,948.6

268.2
(165.3)
102.9
–
102.9

1,427.7
(28.9)
1,398.8

273.8
348.6
622.4
2,021.2

312.0
(174.2)
137.8
(2.7)
135.1

481.4
–
481.4

38.0
134.0
172.0
653.4

68.1
(64.6)
3.5
(0.8)
2.7

1,869.2
(53.7)
1,815.5

77.5
18.6
96.1
1,911.6

180.2
(149.2)
31.0
(2.7)
28.3

112.8
–
112.8

8.5
69.7
78.2
191.0

39.3
(28.0)
11.3
(1.0)
10.3

–
–
–

–
–
–
–

–
(23.7)
(23.7)
–
(23.7)

The reconciliation of adjusted1 operating profit to operating profit as disclosed in the Consolidated Income Statement is as follows:

Year ended 31 December 2021

Adjusted1 operating profit
Amortisation of acquired intangibles
Operating profit

156

Germany
£m

France
£m

North
America
£m

International
£m

Central
Corporate
Costs
£m

37.7
77.2
16.5

4.4
52.3
0.2

6.2
31.7
0.6

2.1

5.3
17.4
10.2

2.1
8.0
0.1

3.1
4.4
0.1

0.3

9.2
15.0
191.4

3.6
4.1
4.6

2.9
4.8
1.2

0.7

7.4
16.0
11.0

3.5
2.8
0.5

2.3
6.5
0.2

0.1

–
–
–

–

UK
£m

30.4
12.5
44.6

5.2
3.0
6.1

10.3
3.2
5.6

7.4

UK
£m

Germany
£m

France
£m

North
America
£m

International
£m

Central
Corporate
Costs
£m

1,504.4
(176.4)
1,328.0

129.1
316.3
445.4
1,773.4

249.2
(158.9)
90.3
(1.1)
89.2

1,316.2
(18.7)
1,297.5

233.8
345.0
578.8
1,876.3

279.9
(167.3)
112.6
(2.2)
110.4

526.4
–
526.4

35.7
110.7
146.4
672.8

74.4
(61.4)
13.0
(0.6)
12.4

996.3
(78.6)
917.7

19.6
7.2
26.8
944.5

86.3
(72.3)
14.0
(0.9)
13.1

110.5
–
110.5

7.2
56.6
63.8
174.3

30.7
(27.1)
3.6
(1.1)
2.5

–
–
–

–
–
–
–

–
(27.1)
(27.1)
–
(27.1)

Year ended 31 December 2021

Other Segment information
Property, plant and equipment
Right-of-use assets
Intangible assets

Capital expenditure:
Property, plant and equipment
Right-of-use assets
Software

Depreciation of property, plant and
equipment
Depreciation of right-of-use assets
Amortisation of software

Share-based payments

Year ended 31 December 2020

Results
Gross profit
Adjusted1 administrative expenses
Adjusted1 operating profit/(loss)
Net interest
Adjusted1 profit/(loss) before tax
Exceptional items:
– costs relating to acquisition of a subsidiary
– redundancy and other restructuring credit
– gain on acquisition of a subsidiary
Total exceptional items
Amortisation of acquired intangibles
Profit before tax

Total
£m

90.0
138.1
273.7

18.8
70.2
11.5

24.8
50.6
7.7

10.6

Total
£m

4,453.8
(273.7)
4,180.1

425.4
835.8
1,261.2
5,441.3

720.5
(514.1)
206.4
(5.9)
200.5

(0.7)
0.2
14.0
13.5
(7.4)
206.6

157

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

4 Segment information continued
The reconciliation of adjusted1 operating profit to operating profit as disclosed in the Consolidated Income Statement is as follows:

Year ended 31 December 2020

Adjusted1 operating profit
Amortisation of acquired intangibles
Exceptional items
Operating profit

Other Segment information
Property, plant and equipment
Right-of-use assets
Intangible assets

Capital expenditure:
Property, plant and equipment
Right-of-use assets
Software

Depreciation of property, plant and
equipment
Depreciation of right-of-use assets
Amortisation of software

Share-based payments

Germany
£m

France
£m

North
America
£m

International
£m

Central
Corporate
Costs
£m

42.6
61.5
17.1

5.9
16.7
0.4

6.6
29.5
0.9

1.7

8.0
18.8
1.9

2.9
10.5
–

2.2
4.2
–

0.2

9.0
15.5
192.5

4.5
–
–

1.5
2.2
0.1

0.5

6.5
21.0
11.6

1.4
17.6
0.3

2.6
4.7
0.4

–

–
–
–

–

UK
£m

40.9
12.8
51.6

8.4
3.8
3.7

11.1
4.6
5.8

5.5

Total
£m
206.4
(7.4)
(0.5)
198.5

Total
£m

107.0
129.6
274.7

23.1
48.6
4.4

24.0
45.2
7.2

7.9

Charges for the amortisation of acquired intangibles (where initial recognition was an exceptional item or a fair value adjustment on acquisition)
are excluded from the calculation of adjusted1 operating profit. This is because these charges are based on judgements about their value and
economic life, are the result of the application of acquisition accounting rather than core operations, and whilst revenue recognised in the
Consolidated Income Statement does benefit from the underlying asset that has been acquired, the amortisation costs bear no 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.

Information about major customers
Included in revenues arising from the UK Segment are revenues of approximately £651.7 million (2020: £556.3 million) which arose from sales to
the Group’s largest customer. For the purpose of this disclosure, a single customer is considered to be a group of entities known to be under
common control. This customer consists of entities under control of the UK Government.

158

5 Revenue
Revenue recognised in the Consolidated Income Statement is analysed as follows:

Revenue by type
Gross invoiced income
Principal element on agency contracts
Technology Sourcing revenue
Services revenue
Professional Services
Managed Services
Total Services revenue
Total revenue

2021
£m

2020
£m

5,472.6
(197.7)
5,274.9

552.4
898.5
1,450.9
6,725.8

4,453.8
(273.7)
4,180.1

425.4
835.8
1,261.2
5,441.3

Contract balances
The following table provides the information about contract assets and contract liabilities from contracts with customers.

Trade receivables
Contract assets, which are included in prepayments
Contract assets, which are included in accrued income
Contract liabilities, which are included in deferred income

Note
20

31 December
2021
£m
1,239.8
20.2
148.1
257.6

31 December
2020
£m
1,065.1
27.7
125.4
292.5

The prepayments balance within the Consolidated Balance Sheet of £119.6 million consists of £20.2 million contract assets and £99.4 million
other prepayments.

The Group has implemented an expected credit loss impairment model with respect to contract assets using the simplified approach. Contract
assets have been grouped on the basis of their shared risk characteristics and a provision matrix has been developed and applied to these
balances to generate the loss allowance. The majority of these contract asset balances are with blue chip customers and the incidence of credit
loss is low. There has therefore been no material adjustment to the loss allowance under IFRS 9. Specific provisions are made against material
or high-risk balances based on trading experience or where doubt exists about the counterparty’s ability to pay. The expected credit losses on
contract assets which are within prepayments and accrued income are considered to be immaterial.

Significant changes in contract assets and liabilities
Contract assets are balances due from customers under long-term contracts as work is performed and therefore a contract asset is recognised
over the period in which the performance obligation is fulfilled. This represents the Group’s right to consideration for the services transferred to
date. Amounts are generally reclassified to trade and other receivables when these have been certified or invoiced to a customer. Refer to
note 2.11.1 for credit terms of trade receivables.

Increase in trade receivables mainly in the UK, Germany and North America segments is driven by growth in revenue, as the Group experienced
a particularly strong fourth quarter of the year.

Win fees, deferred contract costs and fulfilment costs are included in the prepayments balance above. The Consolidated Income Statement
impact of the win fees was a recognition of a net income in 2021 of £0.6 million, with a corresponding cost to tax of £0.1 million for the year. As at
31 December 2021, the win fee balance was £8.9 million. The Consolidated Income Statement impact of fulfilment costs was a recognition of a net
income in 2021 of £2.8 million, with a corresponding tax of charge of £1.0 million for the year.

As at 31 December 2021, the fulfilment costs balance was £9.3 million. No impairment loss was recorded for win fees or fulfilment costs during
the year.

Revenue was accrued in the reporting period amounting to £28.7 million, with a credit to foreign exchange of £6.0 million. No impairment loss was
recorded for accrued income during the year.

Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period was £161.4 million.
Revenue recognised in the reporting period from performance obligations satisfied or partially satisfied in previous periods was nil. Partially
satisfied performance obligations continue to incur revenue and costs in the period.

Remaining performance obligations (Work in hand)
Contracts which have remaining performance obligations as at 31 December 2021 and 31 December 2020 are set out in the table below. The table
below discloses the aggregate transaction price relating to those unsatisfied or partially unsatisfied performance obligations, excluding both
(a) amounts relating to contracts for which revenue is recognised as invoiced and (b) amounts relating to contracts where the expected duration
of the ongoing performance obligation is one year or less.

159

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

5 Revenue continued
Managed Services

As at 31 December 2021
As at 31 December 2020

Less than
one year
£m
720.4
540.0

One to
two years
£m
466.4
343.0

Two to
three years
£m
315.8
211.0

Three to
four years
£m
209.0
170.0

Four years
and beyond
£m
226.7
93.0

Total
£m
1,938.3
1,357.0

The average duration of contracts is between one and five years. However some contracts will vary from these typical lengths. Revenue is
typically earned over these varying timeframes. However more of the revenue noted above is expected to be earned in the short term.

6 Group operating profit
This is stated after charging/(crediting):

Depreciation of property, plant and equipment
Depreciation of right-of-use assets
(Gain)/loss on disposal of property, plant and equipment
Amortisation of software
Loss on disposal of intangibles
Amortisation of acquired intangible assets
Severance costs
One-off employee EPS target bonus*
Government grants
Gain on net foreign currency differences

2021
£m
24.8
50.6
(1.3)
7.7
0.5
7.6
9.6
–
(1.1)
0.3

2020
£m
24.0
45.2
0.2
7.2
0.3
7.4
13.1
5.2
(6.4)
0.4

Costs of inventories recognised as an expense

4,514.7

3,742.6

The Company decided to mark the achievement of its long-held ambition to exceed £1 of adjusted1 diluted earnings per share with a one-off employee bonus. The bonus was given
to circa 80 per cent of employees globally. Senior managers and those with commission-based rewards were excluded, with the focus on those longest serving. For those eligible,
the award was £200 or equivalent for an employee who had completed their first year of service, rising to £500 for those with more than seven years of service.

The rental income is included in Administrative expenses.

7 Auditor’s remuneration

Auditor’s remuneration:
– Audit of the Financial Statements
– Audit of subsidiaries
Total audit fees

Audit-related assurance services including the review of the Interim Report and Accounts
Taxation compliance services
Total non-audit services
Total fees

2021
£m

2020
£m

0.1
1.7
1.8

0.1
0.1
0.2
2.0

0.2
1.1
1.3

0.1
0.1
0.2
1.5

Audit-related assurance services represent the half year review and assurance over tax, both performed by the Group’s auditor KPMG LLP.

The Pivot audit for the year ended 31 December 2021 was performed by EY Canada for a fee of £0.5 million (2020: £0.1 million).

Certain taxation compliance services and other non-audit services in 2021 were provided by EY, auditor of a North American subsidiary.

160

8 Exceptional items

Operating profit
Costs relating to acquisition of a subsidiary
Gain on release of French Social Plan provision
Gain on acquisition of subsidiary
Exceptional operating profit

Income tax
Tax credit relating to acquisition of a subsidiary
Profit on exceptional items after taxation

2021
£m

–
–
–
–

–
–

2020
£m

(0.7)
0.2
14.0
13.5

0.7
14.2

2020: Included within the prior year are the following exceptional items:

• An exceptional cost of £0.7 million resulted from the acquisition of Pivot and primarily related to fees paid to the Company’s advisors.

This cost is non-operational, unlikely to recur and consistent with our prior-year treatment of acquisition costs on material transactions as
exceptional items.

• A credit of £0.2 million arising on an expense previously put in exceptional costs within the financial statements of 2016, in relation to the 2014

French Social plan.

• The acquisition of BT Services France resulted in an exceptional gain of £14.0 million, which was recognised on consolidation of the subsidiary.

The gain arose because the net assets acquired for consideration of €1 totalled £14.0 million after fair value adjustments, including
£27.6 million of cash. The business acquired comprised BT’s domestic French services operations which, on acquisition, were making
considerable losses on a stand-alone basis. The Company considers that the exceptional gain reflects the future losses that the acquired
business will incur over the medium term, as it is brought onto a sustainable footing through a combination of upskilling employees, cross-
selling into the Group’s customers, alignment with Group processes and systems, and the general improvement of its operating activities.
This gain was non-operational in nature, material in size and unlikely to recur and was therefore classified as exceptional.

• A further tax credit of £0.7 million was recorded due to post-acquisition activity in Computacenter United States Inc. This benefit derived from
payments which were settled by the vendor, out of the consideration paid, via post-acquisition capital contributions to Computacenter United
States Inc. As this credit was related to the acquisition and not operational activity within Computacenter United States Inc, is a one-off and
material to the overall tax result, we have classified this as an exceptional tax item, consistent with the treatment in 2018 and 2019.

9 Staff costs
The average monthly number of employees (including Executive Directors) during the year was made up as follows:

UK
Germany
France
North America
International

Their aggregate remuneration comprised:

Wages and salaries
Social security costs
Share-based payments
Pension costs

Share-based payments arise from transactions accounted for as equity-settled share-based payment transactions.

2021
No.
4,294
6,338
2,385
1,359
3,120
17,496

2021
£m
906.3
135.1
10.6
20.9
1,072.9

2020
No.
4,117
6,418
2,160
1,326
2,743
16,764

2020
£m
809.6
121.8
8.0
17.4
956.8

161

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

10 Finance income

Bank interest received
Other interest received

11 Finance costs

Interest paid on bank loans and overdraft
Interest paid on credit facility
Interest paid on lease liabilities
Other interest paid

2021
£m
0.2
0.1
0.3

2021
£m
0.9
1.2
5.2
0.2
7.5

2020
£m
0.4
0.1
0.5

2020
£m
1.8
–
4.5
0.1
6.4

162

12 Income tax
a) Tax on profit from ordinary activities

Tax charged in the Consolidated Income Statement
Current income tax
UK corporation tax
Foreign tax:
– operating results before exceptional items
– exceptional items
Total foreign tax
Adjustments in respect of prior years
Total current income tax

Deferred tax
Operating results before exceptional items:
– origination and reversal of temporary differences
– change in tax rates
– adjustments in respect of prior years
Total deferred tax

Tax charge in the Consolidated Income Statement

b) Reconciliation of the total tax charge

Profit before income tax

At the UK standard rate of corporation tax of 19 per cent (2020: 19 per cent)
Expenses not deductible for tax purposes
Non-deductible element of share-based payment charge
Adjustments in respect of prior years
Effect of different tax rates of subsidiaries operating in other jurisdictions
Change in tax rate
Other differences
Overseas tax not based on earnings
Tax effect of income not taxable in determining taxable profit
At effective income tax rate of 24.8 per cent (2020: 25.4 per cent)

2021
£m

23.8

45.1
–
45.1
0.2
69.1

(4.2)
(3.3)
(0.1)
(7.6)

61.5

2021
£m
248.0

47.1
0.3
0.1
0.1
16.2
(3.3)
0.3
1.6
(0.9)
61.5

2020
£m

18.1

36.4
(0.7)
35.7
0.4
54.2

(0.7)
(0.5)
(0.6)
(1.8)

52.4

2020
£m
206.6

39.2
–
0.1
(0.2)
14.3
(0.5)
1.2
1.4
(3.1)
52.4

c) Tax losses
Deferred tax assets of £0.6 million (2020: £0.3 million) have been recognised in respect of losses carried forward.

In addition, as at 31 December 2021, there were unused tax losses across the Group of £287.0 million (2020: £307.6 million) for which no deferred
tax asset has been recognised. Of these losses, £25.7 million (2020: £24.7 million) arise in Germany and £261.3 million (2020: £282.9 million) arise
in France. A significant proportion of the losses arising in Germany have been generated in statutory entities that no longer have significant levels
of trade. The remaining unused tax losses relate to other loss-making overseas subsidiaries.

163

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

12 Income tax continued
d) Deferred tax
Deferred income tax as at 31 December 2021 and 31 December 2020 relates to the following:

Deferred income tax assets
Relief on share option gains
Other temporary differences
Revaluations of foreign exchange contracts to fair value
Losses available for offset against future taxable income
Gross deferred income tax assets
Deferred income tax liabilities
Revaluations of foreign exchange contracts to fair value
Amortisation of intangibles
Gross deferred income tax liabilities
Deferred income tax charge
Net deferred income tax asset/(liabilities)

Disclosed on the Consolidated Balance Sheet
Deferred income tax assets
Deferred income tax liabilities
Net deferred income tax asset/(liabilities)

Consolidated Balance Sheet

Consolidated Income Statement
and Consolidated Statement
of Comprehensive Income

2021
£m

2.6
2.6
(0.3)
0.3

0.5
2.1

7.8

2020
£m

1.7
0.5
0.6
(1.0)

(0.3)
1.7

3.2

2021
£m

14.6
13.6
0.7
0.6
29.5

0.5
24.6
25.1

4.4

30.2
(25.8)
4.4

2020
£m

7.0
10.3
1.0
0.3
18.6

1.0
26.4
27.4

(8.8)

10.1
(18.9)
(8.8)

As at 31 December 2021, there was no recognised or unrecognised deferred income tax liability (2020: £nil) for taxes that could be payable on the
unremitted earnings of the Group’s subsidiaries, as the Group expects that future remittances of earnings from its overseas subsidiaries will
continue to be covered by relevant dividend exemptions. Following the departure of the UK from the European Union, the Group’s German
subsidiaries’ unremitted earnings are no longer covered by a dividend exemption. As a result of this situation, no dividend is currently planned
until there is more clarity regarding proposed changes in the bilateral treaties between Germany and the UK.

e) Factors affecting current and future tax charge
The main rate of UK Corporation tax for financial year 2021 is 19 per cent, as enacted in the Finance Act 2020. The March 2021 Budget announced
that a rate of 25 per cent will apply with effect from 1 April 2023, and this change was substantively enacted on 11 March 2021. The deferred tax in
these Consolidated Financial Statements reflects this.

We are closely monitoring the Organisation for Economic Co-operation and Development’s Two Pillar Solution to Address the Tax Challenges arising
from the Digitalisation of the Economy, which are expected to be enacted in 2022 with application from 1 January 2023. The accounting
implications under IAS 12 will be determined when the relevant legislation is available.

164

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.

Profit attributable to equity holders of the Parent

Basic weighted average number of shares (excluding own shares held)
Effect of dilution:
Share options
Diluted weighted average number of shares

Basic earnings per share
Diluted earnings per share

14 Dividends paid and proposed

Declared and paid during the year
Equity dividends on ordinary shares:
Final dividend for 2020: 38.4 pence (2019: nil)
Interim dividend for 2021: 16.9 pence (2020: 12.3 pence)

Proposed (not recognised as a liability as at 31 December)
Equity dividends on ordinary shares:
Final dividend for 2021: 49.4 pence (2020: 38.4 pence)

2021
£m
185.3

2021
£m
113.0

2.2
115.2

2021
pence
164.0
160.9

2021
£m

43.4
19.0
62.4

2020
£m
153.8

2020
£m
112.9

2.0
114.9

2020
pence
136.2
133.8

2020
£m

–
13.9
13.9

56.4

43.8

165

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

15 Property, plant and equipment

Cost
At 1 January 2020
Relating to acquisition of subsidiaries (note 18)
Additions
Disposals
Transfers
Foreign currency adjustment
At 31 December 2020
Relating to acquisition of subsidiaries (note 18)
Additions
Disposals
Transfers
Foreign currency adjustment
At 31 December 2021

Accumulated depreciation and impairment
At 1 January 2020
Provided during the year
Disposals
Foreign currency adjustment
At 31 December 2020
Provided during the year
Disposals
Transfers
Foreign currency adjustment
At 31 December 2021

Net book value
At 31 December 2021
At 31 December 2020
At 1 January 2020

Freehold
land and
buildings
£m

Short leasehold
improvements
£m

Fixtures,
fittings,
equipment
and vehicles
£m

Property, plant
and equipment
excluding
right-of-use
assets £m

Right-of-
use assets
£m

85.8
0.1
–
–
–
1.1
87.0
–
–
–
(0.5)
(1.5)
85.0

42.9
1.9
–
0.1
44.9
2.0
–
(0.4)
0.1
46.6

38.4
42.1
42.9

28.9
1.4
4.9
(2.5)
0.6
0.1
33.4
–
3.5
(1.6)
–
(1.1)
34.2

11.9
3.8
(2.5)
0.1
13.3
4.5
(1.3)
–
(0.6)
15.9

18.3
20.1
17.0

137.7
4.0
18.2
(6.7)
(0.6)
2.3
154.9
0.3
15.3
(24.9)
(3.1)
(5.8)
136.7

96.2
18.3
(6.2)
1.8
110.1
18.3
(19.0)
(1.7)
(4.3)
103.4

33.3
44.8
41.5

252.4
5.5
23.1
(9.2)
–
3.5
275.3
0.3
18.8
(26.5)
(3.6)
(8.4)
255.9

151.0
24.0
(8.7)
2.0
168.3
24.8
(20.3)
(2.1)
(4.8)
165.9

90.0
107.0
101.4

154.6
12.8
48.6
(14.2)
–
5.5
207.3
1.4
70.2
(25.3)
–
(11.5)
242.1

43.7
45.2
(12.9)
1.7
77.7
50.6
(19.9)
–
(4.4)
104.0

138.1
129.6
110.9

Total
£m

407.0
18.3
71.7
(23.4)
–
9.0
482.6
1.7
89.0
(51.8)
(3.6)
(19.9)
498.0

194.7
69.2
(21.6)
3.7
246.0
75.4
(40.2)
(2.1)
(9.2)
269.9

228.1
236.6
212.3

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 relate to computer equipment, incorrectly classed, in Computacenter NS, acquired in 2020, which have been reclassed to inventories.
The net book value transferred was £1.0 million (cost of £2.9 million and accumulated depreciation of £1.9 million).

Transfers relate to assets, incorrectly classed to fixtures, fittings, equipment and vehicles, in FusionStorm, which have been reclassed to
software. The net book value transferred was £0.3 million (cost of £0.6 million and accumulated depreciation of £0.3 million).

As at 31 December 2021, the net book value of recognised right-of-use assets relating to land and buildings was £82.7 million (2020: £90.3 million)
and plant and equipment £55.4 million (2020: £39.3 million). The depreciation charge for the year relating to those assets was £21.0 million
(2020: £18.8 million) and £29.6 million (2020: £26.4 million), respectively.

166

16 Intangible assets

Cost
At 1 January 2020
Relating to acquisition of subsidiaries (note 18)
Additions
Disposals
Foreign currency adjustment
At 31 December 2020
Additions
Disposals
Transfers
Foreign currency adjustment
At 31 December 2021

Accumulated amortisation and impairment
At 1 January 2020
Provided during the year
Disposals
Foreign currency adjustment
At 31 December 2020
Provided during the year
Disposals
Transfers
Foreign currency adjustment
At 31 December 2021

Net book value
At 31 December 2021
At 31 December 2020
At 1 January 2020

Goodwill
£m

Software
£m

Acquired intangible assets

Customer
relationships
£m

Others
£m

109.5
57.9
–
–
(2.4)
165.0
2.3
–
–
(1.4)
165.9

10.3
–
–
0.7
11.0
–
–
–
(0.9)
10.1

155.8
154.0
99.2

108.3
0.3
4.4
(3.4)
0.3
109.9
11.5
(9.2)
0.6
(0.8)
112.0

87.7
7.2
(3.1)
0.2
92.0
7.7
(8.7)
0.3
(0.9)
90.4

21.6
17.9
20.6

60.7
57.2
–
–
(5.2)
112.7
–
–
–
1.3
114.0

5.0
5.7
–
(0.5)
10.2
7.5
–
–
0.1
17.8

96.2
102.5
55.7

20.5
1.7
–
–
0.4
22.6
–
–
–
(0.5)
22.1

20.3
1.7
–
0.3
22.3
0.1
–
–
(0.4)
22.0

0.1
0.3
0.2

Total
£m

299.0
117.1
4.4
(3.4)
(6.9)
410.2
13.8
(9.2)
0.6
(1.4)
414.0

123.3
14.6
(3.1)
0.7
135.5
15.3
(8.7)
0.3
(2.1)
140.3

273.7
274.7
175.7

17 Impairment testing of goodwill, other intangible assets and other non-current assets
Goodwill acquired through business combinations has been allocated to the following CGUs:

• Computacenter (UK) Limited
• Computacenter Germany
• Computacenter AG
• cITius AG
• Computacenter Belgium
• Computacenter United States Inc.
• Computacenter Netherlands (formerly Misco Solutions B.V.)
• PathWorks GmbH
• Pivot Technology Solutions, Inc. (Pivot) USA CGU
• Pivot Technology Solutions, Inc. (Pivot) Canada CGU
• ITL logistics GmbH

These represent the lowest level within the Group at which goodwill is monitored for internal Management purposes. Certain other corporate
assets are unable to be allocated against specific CGUs. These assets are tested across an aggregation of CGUs that utilise the asset.

167

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

17 Impairment testing of goodwill, other intangible assets and other non-current assets continued
Movements in goodwill

1 January 2020
Relating to
acquisition of
subsidiaries
Foreign currency
adjustment
31 December
2020
Relating to
acquisition of
subsidiaries**
Foreign currency
adjustment
31 December
2021
Market growth
rate
Discount rate
(pre tax)
Discount rate
(post tax)

CC* (UK)
Limited
£m
35.0

CC*
Germany
£m
15.3

CC* AG
£m
1.0

cITius AG
£m
2.1

CC*
Belgium
£m
1.4

Fusion
-Storm
£m
38.2

CC*
Netherlands
£m
3.1

PathWorks
GmbH
£m
3.1

–

0.8

35.0

16.1

1.4

–

(1.1)

–

0.1

1.1

–

0.1

2.2

–

0.1

1.5

–

(0.1)

–

(1.6)

36.6

–

0.4

–

0.2

3.3

–

0.1

3.2

–

(0.2)

(0.1)

Pivot
Technology
Solutions,
Inc
(USA
CGU)
£m
–

Pivot
Technology
Solutions,
Inc
(Canada
CGU)
£m
–

ITL
logistics
GmbH
–

52.8

5.0

(2.7)

(0.1)

50.1

–

0.6

4.9

–

0.1

5.0

–

0.9

–

Total
£m
99.2

57.8

(3.0)

154.0

2.3

(0.5)

36.4

15.0

1.1

2.1

1.4

37.0

3.1

50.7

0.9

155.8

2.3%

1.7%

1.9%

1.7%

2.3%

1.9%

2.3%

1.7%

12.4%

11.0%

7.7%

11.0%

13.1%

11.3%

7.7%

13.9%

17.0%

11.0%

9.9%

8.2%

7.1%

8.7%

10.2%

8.6%

7.1%

10.7%

13.0%

8.2%

CC – Computacenter.

*
** CC UK Limited increased its interest in RDC.

Key assumptions used in value-in-use calculations
The recoverable amounts of all CGUs have been determined based on a value-in-use calculation. To calculate this, cash flow projections are based
on financial budgets approved by senior Management covering a three-year period and on long-term market growth rates of between 1.7 per cent
and 2.3 per cent (2020: between 1.0 and 1.8 per cent) thereafter.

Key assumptions used in the value-in-use calculation for all CGUs for 31 December 2021 and 31 December 2020 are:

• budgeted revenue, which is based on long-run market growth forecasts;
• budgeted gross margins, which are based on average gross margins achieved in the year immediately before the budgeted year, adjusted for

expected long-run market pricing trends; and

• the discount rate applied to cash flow projections ranges from 7.1 per cent to 13.0 per cent (2020: 6.5 per cent to 12.4 per cent) which represents
the Group’s post-tax measure estimating the weighted-average cost of capital based on the rate of government bonds in the relevant market
and in the same currency as the cash flows, adjusted for a risk premium to reflect the increased risk of investing in equities generally.

Each CGU generates value substantially in excess of the carrying value of goodwill attributed to each of them. Management therefore believes
that no reasonably possible change in any of the above key assumptions would cause the carrying value of the unit to materially exceed its
recoverable amount.

Other acquired intangible assets
Other acquired intangible assets consist of customer relationships, order backlog and tools and technology. The expected useful lives are shown
in note 2.

Other non-current assets
When there is an indication of impairment within a CGU, the carrying values of the non-current assets are compared to their recoverable amount,
which is the higher of the assets’ fair value less costs of disposal or the value-in-use of the CGU calculated as described above.

168

18 Investments
a) Investment in associate
The following table illustrates summarised information of the investment in associates:

Cost
At 1 January and 31 December

Impairment
At 1 January and 31 December

Carrying value

2021
£m

0.1

–

0.1

2020
£m

0.1

–

0.1

Gonicus GmbH
The Group has a 20 per cent (2020: 20 per cent) interest in Gonicus GmbH, whose principal activity is the provision of open-source software.
Gonicus is a private entity, incorporated in Germany, that is not listed on any public exchange and therefore there is no published quotation price
for the fair value of this investment. The reporting date of Gonicus is 31 December.

b) Investment in subsidiaries
The Group’s subsidiary undertakings are as follows:

Name
Computacenter Pty Ltd.
Computacenter NV/SA
Computacenter TeraMach Inc.
Computacenter Hong Kong Limited
Computacenter Pivot Hong Kong Limited
Computacenter (UK) Limited
TeamUltra Limited
R.D. Trading Limited*
Pivot Solutions International (UK) Ltd.
Computacenter France SAS
Computacenter NS
Computacenter AG & Co oHG
Computacenter Aktiengesellschaft
Computacenter Management GmbH
Computacenter Managed Services GmbH
Computacenter Germany AG & Co oHG
Computacenter Holding GmbH
Alfatron GmbH Elektronik – Vertrieb
C’NARIO Informationsprodukte Vertriebs-GmbH
E’ZWO Computer vertriebs
ITL logistics GmbH*
Computacenter Ireland Limited
Computacenter Services Ireland Limited
Computacenter B.V.
Computacenter NV
Pivot Services International Singapore Pte. Ltd.
Computacenter (Pty) Limited
Computacenter AG
Computacenter PS AG
Computacenter TS GmbH
Computacenter United States Inc.
FusionStorm Acquisition Corp.

Country of incorporation
Australia1
Belgium2
Canada3
China4
China5
England6
England6
England7
England8
France9
France9
Germany10
Germany11
Germany11
Germany11
Germany12
Germany12
Germany12
Germany12
Germany12
Germany13
Ireland14
Ireland15
Netherlands16
Netherlands17
Singapore19
South Africa20
Switzerland21
Switzerland22
Switzerland23
USA24
USA24

Proportion of voting rights
and shares held

Nature of business
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services
IT infrastructure services

2021
100%i
100%vi
100%i
100%v
100%i
100%
100%i
95%vii
100%i
100%
100%iv
100%
100%
100%
100%
100%ii
100%
100%ii
100%ii
99.09%ii
100%ii
100%i
100%i
100%
100%
100%i
100%i
100%
100%iii
100%iii
100%v
100%v

2020
100%i
100%vi
100%i
100%v
100%i
100%
100%i
90%vii
100%i
100%
100%iv
100%
100%
100%
100%
100%ii
100%
100%ii
100%ii
99.09%ii
100%ii
100%i
100%i
100%
100%
100%i
100%i
100%
100%iii
100%iii
100%v
100%v

169

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

18 Investments continued

Name
FusionStorm International Inc.
Computacenter (U.S.), Inc.
Pivot Technology Solutions, Ltd.
Pivot Technology Services Corp.
ARC Acquisition (US), Inc.
Prosys Information System Inc. (WBE)
Applied Computer Solutions (WBE)
Digica Group Finance Limited
Computacenter Immobilien GmbH
Computacenter Information Technology
(Shanghai) Company Limited
Computacenter Services Kft
Computacenter India Private Limited
Computacenter Services (Malaysia) Sdn. Bhd
Computacenter México S. A. de C.V.
Pivot of the Americas, S. A. de C.V.
Computacenter Poland sp. Z.o.o.
Computacenter Services S.R.L.
Computacenter Services (Iberia) SLU
FusionStorm Netherlands Cooperatief
Computacenter Quest Trustees Limited
Computacenter Trustees Limited
Allnet Limited
Amazon Computers Limited
Amazon Energy Limited
Amazon Systems Limited
CAD Systems Limited
Compufix Limited
Computacenter (FMS) Limited
Computacenter (Management Services) Limited
Computacenter (Mid-Market) Limited
Computacenter Distribution Limited
Computacenter Leasing Limited
Computacenter Maintenance Limited
Computacenter Overseas Holdings Limited
Computacenter Services Limited
Computacenter Software Limited
Computacenter Solutions Limited
Computacenter Training Limited
Computadata Limited
Computer Services Group Limited
Digica Group Limited
Digica Group Holdings Limited
Digica SMP Limited
Digica (FMS) Limited
ICG Services Limited
Kit Online Limited
M Services Limited
Merchant Business Systems Limited
Merchant Systems Limited
Logival (SARL)

170

Country of incorporation
USA24
USA24
USA25
USA25
USA26
USA25
USA26
England6
Germany10

China27
Hungary28
India29
Malaysia30
Mexico31
Mexico32
Poland33
Romania34
Spain35
Netherlands18
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
England6
France9

International call centre services
International call centre services
International call centre services
International call centre services
International call centre services
International call centre services
International call centre services
International call centre services
International call centre services
Financial holdings
Employee share scheme trustees
Employee share scheme trustees
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company
Dormant company

Proportion of voting rights
and shares held

2021
100%v
100%
100%v
100%v
100%v
46.4%viii
40%viii
100%i
100%ii

100%i
100%i
100%vi
100%i
100%vi
100%i
100%i
90%i
100%i
100%v
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%iv

2020
100%v
100%
100%v
100%v
100%v
44.9%

40%viii
100%i
100%ii

100%i
100%i
100%vi
100%i
100%vi
100%i
100%i
–
100%i
100%v
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%i
100%iv

Financial Statements
Annual Report and Accounts 2021

Nature of business
Dormant company
Dormant company

Proportion of voting rights
and shares held

2021
100%iii
100%v

2020
100%iii
100%v

15 6th Floor, 2 Grand Canal Square, Dublin 2, Dublin D02A342, Ireland
16 Gondel 1, 1186 MJ Amstelveen, Netherlands
17 Beech Avenue 54 – 80 1119 PW Schipol-Rjik, Netherlands
18 Prins Bernhardplein 200, 1097JB Amsterdam, Netherlands
19 4 Battery Road, #25-01 Bank of China Building, 049908, Singapore
20 Klein D’Aria Estate, 97 Jip de Jager Drive, Belville, 7535, Cape Town, South Africa
21 Riedstrasse 14, CH-8953 Dietikon, Switzerland
22 Giessereistrasse 4, CH-8620 Wetzikon, Switzerland
23 Luzernerstrasse 52c, CH 6025 Neudorf, Switzerland
24 1 University Ave, Suite 102, Westwood, MA 02090, United States
25 6025 The Corners Parkway, Suite 100, Norcorss, GA 30092, United States
26 607 E Sonterra Blvd, Suite 250, San Antonio TX 78258, United States
27

Unit 229, Block 2, Building 1, Huanhu West 2nd Road no. 888 Nanhui New Town, Putong
District Shanghai, China

28 Haller Gardens, Building D. 1st Floor, Soroksari ut 30 – 34, Budapest 1095, Hungary
29 4th Floor, Purva Premiere, Residency Road, Bangalore 560025, India
30

Level 9, Tower 1, Puchong Financial Corporate Centre, Jalan Puteri 1/2, Bandar Puteri
47100 Puchong, Selangor Darul Ehsan, Malaysia
Av. Paseo de la Reforma, No.412 floor 5, Col.Juarez, Delegacion Cuauhtemoc, CP06600,
Mexico City, Mexcio
Presa de la Angostura 23 PB, Colonia Irrigacion 11500, Distrito Federal, Mexico City,
Mexico

33 Ul. Glogowska 31/33, 60 – 702, Poznan, Poland
34
35

“Stables Office”, 20A Onisifor Ghibu, Record Park, Cluj-Napoca, CJ 400185, Romania
Carrer de Sancho De Avila 52 – 58, 08018, Barcelona, Spain

Name
Damax GmbH
Computacenter (US) Defense Inc.

Country of incorporation
Switzerland20
USA24

i
ii

Includes indirect holdings of 100 per cent via Computacenter (UK) Limited
Includes indirect holdings of 100 per cent via Computacenter Holding GmbH, excludes
E’ZWO Computervertriebs which is 99.09 per cent
iii
Includes indirect holdings of 100 per cent via Computacenter AG
Includes indirect holdings of 100 per cent via Computacenter France SAS
iv
v
Includes indirect holdings of 100 per cent via Computacenter (U.S.) Inc.
vi
Includes indirect holdings of 1 per cent via Computacenter (UK) Limited
vii Includes indirect holdings of 90 per cent via Computacenter (UK) Limited
viii Includes indirect holdings of 44.9 per cent via Pivot Technology Services Corp.
Includes indirect holdings of 40 per cent via Pivot Technology Services Corp.
ix

Tower 2, Darling Park, 201 Sussex Street, Sydney 2000, New South Wales, Australia
Ikaroslaan 31, B-1930 Zaventem, Belgium
1130 Morrison Drive, Suite 105, Ottawa, ON K2H 9N6 Canada
3806 Central Plaza, 18 Harbour Road, Wanchai, Hong Kong

1
2
³
4
5 Unit 2, 10/F, NEO, 123 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong
6 Hatfield Avenue, Hatfield, Hertfordshire, AL10 9TW, United Kingdom
7
Tekhnicon, Springwood, Braintree, Essex, CM7 2YN, United Kingdom
8
25 Canada Square, Level 37, London, E14 5LQ, United Kingdom
9
229 rue de la Belle Etoile, ZI Parid Nord II, BP 52387, 95943 Roissy CDG Cedex, France
10 Computacenter Park 1, 50170 Kerpen, Germany
11 Kattenbug 2, 50667 Koln, Germany
12 Werner-Eckert-Str. 16 – 18, 81829 Munchen, Germany
13 Trias Gewerbepark, Lohstrasse 25 b, Schwaig D-85445, Germany
14

Skybridge House, Corballis Road North, Dublin Airport, Swords, Co. Dublin, K67P6K2,
Ireland

Computacenter plc is the ultimate Parent entity of the Group

*ITL logistics GmbH (ITL)
On 30 April 2021, the Group acquired 100 per cent of the voting shares of ITL logistics GmbH (ITL) for a consideration of €1.7 million cash. ITL is an IT
logistics provider based in Germany. The acquisition has been accounted for using the purchase method of accounting.

*R.D. Trading Limited (RDC)
On 10 August 2019, the Group acquired 90 per cent of the voting shares of RDC for a consideration of 90 pence. On 26 October 2021, the Group
acquired a further 4.99 per cent of the voting shares for a consideration of £1.4 million cash from the seller of RDC. RDC is based in the UK and is an
IT assets disposal business. The acquisition has been accounted for using the purchase method of accounting.

c) Pivot Technology Solutions Inc. (Pivot)
Applied Computer Solutions (ACS)
ACS is a 40 per cent owned affiliate of a Pivot subsidiary, whose principal office is located in Huntington Beach, California, United States of
America. Despite not owning a majority of the voting rights, Computacenter controls this entity through a Pivot subsidiary for accounting
purposes, based on the following facts and circumstances:

• Pivot has the right in its sole discretion to either acquire, at any time, shares of ACS that it does not already own, or to designate a different

owner to purchase the shares provided such transfer(s) are in compliance with applicable Women Business Enterprise (WBE) requirements;

• Pivot has multiple representatives on the ACS board of directors;
• any significant decisions made at ACS require the approval of the ACS board of directors and/or shareholders, including board changes,

payment of dividends, mergers or acquisitions, material changes to compensation, incurring debt in excess of $100, causing any material
change in the business, and/or assignment or termination of any material agreement; and

• Pivot receives the majority of the benefits from the activities of ACS.

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Revenue
Total comprehensive income (loss)
% interest held

2021
$m
60.0
16.4
6.8
0.2
206.5
2.8
40%

2020
$m
15.0
16.6
30.2
–
119.5
0.3
40%

171

Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

18 Investments continued
ProSys Information Systems, Inc (ProSys)
ProSys is a 46.4 per cent owned affiliate of a Pivot subsidiary, whose principal office is located in Norcross, Georgia, United States of America.
Despite not owning a majority of the voting rights, Computacenter controls this entity through a Pivot subsidiary for accounting purposes based
on the following facts and circumstances:

• Pivot has the right to either acquire, at any time, the remaining shares of ProSys it does not already own or to designate a different owner

to purchase the shares provided such transfer(s) are in compliance with applicable WBE requirements;

• Pivot is represented on the ProSys board of directors and any significant decisions made at ProSys requires the approval of the board of

directors and/or shareholders, including changes to its board of directors, payment of dividends, mergers or acquisitions, material changes
to compensation, incurring debt in excess of $0.1 million, causing any material change in the business, and/or assigning or termination of any
material agreement; and

• Pivot receives the majority of the benefits from the activities of ProSys.

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Revenue
Total comprehensive income/(loss)
% interest held

d) Acquisitions in previous periods

2021
$m
197.9
13.2
185.8
12.0
677.1
1.7
46.4%

2020
$m
181.8
6.5
177.0
5.1
543.2
0.3
44.9%

Pivot Technology Solutions Inc. (Pivot)
The following table summarises the recognised amounts of assets acquired, and liabilities assumed, at the date of acquisition:

Property, plant and equipment (including right-of-use assets)
Software
Customer relationship and order book
Contract asset
Inventories
Trade and other receivables
Deferred tax asset
Cash and short-term deposits
Trade and other payables
Contract liability
Deferred tax liabilities
Credit facility
Lease liabilities
Net assets acquired
Less Minority Interest Share
Goodwill arising on acquisition

Discharged by:
Cash paid on acquisition

Cash and cash equivalents acquired
Cash and short-term deposits
Cash outflow on acquisition

172

Fair value to the
Group 2020
$m
13.4
0.3
57.0
39.2
40.7
142.9
3.4
2.6
(165.4)
(42.3)
(13.9)
(62.2)
(10.4)
5.3
(2.9)
57.9
60.3

60.3

2.6
57.7

BT France SAS (Computacenter NS)
The following table summarises the recognised amounts of assets acquired, and liabilities assumed, at the date of acquisition:

Property, plant and equipment (including right-of-use assets)
Customer relationship
Inventories
Trade and other receivables
Cash and short-term deposits
Prepayments
Trade and other payables
Lease liabilities
Pension liabilities
Provisions
Net assets acquired
Gain on acquisition of subsidiary

Discharged by:
Cash paid on acquisition

Cash and cash equivalents acquired
Cash and short-term deposits
Cash inflow on acquisition

Fair value to the
Group 2020
$m
4.9
1.9
0.3
12.7
27.6
16.8
(32.3)
(2.4)
(9.9)
(5.6)
14.0
14.0

–

27.6
27.6

In 2021, no change was recorded to the fair values of Pivot Technology Solutions Inc. (Pivot) and BT France SAS (Computacenter NS), both of which
were acquired in 2020.

173

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

19 Inventories

Inventories for re-sale

20 Trade and other receivables

Trade receivables before provisions
Provision for doubtful debts
Provision for credit notes
Trade receivables
Other receivables

2021
£m
341.3

2020
£m
211.3

2021
£m
1,265.2
(7.8)
(17.6)
1,239.8
35.4
1,275.2

2020
£m
1,093.2
(7.8)
(20.3)
1,065.1
30.8
1,095.9

Trade receivables are non-interest bearing and are generally on 30 to 90-day credit terms. Note 27 sets out the Group’s strategy towards
credit risk.

Other receivables generally arise from transactions outside the usual operating activities of the Group and comprise tax receivables (VAT, GST,
franchise taxes, and sales and use taxes) of £24.4 million (2020: £20.8 million) and other receivables of £11.0 million (2020: £10.0 million). Other
receivables are financial assets and are measured at amortised cost.

The movements in the provision for doubtful debts were as follows:

At 1 January
Relating to acquisition
Charge for the year
Utilised
Unused amounts reversed
Foreign currency adjustment
At 31 December

2021
£m
7.8
–
7.5
(0.4)
(6.9)
(0.2)
7.8

2020
£m
6.7
1.2
2.2
(0.7)
(1.8)
0.2
7.8

There was no change made to the level of provision for doubtful debts upon adoption of the simplified Expected Credit Loss model under IFRS 9.
The doubtful debt provision is determined as follows:

Neither past due
nor impaired
£m

Total
£m

0.6%
1,265.2
7.8

0.7%
1,093.2
7.8

0.2%
1,046.4
2.2

0.1%
944.5
1.2

Past due but not impaired

<30 days
£m

30–60 days
£m

60–90 days
£m

90–120 days
£m

>120 days
£m

0.4%
133.5
0.6

1.3%
54.8
0.7

0.6%
32.6
0.2

4.3%
23.0
1.0

3.4%
31.9
1.1

0.6%
52.4
0.3

15.4%
11.0
1.7

11.1%
5.4
0.6

20.4%
9.8
2.0

29.5%
13.2
3.9

2021
Expected loss rate
Gross carrying amount
Provision
2020
Expected loss rate
Gross carrying amount
Provision

174

21 Cash and cash equivalents

Cash and short-term deposits
Bank overdraft
Cash and cash equivalents in the consolidated cash flow statement

2021
£m
285.2
(12.0)
273.2

2020
£m
309.8
–
309.8

Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of
between one day and three months depending on the immediate cash requirements of the Group, and earn interest at the respective short-term
deposit rates. The fair value of cash and cash equivalents is £273.2 million (2020: £309.8 million).

During the year ended 31 December 2021, the Group continued to maintain strong cash generation and finance its operational requirements from
its cash balance. The overdraft facilities are retained by the Group and can be used upon requirement. The uncommitted overdraft facilities
available to the Group are £13.3 million as at 31 December 2021 (2020: £13.5 million). In 2020, the Group specific committed facility of £60.0 million
was extended until 8 September 2023. The Company acquired Pivot in 2020 with a credit facility. The utilised facility was £7.0 million as at
31 December 2021 (2020: £58.5 million).

Expected credit loss on cash and cash equivalents is negligible and therefore no provision is held.

22 Trade and other payables

Trade payables
Other payables

2021
£m
989.3
421.1
1,410.4

2020
£m
719.7
397.0
1,116.7

Trade payables are non-interest bearing and are normally settled on net monthly terms.

The Group had no short-term supplier extended-term interest-bearing credit facilities (2020: nil).

Other payables, which principally relate to other taxes, social security costs and accruals, are non-interest bearing and have an average term
of three months.

The Group regularly participates in Industry standard vendor rebate plans, primarily relating to volume discounts on purchases, often paid
retrospectively. Rebates are factored into the calculation of purchase cost of inventory valuations. Owing to the nature of these rebate plans,
the calculation of rebates is not subject to significant estimation uncertainty, nor is their recognition a matter of significant judgement.

23 a) Financial liabilities

Current
Bank loans
Credit facility
Other loans

Non-current
Bank loans
Other loans

There are no material differences between the fair value of financial liabilities and their book value.

2021
£m

5.4
7.0
2.7
15.1

9.8
6.9
16.7
31.8

2020
£m

47.1
58.4
–
105.5

15.7
–
15.7
121.2

175

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

23 a) Financial liabilities continued
Bank loans
The Group has two principal bank loans:

• A total loan of €38.5 million was drawn at various stages between December 2017 and July 2018 to finance the fit out of the new German

headquarters building and Integration Center in Kerpen. Further details are shown below:
– €8.0 million drawn in December 2017, carries fixed interest rate at 1.65 per cent per annum. The balance on this loan as at 31 December 2021

was €1.6 million. Repayments commenced in H1 2018 and will continue for one year;

– €8.9 million drawn in December 2017 carries fixed interest rate at 1.95 per cent per annum. The balance on this loan as at 31 December 2021

was €5.3 million. Repayments commenced in H1 2018 and will continue for six years;

– €8.5 million drawn in July 2018, carries fixed interest rate at 0.95 per cent per annum. The balance on this loan as at 31 December 2021 was

€2.3 million. Repayments commenced in H2 2018 and will continue for two years; and

– €13.1 million was taken out in 2018, carries fixed interest rate at 0.75 per cent per annum. The balance on this loan as at 31 December 2021

was €8.2 million. Repayments commenced in H2 2018 and will continue for six years.

• A loan balance of £0.6 million via Computacenter China.

For movement in bank loans refer to note 31 analysis of changes in net funds:

Credit facility
• The Pivot subsidiary has a revolving credit facility via JPMorgan Chase Bank, N.A. (JPMC) of $100.0 million senior secured asset based, which was
decreased from $225.0 million pursuant to the amendment in August 2021. This JPMC Credit Facility can be used for revolving loans, letters of
credit, and swing line loans. Advances under the JPMC Credit Facility accrue interest at rates that are equal to, based on certain conditions and
at the Company’s election either, (a) JPMC’s ‘prime rate’ as announced from time to time plus 0.00 per cent to 0.25 per cent, or (b) LIBOR for an
interest period of one month plus 1.25 per cent to 1.50 per cent. When JPMC stops making LIBOR-based loans available, the credit facility
provides for a transition from an interest rate based on LIBOR to an interest rate based on Term SOFR.

• Upon the agreement with the existing lenders, the Pivot subsidiary can increase the commitments under the credit facility by an additional
$75.0 million. The lenders under the JPMC Credit Facility are not under any obligation to provide any such additional commitments, and any
increase in commitments is subject to several conditions precedent and limitations. The JPMC Credit Facility is scheduled to expire on 14 May 2024.

• Under the terms of the JPMC Credit Facility, the covenants require that Pivot maintains a fixed charge coverage ratio of at least 1.0 to 1.0 on a

trailing 12-month basis, if availability falls below a certain level. Pivot is in compliance with all applicable covenants not subject to this financial
covenant as at 31 December 2021 because availability exceeds the required level, but Pivot’s fixed charge coverage ratio does exceed the
required minimum as at 31 December 2021.

• Amounts owing under the JPMC Credit Facility were $9.4 million and $79.8 million as at 31 December 2021 and 31 December 2020, respectively;
and average undrawn availability was $78.4 million and $48.3 million for the years ended 31 December 2021 and 31 December 2020 respectively.

Other loans
• Prior to acquisition, Pivot entered into a five-year contract with a customer to provide an ‘infrastructure-as-a-service’ arrangement starting
in October 2020. At the same time, Pivot entered into a separate payment agreement for $17.3 million to fund the majority of the components
required by the customer. This payment agreement is with the vendor supplying the hardware components of the arrangement, with
repayment terms aligned with those in the contract with the customer. The payment agreement with the vendor is an unsecured payable
incurring nil interest charges.

23 b) Lease liabilities

At 1 January
Additions during the year
Relating to acquisition of a subsidiary
Gross payment of lease liabilities
Interest relating to lease liabilities
Early terminations during the year
Exchange adjustment
At 31 December

Current
Non-current

2021
£m
137.5
70.2
1.4
(55.4)
5.2
(5.3)
(7.5)
146.1

43.0
103.1
146.1

2020
£m
116.8
49.4
12.8
(47.7)
4.5
(1.3)
3.0
137.5

41.7
95.8
137.5

Facilities
At 31 December 2021, the Group had available £13.3 million of uncommitted overdraft facilities (2020: £13.5 million) and a £60.0 million committed
facility (2020: £60.0 million).

176

24 Derivative financial instruments

Financial instruments at fair value through profit and loss
Foreign exchange forward contracts
Interest rate swaps

Financial instruments at fair value through other comprehensive income
Cash flow hedges
Foreign exchange forward contracts

Current assets
Current liabilities

2021
£m

1.6
–
1.6

(0.5)
1.1

3.6
(2.5)
1.1

2020
£m

(3.6)
(0.3)
(3.9)

0.4
(3.5)

1.6
(5.1)
(3.5)

Cash flow hedges
Financial assets and liabilities at fair value through other comprehensive income
Forward Contracts
These amounts reflect the change in the fair value of foreign exchange forward contracts designated as cash flow hedges which are used to
hedge intra-Group services or customer/supplier contracts where the underlying cost is denominated in a foreign currency. These are based on
highly probable forecast transactions in South African rand, Hungarian forint, euro, US dollar and Japanese yen.

Financial assets and liabilities at fair value through profit or loss
Forward Contracts
The Group also enters into other foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and
purchases. When these other contracts are not designated in hedge relationships they are measured at fair value through profit and loss within
administrative expenses.

The foreign exchange forward contract balances vary with the level of expected foreign currency costs and changes in the foreign exchange
forward rates.

Interest rate swaps
In June 2020, the Group’s subsidiary Pivot Technology Solutions Inc. entered into an interest rate swap contract, with a notional amount of
$50.0 million, to lock in the LIBOR between 0.3 per cent and 0.7 per cent (range of interest rates: 1.6 per cent – 2.2 per cent), covering the full term
of the JPMC Credit Facility, scheduled to expire on 14 May 2024. As these interest rate swaps are not designated in hedge relationships they are
measured at fair value through profit and loss within administrative expenses.

The interest rate swap was terminated early on 16 September 2021 due to the Group’s subsidiary Pivot Technology Solutions Inc. significantly
reducing the amount drawn on the JPMC Credit Facility (note 23). As at 31 December 2020, the interest rate swap was valued at a liability of
£0.3 million.

Effectiveness of hedging
The terms of the foreign currency forward contracts have been negotiated for the expected highly probable forecast transactions to which hedge
accounting has been applied. No significant element of hedge ineffectiveness required recognition in the Consolidated Income Statement.

The cash flow hedges of the forecasted costs were assessed to be highly effective and a net unrealised loss of £0.5 million (2020: gain of
£0.4 million) with a deferred tax asset of £0.1 million (2020: liability of £0.1 million) relating to the hedging instruments is included in the
Consolidated Statement of Comprehensive Income. The amounts retained in the Consolidated Statement of Comprehensive Income of £0.5 million
(2020: £0.4 million) are expected to mature and affect the Consolidated Income Statement between 2022 and 2026.

177

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

24 Derivative financial instruments continued
Forward currency contracts
At 31 December 2021 the Group held foreign exchange contracts as hedges of an intra-Group loan and future expected payments to suppliers.
The exchange contracts are being used to reduce the exposure to foreign exchange risk. The terms of these contracts are detailed below:

Buy currency
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Euros
US dollars
Hungarian forint
Euros
Euros
Euros
Euros
Euros
US dollars
Mexican peso
Hungarian forint
Romanian leu
Sterling
Euros
Euros
Euros
US dollars
Sterling
Euros
US dollars
US dollars
US dollars

Sell currency
Euros
US dollars
Hungarian forint
Swiss francs
Swedish krona
SA rand
Japanese yen
Mexican peso
Sterling
Sterling
Sterling
Sterling
US dollars
Hungarian forint
Polish zloty
SA rand
Euros
Euros
Euros
Euros
Euros
Hungarian forint
Polish zloty
SA rand
Euros
Euros
SA rand
Euros
SA rand
Japanese yen

Nominal value of
contracts (millions)
£1.5
£19.1
£1.3
£0.4
£0.3
£18.5
£2.0
£0.0
€11.0
$81.2
HUF 2,536.0
€0.4
€110.3
€1.5
€1.6
€1.5
$55.2
MXN 3.5
HUF 160.0
RON 3.8
£0.4
€6.4
€0.1
€2.5
$9.0
£0.3
€0.2
$0.6
$5.7
$30.7

Maturity dates
Jan 22 – Oct 23
Jan 22 – Mar 22
Jan 22 – Dec 22
Dec 22
Jan 22
Jan 22 – Aug 25
Feb 22
Jan 22
Jan 22 – Mar 22
Jan 22 – Dec 24
Jan 22 – Dec 23
Jan 22
Jan 22 – Jun 22
Jan 22 – Dec 22
Jan 22 – Jun 22
Jan 22 – Oct 25
Jan 22 – Jun 22
Jan 22
Jan 22 – Feb 22
Jan 22 – Mar 22
Jan 22 – Feb 22
Jan 22 – Dec 23
Jan 22
Jan 22 – Jun 24
Jan 22 – Mar 22
Jan 22
Jan 22 – May 22
Mar 22 – Apr 22
Jan 22 – May 26
May 22 – Jun 22

Contract rates
1.086 – 1.169
1.321 – 1.380
389.996 – 456.392
1.212
12.223
20.536 – 27.262
155.616
27.742
0.839 – 0.856
0.705 – 0.802
0.002
0.850 – 0.856
1.127 – 1.168
358.850 – 367.957
4.595 – 4.688
19.194
0.856 – 0.889
0.043
0.003
0.200 – 0.202
1.184 – 1.185
354.184 – 386.614
4.594
18.041 – 22.701
0.883 – 0.884
1.195
18.324 – 22.714
0.883 – 0.887
15.271 – 19.321
113.000 – 113.050

31 December 2021

Germany

France

Belgium

178

31 December 2020

Germany

Buy currency
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
US dollars
Euros
Hungarian forint
SA rand
Japanese yen
Swedish krona
Euros
Euros
Euros
Euros
Euros
US dollars

Sell currency
Euros
Swiss francs
Hungarian forint
Norwegian krone
Polish zloty
Singapore dollars
Australian dollars
Japanese yen
SA rand
US dollars
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Sterling
Hungarian forint
Mexican peso
Polish zloty
US dollars
Euros

Nominal value of
contracts (millions)
£14.2
£0.9
£1.6
£0.0
£0.1
£0.2
£0.0
£0.3
£5.8
£28.6
$46.4
€19.7
HUF 415.0
ZAR 209.6
JPY 213.5
SEK 3.8
€0.8
€0.1
€0.1
€1.0
€68.9
$7.5

Maturity dates
Jan 21 – Oct 23
Jun 21 – Dec 21
Jan 21 – Jun 22
Jan 21
Jan 21
Jan 21
Jan 21
Jan 21
Jan 21 – Nov 24
Jan 21 – Mar 21
Jan 21 – Jul 23
Jan 21 – Mar 21
Feb 21 – Dec 22
Jan 21 – Aug 25
Feb 21
Feb 21
Jan 21
Jan 21
Jan 21
Jan 21 – Jun 21
Jan 21 – Apr 21
Jan 21

Contract rates
1.095 – 1.117
1.199
389.396 – 404.447
11.729
5.075
1.805
1.773
140.790
19.464 – 27.262
1.291 – 1.361
0.732 – 1.422
0.891 – 1.114
0.002 – 0.003
0.040 – 0.050
0.007
0.090
0.901 – 0.914
331.33
21.795
4.289 – 4.575
1.171 – 1.230
0.855 – 0.856

25 Leases as a Lessor
Operating lease receivables where the Group is lessor
The Group entered into commercial leases with customers on certain items of machinery and software. These leases have remaining terms
of between one and five years.

Future amounts receivable by the Group under the non-cancellable operating leases as at 31 December are as follows:

Within one year
After one year

2021
£m
3.5
9.0

2020
£m
0.4
0.2

179

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

26 Provisions

At 1 January 2020
Amount unused reversed
Arising during the year
Utilisation
Relating to acquisition of a subsidiary
Exchange adjustment
At 31 December 2020
Amount unused reversed
Arising during the year
Utilisation
Exchange adjustment
At 31 December 2021

Current 2021
Non-current 2021

Current 2020
Non-current 2020

Customer
contract
provisions
£m
7.8
–
2.9
(5.2)
3.6
0.5
9.6
(3.7)
3.5
(2.9)
(0.6)
5.9

2.0
3.9
5.9
3.0
6.6
9.6

Property
provisions
£m
5.1
(0.5)
0.1
0.2
–
–
4.9
–
0.8
(0.1)
–
5.6

1.1
4.5
5.6
1.0
3.9
4.9

Other
provisions
£m
0.5
(0.2)
–
(0.4)
2.0
0.2
2.1
(0.5)
0.3
(0.1)
(0.1)
1.7

0.4
1.3
1.7
0.1
2.0
2.1

Total
provisions
£m
13.4
(0.7)
3.0
(5.4)
5.6
0.7
16.6
(4.2)
4.6
(3.1)
(0.7)
13.2

3.5
9.7
13.2
4.1
12.5
16.6

Customer contract provision
These provisions result from customer contracts where total cost exceeds total revenue. Refer to note 2.12.1 for further details.

Property provisions
Assumptions used to calculate the property provisions are based on 100 per cent of the market value of any contractual dilapidation expenses
on empty properties and the Directors’ best estimates of the likely time before the relevant leases can be reassigned or sublet, which ranges
between one and nine years. The provisions in relation to the UK and European operations are discounted at 3 per cent. These costs mainly include
dilapidation expenses which have not been included as part of the lease liability under IFRS 16.

Other provisions
Included within other provisions are legal claims and other costs associated with the completion of the acquisition of Computacenter NS.

180

27 Financial instruments
An explanation of the Group’s financial instrument risk management objectives, policies and strategies is set out in the Group Finance Director’s
review on pages 76 and 78.

Credit risk
The Group principally manages credit risk through management of customer credit limits. The credit limits are set for each customer based on
the creditworthiness of the customer and the anticipated levels of business activity. These limits are initially determined when the customer
account is first set up and are regularly monitored thereafter.

In determining the recoverability of the trade receivables, the Group considers any change in the credit quality of the trade receivables from the
date the credit was initially granted up to the reporting date and considers forward-looking information to determine the appropriate expected
credit loss for the whole remaining life of the trade receivable. The maximum exposure on trade receivables, as at the reporting date, is their
carrying value.

With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, current asset
investment and forward currency contracts, the Group’s exposure to credit risk arises from default of the counterparty, with a maximum
exposure equal to the carrying amount of cash and cash equivalents. The Group manages its counterparty credit risk by placing cash on deposit
with a reputable banking institution, with no more than £85.0 million deposited at any one time.

Aside from the counterparty risk above, there are no significant concentrations of credit risk within the Group.
Interest rate risk
The Group finances its operations through a mixture of retained profits, bank borrowings, cash and short-term deposits and finance leases and
loans for certain customer contracts. The Group’s bank borrowings, existing committed and uncommitted facilities and deposits are at floating
rates. No interest rate derivative contracts have been entered into. If long-term borrowings were to be utilised in the future, the Group’s policy
would be to maintain these borrowings at fixed rates to limit the Group’s exposure to interest rate fluctuations.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the
Group’s profit before tax (through the impact on floating rate borrowings). There is no impact on the Group’s equity.

2021
Sterling
Euro
US dollars

2020
Sterling
Euro
US dollars

Change in
basis points

Effect on profit
before tax
£m

+25
+25
+25

0.4
0.1
0.2

0.4
(0.1)
0.2

The impact of a reasonable possible decrease to the same range shown in the table would result in an opposite impact on the profit before tax of
the same magnitude.
Fair values
The carrying value of the Group’s short-term receivables and payables is a reasonable approximation of their fair values. The fair value of all other
financial instruments carried within the Consolidated Financial Statements is not materially different from their carrying amount.

181

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

27 Financial instruments continued
Exchange rate sensitivity
The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales,
purchases and receivables are denominated and the respective functional currencies of Group companies. The functional currencies of main
overseas subsidiaries are primarily the euro (€), US dollar (USD) and Swiss franc (CHF).

The Group’s risk management policy is to hedge all of its expected foreign currency exposure in respect of sales and purchases as soon as these
are committed. The Group uses forward exchange contracts to manage its currency risk. The main currencies managed by forward foreign
exchange contracts are South African rand (ZAR), Hungarian forint (HUF), euro (€), US dollar ($), Japanese yen (JPY), Polish zloty (PLN), Swiss franc
(CHF), Swedish krona (SEK) and Mexican peso (MXN).

However, hedge accounting is mainly applied to the expected trading cash flows denominated in South African rand (ZAR), Hungarian forint (HUF),
euro (€), US dollar ($) and Japanese yen (JPY) where the exposure extends beyond one year and there is a strong expectation that the expected
future foreign currency cash flow will occur. The Group uses forward foreign exchange contracts, designated as cash flow hedges, to hedge these
cash flows. When a commitment is entered into, forward foreign exchange contracts are normally used to increase the hedge to 100 per cent of
the expected exposure, although between 80 per cent and 110 per cent of the expected exposure should be hedged to meet the risk management
policy. The Group designates its forward foreign exchange contracts to hedge its cashflow risk and applies a hedge ratio of 1:1. The Group’s policy
is for the critical terms of the forward exchange contracts to align with the hedged item.

The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency,
amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging relationship is expected
to be and has been effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method.

In these hedge relationships, the main sources of ineffectiveness are:

• the effect of the counterparties’ and the Group’s own credit risk on the fair value of the forward foreign exchange contracts, which is not

reflected in the change in the fair value of the hedged cash flows attributable to the change in exchange rates;

• actual cash flows in foreign currencies varying from forecast cash flows; and
• changes in the timing of the hedged transactions.

Other than differences arising from the translation of results of operations outside of the Group’s functional currency, reasonably foreseeable
movements in the exchange rates of +10 per cent or -10 per cent would not have a material impact on the Group’s profit before tax or equity.

The summary quantitative data about the Group’s exposure to currency risk as reported to the Management of the Group is as follows:

31 December 2021
millions

31 December 2020
millions

$
543.4
(570.9)
(173.9)
(201.4)

€
659.0
(682.2)
(228.2)
(251.4)

$
409.3
(422.4)
58.5
45.4

€
569.8
(551.0)
(15.2)
3.6

201.4

251.4

(45.4)

(3.6)

–

Trade and other receivables
Trade and other payables
Forecast future cash flow (net)

Forward exchange contracts

Net exposure

182

Liquidity risk
The table below summarises the maturity profile of the Group’s financial liabilities as at 31 December based on contractual discounted payments:

Year ended 31 December 2021
Bank loans and credit facility
Lease liabilities
Derivative financial instruments
Trade and other payables

Year ended 31 December 2020
Bank loans and credit facility
Lease liabilities
Derivative financial instruments
Trade and other payables

On demand
£m

<3 months
£m

3–12 months
£m

1–2 years
£m

2–5 years
£m

>5 years
£m

Total
£m

7.0
–
–
–
7.0

2.5
10.7
0.6
1,410.4
1,424.2

5.6
32.3
0.9
–
38.8

5.0
32.1
0.6
–
37.7

10.3
49.1
0.4
–
59.8

1.4
21.9
–
–
23.3

31.8
146.1
2.5
1,410.4
1,590.8

On demand
£m

<3 months
£m

3–12 months
£m

1–2 years
£m

2–5 years
£m

>5 years
£m

Total
£m

58.4
–
–
–
58.4

1.6
10.4
4.2
1,116.7
1,132.9

45.5
31.3
0.3
–
77.1

5.2
29.4
0.3
–
34.9

6.9
42.4
0.3
–
49.6

3.6
24.0
–
–
27.6

121.2
137.5
5.1
1,116.7
1,380.5

The table below summarises the maturity profile of the Group’s financial liabilities as at 31 December based on contractual undiscounted payments:

Year ended 31 December 2021
Bank loans and credit facility
Lease liabilities
Derivative financial instruments
Trade and other payables

Year ended 31 December 2020
Bank loans and credit facility
Lease liabilities
Derivative financial instruments
Trade and other payables

On demand
£m

<3 months
£m

3–12 months
£m

1–2 years
£m

2–5 years
£m

>5 years
£m

Total
£m

7.0
–
–
–
7.0

2.5
13.5
0.6
1,410.4
1,427.0

5.8
33.7
0.9
–
40.4

5.2
35.2
0.6
–
41.0

10.8
53.9
0.4
–
65.1

1.4
23.9
–
–
25.3

32.7
160.2
2.5
1,410.4
1,605.8

On demand
£m

<3 months
£m

3–12 months
£m

1–2 years
£m

2–5 years
£m

>5 years
£m

Total
£m

58.4
–
–
–
58.4

1.6
12.5
4.2
1,116.7
1,135.0

45.8
33.3
0.3
–
79.4

5.3
32.4
0.3
–
38.0

7.2
46.6
0.3
–
54.1

3.7
27.7
–
–
31.4

122.0
152.5
5.1
1,116.7
1,396.3

Fair value measurements recognised in the Consolidated Balance Sheet
Financial instruments which are recognised at fair value subsequent to initial recognition are grouped into Levels 1 to 3 based on the degree
to which the fair value is observable. The three levels are defined as follows:

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the

asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based

on observable market data (unobservable inputs).

Derivative financial instruments
At 31 December 2021 the Group had forward currency contracts, which were measured at Level 2 fair value subsequent to initial recognition,
to the value of a net asset of £1.1 million (2020: net liability of £3.2 million).

At 31 December 2020 the Group had an interest rate swap, which was measured at Level 2 fair value subsequent to initial recognition, to the value
of a net liability of £0.3 million. The interest rate swap was terminated early on 16 September 2021 (note 24).

The realised gains from forward currency contracts in the year to 31 December 2021 of £0.4 million (2020: £2.4 million) with a deferred tax liability
of £0.1 million (2020: £0.4 million), are offset by broadly equivalent realised losses on the related underlying transactions.

183

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

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 2 to 2.5 times. In 2021, the cover was 2.5 times on an
adjusted1 profit basis (2020: 2.5 times).

Capital, defined as net funds3, 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 funds3 of the business, and accordingly includes these deposits within
adjusted net funds3.

Capital is allocated across the Group, in order to minimise its exposure to exchange rates. Each country finances its own working capital
requirements, typically resulting in borrowings in France with cash on deposit in the UK and Germany. An internal cash pooling arrangement has
been implemented which utilises internal Group financing arrangements (excluding acquisitions).

Within the Group’s European region, the capital base is primarily utilised to finance its fixed assets and working capital requirements. It seeks to
optimise the use of working capital and improve its cash flow. As a consequence, the UK has sourced an increasing proportion of its Technology
Sourcing business via distributors in order to reduce the working capital requirements of the business.

The Group is subject to certain key financial covenants under its syndicated facility with Barclays and HSBC. These covenants, as defined in the
agreement, are monitored regularly to ensure compliance. As at 31 December 2021, the Group was in compliance with all covenants.

The Group’s Pivot subsidiary is also subject to certain key financial covenants under its JPMC Credit facility. These covenants, which include fixed
charge ratios as defined in the agreement, are monitored regularly to ensure compliance. As at 31 December 2021, the Pivot subsidiary was in
compliance with all covenants. The Company is not subject to any externally imposed capital requirements.

29 Issued capital and reserves
Issued share capital – ordinary shares

Issued and fully paid
At 1 January 2021 and 31 December 2021

75/9 pence
ordinary
shares
No. ’000
122,688

Total
£m
9.3

During the year, the issued share capital remained unchanged.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the general
meetings of the Company. On a winding up of the Company, holders of ordinary shares may be entitled to the residual assets of the Company.

The Company has a number of share option schemes under which options to subscribe for the Company’s shares have been granted to Executive
Directors and certain senior Management (note 30).

Share premium
The share premium account is used to record the aggregate amount or value of premiums paid when the Company’s shares are issued/redeemed
at a premium.

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 (2020: nil).

184

Own shares held
Own shares held comprise the following:

i) Computacenter Employee Share Ownership Plan (ESOP)
Shares in the Parent undertaking comprise 920,218 ordinary shares of 75⁄9 pence each in Computacenter plc (2020: 988,505) purchased by the
Computacenter Employee Share Ownership Plan (the Plan). The principal purpose of the Plan is to be funded with shares that will satisfy discretionary
executive share plans. The number of shares held represents 0.75 per cent of the Company’s issued share capital (2020: 0.81 per cent).

Since 31 December 2002, the definition of beneficiaries under the ESOP Trust has been expanded to include employees who have been awarded
options to acquire ordinary shares of 75⁄9 pence each in Computacenter plc under other employee share plans of the Group, namely the
Computacenter Service Group plc Approved Executive Share Option Plan, the Computacenter plc Employee Share Option Scheme 1998, the
Computacenter Service Group plc Unapproved Executive Share Option Scheme, the Computacenter Performance Related Share Option Scheme
1998, the Computacenter plc Sharesave Plus Scheme and any future similar share ownership schemes.

All costs incurred by the Plan are settled directly by Computacenter (UK) Limited and charged in the accounts as incurred.

The Plan Trustees have waived the dividends receivable in respect of 920,218 ordinary shares of 75⁄9 pence each (2020: 988,505) that it owns which
are all unallocated shares.

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 75⁄9 pence each (2020: 122,687,970), each carrying one voting right, of which the
Company held 8,546,861 ordinary shares in treasury (2020: 8,546,861).

As at 31 December 2021, the total number of voting rights in the Company which may be used by shareholders as the denominator for the
calculations by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the
Disclosure and Transparency Rules is 114,141,109 (2020: 114,141,109). The percentage of voting rights attributable to those shares it holds in
treasury following the share buy-back in 2018 is 6.97 per cent (2020: 6.97 per cent).

Translation and hedging reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the Financial Statements of foreign
subsidiaries. The hedging reserve represents the cumulative amount of gains and losses on hedging instruments deemed effective in cash flow
hedges. Included within Translation and hedging reserves is a hedging reserve debit balance of £0.2 million (2020: £0.6 million credit balance).

Non-controlling interests
The non-controlling amounts are as follows:

Applied Computer Solutions (ACS)
ProSys Information Systems, Inc (ProSys)
R.D. Trading Limited (RDC)

2021
£m
1.7
2.8
(0.2)
4.3

2020
£m

0.6
2.5
–
3.1

185

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

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 2021 the number of shares outstanding was as follows:

Date of grant
23/03/2012
20/03/2014
26/03/2015
22/03/2016
22/03/2017
21/03/2018
21/03/2018
18/05/2018
01/10/2018
21/03/2019
21/03/2019
23/03/2020
23/03/2020
23/03/2020
23/03/2020
11/05/2020
02/11/2020
22/03/2021
21/03/2021
21/03/2021
10/06/2021

The following table illustrates the number (No.) of share options for the PSP Scheme:

PSP Scheme
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year***
Outstanding at the end of the year

Exercisable at the end of the year

Maturity date

23/03/2015
20/03/2017
26/03/2018
22/03/2019
22/03/2020
21/03/2021
21/03/2021
21/03/2021
21/03/2021
21/03/2021
21/03/2022
21/03/2021
21/03/2022
21/03/2023
21/03/2025
21/03/2023
21/03/2023
21/03/2024
21/03/2022
21/03/2023
21/03/2024

Share price at
date of grant

433.0p
682.5p
720.0p
845.0p
736.5p
1182.67p
1182.67p
1314.00p
1314.00p
1192.00p
1192.00p
993.00p
993.00p
993.00p
993.00p
1472.00p
2265.00p
2175.00p
2175.00p
2175.00p
2671.00p

2021
Number
outstanding
1,685
18,513
33,267
64,761
182,625
83,642
97,364
–
–
–
484,082
–
24,303
429,244
173,892
2,853
14,504
353,966
11,684
11,685
7,384
1,995,454

2020
Number
outstanding

1,685
21,150
46,170
69,884
196,189
254,836
139,092
18,256
14,985
18,131
488,166
24,303
24,303
441,502
173,892
2,853
14,504
–
–
–
–
1,949,901

2021
No.

2020
No.

1,949,901
384,719
(70,043)
(269,123)
1,995,454

1,854,135
696,036
(83,033)
(517,237)
1,949,901

481,857

335,078

*** The weighted average share price at the date of exercise for the options exercised is £20.46 (2020: £13.89).

The weighted average remaining contractual life for the options outstanding as at 31 December 2021 is 1.0 years (2020: 1.4 years).

186

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, 672,082 options were granted (2020: 762,623) with a fair value of £4,461,737
(2020: £5,108,756).

Under the scheme the following options have been granted and are outstanding at the year-end:

Date of grant
October 2015
October 2016
October 2017
October 2017
October 2018
October 2018
October 2019
October 2019
October 2019
October 2020
October 2020
October 2020
October 2021
October 2021
October 2021

Exercisable between

01/12/2020 – 31/05/2021
01/12/2021 – 31/05/2022
01/12/2020 – 31/05/2021
01/12/2022 – 31/05/2023
01/12/2021 – 31/05/2022
01/12/2023 – 31/05/2024
01/12/2022 – 31/05/2023
01/12/2024 – 31/05/2025
23/10/2019 – 23/10/2021
01/12/2023 – 31/05/2024
01/12/2025 – 31/05/2026
26/10/2020 – 26/10/2022
01/12/2024 – 31/05/2025
01/12/2026 – 31/05/2027
25/10/2021 – 25/10/2023

Share
price

600.00p
577.00p
888.00p
789.00p
1,186.00p
1,054.00p
1,138.00p
1,011.00p
1,138.00p
2,092.00p
1,860.00p
2,092.00p
2,571.00p
2,286.00p
2,468.00p

2021
Number
outstanding
–
110,580
–
583,494
67,830
466,853
274,150
585,518
12,856
204,399
507,477
13,719
170,353
463,513
36,057
3,496,799

2020
Number
outstanding

117,202
477,236
68,174
608,309
245,416
489,356
285,361
613,215
64,062
219,558
523,949
14,370
–
–
–
3,726,208

The following table illustrates the number (No.) and weighted average exercise price (WAEP) of share options for the Sharesave Scheme:

Sharesave Scheme
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year***
Outstanding at the end of the year

Exercisable at the end of the year

Note

2021
No.

3,726,208
672,082
(114,095)
(787,396)
3,496,799

2021
WAEP

£11.20
£23.68
£13.16
£7.80
£14.30

2020
No.

2020
WAEP

3,964,537
762,623
(165,646)
(835,306)
3,726,208

£8.65
£19.30
£9.87
£ 6.76
£11.20

190,682

£8.55

200,917

£7.20

*** The weighted average share price at the date of exercise for the options exercised is £27.21 (2020: £21.11).

The weighted average remaining contractual life for the options outstanding as at 31 December 2021 is 3.0 years (2020: 3.0 years).

187

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

30 Share-based payments continued
The fair value of the PSP, 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 year ended 31 December 2021 and 31 December 2020:

2021

Nature of the
arrangement
Date of grant
Number of
instruments
granted
Exercise price
Share price at
date of grant
Contractual life
(years)

Vesting
conditions
Expected
volatility
Expected option
life at grant date
(years)
Risk-free
interest rate
Dividend yield
Fair value per
granted
instrument
determined at
grant date

PSP
scheme
22/03/21

PSP
scheme
10/06/21

DBP
scheme
21/03/21

SAYE
scheme
25/10/21

142,078
nil

198,076
nil

13,812
nil

1,425
nil

5,959
nil

11,684
nil

11,685
nil

36,057
£24.68

171,506
£25.71

464,519
£22.86

£21.75

£26.71

£21.75

£27.40

See note 1
below

3
See page 120
of the Annual
Report on
Remuneration

Three-year
service period

See note 1
below

1
See page 120
of the Annual
Report on
Remuneration

2
See page 120
of the Annual
Report on
Remuneration

2
Two-year
service period
and savings
requirement

3
Three-year
service period
and savings
requirement

5
Five-year
service period
and savings
requirement

n/a

40.30%

39.00%

36.10%

n/a
0.60%

n/a
0.50%

n/a
0.60%

3.89%
1.21%

£21.34

26.30

£26.30

£21.61

£21.47

£5.87

£5.93

£6.96

188

2020

Nature of the
arrangement
Date of grant
Number of
instruments
granted
Exercise price
Share price at
date of grant
Contractual life
(years)

Vesting
conditions
Expected
volatility
Expected option
life at grant date
(years)
Risk-free
interest rate
Dividend yield
Fair value per
granted
instrument
determined at
grant date

Note

PSP
scheme
23/03/20

PSP
scheme
02/11/20

PSP
scheme
11/05/20

DBP
scheme
23/03/20

SAYE
scheme
01/12/20

440,170
nil

173,892
nil

16,011
nil

14,504
nil

2,853
nil

24,303
nil

14,370
£20.92

221,217
£20.92

527,036
£18.60

£9.93

£22.65

£14.72

£9.93

£23.58

See note 1
below

5
See page 111
of the Annual
Report on
Remuneration
in the 2020
Annual Report
and Accounts

Three-year
service period

See note 1
below

1
See page 111
of the Annual
Report on
Remuneration
in the 2020
Annual Report
and Accounts

2
See page 111
of the Annual
Report on
Remuneration
in the 2020
Annual Report
and Accounts

Two-year
service period
and savings
requirement

Three-year
service period
and savings
requirement

Five-year
service period
and savings
requirement

n/a

44.73%

42.00%

36.30%

n/a
2.30%

n/a
0.60%

n/a
1.70%

n/a
2.30%

3.08%
0.57%

£9.82

£22.25

£14.01

£10.28

£10.05

£5.87

£6.24

£6.93

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 cent per annum. One-half of the shares will vest if the compound annual EPS growth over the performance
period equals 7.5 per cent and the shares will vest in full if the compound annual EPS growth over the performance period equals 10 per cent. If the compound annual EPS growth over the
performance period is between 5 and 10 per cent, 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 also not necessarily be
the actual outcome. No other features of the options granted were incorporated into the measurement of fair value.

189

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

31 Analysis of changes in net funds

Cash and short-term deposits
Bank overdrafts
Cash and cash equivalents
Bank loans and credit facility
Adjusted net funds3 (excluding lease liabilities)
Lease liabilities
Net funds

The financing cash flows included in the table above are detailed as follows:

At
1 January
2021
£m
309.8
–
309.8
(121.2)
188.6
(137.5)
51.1

Cash flows
in year
£m
(17.1)
(12.0)
(29.1)
89.0
59.9
55.4
115.3

Non-cash
flow
£m
–
–
–
–
–
(71.5)
(71.5)

Exchange
differences
£m
(7.5)
–
(7.5)
0.4
(7.1)
7.5
0.4

At
31 December
2021
£m
285.2
(12.0)
273.2
(31.8)
241.4
(146.1)
95.3

Bank loans
(62.8)

Credit facility
(58.4)

Bank overdraft
–

Others
–

Lease
liabilities
(137.5)

Liabilities from
financing
activities
(258.7)

0.9
–
48.6
–
–
–
(10.7)
38.8

0.1

–
–
–
(0.9)
(0.9)
(24.8)

1.2
–
–
51.1
–
–
–
52.3

0.3

–
–
–
(1.2)
(1.2)
(7.0)

–
–
–
–
–
(12.0)
–
(12.0)

–

–
–
–
–
–
(12.0)

0.2
–
–
–
–
–
–
0.2

–

–
–
–
(0.2)
(0.2)
–

–
5.2
–
–
50.2
–
–
55.4

7.5

(70.2)
(1.4)
5.3
(5.2)
(71.5)
(146.1)

2.3
5.2
48.6
51.1
50.2
(12.0)
(10.7)
134.7

7.9

(70.2)
(1.4)
5.3
(7.5)
(73.8)
(189.9)

At
1 January
2020
£m
217.8
(80.8)
137.0
(116.8)
20.2

Cash flows
in year
£m
84.9
(42.5)
42.4
47.7
90.1

Non-cash
flow
£m
–
–
–
(65.3)
(65.3)

Exchange
differences
£m
7.1
2.1
9.2
(3.1)
6.1

At
31 December
2020
£m
309.8
(121.2)
188.6
(137.5)
51.1

Balance at 1 January 2021
Changes from financing cash flows
Interest paid
Interest paid on lease liabilities
Repayment of loans
Repayment of credit facility
Payment of capital element of lease liabilities
Bank overdraft
New borrowings – bank loan
Total changes from financing cash flows

The effect of changes in foreign exchange rates

Other changes
New leases
New leases relating to acquisition of a subsidiary
Early termination of leases
Interest expense
Total other changes
Balance at 31 December 2021

Cash and short-term deposits
Bank loans and credit facility
Adjusted net funds3 (excluding lease liabilities)
Lease liabilities
Net funds

190

The financing cash flows included in the table above are detailed as follows:

Balance at 1 January 2020
Changes from financing cash flows
Interest paid
Interest paid on lease liabilities
Repayment of loans
Repayment of credit facility
Payment of capital element of lease liabilities
New borrowings – credit facility relating to acquisition of a subsidiary
New borrowings – bank loan
Total changes from financing cash flows

The effect of changes in foreign exchange rates

Other changes
New leases
New leases relating to acquisition of a subsidiary
Early termination of leases
Interest expense
Total other changes
Balance at 31 December 2020

Bank
loans
(80.8)

1.7
–
19.4
–
–
–
(0.3)
20.8

(1.1)

–
–
–
(1.7)
(1.7)
(62.8)

Credit
facility
–

–
–
–
0.6
–
(62.2)
–
(61.6)

3.2

–
–
–
–
–
(58.4)

Lease
liabilities
(116.8)

Liabilities from
financing
activities
(197.6)

Others
–

0.2
–
–
–
–
–
–
0.2

–

–
–
–
(0.2)
(0.2)
–

–
4.5
–
–
43.2
–
–
47.7

1.9
4.5
19.4
0.6
43.2
(62.2)
(0.3)
7.1

(3.1)

(1.0)

(49.4)
(12.8)
1.4
(4.5)
(65.3)
(137.5)

(49.4)
(12.8)
1.4
(6.4)
(67.2)
(258.7)

32 Capital commitments
As at 31 December 2021, the Group had a £1.2 million commitment for capital expenditure (2020: £0.8 million).

33 Pensions and other post-employment benefit plans
The Group operates a defined contribution pension scheme available to all UK employees and similar schemes are operating, as appropriate for
the jurisdiction, for North America and Germany. The amount recognised as an expense for this plan is detailed in note 9.

The Group has a provision against the retirement benefit obligations in France under the Indemnités de Fin de Carrière (IFC) as described in
note 2.12.3 Economic outflows under the obligation only occur if eligible employees reach the statutory retirement age whilst still in employment
or made redundant. The Group made £0.3 million of payments during 2021 under this obligation (2020: £0.3 million).

In estimating the provision required, Management is required to make a number of assumptions. The key areas of estimation uncertainty are the
discount rate applied to future cash flows, the turnover rate of employed personnel and rate of salary increases over the length of their projected
employment. The level of unrealised actuarial gains or losses is sensitive to changes in the discount rate, which is affected by market conditions
and therefore subject to variation. Management makes use of an independent actuarial valuation in reaching its conclusions.

The net liability recognised in the Consolidated Balance Sheet as at 31 December 2021 in respect of the Group’s French retirement benefit
obligations under the IFC was £21.8 million (2020: £23.3 million). Key movements during the year include a charge to the Consolidated Income
Statement of £1.6 million (2020: £0.8 million) for the service cost and an actuarial gain taken through reserves of £1.2 million (2020: loss of
£4.3 million). The key driver of actuarial gain this year was the change in experience and financial assumptions, mainly due to a change in the
discount rate assumption used in the actuarial valuation.

191

Financial StatementsAnnual Report and Accounts 2021Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2021

33 Pensions and other post-employment benefit plans continued

Total defined benefit liability

Movements in total defined benefit liability:

Balance at 1 January
Pension liability acquired

Included in Consolidated Income Statement
Current service cost
Interest cost

Included in Consolidated Statement of Comprehensive Income
Remeasurements loss
Actuarial (gain)/loss arising from:
– Changes in demographic assumptions
– Change in financial assumptions
– Experience adjustment
Effect of movements in exchange rates

Other
Benefits paid

Balance at 31 December

Actuarial assumptions
The following are the principal actuarial assumptions at 31 December (expressed as weighted averages):

Discount rate
Future salary growth
Turnover rates:
– Non-managers
– Supervisors
– Executives

2021
£m
21.8

2021
£m
23.3
–

1.5
0.1
1.6

(1.2)
1.0
(1.6)
(0.6)
(1.6)
(2.8)

(0.3)
(0.3)
21.8

2021
%
1.0
2.0

5.7
2.7
2.7

2020
£m
23.3

2020
£m
8.3
9.9

0.7
0.1
0.8

4.1
3.3
0.6
0.2
0.5
4.6

(0.3)
(0.3)
23.3

2020
%
0.5
1.5

5.7
2.7
2.7

At 31 December 2021, the discount rate used was 1.0 per cent (2020: 0.5 per cent) with reference to the iBoxx € Corporate AA 10y + index.

Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have
affected the defined benefit obligation by the amounts shown below.

Discount rate (1 per cent movement)
Future salary growth (1 per cent movement)
Turnover rates (1 per cent movement)

2021
£m

Increase
2.5
(3.0)
1.9

Decrease
(3.0)
2.5
(2.3)

2020
£m

Increase
2.8
(3.3)
0.8

Decrease
(3.3)
2.8
(1.0)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the
sensitivity of the assumptions shown.

192

34 Related party transactions
During the year, the Group entered into transactions, in the ordinary course of business, with related parties. Transactions entered into are as
described below:

Biomni provides the Computacenter e-procurement system used by many of Computacenter’s major customers. An annual fee has been agreed
on a commercial basis for use of the software for each installation. Both PJ Ogden and PW Hulme are Directors of and have a material interest in
Biomni Limited.

The table below provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

Biomni Limited
Sales to related parties
Purchase from related parties

2021
£m

–
0.6

2020
£m

0.1
0.7

Terms and conditions of transactions with related parties
Outstanding balances at the year end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any
related party receivables. The Group has not recognised any provision for doubtful debts relating to amounts owed by related parties. This
assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related
party operates.

Compensation of key management personnel (including Directors)
The Board of Directors is identified as the Group’s key management personnel. Please refer to the information given in the remuneration table in
the Annual Report on Remuneration on page 115 for details of compensation given. A summary of the compensation of key management
personnel is provided below:

Short-term employee benefits
Social security costs
Share-based payment transactions
Pension costs
Total compensation paid to key management personnel

2021
£m
2.8
0.4
3.9
0.1
7.2

2020
£m
2.2
0.4
2.2
0.1
4.9

The interests of the key management personnel in the Group’s share incentive schemes are disclosed in the Annual Report on Remuneration on
pages 118 to 121.

35 Contingent liabilities
The Company has given a guarantee in the normal course of business to suppliers of subsidiary undertakings for an amount not exceeding
£126.8 million (2020: £134.0 million).

During the ordinary course of business, the Group can be subject to complaints and threatened or actual legal proceedings brought primarily by
customers or vendors, but also on behalf of current or former employees, investors or other third parties, as well as legal and regulatory reviews,
challenges, investigations and enforcement actions, both in the UK and overseas.

Where material, such matters are periodically reassessed, with the assistance of external professional advisers where appropriate, to determine
the likelihood of the Group incurring a liability. In those instances where it is concluded that it is more likely than not that a payment will be made,
a provision is established to Management’s best estimate of the amount required at the relevant balance sheet date. In some cases it will not be
possible to form a view, for example because the facts are unclear or because further time is needed to properly assess the merits of the case,
and no provisions are held in relation to such matters.

In these circumstances, specific disclosure in relation to a contingent liability will be made where material. However, the Group does not currently
expect the final outcome of any such case to have a material adverse effect on its financial position, operations or cash flows either separately or
in aggregate.

193

Financial StatementsAnnual Report and Accounts 2021Note

3
4
5

7
8

2021
£m

16.7
11.9
443.0
471.6

0.1
0.3
0.4
472.0

73.8
–
1.7
75.5
75.5
396.5

9.3
4.0
75.0
55.9
(115.5)
367.8
396.5

2020
(Restated*)
£m

25.2
13.0
397.1
435.3

71.3
0.2
71.5
506.8

–
41.5
–
41.5
41.5
465.3

9.3
4.0
75.0
55.9
(111.7)
432.8
465.3

Company Balance Sheet
As at 31 December 2021

Non-current assets
Intangible assets
Investment property
Investments

Current assets
Debtors
Prepayments

Total assets

Current liabilities
Trade and other payables
Financial liabilities
Income tax payable

Total liabilities
Net assets

Capital and reserves
Issued share capital
Share premium
Capital redemption reserve
Merger reserve
Own shares held
Retained earnings
Shareholders’ equity

* See note 12 for adjustment for the year ended 31 December 2020.

The accompanying notes on pages 196 to 200 form an integral part of these financial statements.

Approved by the Board on 23 March 2022.

MJ Norris
Chief Executive Officer

FA Conophy
Group Finance Director

194

Company Statement of Changes in Equity
For the year ended 31 December 2021

At 1 January 2021
Profit for the year
Total comprehensive income for the year
Exercise of options
Share options granted to employees of
subsidiary companies
Purchase of own shares
Equity dividends
At 31 December 2021

At 1 January 2020
Profit for the year
Other comprehensive income (restated*)
Total comprehensive income (restated*)
Exercise of options
Share options granted to employees of
subsidiary companies
Purchase of own shares
Equity dividends
At 31 December 2020 (restated*)

Issued
share
capital
£m
9.3
–
–
–

Share
premium
£m
4.0
–
–
–

Capital
redemption
reserve
£m
75.0
–
–
–

Merger
reserve
£m
55.9
–
–
–

Own shares
held
£m
(111.7)
–
–
21.7

Retained
earnings
£m
432.8
2.3
2.3
(15.5)

Shareholders’
equity
£m
465.3
2.3
2.3
6.2

–
–
–
9.3

9.3
–
–
–
–

–
–
–
9.3

–
–
–
4.0

4.0
–
–
–
–

–
–
–
4.0

–
–
–
75.0

75.0
–
–
–
–

–
–
–
75.0

–
–
–
55.9

55.9
–
–
–
–

–
–
–
55.9

–
(25.5)
–
(115.5)

(113.6)
–
–
–
20.9

–
(19.0)
–
(111.7)

10.6
–
(62.4)
367.8

278.8
121.9
53.0
174.9
(15.2)

8.2
–
(13.9)
432.8

10.6
(25.5)
(62.4)
396.5

309.4
121.9
53.0
174.9
5.7

8.2
(19.0)
(13.9)
465.3

* See note 12 for adjustment for the year ended 31 December 2020.

The accompanying notes on pages 196 to 200 form an integral part of these financial statements.

195

Financial StatementsAnnual Report and Accounts 2021Notes to the Company Financial Statements
For the year ended 31 December 2021

1 Authorisation of Financial Statements
The Parent Company Financial Statements of Computacenter plc (the Company) for the year ended 31 December 2021 were authorised for issue
by the Board of Directors on 23 March 2022 and the Balance Sheet was signed on the Board’s behalf by MJ Norris and FA Conophy. 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 2021. 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;

(c) 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;
(iv) paragraphs 76 and 79(d) of IAS 40 Investment Property; and
(v) paragraph 50 of IAS 41 Agriculture.

(g) the requirements of paragraphs 10(d), 10(f), 39(c) and 134-136 of IAS 1 Presentation of Financial Statements;
(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.

The basis for all of the above exemptions is because 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 4.

196

Investments
Fixed asset investments are shown at cost less provision for impairment.

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. For intra-group receivables, the Company applies the simplified approach which requires expected lifetime losses to be
recognised from the initial recognition of the receivables.

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 per cent 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 £55.9 million 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.

197

Financial StatementsAnnual Report and Accounts 2021Notes to the Company Financial Statements continued
For the year ended 31 December 2021

Intangible assets

Cost
At 1 January 2021 and 31 December 2021

Accumulated amortisation
At 1 January 2021
Charge in the year
At 31 December 2021

Net book value
At 31 December 2021
At 31 December 2020

Investment properties

Cost
At 1 January 2021 and 31 December 2021

Accumulated depreciation
At 1 January 2021
Charge in the year
At 31 December 2021

Net book value
At 31 December 2021
At 31 December 2020

Intellectual
property
£m

169.7

144.5
8.5
153.0

16.7
25.2

Freehold land
and buildings
£m

42.4

29.4
1.1
30.5

11.9
13.0

Investment property represents a building owned by the Company that is leased to Computacenter (UK) Ltd, a fully owned subsidiary of the Company.

The fair value of investment property amounted to £38.7 million at 31 December 2021 (2020: £38.5 million). 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 leased
to a subsidiary and is carried at depreciated cost value, an updated external valuation was not sought at 31 December 2021.

198

Investments

Cost
At 31 December 2020 (as reported)
Dividends received in-specie (note 12)
At 31 December 2020 (restated)
Additions
Impairment
Share-based payments
At 31 December 2021

Amounts provided
At 31 December 2020
Provided during the year
At 31 December 2021

Net book value
At 31 December 2021
At 31 December 2020 (restated)

Investments in
subsidiary
undertakings
£m

Loans to
subsidiary
undertakings
£m

466.1
53.0
519.1
35.3
–
10.6
565.0

122.0
–
122.0

443.0
397.1

2.8
–
2.8
–
–
–
2.8

2.8
–
2.8

–
–

Total
£m

468.9
53.0
521.9
35.3
–
10.6
567.8

124.8
–
124.8

443.0
397.1

During the year, the Company made an investment of $50 million into Computacenter (U.S.), Inc., a fully-owned US subsidiary, by way of
a capital contribution.

During the prior year, the Company received a return of capital of £7.4 million, from its subsidiary Computacenter Managed Services GmbH which
undertook a capital reduction.

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.

Details of the principal investments at 31 December in which the Company holds more than 20 per cent of the nominal value of ordinary share
capital are given in note 18 to the Consolidated Financial Statements.

6 Debtors

Amount owed by subsidiary undertaking
Other debtors

2021
£m
–
0.1
0.1

Amounts owned by subsidiaries are unsecured, have no fixed date of repayment and are repayable on demand. Expected credit losses are
considered to be immaterial.

7 Trade and other payables

Amount owed to subsidiary undertaking

2021
£m
73.8

2020
£m
71.2
0.1
71.3

2020
£m
–

The movement in amount owed by subsidiary undertaking (per note 6) and amount owed to subsidiary undertaking (per note 7) is mainly due to
equity dividends paid and repayment of loans.

199

Financial StatementsAnnual Report and Accounts 2021Notes to the Company Financial Statements continued
For the year ended 31 December 2021

8 Financial liabilities

Current
Bank loan

2021
£m

–

2020
£m

41.5

There are no material differences between the fair value of financial liabilities and their book value.

Bank loans
A loan of £100.0 million was drawn at 2.05 per cent interest rate to finance the acquisition of Computacenter United States Inc. The outstanding
balance as at 31 December 2021 was nil (2020: £41.5 million). Repayment of this loan commenced in H1 2019 and was fully paid in 2021.

9 Contingent liabilities
The Company has given a guarantee in the normal course of business to suppliers of subsidiary undertakings for an amount not exceeding
£126.8 million (2020: £134.0 million).

The Company has provided cross guarantees in respect of certain bank loans and overdrafts of its subsidiary undertakings. The amount
outstanding at 31 December 2021 is £nil (2020: £nil).

10 Auditor’s remuneration
All auditor’s remuneration is borne by Computacenter (UK) Ltd, a fully-owned UK subsidiary of the Company. The amount payable to the auditor in
respect of the audit of the Company is £0.1 million (2020: £0.1 million), all of which is payable to KPMG LLP. 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 Distributable reserves
Dividends are paid from the standalone Balance Sheet of Computacenter plc, and as at 31 December 2021, the distributable reserves are
approximately £199.3 million (2020: £268.1 million).

12 Adjustment for the year ended 31 December 2020
On 2 November 2020, Computacenter Group acquired 100 per cent of the voting shares of Pivot Technology Solutions, Inc. (Pivot). After the
acquisition, but before 31 December 2020, a restructuring exercise was undertaken on the Pivot entities which had a number of steps including a
dividend in-specie from Computacenter (UK) Limited to Computacenter plc to transfer the entire share capital of Pivot Technology Solutions, Ltd.
(PTSL) held by Computacenter (UK) Limited.

The amount of distribution was equal to the book value of the PTSL shares in the accounts of Computacenter (UK) Limited. This book value
amounting to £53.0 million ($72.4 million) represents the fair value attributable to acquired assets and liabilities of PTSL as part of the Group’s
acquisition of Pivot.

The above dividend in-specie was not reflected in the balances previously reported for the year ended 31 December 2020 and this has been
corrected by restating each of the affected financial statement line items for the year ended 31 December 2020. The following summarises the
impact on the Company’s financial statements.

(i) Company Balance Sheet as at 31 December 2020

Investments
Others
Total assets

Retained earnings
Others
Shareholders’ equity and net assets

As previously
reported
£m
344.1
109.7
453.8

379.8
32.5
412.3

Adjustment
£m
53.0
–
53.0

53.0
–
53.0

Restated
£m
397.1
109.7
506.8

432.8
32.5
465.3

(ii) Company Statement of Changes in Equity for the year ended 31 December 2020
The above adjustment has been reported as other comprehensive income of £53.0 million in the Company Statement of Changes in Equity for
the year ended 31 December 2020. There is no tax impact as the dividend in-specie was exempt from UK corporation tax, being received from
a company that Computacenter plc controls. The resulting reserve of £53.0 million created within retained earnings has been excluded from the
Company’s distributable reserves.

There is no impact on the Computacenter Group’s retained earnings for the year ended 31 December 2020 and no impact on the total assets,
net assets and shareholders’ equity position as at 31 December 2020.

200

Disclaimer: forward-looking statements
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 they operate or are likely to operate and their 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.

201

Financial StatementsAnnual Report and Accounts 20212017
£m
3,793.4
105.5
106.2
81.3
65.1p
195.2
14,026

2017
£m
77.9
–
80.3
0.1
9.1
–
69.3
835.4
162.6
8.2
206.6
(940.9)
(19.7)
488.9

2018
£m
4,352.6
118.8
118.2
80.9
75.7p
66.2
15,117

2018
£m
106.3
–
184.6
0.1
9.6
3.5
99.5
1,180.4
171.2
3.9
200.4
(1,351.1)
(160.6)
447.8

2019
£m
5,052.8
151.5
146.3
101.6
92.5p
137.1
15,816

2019
£m
101.4
110.9
175.6
0.1
9.2
3.5
122.2
996.5
176.3
3.3
217.9
(1,257.8)
(166.6)
492.5

2020
£m
5,441.3
206.4
200.5
154.2
126.4p
188.6
16,764

2020
£m
107.0
129.6
274.7
0.1
10.1
23.6
211.3
1,105.9
228.2
1.6
309.8
(1,586.2)
(184.8)
630.9

2021
£m
6,725.8
262.8
255.6
186.5
165.6p
241.4
17,496

2021
£m
90.0
138.1
273.7
0.1
30.2
16.6
341.3
1,284.0
251.1
3.6
285.2
(1,783.7)
(185.4)
744.8

Date
19 May 2022
09 June 2022
10 June 2022
08 July 2022
09 September 2022

Group five-year financial review

Group five-year summary results
As of 31 December

Revenue
Adjusted1 operating profit
Adjusted1 profit before tax
Profit for the year
Adjusted1 diluted earnings per share
Adjusted net funds3
Headcount (monthly average)

Group five-year summary balance sheet
As at 31 December

Tangible assets
Right-of-use assets
Intangible assets
Investment in associate
Deferred tax asset
Non-current prepayments
Inventories
Trade and other receivables (including income tax receivables)
Prepayments and accrued income
Derivative financial instruments
Cash and short-term deposits
Current liabilities
Non-current liabilities
Net assets

Financial calendar

Title
AGM
Ex-dividend date
Dividend record date
Dividend payment date
Interim results announcement

202

Corporate information

Board of Directors
Peter Ryan (Non-Executive Chair)
Mike Norris (Chief Executive Officer)
Tony Conophy (Group Finance Director)
Rene Haas (Non-Executive Director)
Philip Hulme (Non-Executive Director)
Ljiljana Mitic (Non-Executive Director)
Peter Ogden (Non-Executive Director)
Minnow Powell (Non-Executive Director)
(Retired on 30 September 2021)
Ros Rivaz (Senior Independent Director)
Pauline Campbell (Non-Executive Director)
(Appointed on 16 August 2021)

Principal banker
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
KPMG LLP
15 Canada Square
London
E14 5GL
United Kingdom
Tel: +44 (0) 20 7311 1000

Company Secretary
Simon Pereira (appointed on 9 December 2021)
Raymond Gray (resigned on 9 December 2021)

Registered office
Hatfield Avenue
Hatfield
Hertfordshire
AL10 9TW
United Kingdom
Tel: +44 (0) 1707 631000

Stockbrokers and investment bankers
Credit Suisse
One Cabot Square
London
E14 4QJ
United Kingdom
Tel: +44 (0) 20 7888 8888

Investec Investment Banking
30 Gresham Street
London
EC2V 7QP
United Kingdom
Tel: +44 (0) 20 7597 4000

Registrar and transfer office
Equiniti
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
United Kingdom
Tel: +44 (0) 371 384 2027

Solicitor
Linklaters
One Silk Street
London
EC2Y 8HQ
United Kingdom
Tel: +44 (0) 20 7456 2000

Company registration number
3110569

Internet address
Computacenter Group
www.computacenter.com

203

Financial StatementsAnnual Report and Accounts 2021Spain
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

USA
Computacenter (U.S.), Inc.
17th Floor, 462 7th Avenue
New York, NY 10018
United States of America
Tel: +1 800-228-8324

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

India
Computacenter India Private Limited,
4th Floor, Purva Premiere,
Residency Road,
Bangalore 560025
India
Tel: +91 95386 11122

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

Principal offices

UK and Group headquarters
Computacenter plc
Hatfield Avenue
Hatfield
Hertfordshire
AL10 9TW
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

204

Design and production:
Gather
+44 (0) 20 7610 6140
www.gather.london

Printed on FSC® certified paper by an EMAS certified
printing company, its Environmental Management System
is certified to ISO 14001. 100% of the inks used are
vegetable oil based, 95% of press chemicals are recycled
for further use and, on average, 99% of any waste
associated with this production will be recycled. This
document is printed on Edixion Offset, a paper containing
100% virgin fibre sourced from well-managed forests and
other controlled sources. The pulp used in this product is
bleached using an elemental chlorine free (ECF) process.

Computacenter is a leading independent technology
partner, trusted by large corporate and public sector
organisations. We help our customers to Source,
Transform and Manage their IT infrastructure to
deliver digital transformation, enabling people and
their business. Computacenter is a public company
quoted on the London FTSE 250 (CCC.L) and employs
over 18,000 people worldwide.

Computacenter plc
Hatfield Avenue, Hatfield, Hertfordshire AL10 9TW, United Kingdom

Tel: +44 (0) 1707 631000
www.computacenter.com