Cancom shares fall as growth slows in Q4

Cancom has closed 2019 with double-digit revenue and profit growth, preliminary figures show.

The German reseller giant's unaudited numbers for FY2019 show revenues of €1.64bn, up 18.9 per cent year on year and an EBITDA of €134m, up 16.7 per cent.

The last three months of the year delivered 12 per cent revenue growth year on year to €463.6m, while profits grew by 10 per cent to €40.2m.

While Q4 is another quarter of stellar financials for the Munich reseller, its growth is markedly slower than previous quarters, where the firm has often exceeded 20 per cent growth.

Cancom's share price fell by more than seven per cent overnight to €53 a-share as the preliminary figures were published.

"The preliminary group figures for 2019 confirm our annual forecast, which we raised last summer," said CEO Rudolph Hotter.

"We have achieved very significant growth, which is supported by a large number of products and solutions in our portfolio and thus has a stable foundation.

"Backed by this success, we intend to gain further market share while continuing the transformation of the CANCOM Group towards cloud solutions and the high-margin managed services business."

The positive financials come less than a month after former CEO Thomas Volk broke his five-year contract to leave the business, citing "differing opinions on the future strategic development of the company".

Three months earlier, there were reports that the board was "considering options" for a sale to a rival or PE buyer, with CDW, NTT and Bechtle allegedly in the frame to take over Cancom.

2019 also marked a €80m acquisition of Northern Irish MSP Novosco, and Cancom's move into its eighth country globally, with a greenfield expansion into Slovakia.

Cancom Group's full annual report for 2019, including the forecast for 2020, will be published on 30 March 2020.

 

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