Computacenter upbeat despite fall in first half profits

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London-listed IT services group Computacenter blamed tough trading conditions for a 2.3% fall in half year profits to £50.8m.

The firm said its UK division was a blackspot, which saw a reduction in revenues of 7.8% as both Services and Technology Sourcing revenues declined. 

However, the group's total revenues grew 20.8% or £418.1 million during the first half of the year. Excluding the impact of acquisitions, the company said it was ahead of the same period last year.

European growth

Both France and Germany performed well, with the company reporting an increase in revenues of 18.9% and 4.1%, respectively.

Growth in France was led by a buoyant Technology Sourcing marketplace where the firm is growing its customer breadth, while German growth was driven by a resilient Technology Sourcing performance and a strong Professional Services performance. 

The board of the company also remained positive about the outlook for the full year.

Mike Norris, Chief Executive of Computacenter plc, commented: 'The Board's outlook remains in line with its expectations, which were upgraded as per the Trading Update on 31 July 2019.

“Whilst the performance of the first half of 2018 presented a very difficult challenge to beat, the opposite is true of the second half”, he said. 

“The Board expects that the full year 2019 profit growth, in monetary value, will be the best in the company's history. 

“This performance will be predominantly achieved without the aid of acquisitions, however we expect to see a more significant contribution from our acquired business in the USA during the second half.

“Looking further ahead will always be challenging but the momentum in the industry remains positive as customers continue to invest in technology to digitalise their business. 

“Whilst we are fully aware of macroeconomic challenges and take nothing for granted, we remain as positive about the future as we have ever been.”

The FTSE 250 company’s shares were trading 3.5% higher at £14.48 on Friday

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