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Rebound product spend, services pay off for Computacenter

Alex Scroxton

Computacenter chief executive Mike Norris has reported a strengthening rebound in infrastructure spending and steady growth in services during the six months to the end of June, after booking a 16.6% rise in pre-tax profits to £21.3m.

The firm booked sales of £1.29bn, up 5.4% on the same period last year, after seeing growth ahead of the market across all its major geographies, which the group put down to a greater focus on reducing end-user costs.

Said Norris: "We are confident that we are on track to meet our expectations for the year as a whole and looking further ahead, our plans to increase the services mix, allied with our strong balance shset, give us encouragement for further growth in the future."

Its contractual services base grew 4.6% to £509.7m and product sales were up 14.8% at constant currency rates, excluding the impact of the sale of CCD last year.

Broken out by geography, Computacenter posted 12% sales growth in the UK, with services sales up 8% and product revenues up 14.6%. The group noted an expansion in its British contract base, a widening of the outsourcing arena presenting new customer opportunities, and benefits arising from Oracle's acquisition of Sun.

Germany was weaker, declining in profitability but growing Euro revenues 8%, with high-end security, network and datacentre installations offsetting a marked decline in services caused by a large contract expiration. France, meanwhile, also recorded sales growth of 8.7%

Looking ahead, Computacenter said it was "confident about further progress in our contractual services business".

"Whilst we anticipate that UK public sector capital expenditure is likely to be curbed, we believe that this will not result in any significant impact at a Group level," it added.


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