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UK product sales lag for Computacenter, but services upturn imminent

Alex Scroxton

IT services provider Computacenter has said that product revenues from its more financial services-oriented customers in the UK were down 23 per cent in the first half of its financial year, even as it revealed its first half profits will be "comfortably ahead" of the same period last year.

The decline in product sales did not impact profitability, claimed Computacenter, as increased margins in both product and services helped offset the fall.

In an interim trading statement issued this morning, the firm said the UK saw services growth of one per cent, but was exiting the period with a strong pipeline thanks to some new contract signings, and expected this level to return to "more normal levels" in the coming months.

Computacenter also booked strong growth in its industrially-oriented customer base in France and Germany, and services growth across all geographies still looked pretty tasty.

The systems integrator said it saw sales growth of approximately six per cent for the period to 30 June. Excluding a series of acquisitions sales were up four per cent, while constant currency sales also grew four per cent.

Net cash was £103.2m, down £36.3m since 31 December 2010, a positione flattered by ongoing extended credit facilities from a major supplier, which are expected to remain in place during the second half.

Computacenter's full interims will hit the City on 30 August.


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