Services continue to deliver for Computacenter


Services continue to deliver for Computacenter

Simon Quicke

The services business continues to deliver for Computacenter with the long-term picture looking rosy for the channel player, despite some current margin erosion.

The firm revealed the state of its affairs in an interim management statement that indicated that since the start of the year its services business has increased by 9%, the same level as overall group revenue had climbed by.

Some margin erosion had happened with the services business because of the on-boarding of contracts but the expectation was that in the long-term this would settle down and not be a feature.

Specifically in the UK the revenues remained flat with an 8% increase in services revenue but a continued weakness in the supply chain revenue, which suffered a 5% decline.

"Whilst Government IT expenditure remains weak, we have previously explained that this does not have a material effect on our profitability. We have however seen a capital spending freeze during the period, from many of our investment banking customers and this adverse customer and product mix has had a negative effect on our profit," the firm stated.

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