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Win2K to blame for Computacenter profits slump

Service billings down

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Providing a secure and efficient Helpdesk

Computacenter saw first half profits slump 52 per cent to £13.3 million on sales up a measly 2.4 per cent to £927 million (1999: PBT £27.5 million; sales £905 million).

In June, Computacenter prepped the market to expect a profits fall - unfortunate timing when the company was (and presumably still is) attempting a hostile takeover of Compel, Britain's third biggest reseller.

Computacenter, Europe's biggest IT products reseller, blamed the slow take-up for Windows 2000 among its corporate customers for the profits slump.

The effects of Y2k are also still apparent, with corporates not yet returning to their old free-spending ways. Question is: will they ever spend in pre-Y2k amounts with high-margin services offered by traditional resellers, or will they divert resources in to the mitts of fancy e-business consultants, such as Razorfish, Viant, and Scient. ®

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