Feeds

Computacenter ups profit despite sluggish turnover

Europe and HP bring 'em down...

  • alert
  • submit to reddit

Boost IT visibility and business value

Computacenter managed a small increase in profits for the year ended 31 December 2004 despite not increasing turnover. The firm blamed France, Germany and the re-negotiation of terms with HP, its main trading partner, for the sluggish sales.

The group made revenues of £2.46bn for the year, down slightly on £2.48bn in 2003. But the firm pointed out that core product prices fell 12 to 15 per cent in the period. Profit before tax was up 3.2 per cent to £67.3m. The firm is paying a final dividend of 5.2p per share - giving a total for the year of 7.5p.

The giant reseller was pleased with UK managed services revenue growth of 16.6 per cent for the year, compared to 10.9 per cent in 2003. But Computacenter said the renegotiation of its agreement with HP was likely to cost the firm £10m in profits.

Trading in France was poor - it made an operating loss of £6.2m, up from £2.7m in 2003. Computacenter invested in management changes but hasn't seen the benefits yet. New managers were appointed to run maintenance, finance and logistics and in January 2005 Chris Webb was appointed MD for Computacenter France. Webb previously ran UK sales and delivery.

Germany saw modest growth: turnover was up 3.2 per cent and profits grew 3.1 per cent to £9.0m. Although the firm admitted some disappointment with these figures it said the work has now been done to build the German unit into a strong business.

Computacenter Austria is being sold to S&T Systems Integration & Technology Distribution AG, which becomes Computacenter's partner for central and eastern Europe. The deal should close in March 2005.

Computacenter said demand in the first two months had been slow but it was still too early to say if this would hit full year results.

More info on Computacenter website here.®

Related stories

Computacenter flees Austria
France weighs down Computacenter
'Primary vendor' turns screw on Computacenter

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.