Computacenter's interim results for the six months ended 30 June 2005 show a fall in turnover and profits but the reseller is confident it will get back on track for the full year.

Turnover was down to £1.15bn from £1.23bn last year. Profits fell from £30.1m to just £8.2m.

Chairman Ron Sandler described the six months as challenging and blamed falling product margins for the shortfall.

Sandler said: "We believe that for the foreseeable future our UK product business will continue to face the challenges of intense price competition, vendors seeking to sell direct to large accounts and substantially lowered vendor rebates." The company has spent much of the last six months reorganising.

Looking forward Sandler said trading in July and August had been subdued, particularly in the UK, but he said: "We anticipate a stronger profit performance in the second half and the outlook for the full year remains in line with market expectations. Looking further ahead, the Board is confident that the Group's profits can be improved in the future."

Some good news though: Computacenter has settled its dispute with GE over tax related to the purchase of GE CompuNet, as a result Computacenter received €40m.

Read the full statement here.®

Related stories

• Ron Sandler leaves Computacenter (18 February 2008)
• Computacenter buys services company Digica (4 January 2007)
• Careless computing costs 'leccy not lives (10 May 2006)
• Computacenter saw revenues, profits down in 2005 (14 March 2006)
• MBO off at Computacenter (19 January 2006)
• Computacenter MBO team says no new bid (12 December 2005)
• Non-execs reject Computacenter buy-out bid (2 December 2005)
• Computacenter founders may buy back firm (21 November 2005)
• Phoenix IT confident on year (27 September 2005)
• Thus TUPEs IT jobs to Computacenter (10 August 2005)
• Computacenter reorganises (5 July 2005)
• Computacenter expects full year profits shortfall (28 June 2005)
• Computacenter issues profit warning (20 April 2005)