Computacenter deflated by H1 results
Whoopee cushions all round, 'cept in Germany
Computacenter said it has been hit by a "disappointing" trading performance for the first half (H1) of 2007.
The IT reseller, the largest of its kind in the UK, said that its product and services infrastructures failed to deliver and showed no sign of improvement on 2006 figures.
It blamed a number of key factors for the lack of upsurge in the core of its business and said "erosion on renewals" as well as the loss of key contracts last year, had impaired performance in its services division.
According to the firm's pre-close trading update, Computacenter's overall operating profit for H1 2007 is expected to be in line with the same period last year.
But it said interest income will be below last year and cited a £75m share buyback which took place on 3 July 2006 as well as a sum of around £35m being spent on acquisitions.
Despite the expected financial setback in the UK the firm said it performed particularly well in Germany where it saw record first half profits in 2007.
Computacenter said it had also begun to claw back business in France, although it operations there are still making a loss.
It also announced that the firm's current executive chairman, Ron Sandler had become non-executive chairman with immediate effect.
Shares in Computacenter are currently trading at 2.30 pence, down 4.17 per cent on the previous close on the London Stock Exchange. The company will issue its interim results 11 September.®