Computacenter reports profits slide, warns on market
Sticks to targets for full year
Computacenter posted decent revenues for the six months ended 30 June 2008 but warned that current trading wasn't that great.
The reseller made £1.25bn in sales compared to £1.16bn in the first half of 2007. But profits before tax were down 14.2 per cent to £11m. Earnings per share, however, were up 10.6 per cent thanks to a lower tax bill and the company's share repurchase scheme.
Sales growth was better than it has been for some time but profits were hit by a difficult start to the year in the UK and France.
Mike Norris, chief executive of Computacenter, said despite general economic uncertainty the company was confident it could hit targets for the full year.
The UK grew revenues by 5.5 per cent to £708.1m despite a poor performance in the first six weeks. The growth was mainly powered by software and integration activity and sales to medium-sized businesses.
Sales in Germany grew 11.5 per cent to £379.8m but this represents a 3 per cent decline in local currency due in part to the loss of a large, but low-margin, PC contract. Adjusted operating profits were £4.1m.
France also saw some improvement - reducing losses to £1.9m compared to £2.1m in the first half of 2007. ®