Computacenter on track and can see future
Waiting for the upturn
Mega reseller Computacenter said it thinks it sees light at the end of the economic tunnel, as it reported this morning that its third quarter business was in line with expectations.
The IT services firm said that group revenue for the quarter was £552m, down by eight per cent, or 12 per cent on a constant currency basis. For the year to date, group revenues are down five per cent to £1.8bn.
Some of the decline was down to its exit from the distribution market just under a year ago. Its services business grew ten per cent in the third quarter, and 12 per cent in the year to date. Its product business though was down 25 per cent, as capital projects are put in the chiller.
The firm said it was starting to see the benefit from contract wins at the beginning of the year and had scored further contracts in the most recent quarter.
While revving up its revenues, Computacenter said it was succeeding in driving down its costs, and expected to reduce expenses by £20m this year, £5m over target. However, it warned shareholders it may have to take an additional £1m charge for these reductions.
Nevertheless, it described its performance as "encouraging", and said its visibility into 2010 and beyond had improved, and it was positioned to exploit any upturn. More immediately, it said, it was on track going into the "all important fourth quarter". ®