Computacenter Q3 numbers lifted by weak British Pound

'Hurrah for the Euro and our services biz in Germany' cheers reseller titan

The British Pound - Sterling currency tumbles post Brexit

The weak British pound worked in Computacenter’s favour during its calendar Q3, as the conversion of Euros generated by ops in mainland Europe helped to lift group revenues and offset “softness” in the UK.

The London-listed firm reported a two per cent year-on-year rise in turnover to £735m, more than £400m of which was generated in Germany and France. In constant currency, revenue declined four per cent.

Group services revenues grew by four per cent as reported (or fell one per cent in constant currency) and supply chain (hardware and software) grew one per cent as reported or slid five per cent in constant currency.

The UK arm “continued to demonstrate softness in its results”, but the third quarter outing was better than the first half of the year, Computacenter noted.

Sales were down three per cent to £314m, including a ten per cent slump in services revenues - this was off the back of some contracts that were not renewed last year- but supply chain grew two per cent.

“We are pleased to see a return to growth in our supply chain business, however, as broadly anticipated, our services revenue remains challenged principally due to the buoyant nature of projects in 2015,” the firm said.

Over in Germany, revenues grew eight per cent as reported to £325m, but decreased two per cent in constant currency. Service revenue was up 22 per cent as reported or up ten per cent in constant currency. Supply chain increased two per cent as reported, but fell eight per cent in constant currency.

The comparatively troubled subsidiary in France grew three per cent as reported to £83m - or was down 12 per cent in constant currency. Services and product sales also benefited from the currency translation, growing nine and two per cent respectively.

Group funds totalled £96.7m at the end of the quarter, up £29m on the same period a year earlier.

For the first nine montbhs of 2016, group sales grew four per cent as reported, with services and product sales up by the same amount.

“While much remains to be done in 2016 in the all important fourth quarter, the performance in the third has re-enforced our confidence for the year as a whole,” Computacenter said.

The company forecasted sales of £3.1bn for 2016, which would equate to a three per cent rise as reported.

The outlook for 2017 seems even cheerier with Windows 10 expected to boost sales to corporate punters, or what Computacenter described as “increased adoption of the digital workplace across all our geographies". ®

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