Computacenter UK Operation Stumbles

Failure

Computacenter has released its end of year earnings which show a mixed performance over their territories. Germany and France experienced growth whilst in the UK revenues fell by 1.1% to £1.39bn. The company said supply chain margin challenges and services revenue decline contributed to a 21% reduction in adjusted operating profit to £46.8m.

Germany delivered revenue growth of 1.2% to €1.14bn across supply chain and services, alongside a 15.4% increase in adjusted operating profit, while France performed ahead of expectation, with a £4.5m increase in adjusted operating profit to £2.9m due to supply chain margins.

Revenue for the whole company grew 6.3% to £3.24bn and adjusted pre tax profit fell 0.65 to £86.4m.
The company declared a dividend of 22.2p per share, up 3.7%.

Chief executive Mike Norris said: “The group should have a year of progress in 2017, with a rebalancing of profits between the first and second halves of the year towards the historical pattern. We expect the UK to see modest improvements due to professional services and supply chain helping the overall performance.

“While Germany will be coming off a strong year, and therefore a difficult comparison, the business has strong momentum and potential to improve services margins. For the French business we would be happy to repeat the same bottom line, with some deterioration in our supply chain compensated by improvement in services revenue.”