Norris looks ahead

Norris: 2010 will be an easier year on the industry

Computacenter’s strong cash balance has left it in a flexible position to snap up
desirable companies when they come on the market, chief executive Mike Norris has said.

The infrastructure and services giant nabbed two IBM specialists in the same week – Germany-based becom and UK-based Thesaurus.

"The timing of the acquisitions were purely coincidental," he said. "It just so happened that they took place in the same week and also the same time the sale of CCD closed."

Norris predicted 2010 would be an interesting year for the channel.

“We are definitely going to see a lot more working capital issues,” he said. “There are companies out there finding it difficult to trade, and credit issues are more acute now than they have been. Smaller companies need working capital and if they haven't been making a profit, the banks will not lend which makes trading difficult.

"We feel in a fortuitous situation that we are, relative to the industry, pretty cash-rich. That gives us a lot of flexibility. If other [acquisition] opportunities arise, we are in the right position.”

Norris said 2009 has been a “better-than-expected” year for Computacenter.

"We have been through some rigorous cost management and our profitability is strong. I'm pleased but not satisfied with 2009.

“But I think 2010 will be an easier year on the industry," he added. "I am bullish about another profit growth for Computacenter.”