Computacenter reports profit spike

Computacenter's share price has virtually doubled this year

Computacenter’s share price has spiked a further seven per cent after it revealed that profits so far this year are “well ahead” of 2008.

Encouraged by its accounts for the first four months of the year, the UK’s largest corporate reseller said it expects first-half profits to rise significantly on an annual comparison.

In the first six months of last year, Computacenter banked a pre-tax profit of £11m.
“While much is still to be done in the remaining eight months of the year, we are encouraged by this positive start,” said Computacenter chairman Greg Lock.

In its recent management statement for the first quarter, Computacenter revealed that its profits were chugging along nicely, but said it was tricky to make a year-on-year comparison due to the later timing of Easter this year. But with its unaudited accounts for April now completed, Computacenter said it was able to make a more meaningful comparison.

Talking to CRN recently, chief executive Mike Norris attributed the improvement in bottom line to its decision to exit volume distribution and move deeper into services.

Computacenter’s share price jumped to 177p this morning, meaning it has virtually doubled since the start of the year. As recently as December, the firm’s share price was as low as 67p.

The statement came ahead of Computacenter’s annual general meeting today.