Computacenter’s UK business suffered a ‘disappointing’ performance according to its first half (H1) 2007 pre close trading update.
The infrastructure and services giant said both the product and services divisions in the UK failed to improve on 2006 figures, citing an ‘erosion on renewals’ and the loss of ‘some key contracts in 2006’ as the main reasons for the services performance.
Overall group operating profit for H1 2007 is expected to be in line with the same period last year, but ‘interest income’ will be below last year due to the £75m share buyback in July 2006 and also a £35m spend on acquisitions.
Despite the UK performance, Computacenter said its German and French units have had a stronger performance, although France is still described as ‘loss-making’.
Speaking to CRN recently, Mike Norris, chief executive of Computacenter, said: "Overall growth has been OK in the first quarter, and in the second quarter it has been a lot better in the UK, which I am pretty happy about."
In addition the firm announced in the update that Ron Sandler, currently executive chairman of the Board, will become non-executive chairman with immediate effect.
Further Reading:
reader comments