Computacenter confident in pre-close statement

Profit for the first half of 2008 expected to be less than last year, but turnover is up on 2007

Computacenter is predicting its strongest organic growth for a ‘number of years’ in its second quarter 2008 pre-close statement.

The infrastructure and services giant has reported a stronger performance for Q2 compared to Q1 2008, with group turnover expected to show a growth of approximately eight per cent. But first-half Group pre-tax profits are expected to be lower than the same period last year.

Both the UK and French subsidiaries outperformed Q1 in terms of both turnover and profit.

However the firm, which will report its interim results on 28 August, admitted the UK business will turn in a lower profit for the first half of 2008 compared to last year, due to a combination of heavy investment in the mid-market and services division, and a ‘poor start’ to the year.

The second half of the year is looking brighter for Computacenter’s French division, which is expected to post a H1 loss similar to H1 2007, and Germany is still experiencing profit growth, according to the statement.

A statement said: “We are encouraged by the Group's performance in the second quarter. Although there is much uncertainty in the market place, customers undoubtedly need to invest in information technology to increase the efficiency of their businesses, reduce risk and improve their competitiveness. We believe customers are increasingly looking to Computacenter to gain an increased value from their information technology investment.”