Computacenter sees profit increase

Corporate VAR reveals price erosion is still impacting UK performance

Corporate VAR Computacenter has seen operating profit shoot up 12.1 per cent for its interim six month financials, but revealed price erosion was having an impact on its UK performance.

The infrastructure and services giant, posted turnover of £1.16bn for the six months ended 30 June, compared to £1.11bn in 2006. Operating profit stood at £12.8m, compared to £11.4m the previous year.

Highlights of the six months according to the firm was the BT global desktop services renewal, the acquisitions of Digica and Allnet and continued progress in France with further restructuring cost efficiencies.

However the firm also pointed out that UK operating profit was being impacted by price erosion and ‘the loss of some key contracts’, although the UK services activity pipeline was ‘improving’.

In addition the Product Division did show some recovery in the second quarter, but it has been trading below 2006 levels, due to a reduction in government sales, the statement said.

Computacenter Distribution (CCD) also put in a strong performance for the period which was attributed to a ‘focus on tight operational control, combined with the new sales structure implemented during 2006’.

Ron Sandler, chairman of Computacenter, said: “Overall the Group performance in the first half has been encouraging. We were pleased to see a stronger performance from France and Germany and expect this trend to continue.

“In the UK, despite a weaker performance, we have made good progress in transforming our business in response to some fundamental changes in our markets.
“We remain committed to translating these adjustments into consistent performance improvements.

“Looking ahead, we expect our market positioning and performance to continue to improve. The second half of the year has started positively for the Group and we are increasingly confident about our outlook for the full year, which remains unchanged.”