UK shows 'excellent growth' in Computacenter Q1 trading update

The VAR expects results to be on the up in FY25 despite uncertain macroeconomic conditions

Computacenter delivers a “good performance” in its home turf and across North America for the first quarter to 31 March 2025, ahead of the prior year and in line with expectations.

Group technology sourcing revenue “increased strongly” against a relatively soft comparison, largely driven by North America.

Group services revenue was also ahead of last year reflecting good growth in professional services.

Managed services revenue, however, felt a “slight decline”.

The VAR saw positive results in the UK, thanks to an upward trend in technology sourcing and “excellent growth” in professional services.

In the rest of Europe, the LSE-listed firm reported “solid” results in Germany, in spite of the anticipated temporary reduction in public sector activity and the recent elections.

The business kept performing well in North America, reflecting the increased product order backlog position at the end of last year.

Computacenter continues to believe

While macroeconomic uncertainties cast a shadow of doubt on the channel, Computacenter expect to make progress for the year as a whole in constant currency and gain market share.

The services provider declared it does not have any direct exposure to tariffs as it relies on local supply within the markets it is involved in.

On the other hand, it remains “mindful of the more uncertain backdrop” and of a customer demand that remains difficult to predict.

Computacenter’s committed product order backlog across all regions at the end of the quarter remained healthy, allowing the company to outperform its returns from the year prior.

In Q1 FY24, the company’s revenue and profit before tax went down year-on-year.

The organisation went through “disappointing results” in the UK during FY24.

Revenue went down 4.6 per cent (form £1.21bn to £1.16bn year-on-year), hit by a market for hardware that has been weaker than expected.

Revenue in Germany also dipped two per cent in FY24, due to a large underperforming contract that impacted managed services.

Computacenter ranks number two in CRN’s Top VARs list.