Germany usurps UK as Computacenter's top territory

Slump in first-half UK product sales leaves door open for Germany to be largest revenue generator

The UK has been overtaken by Germany as Computacenter's largest territory, following a slump in product sales on this side of the channel.

In a stock market update this morning, the London-listed infrastructure services and solutions giant said trading for the six months ended 30 June was in line with management expectations.

Total first-half turnover rose by six per cent year on year, or four per cent in constant currencies and excluding acquisitions.

Profitability was also "comfortably ahead" of the same period last year thanks to increased margins on both products and services.

However, growth varied wildly between its three territories, with Germany and France outstripping its home country.

Although UK services sales rose by one per cent, product sales here plunged by 23 per cent as its financial services-oriented customer base held back on capital expenditure.

This left the door open for Germany to be on course to post larger revenue in the period than the UK for the first time, following 10 per cent and 38 per cent growth in services and product sales there.

Excluding recent acquisition Top Info, Computacenter's French services and product revenue hiked seven and 16 per cent respectively, and the operation is expected to turn a profit for the first time in many years.

Computacenter said it would be hard to maintain growth in the second half due to "a less easy set of comparators" than the first half.

"As we look out beyond 2011, we are encouraged by our progress, particularly in our managed services business, which we believe can present a cornerstone for Computacenter's growth in the years ahead," it added.