Computacenter optimistic for better-than-expected year

Reseller giant hails UK as partly responsible for expectations which are "slightly ahead" of forecast

Computacenter's full-year results are on track to be "slightly ahead" of its forecasts, partly down to strong performance from the UK.

The reseller giant is set to announce its full-year results on 11 March, but in a trading update released today, it said its results would be better than expected.

Group revenue jumped six per cent on a reported basis, driven by a six per cent services sales surge and a five per cent hike in its product-based Supply Chain revenue.

The UK outperformed both Germany and France, growing eight per cent annually over the year. This country's services and product sales jumped six per cent and nine per cent year on year respectively for the whole year. But in the fourth quarter alone the latter shot up 18 per cent compared with last year.

"We have been particularly pleased with the growth in Supply Chain revenue in the fourth quarter, which is a strong testament to the strength of our customer relationships and positive market conditions," it said in the statement.

"We are pleased with the growth in our Services business in 2013 and we have secured some new contracts in the fourth quarter that will aid our growth from the second half of 2014 onwards."

Computacenter's French business did not fare so well last year after revenue in local currency fell seven per cent year on year. The firm put the slump down to issues relating to deployment of a new ERP system in the country but said that it was committed to a long-term turnaround.

"While we would expect an improvement in our French performance [next financial year], we will resist the temptation of improving the short-term and not fixing it fundamentally to improve the long-term."

In Germany, its sales in local currency crept up two per cent for the year thanks to a two per cent growth in its product business and flat services sales.

For the coming financial year, Computacenter remains optimistic.

"The group enters 2014 expecting to make further progress in our performance during the year," it said.

"The momentum we have built up over the last three years in the UK should be maintained due to recent Services wins, and the German services margin improvement has further to run."