Services success fuels Computacenter UK growth in H1

Overall group sales up a fraction annually

Strong performance in services has helped Computacenter grow annually in the UK in the first half of 2015, but sales at a group level remained flat over the same period.

For the six months to 30 June, overall at Computacenter, adjusted profit before tax jumped 13.7 per cent annually to £29.1m, on adjusted revenue, which was up 0.2 per cent to £1.44bn over the same period.

Its German unit grew the most, with sales up 14.1 per cent annually to €731.1m (£535.5m), while in France, sales fell 7.7 per cent to €259.3m.

In the UK, adjusted profit before tax rose 1.8 per cent year on year to £22.9m, while sales over the same period jumped 5.5 per cent to £688.7m.

Services was the star performer for the UK arm – adjusted revenue in the segment rose 9.8 per cent to £263.6m, which Computacenter described as "solid progress".

"Although our managed services business has achieved a number of important wins during the period, and additionally the renewal of our largest UK services contract by revenue for a further five-year term, its main focus has been on ensuring the successful take-on of a number of significant new contracts won in the second half of 2014," the firm said.

"Our professional services business continued to see strong levels of activity, largely as a result of volumes being delivered through transformational activity associated with managed services wins in 2014. It has seen particularly strong levels of growth within the datacentre area, as customers shift their spending patterns following the completion of Windows 7-related workplace upgrades, and its forward order book indicates that strong levels of activity will follow in the second half of the year."

Computacenter chief executive Mike Norris – who this year has held the role for 20 years – said currency issues affected the group as a whole.

"Despite the significant headwinds created by a weak euro, the operating performance of the group remains in line with the board's original expectations for 2015," he said. "However, the group has additionally benefited from a number of one-off gains, which will not be repeated in either the second half of the year or during 2016."