Computacenter's Q3 numbers boosted by weak pound

But UK business remained soft in third quarter

The pallid Sterling gave Computacenter's numbers a bioost during a challenging third quarter.

The London-listed reseller giant - which does almost three fifths of its business in euros but reports in pounds - saw reported group sales for Q3 2016 grow two per cent year on year to £735m €823m). This is despite revenue declining four per cent on a constant currency basis.

Group services turnover increased four per cent on an as-reported basis, despite a one per cent constant-currency decline. Sales in its product-focused Supply Chain business showed a one per cent annual spike in the quarterly report, despite slumping five per cent before currency adjustments.

In a statement issued today to the stock market, Computacenter said that its UK business "continued to demonstrate softness in its results through the third quarter", although it did show some improvement when compared with the year's opening six months. Turnover dropped three per cent year on year to £314m, with services down 10 per cent but product up two per cent.

"We are pleased to see a return to growth in our Supply Chain business. However, as broadly anticipated, our Services revenue remains challenged principally due to the buoyant nature of projects in 2015," added the statement.

The firm's German arm reported an annual sales rise of eight per cent to a quarterly total of £325m. Although, once again, revenue fell when measured in constant currencies, by three per cent in this case. Q3 witnessed a shift towards services, which grew 22 per cent on an as-reported basis, compared with a rise of just two per cent in product sales.

"It is encouraging to see that the positive momentum of our German business from the first half continued into Q3," said Computacenter.

The VAR's French business has endured more than its share of troubles in the past few years, and it showed another top-line reduction last quarter. Even adjusting for the floundering UK currency, the company's revenue in France dropped three per cent annually to £83m. But there was better news in the bottom-line performance, the reseller added.

"Our strategy of reshaping our French business in line with the group's strategy continues to deliver a positive profit performance," said the statement.

Computacenter reached the end of September with total net funds of £96.7m, an increase of £29m on the year-ago figure. The firm believes it is "on target to finish the year with record levels of funds".

"While much remains to be done in 2016 in the all-important fourth quarter, the performance in the third quarter has reinforced our confidence for the year as a whole," concluded today's statement. "Prospects for 2017 and beyond, particularly driven by the increased adoption of the digital workplace, are encouraging across all our geographies."