UK sales at Computacenter down in 2016

UK business reliant on small number of large deals, firm claims in trading statement

Sales fell at the UK arm of Computacenter in 2016, according to a trading update published this morning, in which the firm said it is reliant on a small number of large opportunities in the country.

The unaudited, preliminary numbers for the year ending 31 December show that across the group, revenue was up six per cent annually on a reported basis, and flat in constant currency. On a group level, Services sales rose five per cent year on year on a reported basis, down one per cent in constant currency; while Supply Chain revenue jumped seven per cent annually on a reported basis, remaining flat in constant currency.

Computacenter said it is encouraged by its Germany business, where revenue rose three per cent annually, adding that it is pleased with progress in France, despite sales slumping 10 per cent annually.

Sales in the UK were down one per cent annually, with Services revenue down eight per cent annually and its Supply Chain business growing three per cent over the same period.

"In the UK, the second-half performance has been in line with our revised expectations, set at half year after a disappointing first half performance," said the update. "We expect 2017 to be another year of progress for the Group as we continue our momentum in Germany, maintain our position in France and marginally improve on our 2016 performance in the UK. While in the UK we are reliant on a small number of large opportunities, our managed services pipeline across the group is strong."