Computacenter reports record year

Revenue for the UK increases, but operating margins slide

Computacenter recorded its best-ever revenue in 2017 as its German and French businesses excelled, while the UK returned to growth after an indifferent period.

For the 12 months ending 31 December 2017 Computacenter saw a year-on-year revenue increase of 16.9 per cent to just under £3.8bn, while operating profit stayed flat at £106.8m.

CEO Mike Norris said Computacenter saw "record group revenues" in 2017.

"Across the group, the two major trends that we have highlighted over the last few years have strengthened still further," he added.

"Firstly, our customers' appetite to invest in digitalisation to enhance their customers' and users' experience continues to grow. Secondly, our customers increasingly want to reduce the ongoing cost of running their IT, by introducing more innovative solutions such as automation.

"These trends are driving Computacenter's growth in supply chain and professional services and are motivating us to invest, to enhance our competitiveness in managed services, which we are."

The UK saw revenue rise 8.8 per cent to just under £1.5bn which Computacenter credited to its supply chain and professional services business.

Margins, however, declined as a result of growth in lower-margin software sales and market competition. The UK's adjusted operating profit margin was 2.6 per cent, compared with 3.4 per cent in the previous year.

The UK's services business grew 6.2 per cent to £505.8m, with professional services growing 24.5 per cent and managed services up 0.2 per cent.

In Germany revenue rose 15.5 per cent to just under €2bn (£1.8bn), while in France revenue was up 13 per cent to €581.3m.