Computacenter Q3 results: UK remains 'difficult' as US and Germany thrive
The reseller has reported similar results to its H1 2023, with the UK struggling to keep up with European counterparts
Following a strong first half of 2023 with revenues up 26.8 per cent and gross income rising almost 30 per cent, Computacenter reports a Q3 "in line with expectations".
The reseller giant said Q3 followed a similar pattern to its H1 results, with Germany and the US "performing strongly" while the UK is still proving a "difficult" market.
Professional services and managed services in the UK were also down in its H1 results, dropping by 9.5 per cent and three per cent respectively.
The company reported its technology sourcing volumes normalising during the quarter as some of its high-revenue, low-margin projects came to completion.
Its services revenue continued to grow during the quarter and while inflationary pressures persisted. Computacenter said it is managing its margin recovery effectively.
"We continue to make good progress with our targeted strategic investments to enhance Computacenter's long-term competitive advantage," the results update read.
"Following a strong cash performance during the first half as industry supply chains normalised, our inventory has reduced further and we have continued to generate good levels of cash during Q3, further reinforcing our balance sheet strength."
Looking ahead, Computacenter stated that with its strength in technology sourcing, professional services and managed services, and focus on retaining and maximising customer relationships over the long term, it believes it is well positioned to compete and gain further market share.
In the first six months of 2023, the Hatfield-based group grew revenues to £3.5bn and gross income to £5.1bn.
The LSE-listed company said it continued significant programme of strategic initiative expenditure to underpin its long-term resilience, competitiveness and growth with an additional expected spend of circa £13m in FY23 compared to FY22.