Computacenter profits but UK struggles

Computacenter has seen stronger performance overseas

Infrastructure services provider Computacenter posted revenues up four per cent to £1.1bn for the first half of 2007 despite weak performance in the UK.

UK sales were down almost two per cent to £649m and operating profit dropped 28 per cent to £12m, with disappointing figures for both products and services. But the overall results were buoyed by stronger performances in France and Germany.

Computacenter blames the UK slide on a combination of key services deals lost in 2006 and price erosion on contracts that were renewed.

But the firm’s increasing focus on professional services could help stop the decline.
Server virtualisation and consolidation, a key area for Computacenter, is a growing market ­ according to Forrester Research, 35 per cent of European firms are already deploying or planning to deploy the technology.

The switch in emphasis is a positive move, said Ovum analyst Jessica Hawkins.

“Computacenter’s technology solutions business unit saw revenue growth of 20 per cent in professional services, partly through a continued focus on virtualisation and consolidation activities,” she said.

The firm’s global support services business is also performing well, and won two major contracts in the first half of the year.

In March Computacenter signed a five-year deal with BT to provide desktop services and supply products to the telco’s global offices across 54 countries.

It also signed a £20m four-year contract with financial news agency Reuters to provide infrastructure support services including supply chain logistics and change management systems.