Computacenter predicts £41.2m profit

A clutch of late contracts has helped to raise forecasts for the services group

Computacenter expects profit of £41.2m for 2007

Services provider Computacenter is forecasting pre-tax profit of £41.2m for financial 2007.

Net borrowings are expected to be in the region of £30m, including £35m spent on acquisitions and a £12m share repurchasing programme, says the pre-close trading statement published today.

Computacenter is showings signs of optimism ahead of what may be challenging times, said Ovum analyst Kate Hanaghan.

"The company fared better in the second half of 2007 than the equivalent period in 2006," said Hanaghan.

"Towards the end of the year Computacenter won a number of contracts, meaning its services contract base is now bigger than a year ago."

Despite the repercussions of the US credit crunch, Computacenter says it is seeing more investments from the City than in the previous year. But such optimism should be taken with a pinch of salt, according to Hanaghan.

"While Computacenter so far has not felt the pinch, that does not mean it is not bracing itself for what might turn out to be an increasingly difficult year for the industry."