Computacenter 1H Group Profitability To Be In Excess Of 10%

13th Jul 2010 07:23

LONDON (Dow Jones)--Computacenter PLC (CCC.LN), an independent provider of IT infrastructure services, said Tuesday overall group profitability in the first half ended June 30 will be in excess of 10% ahead of the same period last year and in line with management expectations. MAIN FACTS: -Good revenue growth in first half on an as reported basis of around 5%; Excluding the effect of the disposal of trade distribution business in 2009, company sees revenue growth of 7%. -Growth rate in second quarter was marginally below that experienced in the first quarter, but remains steady. -Sees a positive trend in IT capital expenditure in all of its regions compared to last year, with Computacenter France and Germany showing signs of improvement, as the period progressed. -At the end of the period, group net funds totaled GBP95 million before customer specific financing, or CSF; Net funds before CSF were GBP47 million. -Cash position was flattered by GBP25 million, due to the ongoing extended credit facilities from one of the company's major suppliers, which is set to continue, at least until the end of 2010. -At the end of the period, CSF was GBP37 million. -In the U.K., excluding the effect of the disposal, company sees revenue growth of 6%, with a 6% growth in product sales and a 7% growth in services; Expect this improved growth rate to continue through the second half of the year and prospect pipeline for 2011 is promising. -German business has seen a period of stability and has achieved overall revenue growth of 5% in the first half, but a small revenue decline of 2%, excluding acquisitions; Profitability for the six months as a whole, will be behind the same period last year. -Computacenter France has seen an overall growth rate of 9% with 10% growth in product sales and 5% in services sales; Profitability will be broadly in line with the same period a year ago, which is ahead of the company's expectation at the beginning of the year. -On track to achieve its expectations for the year end outcome. -Shares on Monday closed at 300 pence, valuing the company at GBP461.6 million. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires July 13, 2010 02:23 ET (06:23 GMT)