Computacenter sees 10% hike in H1 profit

13th Jul 2010 08:42

IT services provider Computacenter said first half profit is expected to increase more than 10%, in line with management expectations.Revenue in the first half grew 7%, not including the effect of the sale of its trade distribution arm in October, while reported growth was 5%."We have seen a positive trend in IT capital expenditure in all our regions compared to last year, with Computacenter France and Germany showing signs of improvement, as the period progressed," the group explained.In the UK, excluding the effect of the disposal, Computacenter saw revenue growth of 6%.Services growth accelerated in the second quarter, after a modest 3% growth in the first quarter due to the start up of new contracts previously announced. "We expect this improved growth rate to continue through the second half of the year and our prospect pipeline for 2011 is promising," the group said. After a 'particularly challenging' first two months of 2010, its German business has seen a period of stability after revenue growth of 5% in the first half of 2010, or a 2% decline, excluding acquisitions.Computacenter France saw an overall growth rate of 9% with 10% growth in product sales and 5% in services sales. Profitability is expected to be broadly in line with the same period a year ago.Overall the group said it was pleased with the progress the group has made, other than being slightly held back by the first two months results in Germany. "While we are fully aware that market conditions remain highly competitive and the economic outlook is far from certain, the first six months of 2010 has led us to believe that this will be another year of progress for Computacenter and we remain on track to achieve our expectations for the year end outcome."