Computacenter sees FY at top end of forecasts

11th Jan 2011 07:12

IT services provider Computacenter said pre-tax profit for 2010 is expected to be towards the top end of the range of market expectations as demand continues to pick up.The group, whose clients include WM Morrison, BT and Marks & Spencer, said it has made 'clear progress in 2010' with the recovery in corporate spending now firmly in place. "Our customers' appetite to reduce operating costs is a key driver of sustainable growth for our Services business," the group said in a statement.CEO Mike Norris commented, "Customers are refreshing, upgrading, improving and investing in their IT infrastructures and we are well placed to meet these needs."The group has seen an 8% increase in the annual services contract base after a a significant product revenue decline in 2009, mainly due to the economic environment. "In 2010 we have seen strong product revenue recovery and we anticipate that product revenue will grow steadily in 2011, subject to the overall economic environment," Norris added.