Computacenter revenue shoots up by one fifth despite UK decline

Sales hit £2.4bn but drop nearly eight per cent in the UK

Computacenter's revenue flew up by one fifth in its H1, despite UK sales dropping nearly eight per cent.

Overall revenue for the six-month period ending 30 June 2019 grew 20.8 per cent year on year to £2.4bn.

Sales rose in Germany, France, the US and regions grouped together as "International", but UK revenue dropped 7.8 per cent.

Computacenter said it saw "modest growth" in its UK Technology Sourcing division if two low-margin deals from H1 2018 are taken out of the equation, but professional services and managed services sales declined.

Technology Sourcing was the shining light for the business overall, with revenue climbing 27.7 per cent to £1.8bn. Services sales grew 3.6 per cent to £595.7m.

CEO Mike Norris said: "The board expects that the full-year 2019 profit growth, in monetary value, will be the best in the company's history. This performance will be predominantly achieved without the aid of acquisitions; however, we expect to see a more significant contribution from our acquired business in the USA during the second half.

"Looking further ahead will always be challenging but the momentum in the industry remains positive as customers continue to invest in technology to digitalise their business.

"While Computacenter will continue to remain predominantly an organic growth company, which has served us so well for many years, this has been enhanced by our acquisitions over the last 12 months which gives us additional growth drivers.

"While we are fully aware of macroeconomic challenges and take nothing for granted, we remain as positive about the future as we have ever been."

Computacenter said that UK professional services revenue declined as a result of more longer-term consulting programmes and fewer large-scale device deployment projects.

The reseller had already revealed that it was disappointed with the performance of its US business, which includes the acquired FusionStorm business.

In the latest report it said that Q1 sales had been weaker than expected, but the business had recovered in Q2. Revenue was $491.4m (£402.3m).

Computacenter's share price rose by as much as 4.3 per cent this morning.