Computacenter revenue nudges up; UK market challenging

Computacenter posted a small rise in first-quarter revenue as a strong performance in Germany helped to offset declines in the UK and France.

In a trading update for the first quarter to the end of March, the company said revenue rose 2% to £730.2m. At constant currency, it was flat on the previous year, with group services revenue down 1% and group supply chain revenue up 1%.

In the UK, revenue fell 4% to £348.5m, with supply chain revenue down 2% and services revenue 5% lower.

Computacenter attributed the drop in services revenue – which it had expected – to the end of a large contract at the end of the first quarter of last year and the large volume of new business take-on activity in the first half of 2015.

“We expect our comparative performance against 2015 to improve as we go through 2016,” the company said.

Total revenue in Germany increased 7% at constant currency to £281.2m, with services revenue up 7% and supply chain revenue 8% higher.

Computacenter said it was expecting growth in the services business in Germany due to major contract wins in 2015 starting up in the first half of this year.

In France, revenue dropped 6% at constant currency to £88.7m, with supply chain and services revenue down 5% and 9%, respectively. The group said its French business has continued the improved pre-tax profit performance seen last year and while much work remains to be done, significant progress is being achieved.

“Our momentum in Germany and pleasing performance compared to the past in France, looks set to continue.

“While the UK will have a more challenging year particularly in the first half as previously indicated, the new business pipeline is beginning to build.”