Computacenter to meet expectations despite currency headwinds

Computacenter, which provides IT infrastructure services, said it expects to meet its upgraded forecasts for 2015 despite currency headwinds.

In a trading update for the year ended 31 December, the group said its performance was achieved despite the strength of sterling against the euro throughout the year, which hit group profits by around £3m.

Group revenue for the year was flat on a reported basis and rose 5% at constant currency, the company said.

Services revenue was up 1% on a reported basis and 6% at constant currency, while revenue from Supply Chain fell 1% or 5% at constant currency.

At the end of last year, net funds stood at £120m, flat on the previous year.

In the UK, revenue was up 3% for the year, with services revenue 8% higher and Supply Chain flat.

The company said the pace of growth in Services remains broadly consistent with the previous year despite the significant reduction of one particular contract.

German revenue rose 14% for the year at constant currency, with Services up 7% and Supply Chain 17% higher.

Computacenter said 2015 was a breakthrough year for its German Services growth rate and it has managed to secure contracts that should enable this to continue in the second half of 2015.

Meanwhile, the French business performed ahead of the group’s original expectations for 2015, thanks to a strong fourth quarter in the Supply Chain business.

“We are encouraged by the positive momentum that has built up in our German business, which bodes well for significant growth in 2016. In France we have outperformed our expectations for 2015. However, much still remains to be done to improve this position still further and to make the business sustainable.

“The prospects for the UK, particularly in Services, are still of growth but more modest this year. The benefit of our portfolio of countries should enable Computacenter to show another year of progress in 2016.”