IT services provider Computacenter has reported a 14.2% slump
in pre-tax profits for the first six months ending 30 June.
The poor performance follows a profits warning given by the firm
in May, when it said a poor start to the year would affect its
figures.
Computacenter said a better second quarter helped reduce its
direction south on the balance sheet.
Group sales increased 7.8% year-on-year to £1.25bn, and pre-tax
profits were a very modest £11m.
Despite the drop in profits, the interim dividend was still
increased by 8.0% to 2.7p per share, although this was down on the
2.5p last year.
Mike Norris, Computacenter chief executive, said, "Although
uncertainty remains in the marketplace, there is a continuing need
for customers to invest in information technology to improve their
competitiveness. The investments we have been making to improve our
services capabilities and the cost effectiveness of our sales
operations position us well in a more difficult economic
climate.
"Whilst much remains to be done, management is confident of
achieving its current expectations assuming no material
deterioration in market conditions."