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Computacenter sees Q3 improvement in UK revenues

Computacenter has booked revenue growth of 8% in the UK market, with supply chain sales outpacing services sales

Computacenter has seen revenue growth of 8% at its UK business over the past three months, amid indications that local buyers are starting to reach for their wallets.

In a trading update, the Hatfield-based infrastructure services business said that the UK was still growing slightly slower than the group’s international units, but third quarter sales of £335m, up from £310m one year ago, improved its year-to-date position to growth of 6%.

Computacenter added that UK services revenue in the third quarter increased by 7% while supply chain revenue grew by 9%.

At the beginning of October, Computacenter named Neil Hall, formerly head of business enablement and contractual services, as its new UK managing director, after former incumbent Kevin James took up a group-wide chief commercial officer role.

Following a rough 2016, when its results were hurt by fluctuations in the pound and the US dollar, Computacenter has been looking for a better performance, and this was reflected in results for the business as a whole, and for its continental ops.

Group-wide revenues were up 27% to £931m, with services sales up 15% and supply chain up 33% - all on a reported revenue basis. In Germany, sales were up 26% to £453m, and in France, revenues grew by 34% to £127m

“The momentum we have experienced across the Group, particularly in Germany, in the first half of the year has been maintained, if not improved during the third quarter of 2017.  Whilst the fourth quarter is our most difficult comparison to 2016 of any quarter in the year, we remain on track for a record performance,” said the firm.

“New technologies, digitalisation and our customers' appetite to invest is as buoyant as we can remember, which is obviously driving our professional services and supply chain services.  However, as noted in our 2016 final results, it is also true to say our target market's desire to reduce operating costs, and therefore the cost of running their IT, has intensified which is eroding our contractual services base, thus increasing the need to invest in productivity and innovation to remain competitive.”

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