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."