Computacenter set for strong end to year, UK services at record high

Computacenter is entering the final quarter of the year with momentum and growth in its Supply Chain and Services businesses, with Professional Services utilisation in the UK at record highs

Services provider Computacenter has said it is moving into the traditionally critical fourth quarter with substantial momentum in its Supply Chain business and steady Services growth putting the wind in its sails.

In an interim management statement covering the period from 30 June through 22 October 2013, the firm revealed unaudited results for the third quarter, posting sales of £730m, up 8% year-on-year on a constant currency basis, while year-to-date sales were up 4% to £2.16bn.

Computacenter said Services sales grew by 9% in Q3 – 6% in constant currency, and Supply Chain revenue grew by 12% – 9% in constant currency.

Net cash excluding CSF of £26m was down substantially compared to this time last year, but having returned £75m to shareholders earlier in 2013, Computacenter said the overall cash position was in fact up £16m. It also benefited from an extended credit scheme at one of its major vendors to the tune of approximately £35m.

In the UK, sales of £299m were up 13%, rebounding satisfactorily after being held back earlier this year. Services were up 9% and Supply Chain, 16%, the best it has seen for a good while.

Computacenter said it was benefitting from OS upgrades as business customers rush off the Windows XP platform, and said that resulting project work and new business meant that its Professional Services utilisation in the UK now stands at a record high.

In Germany, Computacenter said optimism was beginning to return after the problems of recent months, with overall sales up by 17% to £321m, 11% in constant currency. Across the border in France, overall sales dropped by 9%, 13% in constant currency, with a weak market and a problematic ERP implementation to blame.

“Group performance is being held back by France, which is likely to continue for some time,” the firm said in its statement.

Read more on Finance and Credit