Computacenter's profits rise for fifth consecutive year

Despite issues on the continent, a strong performance at home has seen the corporate reseller post healthy results for FY2014

Computacenter has released its FY2014 figures, reporting record revenues of £3.1bn, an increase of 4.2%.

 

The corporate reseller’s fifth successive year of growth continues to have its home country to thank, with UK revenue growing 10.2% to £1.42bn. Digging down, that’s an 11% rise in supply chain revenue, and an 8.6% rise in services revenue. Drilling even further, there was a 14% growth in Professional Services and 6.9% growth in Managed Services.

Big contract wins in the UK, such as the Post Office and Transport for London, helped to offset less than stellar showing elsewhere on the continent. Germany’s performance, which saw revenues of £1.16bn, was described by CEO Mike Norris as ‘disappointing’; however, a strong Q4 offered signs of hope.

“Whilst we are encouraged by the fourth quarter performance in Germany, it is too early to tell whether this is a substantial move in the right direction, or simply represents a good quarter.”

In France, revenues rose 6.4%, to £471m, but the region still posted a net loss of £8.8m. Norris was open about the issues the region faces.

“Our French business clearly remains in the early stages of making this transition, and while it has a small number of attractive existing contracts, it otherwise remains out of date and uncompetitive,” he said. “While we are confident of reducing the loss materially in France during 2015, a return to profitability is some way off."

Overall though, Norris had good reason to be upbeat about the results.

"Our business remains highly cash generative, as evidenced by the recent return of value to shareholders, and notwithstanding the challenges outlined above, we are determined to make 2015 a year of progress for the group."
 

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