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Computacenter breaks through £4bn revenue barrier

The channel player has released its 2018 year results breaking new ground and indicating that there is more growth to come

Computacenter has indicated that although it has broken through the £4bn revenue barrier there is still more to come from the firm.

The channel player has not only set revenue records but seen its pre-tax profits increasing by 11.3% to £118.2m for its full year 2018.

In the UK there was revenue growth of 9.7% and an operating profit of 12% and the German business came in with an 8.3% turnover improvement.

Looking specifically at the different parts of the business the UK services performance was down in 2018 with a flat managed services performance and a reduction in professional services. The firm indicated that the order book was looking healthy and 2019 should be stronger.

The managed services business saw the number of contracts decline and one of the areas of focus this year will be on growing the customer base.

The UK Technology Sourcing business saw software volumes increase which diluted the margin performance and caused flat margins and a contribution to the country growth that was at a dissapointing level.

Mike Norris, Chief Executive of Computacenter, said that the firm had, "laid foundations for further growth in the years ahead" to build on the progress made in FY18.

"We have invested in the physical infrastructure that enables our Technology Sourcing, increased our Services capability and expanded our geographical footprint through acquisitions," he said.

In a statement that will give investors further cheer Norris indicated that there was still some further room for improvement.

"Specifically, while the Technology Sourcing success of last year creates a difficult comparison in 2019, particularly in the first half, lower Services margins in 2018 give us a significant opportunity to improve. We also expect a profit contribution from our acquired business in the USA," he said.

The firm acquired services player FusionStorm in the US in October, on the back of a deal to acquire Misco's Netherlands business.

"As we look out further into the future, we remain enthusiastic about our customers' desire to enhance the digital experience, grow their network capacity, modernise their infrastructure and enhance their competitiveness, by investing in technology," he added.

Current chairman Greg Lock was also upbeat in his assessment of what fiscal 2019 would hold for the firm: "2018 was a record year for Computacenter but we are far from realising our full potential. Revenues, adjusted profits and operating cash flow were very strong, but more importantly we continued to invest in our customer relationships, employees and offerings."

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