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Services deliver again for Computacenter

Services has again been the bedrock for Computacenter as the channel player delivers its FY15 numbers

The services business continues to be the bedrock for Computacenter with the channel player delivering solid numbers for its last fiscal year.

The firm saw its services revenue come in at just shy of £1bn, with a large portion of that being generated by managed services, with the UK continuing to deliver.

In the UK the services revenue improved by 7.7% at £532.4m, despite the loss of a significant contract where the customer chose to in-source, and the supply chain business was flat at £875m, with data centre, networking, mobility, cloud, analytics and security driving that side of the operation.

There was a warning that already things were not looking quite as rosy this year and investors should be prepared for a slightly downbrat first half in 2016.

"The UK will have a more challenging year, particularly in the first half. Services revenue will decline in 2016 due to the expiry of a large contract at the end of the first quarter of 2015 and the large volume of business take-on last year creating a challenging comparison, coupled with the one-off £3m gain highlighted in our Interim Statement in 2015," stated Mike Norris, chief executive of Computacenter.

"While it is too early to make any firm commitments on the year as a whole and there is much work to be done, we expect 2016 to be a year of further progress. However, it is worth making clear that the effects referred to above will impact the phasing of our profit delivery and mean that the first half profit is expected to be below that reported for the same period in 2015," he added.

The trend in recent results has been for services to be strong and for the UK to carry the Group with Germany and France sometimes lagging behind.

The picture was slightly different in FY15 with the German business delivering revenue growth in both services and supply chain and France beating management expectations, thanks to a strong Q4.

Those improved country performances helped keep the Group revenues flat year-on-year at £3bn. Pre tax profits increased by 7.2% to £86.9m.

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