Digital transformation delivering for Computacenter

The performance of the UK might have been a bit of a disappointment in Q1 but overall things went well for Computacenter thanks to Germany and France delivering strong revenue improvements

Digital transformation is much more than a topical phrase for Computacenter and has been driving business in Q1. The channel giant issued a trading update this morning that gave an insight into how the year was progressing so far.

Group revenue increased by 16%, services turnover climbed by 14% and the supply chain business improved by 17%.

Germany was the star performer in geographical terms bringing in a 23% revenue rise year-on-year for Q1, with services up 8% and supply chain 31%.

That contrasted with the UK, which delivered a 1% fall in revenue with services up by 4% but supply chain down by the same amount.

The French arm also contributed with a 6% revenue rise, with services up by 22% and supply chain by 2%.

"While much remains to be done to complete the year, we believe that the Group's performance for 2017 as a whole will exceed current market expectations due to buoyant market conditions for new investments in technology, particularly seen by our German business, backed up by steady progress in France and UK and favourable currency movements," stated the firm.

Investors were advised that making a comparison between Q1 2017 and last year was made slightly more difficult by weaker trading conditions in 2016.

"This will mean higher profit growth in the first half of 2017 than the second half and will return Computacenter to a more historical norm in the balance of our profits between the first and second half of the year," the trading update stated.

Where business has been growing is around the digital transformation theme and the firm has been able to gain some services sales as a result.

"Our customers drive to digitalise their operations is creating significant demand particularly for our Professional Services and Supply Chain businesses. This is currently more than compensating for the pressure exerted by customers to reduce long term support costs that has a potential negative effect on our Managed Services business. However, this pressure is felt across the industry and those companies who deal with it best will gain market share," the firm advised.

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