IT group profits on the rise despite falling revenues
FIRST-QUARTER profits at Computacenter, the information technology services firm, showed a "market improvement" compared with the same period last year, the group said yesterday.
Group revenues declined by 1 per cent to 602.4 million on a reported basis and by 8 per cent on a constant currency basis.
The company said it was on track to reduce costs by 15m before the end of the year but still expected to incur an "exceptional charge" of about 5m relating to the cost-cutting scheme.
Computacenter, which has a market cap of about 200m, said: "UK sales from our on-going operations were 12 per cent lower in quarter one."
The firm continued: "UK operating profit was ahead of the same period last year, aided by steady services revenue growth of 6 per cent and a vigorous focus on operating costs."
As well as its 14 offices in the UK – including Edinburgh – Computacenter operates in Belgium, France, Germany, Luxembourg, the Netherlands, South Africa and Spain. German revenue in the quarter increased by 16 per cent to 218.9m, while French revenue rose by 8 per cent to 69.8m. Computacenter added: "We remain on track for the year as a whole."