Computacenter H1 profits dip but outlook upbeat

(Sharecast News) - Computacenter posted a dip in first-half pre-tax profit on Tuesday but struck an upbeat note on the outlook and said it expects some recovery in public sector activity in Germany. In the six months to the end of June, adjusted pre-tax profit fell 3.8% to £81.5m. Revenue rose 30.8% to £3.99bn, with gross invoiced income 27% higher at £5.67bn.

Gross profit increased 8.6% to £504.2m. Computacenter said this was driven by excellent growth in North America and good growth in the UK, partly offset by softer performances in Germany and particularly France.

The company hailed a record first half in North America, with operating profit nearly doubling against an easier comparative. This was achieved through a combination of buoyant hyperscale customer demand as well as growth in volumes with enterprise customers across a variety of sectors, it said.

Chief executive Mike Norris said: "We executed well during the first half delivering growth in both Technology Sourcing and Services against a backdrop of significant macroeconomic and political uncertainty. Furthermore, we have significantly expanded our base of major customers over the past year, reinforcing our resilience and positioning ourselves for sustainable growth.

"Building on the strong momentum seen during the second half of 2024, North America delivered another record performance, with growth across all areas. We remain excited about both the short and long-term growth opportunity in this market. We are also pleased to see the UK return to growth following a renewed focus on our target customers. While public sector activity in Germany has been subdued we are confident in both the strength of our team and our customer relationships and we anticipate some recovery in public sector activity in Germany in the second half."

Computacenter pointed to a "healthy" order backlog position and said it has made a strong start to its third quarter, especially in North America. As a result, it still expects growth in adjusted operating profit for the full year.

At 0810 BST, the shares were up 8.2% at 2,516p.