16th Jan 2014 08:33
LONDON (Alliance News) - Computacenter PLC said Thursday that it expects its results to be slightly ahead of previous expectations. Revenue rose in the year ended December 31, 2013, as good performances in the UK and Germany offset declines in France.
The IT infrastructure company said that total revenue had increased 6%.
In the UK, revenue grew 8%, with services revenue up 6% and supply chain revenue up 9%.
In Germany, revenue was up 2%, with supply chain revenues up 2% and services revenues flat. In the fourth quarter, services revenue declined 3% due to a customer reducing the size of its contract.
In France, revenues fell 7%, with supply chain revenues declining 8% and services revenues declining 1%, although this performance improved in the fourth quarter. These declines were mainly caused by the deployment of its Enterprise Resource Planning system, ComputaCenter said.
Enterprise Resource Planning is a business management software used to consolidate and integrate data from every stage of a business. ComputaCenter had been transferring its French business to this new system from its legacy system, but said that it had now completed that move.
Although ComputaCenter expects the fourth-quarter improvement in its French business to continue, it warned that "considerable work still needs to be done in 2014" in order to improve the business for the long term.
The company expects restructuring charges of around GBP4 million for the year, with an additional non-cash impairment of goodwill relating to its issues in France.
Shares in Computacenter were trading up 0.5%, or 3.50 pence, at 648.50 pence Thursday morning.
Computacenter will announce its full 2013 results on March 11th.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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