27th Apr 2018 08:04
LONDON (Alliance News) - Computacenter PLC on Friday said that it expects 2018 to be a year of "further progress" as revenue rose strongly in the first quarter of the year.
The IT services provider said its performance in the three months to the end of March beat expectations, with 2018 likely to be a "year of further progress" in profitability as well as earnings per share.
Revenue increased by 23% at reported rates for the three months to the end of March, with Services revenue and Supply Chain revenue up 2% and 33%, respectively.
On a constant currency basis, revenue rose 21% and supply chain revenue grew 31%. Service revenue remained flat, however.
Computacenter said that revenue was "flattered" by a one-off software licence sale in the UK of GBP34.1 million which was profitable, but diluted the company's margins. Stripping this out, revenue was up 19% with supply chain revenue 27% higher.
Performance in the UK displayed high growth, as revenue rose 31%. Although Supply Chain revenue grew significantly by 52%, the Services revenue dropped 7%.
In Germany, revenue grew 19% in constant currency, supported by 7% and 25% growth in Services revenue and Supply Chain revenue, respectively.
French performance was more subdued, with revenue flat year-on-year, as 5% growth in Services was offset by decline in Supply Chain revenue of 1%.
"As we have predicted, our customers' drive to digitalise their business has driven strong demand for our supply chain revenues, particularly in the UK and Germany. Our French business had a difficult comparison due to the great performance last year," Computacenter said.
"Overall, we do not see any obvious reason why the current positive market conditions for Computacenter should not continue in the near term," it added.
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