Brexit causes Computacenter UK profit plummet

logoComputacenter’s UK operating profits plummeted by 38.9 percent in the first half of its financial year and observers think it is to do with Brexit.

The company’s UK operations are a key part of its revenues, but punters in Blighty delayed procurement decisions in the lead up to the referendum.

As a result, there was a 7.3 percent year over year decline in services revenue, which stood at £244 million and a 4 percent decline in supply chain revenue which ended up at £408 million.

UK turnover fell by 5.2 percent compared to last year to £653m and adjusted operating profits dropped by a dramatic 39 percent to £14 million.

If it had not been for a strong performance in Germany making up for the losses the company would be in deep do do [are you sure that it is a financial term? Ed]. The fact that its French business was suddenly emerging from the mire also helped.

Mike Norris, CEO was upbeat, rather than beaten up and said:

“The first half of 2016 finished slightly better than we had anticipated at the time of our Q1 Trading Update in April 2016, mainly due to the better performance of Computacenter in France. Despite the challenging market conditions in the UK referred to in our Q1 2016 Trading Update, as well as planned investments, the Board expects the full year to show modest progress in our adjusted profit before tax1, as compared to 2015 after allowing for the £3 million benefit from the one-off gain realised in the comparative period.”

Greg Lock, chairman said that when it came to Brexit the company was changing very little in what it did and expected.

“We are represented in our core countries of the UK, Germany, France, Belgium and Switzerland by our own people, and we will continue to support our customers in their countries and develop our business there,” Lock said.