Computacenter warns of slow-down

Big snail in Old TaipeiComputacenter warned that a slowdown in the infrastructure managed services market could hamper future growth.

The outfit saw sales declines in its third quarter results and Group revenues, excluding acquisitions made during the quarter, shrank by three per cent year on year to £900 million.

While Services revenues grew by a per cent, the outfit’s  Technology Sourcing segment, which alludes to its supply chain business, declined by five per cent.

The UK was Computacenter’s poorest performer in the third quarter. Revenues shrivelled by nine per cent to £296 million, as Technology Sourcing revenues tumbled by 12 per cent and services by four per cent.

The next worst was France which had a six per cent dip in revenues to £119 million. Technology Sourcing revenues decreased by eight per cent, or seven per cent in constant currency, while services declined by one per cent.

Only Germany did well and continue its upward trend established in the first six months of the year. Even it saw its growth slow dramatically in third quarter. Sales grew by one per cent to £451m, or two per cent in constant currency. Services and Technology Sourcing sales both grew by one per cent during the quarter.

Computacenter warned that channel partners have a tougher year ahead as revenue growth from reselling product begins to slow down.

The channel giant said that while its pipelines for professional services is “building nicely”, growth for its infrastructure managed services business is “somewhat more challenged” due to tougher market conditions.