Computacenter has reported a four percent profit loss for the full year claiming it “stumbled in Germany”.
The British company said its profits stood at £71.3 million in 2012, compared to £74.2 million in 2011.
It blamed the loss on higher costs from new contracts, which bled into margins in the services business in Germany, its second-largest market by revenue.
And 2013 doesn’t look to be an easy road with the company claiming that this year would be dependant on the speed of recovery from the “problem contracts” in Germany, which it said was unpredictable.
However, it wasn’t all doom and gloom with the company reporting group revenues jumping 2.2 percent to £2.91 billion compared to 2011’s £2.85 billion.
Mike Norris, Chief Executive of the company said: “We expect 2013 to be a year of progress for Computacenter. While the Group financial outcome for 2013 will be dependent on the in-year performance of Germany and the speed at which we recover from our problem contracts, which is unpredictable, we are confident that these contracts will improve.
“More importantly, winning, contracting and taking on new contracts successfully, is more fundamental to the long-term growth of the business and its strategic development. This will be underpinned by our new Group operating model, which has taken effect in the UK and Germany, since the start of 2013.”
