The weak pound helped Computacenter’s bottom line by boosting the value of its business in mainland Europe.
The London-listed firm reported a two percent year-on-year rise in turnover to £735 million, more than £400 million of which was generated in Germany and France. Group services revenues grew by four percent as reported and the supply grew one percent.
The UK side of the business was as soft as a baby’s bottom but thanks to Brexit sinking the pound that hardly got noticed.
Sales were down three percent to £314 million, including a ten percent slump in services revenues. However the supply chain grew two percent.
“We are pleased to see a return to growth in our supply chain business, however, as broadly anticipated, our services revenue remains challenged principally due to the buoyant nature of projects in 2015,” the firm said.
In Germany things were much better. Revenues grew eight percent as reported to £325 million, but decreased two percent in constant currency. Service revenue was up 22 percent and the supply chain increased two percent.
France which normally was a blackspot on Computer Center’s revenues grew three percent to £83 million. Services and product sales also benefited from the currency translation.
Group funds totalled £96.7 million at the end of the quarter, up £29 million on the same period a year earlier.
The company forecasted sales of £3.1 billion for 2016, which would equate to a three percent rise as reported.
