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Computacenter sees no signs of market recovery
But posts OK results

By Graham Hayday

Published: Friday 06 September 2002

Computacenter has warned the IT market is still showing no signs of recovery, while posting slightly better than expected half yearly results.

For the six months ending 30 June, the UK reseller and services outfit made a profit of £24.4m on turnover of £975m. That was down on the £29.3m it made in the same period last year but still up on expectations.

Its UK Managed Services contract base has grown 32.3 per cent since start of the year, while its UK Professional Services revenues were up nearly 20 per cent. Disappointingly, revenues from UK product reselling were down 20.3 per cent.

Ron Sandler, chairman of Computacenter Plc, said in a statement: "Computacenter performed well in difficult trading conditions, delivering a set of results slightly ahead of market expectations. While a further deterioration in market conditions is unlikely, we are not yet detecting any signs of an upturn."

He added: "If current conditions continue, we expect profit performance for the full year to be similar to the £51.1m achieved last year, with any profit growth being dependent upon an improvement in the market."

The City has not reacted favourably to the news. Yesterday, Computacenter shares closed down seven per cent.

Following a briefing with City analysts, Mike Norris, Computacenter's chief executive, angrily told the Guardian: "This is the ninth time I have given a set of results to the City and it is the first time that I have been angry. I just think what the hell have you got to do?"