Computacenter PLC (LSE:CCC), the tech hardware seller, dipped more than 3% on Wednesday after it warned profits in the first half of its financial year would be lower than last year due to challenges in the UK market.
First-half underlying profits are expected to fall back on last year’s performance as the UK remains “challenging” while second quarter.comparatives are 'tough'.
A year ago, the group secured “excellent growth” in its German operations, while the first quarter benefited from a small number of exceptional contracts.
Now it believes that the strong comparable performance might result in results being weaker year-on-year.
Despite the anticipated slowdown, the company reported a normalisation of its higher volume, lower-margin contract wins in the Technology Sourcing division in the US.
Additionally, a new contract with a large Stateside client was won in the first quarter and is expected to be fulfilled in the second three months of the financial year.
Based on the strength of the group’s Technology Sourcing and Services model and its healthy pipeline, management is confident it can post a stronger second half, ultimately allowing for full-year growth.