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Computacenter supply chain drives “better than expected” performance in the first quarter

The FTSE 250-IT infrastructure provider said revenue in constant currency for the first quarter increased 21%, while its supply chain revenue grew 31%

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Revenue performance in the UK was boosted by a £34.1mln software license sale

Computacenter PLC (LON:CCC) said its first quarter performance has been “better than expected”, driven by strong growth in supply chain revenues.

The FTSE 250-IT infrastructure provider said in a trading update that revenue in constant currency for the first quarter increased 21%, while its supply chain revenue grew 31%.

READ: Computacenter shares drop as it reveals financial results

The group added that its revenue performance was boosted by a £34.1mln one-off software license sale in the UK which whilst profitable, had also diluted its margins.

Computacenter also saw revenue growth in most of its national markets, with UK revenue growing 31%, including the one-off license sale, up 21% when excluded, while its German market saw revenue rise 19%.

Supply chain revenues for both markets grew 37% and 25% respectively.

It wasn’t all good news, however, as the company’s French revenues were flat, with supply chain revenue falling 1%.

In its outlook, the group said it did not see any obvious reason why the current market conditions would not continue in the near term.

The firm added: “We are responding to our customers' desire to take cost out of long-term support contracts by increasing the competitiveness of our Services offerings through productivity improvements which protect our profitability. However, this market trend does put corresponding pressure on our Services top line growth which is currently being more than compensated by the Supply Chain performance.”

Computacenter will release its interim results on 24 August.

In early morning trading, Computacenter shares were up 1.7% at 1,248p.

Quick facts: Computacenter PLC

Price: 1568 GBX

Market: LSE
Market Cap: £1.79 billion

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