After a “satisfactory” first quarter, Computacenter said it is in-line with management expectations for FY11. Interim revenue for the period from 1 January to 20 April, was up 2% overall, helped by 6% growth in services. Product sales meanwhile were flat.
The UK had a weak quarter. Revenue from services was up a modest 3% (vs. 14% growth in FY10), but products sales were down 23%, as a result of the anticipated fall in spend from UK Government (usually the biggest quarter for product spending) and a one-off large product sale in Q110. The good news is that the services pipeline looks good for the rest of the year, and new contracts are being signed at improved margins. So we can expect better things to come from Computacenter UK.
Looking to France and Germany, Computacenter’s two other big markets, there is much to be optimistic about. Computacenter’s product sales are storming ahead with Q111 revenue growth of 22% and 28% respectively. Services meanwhile also grew 10% and 9%. Particularly pleasing for management, it seems that this growth was largely organic, since the acquisition of TopInfo in France (see Computacenter tops off in France) only began adding revenue from the beginning of April, and HSD Consult in Germany (see Computacenter takes bite out of German services Apple) is not yet completed.