Computacenter: 2016 was 'a year of mixed fortune'

In its results for the year ended 31st December 2016 Computacenter has posted a revenue increase of 6.3% to £3.25bn (2015: £3.05bn), while Group adjusted profit before tax decreased by 0.6% to £86.4m.

The Group reported annual services revenues of over £1bn for the first time in 2016.

In the UK, strong second half revenue growth was unable to prevent a 1.1% full year adjusted revenue decline.

Supply Chain margin challenges and services revenue decline contributed to a 21.1% reduction in adjusted operating profit.

Mike Norris, Chief Executive of Computacenter, commented: "2016 was a year of mixed fortune with the UK business profitability reducing materially, but the overall Group performance showing resilience due to the strength in Germany and the turnaround in France.

"The Group should have a year of progress in 2017, with a rebalancing of profits between the first and second halves of the year towards the historical pattern.

"We expect the UK to see modest improvements due to professional services and supply chain helping the overall performance.

"New technologies and the drive to digitalisation within our core customer base is driving our customers to invest capital in new projects which is unlikely to abate. However, this is coupled with a resolute desire to reduce run rate operating costs.

"As a business we have to step up to this challenge and improve our competitive position by focusing on productivity gains and automation."

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