Computacenter revenues climb 4pc

European IT services provider Computacenter said it continues to trade in line with company expectations and the outlook for the full year to 31 December remains intact.

Group revenue increased 4 per cent in the first half on a reported basis and 8 per cent in constant currency and includes a small contribution from acquisitions made during 2011.

Services revenue rose by 12% on a reported basis in the half year and 15% in constant currency. Supply Chain revenue increased 1% on a reported basis and 4% in constant currency.

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During the second quarter Computacenter saw a 16% increase in services revenue in constant currency resulting in the group taking on 700 extra staff to cope with the demand. The cost of the recruitment and training of the extra staff is expected to cost the group an extra £7m in 2012.

"While we have been pleased with the growth in our Services revenue, the increase in new business has come with significant additional start-up costs that will adversely impact profit in 2012."

"However, the Board believes that this incremental cost, which remains in line with our statement of 14 June 2012, will help secure Computacenter's long term growth potential and enhance the quality of earnings," it said in a statement.

Across its geographical divisions UK revenue grew by 5% in the first half of the year, German total revenue increased by 7% and France grew revenues by 9% on a constant currency basis.

CJ