European IT services provider Computacenter said performance across its continental markets had made up for flat results from the UK in the first quarter.
However, it said margins had been hit during the period, due to the costs of moving staff into new roles in its services division and sales commissions.
"We expect these costs to continue in the short term, given the size and number of large contracts won, which are yet to go live, but we very much view these costs as an investment in the long term profit growth of the group," the firm said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"In the UK, the on-boarding of contracts is going to plan; however, in this regard there are some challenges in Germany where more work is required."
Group revenues for the first quarter increased by 9%, Computacenter said, with revenue growth positively impacted by the acquisition in April 2011 of Top Info in France.
Services revenues grew 9%, while revenues at the group's supply chain division also grew by 9%.
Overall, the company's UK revenues remained flat on the same period last year, with a 8% increase in Services revenue and a 5% decline in Supply Chain revenue.
It has been hit in the UK by a freeze in spending in investment banking.
However, it said that double digit growth in both France and Germany had helped offset this.
The firm said that its outlook for 2012 remained unchanged.
-
Who is the richest person in the world?The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
-
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
