Computacenter profits up 26%, despite sales drop
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UK-based IT services firm posts strong full-year net income, predicts steady growth for 2010
IT services provider Computacenter has posted a 25.8% increase in net income to £54.2 million for 2009, despite a fall in total revenue.
Overall revenue at the UK-based IT firm was down 2.2% from 2008 to £2.5 billion, although its services contract base grew 9% to £503.6 million, backed by major contract wins from clients including BP, Threadneedle and Severn Trent Water.
The heightened profit was partly down to a £30 million reduction in operating expenses. In February 2009, Computacenter closed its standalone Customer Coverage Unit, a telesales operation that targeted the small-to-medium business sector, a moved that resulted in 50 staff redundancies.
“We enter 2010 in good shape with a lower cost base and having secured our largest services contract win to date in the first quarter of the year," said Mike Norris, Computacenter chief executive. "The economic climate across Europe is still fragile and while the UK has begun the year very well, Germany has experienced a challenging start."
The company's native UK proved to be Computacenter's strongest market, recording a £37.8 million profit. France, on the other hand, haemorrhaged cash – as it did last year – losing £2.7 million.
