Computacenter hit by German contract issues

 
City A.M. Reporter
COMPUTACENTER said yesterday it expects to make only modest progress in performance this year due to the impact of ongoing contractual issues in Germany and a weak French business, sending the company’s shares down nearly 14 per cent.

The firm, which supplies IT equipment and advises on strategy, said revenue from Germany – its second largest market – fell seven per cent to £280.6m.

Computacenter said three contracts in Germany “remain stubbornly financially and operationally challenging” and may result in an increased provision this year for costs in future reporting periods.

The company said revenue from France grew two per cent to £107.4m, but warned that 2013 would be a tough year.

“The challenging economic environment in France has resulted in a distinct lack of professional services projects which affects our services margin and our performance on the bottom line,” the company said.