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Computacenter meeting Q1 expectations
Firm shares trading update on first quarter and progress made in first few months of 2024
The UK has remained a “challenging” market for Computacenter, but the firm remains on track to deliver good numbers for its first quarter.
The channel player has shared an update based on unaudited numbers covering its first quarter ended 31 March.
The update indicated Q1 had been in line with expectations, and talked of further progress being made over the course of this fiscal year.
“Germany and North America delivered solid underlying performances while the UK remained challenging,” the update stated.
The firm had been expecting its Technology Sourcing revenue to return to more normal levels compared with the same period last year, which had been skewed by a few exceptional contacts, and that appears to have happened with the business generating stable growth.
“Towards the end of the first quarter, we won a significant new Technology Sourcing contract with a large customer in North America which we expect to start fulfilling towards the end of the second quarter,” the firm stated.
“We have a strong and growing pipeline of Technology Sourcing opportunities in North America for the rest of the year.”
Taking shape
On the Services side of the business, the performance was as expected. Again, the firm pointed to activity that had occurred since the close of Q1 as evidence that 2024 was shaping up nicely.
“At the beginning of the second quarter, we commenced a large, four-year public sector contract in the UK which was secured at the start of 2024,” the firm stated. “Our pipeline of Professional Services opportunities across the Group is also encouraging.”
Computacenter indicated that it expected the year to go well, and that it would continue to invest in future growth. The past couple of years have seen M&A activity, particularly overseas, bolster the firm’s position.
“The strength of our integrated Technology Sourcing and Services model, our committed product order backlog and pipeline of opportunities give us confidence in delivering a stronger performance with growth weighted to the second half of the year, underpinning our expectations of further progress for the full year, the update concluded.
Computacenter’s description of the UK market conditions being challenging adds to other channel players that have cautioned against ongoing macroeconomics being a slight hinderance on growth.
Earlier this week, Exclusive Networks shared a Q1 update that was accompanied by CEO comments talking of the ongoing impact of market conditions many hope will ease over the course of 2024.
