The Channel logo

News

By | Lucy Sherriff 20th April 2005 10:40

Computacenter issues profit warning

Low margins to blame

Computacenter has issued a full-year profit warning for 2005, just a month after reporting its 2004 results. The warning sent shares on an 11 per cent, or 33 pence slide early Wednesday morning.

It warned that unless market conditions change, its profits would be "substantially below last year" when it reported profit of £67.3m on revenues of £2.46bn.

The company said group sales were down 10 per cent on last year, blaming a shift towards low margin products for the poor performance. "This has had a material impact on achieved margins in the first quarter," chief executive Mike Norris wrote in a letter to investors.

"We are projecting product revenues for the balance of the year to be broadly similar to last year and margins to be lower for the rest of the year," Norris wrote.

Shares in the company had recovered slightly, gaining five pence by the time of writing. ®

Related stories

Computacenter signs up for BladeLogic
Computacenter wins £8m Highways Agency deal
'What does HP do?' asks Europe's biggest dealer

alert Send corrections

Opinion

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper

Features

Hacked US CENTCOM Twitter account
Roll up, roll up, get your exclusive market insights
Wile E. Coyote goes over the edge again
money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals