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By | John Oates 11th January 2011 12:29

Computacenter shares up on profits promise

'Customers are refreshing...'

Computacenter shares are up almost five per cent today on news that profits for last year should be at the top end of estimates.

Updating the markets on trading ending 31 December 2010 Computacenter credited growth in services revenue and a return for growth in product sales for the good news.

Group revenue for services was up 8 per cent in constant currency terms and product revenue grew 15 per cent, including acquisitions but excluding the sale of distie business CCD.

The decline in UK government business was offset by better growth in France and Germany. Revenue in the UK grew 10 per cent. Product sales in the UK were nine per cent in the first half but fell to 4 per cent in the second half, thanks to government cutbacks and a big deal at the end of 2009 that skews the comparison figures.

German revenues were up 8 per cent, or 12 per cent in local currency. France grew revenues by 17 per cent in local currency – services were up 5 per cent while product sales grew 20 per cent.

Mike Norris, CEO of Computacenter, said: "Customers are refreshing, upgrading, improving and investing in their IT infrastructures ..."

Computacenter said there had been a small filip thanks to the VAT increase in the UK but it does not expect it to have a material effect on numbers.

Full year results are out on 10 March but Computacenter's market update is here. ®

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