Computacenter posted higher first-half profits and a good UK performance, but the IT services provider flagged up challenges in France and Germany.

Computacenter said adjusted pre-tax profit in the six months to 30 June rose 6.8% to £28m on a 2.2% rise in revenue to £1.46bn.

The group's UK business boosted revenue and adjusted operating profit by 14.1% and 24.4% respectively.

It highlighted early signs of progress in its services business in Germany, but said the German supply chain performance was disappointing.

Computacenter said the German services business was likely to increase due to new contracts already secured and easier comparatives, while the supply chain operation should stabilise.

French services revenue rose 4.8% during the period in constant currency, but the result was flattered somewhat by the take-on of one particularly large contract during the period.

The company said the French business was in the early stages of its transition to become services-led.

It said the outlook for the French operation was difficult to predict, adding: "While we have a significant plan of action, and new management in place, much work needs to be done in the second half of 2014 and thereafter."

Chief executive Mike Norris said: "Trading remains in line with the board's expectations."

Shares fell 2.5p or 0.45% to 613p at 08:28 in London.

PW

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