International VAR and cloud service provider Computacenter has issued an overall positive trading update for the first quarter ended 31 March, 2024.
Germany and North America delivered “solid” underlying performances, while the UK “remained challenging”.
“As anticipated, Technology Sourcing revenue in the first quarter returned to more normal levels versus the same period last year, which benefited from a small number of exceptional contracts,” the firm said. The performance in the quarter largely reflected the “normalisation” of higher-volume, lower-margin Technology Sourcing contracts in North America, and the “excellent growth” achieved in Germany in the prior year.
The firm says it has a “strong and growing” pipeline of Technology Sourcing opportunities in North America for the rest of the year.
Services revenue during the quarter, “as anticipated”, was below the previous year, with continued growth in professional services outweighed by the expiry of certain managed services contracts.
“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. Our pipeline of professional services opportunities across the group is also encouraging,” Computacenter said.
