UPDATE 1-Computacenter sees H1 profit up 10 pct
* Sees H1 profit up by at least 10 pct, in line with co view
* Services growth in UK accelerating; product sales subdued
* Says remains on track for year
LONDON, July 13 (Reuters) - British IT firm Computacenter (CCC.L) said on Tuesday it expected to increase first-half profit by more than 10 percent, in line with its expectations, as its focus on higher-margin IT services paid off. Revenue in the first half grew 7 percent, excluding the effect of the sale of its trade distribution arm in October, the company said, while the reported growth was 5 percent.
The company, which counts WM Morrison and Lloyds Banking Group among its customers, said growth in the second quarter was slightly down on the first quarter, but overall remained steady.
Computacenter reported pretax profit of 18.2 million pounds ($27.3 million) for the first-half a year ago.
Services growth in the UK accelerated towards the end of the period to an overall 7 percent, it said, while product sales were more subdued in the second quarter compared to the first.
Profitability in France would be broadly in line with the same period a year ago -- a better result than the group expected -- but Germany would be down, it said, although it was showing signs of improvement.
"We are pleased with the progress the group has made, albeit slightly held back by the first two months results in Germany," the company said in a statement.
"We remain on track to achieve our expectations for the year-end outcome."
Shares in Computacenter, which have risen 22 percent since the beginning of the year, closed at 300 pence on Monday, valuing the group at 462 million pounds.
(Reporting by Paul Sandle; Editing by Matt Scuffham)
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