Computacenter takes charge on three German contracts, reports loss
Aug 30 (Reuters) - Computacenter Plc reported a statutory loss in the first half, mainly due to a charge related to three underperforming contracts in Germany.
The company, which provides IT infrastructure services and also advises customers on IT strategy, reported a statutory pretax loss of 4.3 million pounds ($6.66 million) in the six months ended June 30, compared with a profit of 20.8 million pounds a year earlier.
Computacenter said exceptional items totalled 29.3 million pounds, including a 10.7 million pound provision against future losses on three contracts in Germany and a 12.2 million pound charge due to deterioration in business performance in France.
Trading losses on the three contracts widened to 5.9 million pounds from 1.7 million pounds a year earlier.
The company had said last month that it would make provisions for the three loss-making contracts in Germany.
Computacenter, which gets most of its business from Eurozone countries, said adjusted profit before tax rose 1.9 percent to 26.2 million pounds.
"This should help put these isolated deals behind the group, returning the focus to the rest of the German business where there is some momentum," Investec analyst Julian Yates said in a note.
The company said it expected trading to remain in line with its expectations, with the exception of the provisions made for the contracts.
- Exclusive: Secret contract tied NSA and security industry pioneer |
- U.S. aircraft hit by gunfire in South Sudan as conflict worsens
- With Fed out of the way, what's next on Wall Street?
- Four men arrested in deadly N.J. shopping mall carjacking
- Analysis: Lost Brazil order raises threat to Boeing fighter jets