* Statutory pretax loss of 4.3 million stg
* Exceptional items total 29.3 million stg
* Adjusted profit before tax rose 1.9 percent to 26.2
* Expects trading to remain in line with expectations
* Business in France not expected to improve over the second
By Tasim Zahid
Aug 30 British IT services provider
Computacenter Plc swung to a pretax loss in the first
half, as it set aside more money for future losses on three
contracts in Germany and took an impairment charge in France.
The company, which provides IT infrastructure services and
also advises customers on IT strategy, reported a 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
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.
"France was worse than I was expecting, but at the same
time, Germany was better than what I was expecting. The
narrative for UK was more positive than the pre-close
statement," Panmure Gordon analyst George O' Connor told
Trading losses on the three contracts in Germany 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 these contracts, expected to end between late
2014 and mid 2016. It had made provisions for 2.1 million pounds
in December 2012.
Computacenter, which gets most of its business from Eurozone
countries, said adjusted profit before tax rose 1.9 percent to
26.2 million pounds.
The company said it expected trading for the rest of year to
remain in line with its expectations, and its UK business was
likely to finish the year ahead of original expectations.
"I don't see any underlying improvement in the business in
France (in the second half), but there has been better
performance in the UK and Germany," Computacenter Chief
Executive Mike Norris told Reuters.
France contributes about 16 percent to total revenue, while
Germany and UK contribute about 40 percent each.
Computacenter said in May it would return a one-off 75
million pounds to it shareholders.
The company's shares, which have risen about 29 percent
since the beginning of the year, were up marginally at 515 pence
at 0955 GMT on the London Stock Exchange.