March 12, 2013 / 7:40 AM / in 5 years

Computacenter profit falls on margin squeeze in Germany

March 12 (Reuters) - British IT company Computacenter Plc reported a 4 percent fall in profit for the full year as higher costs from new contracts ate into margins in the services business in Germany, its second-largest market by revenue.

The company, which provides equipment and services and advises customers on IT strategy, said it expected performance in 2013 to be dependant on the speed of recovery from the “problem contracts” in Germany, which it said was unpredictable.

Adjusted profit before tax fell to 71.3 million pounds ($106.2 million) in the year ended Dec. 31 from 74.2 million pounds a year earlier.

Group revenue rose 2.2 percent to 2.9 billion pounds in constant currency.

Revenue from Germany fell to 1.19 billion pounds from 1.23 billion pounds, while revenue from the UK climbed 8.5 percent to 1.2 billion pounds.

Computacenter raised its total dividend to 15.5 pence share from 15 pence, with a final dividend of 10.5 pence.

Shares in the company closed at 502 pence on the London Stock Exchange on Monday.

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