January 22, 2018 / 7:31 AM / 2 years ago

Computacenter hikes 2017 expectations, sees stable 2018

(Reuters) - IT services firm Computacenter Plc (CCC.L) said on Monday its 2017 adjusted pretax results were set to beat its expectations, driven by strength across Germany, the United Kingdom and France.

Raising its guidance for the fourth time in the last one year, the company said its customers continued to invest in new IT infrastructure, including digitalisation, last year.

Computacenter said a number of one-off costs and investments would impact its performance this year.

These costs would hold back profitability “enhancement” and 2018 would be “one of stable profitability”, said the provider of computer services to customers including Domino’s Pizza (DOM.L) and department chain John Lewis Plc [JLPLC.UL].

The company earlier said its performance in 2017 would be “comfortably in excess” of market expectations, as opposed to its view in August that the year would be “marginally ahead”.

Computacenter’s 2017 pretax profit is expected to rise to 102.8 million pounds, according to analysts’ estimates compiled by Thomson Reuters. The company recorded a profit of 86.4 million pounds a year ago.

Computacenter, which had been hurt by weakness in its domestic market as the United Kingdom prepared to leave the European Union, had said earlier it foresaw a drop in short-term demand for its products and services.

Shares of the company were up 2 percent at 0812 GMT.

Reporting by Justin George Varghese in Bengaluru; editing by Jason Neely and Gopakumar Warrier

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