StockMarketWire.com - Computer services provider Computacenter said Tuesday annual pre-tax profits slipped as UK services revenue was pressured by 'materially lower' professional services revenues.

For the 12 months to 31 December, pre-tax profits slipped 3.2% to £108.1m and revenue rose 14.7% to £4.35bn.

Services revenue rose just 1.5% to £1.18bn while supply chain revenue jumped 20.5% to £3.18bn. Overall, group services margins declined by 104 basis points during the year, when compared to the prior year.

In the UK, revenue increased by 9.7% to £1.61bn as technology sourcing revenue rose by 17.1% to £1,155.6m from £986.7m a year earlier, but services revenue declined by 5.6% to £450.2m from £476.7m a year earlier.

Margins declined 73 basis points with total adjusted gross profit falling from 13.4% to 12.7% of revenues amid flat managed services revenue as 'continual customer pressure to reduce costs,' weighed down performance.

Professional Services revenues were down along with isolated profitability challenges on a small number of engagements, which also impacted growth. 'Whilst it was a very difficult comparison against the prior year, the result in this area was still disappointing,' the company said.

Germany delivered another record performance with revenue growth of 8.3%, leading to a 14.5% increase in adjusted operating profit, both on a constant currency basis.






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