StockMarketWire.com - Computacenter said Friday first-half profits grew as rising demand for network capacity and cyber security supported growth in its technology sourcing division, but at lower margins.

For the six months to 30 June, statutory profit before tax grew 9.5% to £52m, and revenue increased by 18.1% to £2.01bn.

The upbeat performance was supported by significant progress for the company's technology sourcing business, which grew 26% to £1.4bn, but on lower margins.

Group services margins declined by 80 basis points during the first half of the year, and technology sourcing margins were flat, compared to the previous year.

UK technology sourcing revenue surged by more than 48%, although growth was flattered by two very large margin-dilutive technology sourcing deals, the company said.

An interim dividend of 8.7p a share was declared.

The company warned that despite solid performance in the first half, there was still much to do to deliver second-half growth against a tough comparative from last year.

'The board's outlook remains in line with its expectation which was upgraded on 12 July 2018,' the company said.

'While the second half of the year is a more difficult comparison to the first half, due to the outstanding performance in H2 2017, 2018 is proving to be a year of significant progress particularly for our technology sourcing business,' said Mike Norris, CEO.

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