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UPDATE 1-UK's Computacenter FY revenue rises 6.3 pct on currency impact
March 13, 2017 / 7:48 AM / 9 months ago

UPDATE 1-UK's Computacenter FY revenue rises 6.3 pct on currency impact

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March 13 (Reuters) - British IT services provider Computacenter said its full-year adjusted revenue rose 6.3 percent, helped by a favourable currency impact and strong growth in Germany.

The company’s adjusted revenue on actual currency basis rose to 3.25 billion pounds from 3.05 billion pounds a year earlier.

However, adjusted revenue was down 0.5 percent on a constant currency basis.

The company, which provides computer services to customers including Domino’s Pizza and department chain John Lewis PLC, has been impacted by weakness in its domestic market as the UK prepares to leave the European Union.

Computacenter said it expect its U.K. business to see “modest” improvements in 2017 with professional services and supply chain helping overall performance.

Adjusted revenue from its U.K. business fell 1.1 percent to 1.39 billion pounds in 2016.

“U.K. profits were much improved in H216 from strong operational efficiencies and a good Q4 margin, but new deals could not make up for the lack of historic wins, with service sales down,” Investec analysts wrote in a note.

However, adjusted revenue from its German business rose 16.1 percent to 1.39 billion pounds, more than offsetting the weakness in the U.K. business.

Shares of the company had closed up 1.2 percent at 782 pence on Friday. (Reporting by Arathy S Nair in Bengaluru; Editing by Sunil Nair)

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