Computacenter raises profit expectation; shares soar

IT services firm Computacenter announced that its full-year profit for 2009 would beat market expectations, helped by substantial cost cutting.

Computacenter said pre-tax profit for last year would be around 10 per cent ahead of market forecasts of 48.4 million pounds.

Group's CEO Mike Norris said that the group was helped by cost cuts of about 30 million pounds. Under cost-cutting measures, the firm hacked as many as 300 jobs during 2009.

Earlier at the beginning of the year, it had set a target of cost cuts of 15 million pounds.

However, revenue in the UK remained feeble. Total turnover in the UK slipped 11 per cent to 1.25 billion pounds over the year. Excluding hardware trade business, firm witnessed a drop of 6 per cent in revenue.

Shares in Computacenter were trading at 309p, up 17.7p.