British IT services provider Computacenter Plc said it expects full-year adjusted pretax profit to be towards the top end of the range of market expectations.
The company, which provides computer services to BT Group Plc and Severn Trent Plc, said it saw strong product revenue recovery last year and it expects product revenue to grow steadily in 2011.
Group revenue for services rose 6 percent on an as reported basis and product revenue grew 13 percent last year, it said. Services growth increased materially in the second half, whereas product revenue growth remained constant throughout 2010.
The growth of long-term services contract revenue remains fundamental to the long-term success for Computacenter and it is pleasing to note that we have seen approximately an 8 percent increase in the annual services contract base, said chief executive Mike Norris.
For the six months ended June 30, the company said adjusted pretax profit rose 16.6 percent to 21.3 million pounds. Revenue grew 5.4 percent to 1.29 billion pounds.
Computacenter will announce full year results for the year ending December 2010 on March 10.
The company's main activities are the supply, implementation, support and management of information technology systems. The company operates in the United Kingdom, Germany, France, and the Benelux countries, as well as providing transnational services globally.
Shares of Computacenter closed Monday's trading at 385 pence on the London Stock Exchange.