Computacenter lifted by forecast-beating first half

Computacenter has predicted that increased demand for the Microsoft XP operating system would help it turn out a solid performance in the second half of the year after increased demand for IT services helped it produce a 31 per cent jump in profits in the first half.

Mike Norris, chief executive, said yesterday: "We're starting to see much more significant interest in Microsoft XP deployment for the desktop than we've ever seen. When they [Microsoft] release a new operating system it takes time for people to get ready for it."

In the six months to 30 June, the company, which provides IT hardware and services, reported a pre-tax profit of £32m, up from £24.4m a year before. Mr Norris stressed, however, that "lots of little things", including higher demand for services, had helped the company to turn out a forecast-beating performance in the first half.

The only blip in the figures was the company's French operation, which turned out an operating loss of £1.7m in the first half. It is expected to be profitable in the second half of the year though.

Mr Norris remained upbeat on the company's prospects for the year as a whole. "We don't want to get people carried away... we think there'll be more of the same [in the second half]," Mr Norris said, but noted he expected the company's managed services business to remain buoyant.

He also said the company planned to make its software joint venture, Biomni, profitable after which it could be sold. It made a loss of around £130,000 in the first half.