Computacenter slashes forecasts

Computer retailer Computacenter has cut its full-year profit forecasts, blaming weak trading conditions.

In a statement, the company said a strong first quarter masked a weaker second quarter, which has continued into the second half.

If trading continues as it is now, the group anticipates pre-tax profits to be similar to last year's £55.6m - down from earlier expectations of £66.3m to £69m.

Ron Sandler, chairman of Computacenter, said in a statement that market conditions have remained the same as they were in May and June. He added that because of this, it is difficult for the company to predict the future with confidence.

In the first six months to 30 June, a pre-tax profit of £29.3m was recorded, compared with £19.2m in the same period a year ago.

In early trading on the London stock exchange this morning, shares dropped by more than 11 per cent from 249p to 221p.

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