Shares in Computacenter increased by over 10% after the technology and services provider said it expects to deliver a "much stronger performance" in H1 than previously anticipated.

The firm stated in its Q1 update that it has delivered a strong performance in this period, with figures coming in “well above” its expectations.

Computacenter said its group technology sourcing revenue has increased particularly strongly, primarily driven by hyperscale customers in both North America and the UK.

Furthermore, group services revenue was also ahead of last year’s results, reflecting strong organic growth in professional services, also driven by North America, which offset a decline in managed services revenue.

The firm said that its UK division achieved excellent growth in technology sourcing, including AI-related project completions and further strong growth in professional services.

As a result, Computacenter now expects to deliver a "much stronger performance" in the first half of the year than previously anticipated, although it remains mindful of the uncertain macroeconomic and geopolitical environment and a tougher comparative in the second half of the year.

However, it now expects to deliver results "comfortably ahead" of market expectations, with its profit before tax guidance standing at £291.3m, with a range of £284.5m and £297.1m.

The firm will publish its full-year results on 8 September.

---