Computacenter's revenue jumped by one fifth in its H1, despite UK sales dropping nearly eight per cent.
Overall revenue for the six-month period ending 30 June 2019 grew 20.8 per cent year on year to £2.4bn (€2.65bn), or by 21.6 per cent in constant currency.
Adjusted profit before tax was £53.5m, an increase of 2.7 per cent, or 3.5 per cent in constant currency.
Sales rose in Germany by 4.1 per cent year on year to €1.02bn, while its French business grew sales by 19.3 per cent to €312.7m.
However, Computacenter's UK revenues dropped by 7.8 per cent.
Comutacenter said that many of its clients in the automotive, mechanical engineering, chemical and pharmaceutical industries have been hit by an economic downturn, which is affecting their spend on IT.
The Technology Sourcing business in Germany grew by 3.9 per cent to €706.2m, while Services grew 4.5 per cent to €318.2m.
Computacenter said it is "not satisfied" with its operating margins from managed services and is "systematically" looking to optimise this area of the business.
Operating expenses in Germany were high for the first six months of the year, due to one-off expenses related to Computacenter opening a new Integration Centre in Kerpen to the tune of €1m.
Adjusted operating profits were €37.6m in Germany, up 2.7 per cent annually.
Computacenter put its strong growth in France down to renewing its salesforce and bringing in fresh talent to the business, which brought in new customers in the private sector and success on public sector frameworks.
Technology Sourcing grew revenues by 22.7 per cent to €254.4m, or 21.1 per cent in contant currency.
Computacenter claims its largest customers were spending heavily on IT during the six months, while also balancing its product mix more towards datacentreand network products.
Services meanwhile grew by 6.4 per cent to €58.3m, or 4.8 per cent in constant currency. Computacenter claims it has won serveral managed services contracts with some large accounts, including two new wins in the banking sector so far this year.
Rest of Europe
Compuacenter's International business includes revenues from Switzerland, Belgium, Netherlands as well as offshore Global Services Desk operations Spain, Malaysia, India, South Africa, Hungary, Poland, China and Mexico.
This business segment saw revenues surge by 144.8 per cent to £92.3m, driven by acquisitions in Switzerland, for PathWorks, and the Netherlands for Misco Netherlands.
US revenues hit $491.4m in the first six months of the year compated with just $18.4m in 2018. The acquired FusionStorm business has been combined with Computacenter's existing business in the US.
Technology Sourcing was strong, but services revenues came in flat for the first six months.
Adjusted gross profit was $40.6m, which fell short of expectations as Computacenter's professional services business faces challenges.
The reseller had already revealed that it was disappointed with the performance of its US business, which includes the acquired FusionStorm business.
Computacenter said it achieved "modest growth" in its UK Technology Sourcing division if two low-margin deals from H1 2018 are discounted, but professional services and managed services sales declined.
Technology Sourcing was the shining light for the business overall, with revenue climbing 27.7 per cent to £1.8bn. Services sales grew 3.6 per cent to £595.7m.
CEO Mike Norris said: "The board expects that the full-year 2019 profit growth, in monetary value, will be the best in the company's history. This performance will be predominantly achieved without the aid of acquisitions; however, we expect to see a more significant contribution from our acquired business in the USA during the second half.
"Looking further ahead will always be challenging but the momentum in the industry remains positive as customers continue to invest in technology to digitalise their business.
"While Computacenter will continue to remain predominantly an organic growth company, which has served us so well for many years, this has been enhanced by our acquisitions over the last 12 months which gives us additional growth drivers.
"While we are fully aware of macroeconomic challenges and take nothing for granted, we remain as positive about the future as we have ever been."
Computacenter said that UK professional services revenue declined as a result of more longer-term consulting programmes and fewer large-scale device deployment projects.
Computacenter's share price rose by as much as 4.3 per cent this morning.
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