Customers spending on IT again

The company also revealed that its customers had resumed spending on IT infrastructure.

The company, which counts Bradford-based Morrisons supermarkets and Lloyds Banking Group as customers, said it was also benefiting from cuts in spending made in 2009, when businesses reduced the number of IT upgrades in response to the economic downturn.

Chief executive Mike Norris said. "Customers are refreshing, upgrading, improving and investing in their IT infrastructures and we are well placed to meet these needs.

"In 2010, we have seen strong product revenue recovery and we anticipate that product revenue will grow steadily in 2011, subject to the overall economic environment.

"As we expected at the half year, services growth increased materially in the second half, whereas product revenue growth remained constant throughout the year, with the decline of UK Government expenditure compensated by accelerated growth rates in France and Germany.

"Computacenter France has had its most successful year for some time and is likely to report a small operating profit, for the year as a whole."

The group said revenue for IT services grew six per cent, while product sales grew by 13 per cent excluding the disposal of its trade distribution arm at the end of 2009.

Analysts expect the group to post a 29 per cent rise in pre-tax profit to 62.6m.