There has been no shortage of profit warnings in the recession, but rarely recently has a company had to explain away the fact that it cannot cope with soaring demand.
Shares in Computacenter crashed 12 per cent to a new low for the year yesterday after the company warned that the rapid growth of its IT services businesses in Germany and Spain would force it to hire an extra 700 staff.
The company, which already expected to take on 500 new workers in the second half, said that it would have to absorb a £7 million charge to cover the recruitment costs. That wiped 10 per cent off market expectations for profits this year.
It just goes to show that over trading can be just as dangerous as under trading in today’s financial climate, especially if your working capital is not sufficient.
via IT firm caught short by ‘too much’ demand for its services | The Times.
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