Shares in ComputerLand UK Plc, an IT services vendor for the SME sector, fell more than 15% on the London stock exchange following the announcement of two pieces of bad news.
Nottingham, UK-based ComputerLand issued a trading update informing investors that as a result of poor product sales in the first quarter of its fiscal year, the company expects annual profits for the year to April 2006 to be below market expectations.
In the year to April 2005, ComputerLand’s managed product supply division was the company’s largest business unit, contributing 73.3% of total revenue. The drop in sales mirrors the recent problems encountered by fellow resellers Morse and Computacenter.
ComputerLand also announced that Gary Barrett, the company’s IT services director, has resigned his position with immediate effect. Barrett joined ComputerLand just over a year ago, having previously worked with Atos Origin and Cap Gemini Ernst and Young. No explanation was given for Barrett’s departure.