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Detica enjoys another year of strong organic growth
 
  
   
 
 
 
 
 grown for more than 10
consecutive years, with
revenues having grown by
an average of 31% per
annum over the last five
financial years.
   While National
Security and TMT stand
out as exceptional
growth sectors, Public
Sector and Financial
Services have also both
delivered healthy levels
of growth.
   Detica enjoyed
particularly strong
demand from UK National
Security clients, with
revenues up 51% to
£57.5m, while other
public sector revenues
grew 42% to £10.9m.
   In the public sector,
Detica has strong
relationships in place
with clients such as the
Home Office, the
Department for Transport
 
 and Royal Mail Group.
This year, Capgemini
also became a client and
Detica is now providing
additional services to
HMRC through its Aspire
contract. In addition,
the company has won a
prime contractor
position on the Office
of Government Commerce’s
Catalist
cross-government
procurement catalogue.
   Detica’s UK
Commercial business
reported a 34% increase
in revenues to £32.8m,
with TMT being the
strongest performer,
delivering 110% growth.
   The US business made
“good progress” during
the year, having
achieved regulatory
approval to contract
directly with the US
government and winning
 
 its first four
contracts. Revenues from
US National Security
clients were up 27% to
£6m. Chief executive Tom
Black said the business
enters the new financial
year with “good
momentum”.
   The company's most
recent venture is
StreamShield, a system
that filters not only
spam e-mails and
unwanted web pages, but
can also prevent viruses
before they attack a
user’s servers or
desktop computers.
   Black has outlined
plans to attract
external investment for
the next stage of
StreamShield’s
development. Revenue so
far has been
disappointing while
start-up losses are in
 
 line with expectations,
at around £4m.
   Detica said the
acquisitions completed
in the year are all
performing well. During
the year Detica spent
£10.3m to acquire a
consultancy and systems
integrator focusing on
the CRM market, a small
products business in the
National Security market
and a consultancy and
systems integrator
focusing on the capital
markets sector.
   Looking to the
future, Black says
Detica is considering
further acquisitions,
both in the UK and the
US, as an “effective way
of accelerating
growth”.
  
  
 
 Detica’s revenues for
the year ended 31 March
2006 increased by 45% to
£101.5m (2005: £70.2m)
driven by both organic
growth and the impact of
in-year acquisitions. On
an organic basis,
revenues grew by 38% to
£96.7m.
   Operating profit rose
33% to £10.7m, and
profit before tax was up
30% to £11.4m. Diluted
EPS, formerly 28.1p, is
now 42.7p. The company
also announced a four
for one bonus share
issue and a 27% hike in
the dividend to eight
pence.
   Revenues and profits
for the company have now
 
 
A.T. Kearney to set up MENA regional base in Dubai
 
 A.T. Kearney is to
establish a regional
base at the Dubai
International Financial
Centre (DIFC) to serve
its growing number of
local clients and
support the continued
diversification and
growth of the UAE
economy.
   “Our client base in
the MENA region has
grown exponentially over
the past five years and
requires not only
international experts
from our mature
operations in Europe,
the Americas and Asia,
but also the close
physical proximity of a
local office. The DIFC
provides us with a
world-class location
 
 from which to grow
throughout the region,”
said Dr. Dirk Buchta,
managing director of AT
Kearney in the UAE.
   A.T. Kearney believes
that UAE’s GDP can
increase by 60% by 2010.
This phenomenal growth
will come through
continued economic
diversification based on
three key drivers:
direct investment,
internationalisation and
development of new
industries.
   Direct investment is
necessary to evolve
beyond the free zone
concept and begin
expanding into key
industries. TECOM
Investments, the
investment arm of Dubai
 
 Internet City, and Dubai
Investments Group, Dubai
Holdings’ private equity
arm, recently developed
its foreign interests by
acquiring a 35% stake in
Tunisia Telecom for
US$2.25bn and a 60%
stake in Maltacom for
US$280m.
   The UAE has proved
its ability to build and
promote national
champions, such as
Emirates Airlines and
its tourism industry.
Continued development of
local companies through
acquisition, as with
Dubai Ports and its
integration of CSX and
P&O, will help grow
existing domestic
companies.
   The UAE Government is
 
 also investing heavily
in new industries to
increase participation
across the value chain.
This will lead to the
creation of innovative
industry clusters, such
as the aerospace
conglomerate Dubai
Aerospace Enterprise
(DAE).
   Dr. Omar Bin
Sulaiman, governor of
the DIFC, says that A.T.
Kearney will be able to
take advantage of
growing opportunities
throughout the region
from its base at the
DIFC.
   “A.T. Kearney
recognises Dubai’s
potential and has
identified a growing
need for expert
 
 management consulting
services. The continued
expansion and
diversification of
Dubai’s economy provides
a unique opportunity for
businesses such as A.T.
Kearney to establish
operations locally and
throughout the region,”
he said.
   A.T. Kearney recently
supported the
feasibility study and
launch of Dubai
Aerospace Enterprises.
It is working with a
number of other
undisclosed clients on
projects that will
further the economic
growth in the UAE.
  
  
 
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