| Capgemini returns to profit on back of outsourcing growth |
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| | business. Led by the
three mega deals signed
with HM's Revenue and
Customs, TXU and
Schneider Electric,
Capgemini's outsourcing
business posted growth
of 32.9% with a
corresponding revenue
figure of €2.608bn.
The company said it
had improved its
utilization rates and
sales efficiency in 2005
and predicted rising
sales and profit margins
in 2006.
Group revenues were
up by 11.5%, 15% at
constant rates, on 2004 | |
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| | results, to €6.954bn.
Most importantly,
perhaps, the company's
operation margin is back
in the black at 3.2%,
compared with negative
0.4% in 2004.
The company's net
cash position stands at
€904m, up from €285m in
2004. It is to spend
some of that cash on
purchases, dividends and
restructuring its
pension regime.
Capgemini plans to pay a
dividend of 50 cents a
share, the first since a
60 cent dividend for
2001.
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Bookings, including
mega-deals, reached
€6.75bn in 2005,
significantly lower than
2004's €10.26bn, but,
excluding these deals,
bookings were stable -
€6.25bn in 2005 compared
to €6.2bn in 2004.
Capgemini said it
expects a “significant”
jump in profitability
this year. It expects to
lift sales by about 7%
while operating margin
should reach 5%.
The company has set
itself three priorities
for 2006: to consolidate
its leadership position | |
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| | in Europe thanks in
particular to the
repositioning of its
offering towards higher
value-added services; to
consolidate
profitability in the
North American business;
and to improve its
profitability margin in
outsourcing.
It is also looking at
some "focused"
takeovers, including a
"modest" acquisition in
India.
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| | Capgemini, Europe's
largest IT consultancy,
has swung back into the
black, reporting net
income of €141m for
2005. The company made a
net loss of €534m in
2004.
Capgemini attributed
much of its return to
profit to solid growth
in its outsourcing | |
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