| Logica delivers annual results in line with guidance |
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| | Logica reported a
revenue increase of 3%
to £3.7 billion (2008
actual: £3.6 billion)
for the year ended 31
December 2009,
representing a pro forma
decline of 3% in line
with the company’s
guidance.
The company said
strong growth in the UK
was offset by declines
in other geographies,
namely the Benelux
region, which remained
Logica’s most difficult
market. In the Nordics,
strong growth in Finland
was offset by the
weakness in Sweden. The
second half in France
saw a similar year on
year decline to the
first half, while the
International business
was stable on last year
in the second half. Both
France and the
International business
showed modest growth in | |
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| | the fourth quarter.
Adjusted operating
profit was £272 million
(2008 actual: £267
million), representing
an adjusted operating
margin of 7.4% (2008
actual: 7.5%). Logica
said the decrease in
operating profit to £66
million (2008 actual:
£86 million) was the
result of higher
exceptional items,
including charges
related to the planned
disposal of a business
in the Benelux region.
The company said that it
anticipates no further
restructuring costs in
2010.
Logica said growth in
Energy and Utilities,
Public Sector and
Telecoms and Media was
offset by the decline in
Financial Services and
IDT. Telecoms and Media
was the best performing | |
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| | 106%).
Logica said that
while clients’
discretionary spend
continues to be
constrained, the company
has seen some
stabilisation in the
volume of opportunities
and pricing levels in
consulting and
professional services in
the second half of 2009.
Commenting further on
the state of the market,
Logica said it continues
to see an increase of
outsourcing
opportunities in its
commercial sectors. In
the Public Sector, it
continues to see a good
pipeline of
opportunities across
Europe, despite the fact
that it expects UK
public sector
decision-making to slow
in 2010.
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Despite the pressures
on European governments
to reduce spending,
there continue to be
opportunities to deliver
cost reductions through
outsourcing over the
medium term, the company
said. The outsourcing
market remains
competitive, with
margins mainly driven by
execution excellence, it
added.
Looking ahead, Logica
said its order backlog
will drive continued
growth in Outsourcing
throughout the year and
the company expects a
gradual stabilisation in
consulting and
professional services.
Logica expects
revenue to decline
modestly in the first
half, with full year
revenue expected to be
at a similar level to
2009, on a constant | |
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| | sector, with
exceptionally strong
growth in the second
half in the Nordics and
the UK.
The Financial
Services sector remained
the weakest sector,
although there were
signs of stabilisation
in the second half.
Public Sector and Energy
and Utilities benefited
from a strong first
half, with the second
half being broadly
stable against a strong
2008 comparative.
Orders for the year
were 4% ahead of 2008 on
a pro forma basis,
resulting in a book to
bill of 114% (2008: | |
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