| 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 | |
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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.
Despite the pressures | |
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| | 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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| | was the best performing
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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