Logica reports first half revenue up 5% to £2.0 billion
Headlines 1
- Orders up 13%, driving record Outsourcing order backlog up 22% to £2.8 billion
- Revenue up 5% with double digit growth in France and Northern and Central Europe
- Consulting and Professional Services revenue back to growth, up 1% for the first half
- Outsourcing revenue growth remained strong, up 11% in the first half
- UK also back to growth in the second quarter
- Adjusted operating profit down at £113 million, after incurring £20 million of restructuring costs
- Margin improvement in three of our six geographies
- Challenging market resulted in underlying loss in the Benelux in the first half
- First half impact of outsourcing transition work in Sweden expected to lessen in second half
- Cash restructuring costs combined with the working capital impact of strong revenue growth led to operating cash outflow in first half; a normal seasonal pattern with strong second half cash conversion is expected
- Full year revenue growth expected to be at a similar level to the first half and to drive profit growth over last year. Margin improvement now dependent on progress in the Benelux
- Interim dividend up 11% to 2.1p
For the six months ended 30 June 2011, results were as follows:
|
H1 2011 ACTUAL |
H1 2010 ACTUAL |
GROWTH/(DECLINE) |
|
|
|
ACTUAL |
PRO FORMA |
| Orders |
£2,470m |
£2,142m |
+15% |
+13% |
| Revenue |
£1,998m |
£1,871m |
+7% |
+5% |
| Adjusted operating profit |
£113m |
£125m |
(10%) |
(11%) |
| Adjusted operating margin |
5.7% |
6.7% |
(1.0pt) |
|
| Basic adjusted EPS |
5.1p |
5.7p |
(0.6p) |
|
| Dividend per share |
2.1p |
1.9p |
+11% |
|
|
|
|
|
|
| Statutory results: |
|
|
|
|
| Operating profit |
£83m |
£93m |
(11%) |
|
| Operating margin |
4.2% |
5.0% |
(16%) |
|
| Profit before tax |
£75m |
£86m |
(13%) |
|
| Basic EPS |
3.7p |
4.3p |
(0.6p) |
|
1Unless otherwise stated, comparatives in the statement relate to the pro forma numbers. For definition of pro forma, adjusted operating profit, adjusted operating margin and basic adjusted EPS, please see note on page 19 attached report.
Commenting on today’s announcement, Andy Green, CEO, said:
“Logica grew above the market in the first half, with particularly strong gains in Outsourcing, in France, Northern and Central Europe, and in the commercial sectors in the UK. Our order backlog is at record levels. This good topline performance reflects our success in winning some of the most exciting projects across Europe, including our largest ever HR BPO contract with Ahold, the Dutch retailer, and the significant contracts with Shell and the UK’s Serious Organised Crime Agency signed earlier in the year.
Our Public Sector clients continued to implement spending cuts, with a particularly sharp decline in the Netherlands leading to disappointing profitability in the Benelux. We grew revenue and margin in half of our six geographies.
We expect full year revenue growth to be at a similar level to the first half and to drive profit growth over last year. Margin improvement is now dependent on progress in the Benelux.”
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For further information, please contact:
Logica Investor / Media relations: Karen Keyes +44 (0) 7801 723682 /Jose Cano +44 (0) 20 7446 1338
Carolyn Esser +44 (0) 7841 602391
Brunswick: Sarah West/Jonathan Glass
+44 (0) 20 7404 5959
