LogicaCMG Reports H1

LogicaCMG reports earnings per share up 63% to 3.1p from 1.9p for the first half of the year

August 31, 2005

3 Min Read

LONDON -- Note: This is the first set of results to be issued under IFRS and comparatives have been restated accordingly

  • First half performance in line with expectations, featuring strong order intake and good organic growth

  • Basic earnings per share up 63% to 3.1p from 1.9p

  • Adjusted earnings per share on a like-for-like basis grew 33% to 2.8p from 2.1p

  • Order book up 50%, driven by outsourcing, with closing book-to-bill ratio of 1.59:1

  • IT Services revenues (87% of total) grew by 11.5% (8.6% organically)

  • Wireless Networks revenues (13% of Group total) increased 7% and the division achieved a major turnaround in profitability compared to the first half of last year

  • Edinfor transaction completed in the first half – good early progress

  • Revenue growth for the Group for the full year is expected to be circa 5% on an organic basis and circa 10% following the consolidation of Edinfor

  • First half dividend raised to 2.4p from 2.3p

Commenting on the results, Dr Martin Read, Chief Executive, said: “The long term benefits of the Logica - CMG merger in terms of scale and market positioning are now very much in evidence. Earnings grew 33% in the first half and order intake was very strong, up 50% over the first half of last year. Revenues were up some 11%, driven by our largest territories, the UK and the Netherlands. Outsourcing remains a key growth area, representing 24% of group revenues, and was a major factor in first half order bookings.

“Our Wireless Networks business has returned to revenue growth and had another profitable half. We expect to improve the performance further in the seasonally stronger second half. While we continue to dominate the traditional messaging market, we are also focusing on new opportunities as mobile and fixed operators converge towards new broadband business models.

“Having got off to a good start, performance for the year is expected to show a significant improvement over 2004 and positions LogicaCMG well as the IT industry develops.”

Financial Headlines

For the six months ended 30 June 2005, LogicaCMG plc financial results under IFRS were as follows:

  • Basic earnings per share was 3.1p compared to 1.9p in the first half of 2004

  • Adjusted basic earnings per share* of 2.8p compared with 2.1p in H1 2004

  • Book to bill ratio 1.59:1 (H1 2004: 1.16:1)

  • Revenue was £891.7 million (10.9% higher than H1 2004)

  • Operating profit was £40.8 million (23.3% higher than H1 2004)

  • Group operating margin was 4.6% (up from 4.1% in H1 2004)

    • IT services operating margin at 5.1% (down from 5.7% in H1 2004)

    • Wireless Networks operating margin of 1.0% (compared to negative (5.8)% in H1 2004)

    • Profit before tax was £37.7 million (H1 2004: £25.8 million)

  • Cash generated from operations was £12.5 million

    • Net cash inflow from trading operations was £20.2 million, a cash conversion of 50%

  • Net debt, at 30 June 2005, stood at £303.0 million (£219.2 million at 1 January 2005)

  • Interim dividend of 2.4p (H1 2004: 2.3p)

LogicaCMG plc

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like