Fujitsu Services has reported record results for the financial year ending 31 March, with an order book worth £6.6bn.
The IT services firm is a major supplier to the UK public sector. It is lead contractor for the southern region of the NHS’s £12.4bn IT programme and a key IT provider to HM Revenue and Customs, where its £930m outsourcing contract has been absorbed into the Aspire contract held by Capgemini.
It also holds contracts with the Home Office, Ministry of Defence and other government departments, although in March it lost its contract to provide the much-delayed Libra case management system for magistrates courts, which has now been split between Atos Origin and LogicaCMG..
The firm reported pre-tax profits up 11.5% to £172, with revenues up 7.5% to £2.47bn. Fujitsu Services’ total equity has increased by 83% over the financial year, the company said.
The buoyant results continue an upswing for the company, which has seen difficult times in the past. In March, parent company Fujitsu – based in Japan – posted an unexpected forecast of £1.2bn losses, following devaluation of stock – a move it attributed to historic losses made by the UK IT services arm.
Company president Hiroaki Kurokawa told staff that losses made in the past by Fujitsu Services could not be recouped within five years. The historic losses had left the net value of the UK services subsidiary significantly lower than the book value of Fujitsu’s initial investment.
The company, formerly known as ICL, was bought by Fujitsu in 1990 and underwent substantial structural reforms from 2000 onwards. It is now “capable of delivering steadily increasing earnings”, Kurokawa said in March.
Over the past financial year, Fujitsu Services’ order book has been boosted by a £41m contract to provide helpdesk services for the NHS nationally, a £4.2m deal to roll out electronic point-of-sale (Epos) systems to 500 United Co-op stores and a datacentre management and desktop support contract with Lloyds TSB.
Fujitsu Services chief executive David Courtley said: “The last year has been a great success for the company. We’ve progressed our European expansion ambitions and we’ve driven significant organic growth through our major clients such as HM government and the Financial Services Authority in the UK, [airline] KLM in Holland and [health service] Servicio Andaluz de Salud in Spain.”
“All in all our order book has increased to £6.6 billion – a figure that will support our 2007/08 plans and ensures we can continue on our current strong revenue growth path.”