LogicaCMG profits up 30%

IT services firm LogicaCMG has posted a 30% increase in operating profits in its full year results for 2006.

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IT services firm LogicaCMG has posted a 30% increase in operating profits in its full year results for 2006.

The company saw revenues increase by 45.3% on 2005 figures, to £2.7bn, boosted by the acquisition of French IT services firm Unilog and Scandinavian outsourcer WM-data. Operating profits were up 29.7% to £155.8m in 2006.

Earlier this month, the company announced the sale of its telecoms products division for £265m in a move aimed at focusing the company more on its core IT and business services work.

IT services accounted for more than 90% of revenues in 2006, the results show.

In a statement issued with the results, the company said it had seen average market growth in IT services of 4% to 6%, with financial services the strongest growing sector.

In the UK, the public sector accounted for nearly half of IT services revenues.

Logica was able to secure price increases for its IT services work “particularly in areas of skills shortages and in the fastest-growing markets”, the statement said.

Chief executive Martin Read said 2006 had been an important year in the strategic development of the business. “We enter 2007 as a substantial European company with an extensive international network focused on IT and business services. We will concentrate on delivering the benefits of integration and additional cross-selling, as well as leveraging our greater scale.”


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