PracticeConsultingPublic sector props up LogicaCMG

Public sector props up LogicaCMG

LogicaCMG has suffered a sharp dip in profits in its interim figures, although it did receive a boost with good performance by it in the UK public sector.

Revenues were £809.2m, a 5.1% fall compared to the same period last year, due to a ‘higher proportion than expected’ number of orders with extended delivery schedules.

The company’s performance in the UK was strong, particularly in government and outsourcing sectors, while its overall IT services revenues were down due to a decline in its Germany operation.

The UK operation was worth £336.1m in revenues, a 4.6% growth on H1 2003. Profit before tax stood at £39.2m compared with £60.6m for the previous six months and £38.9m for the same period last year.

Pricing has remained ‘stable’ in its key territories, it stated, and the pace of recovery has remained gradual and the competitive environment ‘tough’.

Revenue decline in the financial service’s sector has continued to slow, with ‘issues of regulation and compliance’ beginning to weigh heavily and ‘thereby generate IT investment’. This has led to LogicaCMG’s procurement moving from local deals up to global contracts, allowing the firm to bid for larger contracts, ‘albeit with longer lead times’.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

10m Kevin Reed, Writer