PracticeConsultingCap Gemini E&Y reports 18% growth

Cap Gemini E&Y reports 18% growth

The French consulting and information group has announced strong growth in the first six months of the year, with consolidated revenues climbing to Euro 2.61bn.

This compared with revenues of Euro 2.20bn for the same period in 1999, and included revenues generated from E&Y’s consulting business from 23 May to 30 June 2000.

Net profit, exclusive of minority interests, grew to Euro 276m, a increase of 76% on the year, and included the positive tax impact of Euro 140m relating to acquisition of E&Y consulting business. Over the next 15 years, the group is expected to benefit from Euro 1.6bn in tax savings from goodwill amortisation.

Geoff Unwin chief executive of Cap Gemini E&Y said the group had operated in a strange and volatile market, but the ‘integration of E&Y’s business had been smoother than expected’.

The predictions for the rest of the year remain positive, with revenues expected to reach Euro 8.45bn, or a 10% increase on the year, with a similar percentage increase expected on its operating income margin.

In May, E&Y made headlines by becoming the first Big Five firm to sell off its consulting arm to French IT group Cap Gemini. E&Y claimed the separation allowed it to focus on its core business namely its assurance, advisory business services, corporate finance, tax and law practices.

Links

E&Y sell-off gets green light.

Cap Gemini E&Y Group online

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