Feeds

Y2K bug meets match in service sector

Two services giants make upbeat statements regarding date change slow down

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Bullish trading statements from top UK services houses Sema and CMG over the last two days saw both companies say they would breeze through the year 2000 with barely a financial blip. The news -- coupled with strong results from both firms -- raised optimism in the city that the impact of the millennium bug spending freeze would have a limited impact on the supplier market. Shares prices across the IT services sector rose, where a heavy sell-off leading to a series of sudden mergers was feared. Declaring Sema's half yearly results yesterday, chief executive Pierre Bonelli said: "We are confident we will not suffer any expected downturn due to Y2K uncertainties." CMG told the same story only the day before at its half year results. Chairman Cor Stutterheim, told a briefing: "We don't expect to be particularly affected. Impacts will be very slight if at all." The smaller CMG posted excellent results with turnover up 50 per cent to £290.5 million and gross profit up 51 per cent to £36.8 million. Sema's ongoing turnover was up a quarter to £668.5 million with profit up 35 per cent to £38.5 million. The figures left analysts much more optimistic -- about the larger suppliers at least. Ian Spence, senior analyst at WestLB Panmure, said: "Crisis what crisis?" but added: "It's proving much harder for smaller firms; the big boys are eating their lunch." George O'Connor, an analyst at Granville, added: "The fourth quarter will still be difficult. But it will be brief and not serious." ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.