LogicaCMG racks up revs, profit gains
Told you the merger was a good idea
LogicaCMG claims its just-released preliminary results prove the merger which created the firm is showing long term benefits – almost three years down the line.
The services group's revenues for the six months ending 30 June were up 10.9 per cent on the year to £891.7m. This generated operating profit up 23.3 per cent to £40.8m and pre-tax profits of £37.7m, up 46 per cent.
IT services accounted for 87 per cent of total revenues at LogicaCMG, and were up 8.6 per cent on the year. Wireless services were up 7 per cent, and achieved “a major turnaround in profitability” compared to the previous year.
LogicaCMG chief executive Dr Martin Read said the long term benefits of the merger of Logica and CMG – wrapped up in late 2002 – are “now very much in evidence.”
The firm said it still expects organic revenue growth of 5 per cent for the year. Including the Edinfor acquisition earlier this year, growth will be 10 per cent.®