Logica delivers actual revenue growth of 17% and pro forma revenue growth ahead of guidance at 5%
For the year ended 31 December 2008, unaudited results were as follows:
| Continuing Operations | 2008 | 2007 Pro Forma | 2007 Actual | Growth | |
| ProForma | Actual | ||||
| Revenue (£m) | 3,588 | 3,412 | 3,073 | 5% | 17% |
| Adjusted operating profit (£m) | 267 | 235 | 208 | 14% | 28% |
| Adjusted operating margin | 7.5% | 6.9% | 6.8% | ||
| Adjusted basic EPS (p) | 12.3 | 10.2 | 21% | ||
| Dividend per share (p) | 3.0 | 5.8 | (48)% | ||
| Statutory Results: | 2008 | 2007 Actual | Growth | ||
| Actual | |||||
| Operating profit (£m) | 86 | 110 | (22)% | ||
| Profit before tax (£m) | 44 | 84 | (48)% | ||
| Basic EPS (p) | 2.7 | 5.4 | (50)% | ||
For definition of pro forma, adjusted operating profit, adjusted operating margin and adjusted basic EPS, see notes on page 19 of the attached PDF document.
Headlines1
- Full year revenue growth ahead of guidance at 5%
- Underpinned by strong growth at 7% in the Nordics and the UK, offsetting slower growth in the Netherlands and Germany
- Public Sector and Energy and Utilities remained robust
- Revenue from outsourcing at 32% of Group total
- Continuing order momentum in the fourth quarter, with full year orders up 11% and group book to bill of 106%
- Adjusted operating profit up 14% to £267 million
- Adjusted operating margin up to 7.5%, in line with guidance
- Strong cash conversion at 148%; net debt of £438 million at 31 December 2008 (£483 million at 31 December 2007) and net debt/EBITDA well within covenants at 1.3x following decisive action on financing in 2008
- 2008 full year dividend of 3.0p, in line with December rebasing of dividend level
- Programme for Growth on track, with good progress made during 2008
- Stronger customer focus delivering results, with improved pipeline and wins at StatoilHydro, Michelin, KPN, Reitan, Elexon, BT and the UK Home Office in 2008
- Nearshore and offshore headcount over 5,000 at year end (from 3,450 in 2007
- 2008 cost savings ahead of plan at £25 million; 2009 cost savings further accelerated to £75 million
- 2010 annualised cost savings at £110 million (previously £80 million), with total Programme for Growth restructuring costs at £145 million (previously £110 million)
Commenting on today’s announcement, Andy Green, CEO, said:
“Logica had a successful 2008, achieving the financial targets we set out to shareholders while strengthening our management capability, implementing our strategy, and transforming the business around our key European customers.
“Our spread of customers and geographies, high penetration of more defensive sectors, and strong financial discipline position us well to weather the economic downturn. We see sound demand for our services, particularly outsourcing, despite the tough market conditions, as our investments position us to contest more, larger opportunities. We remain confident of our ability to outperform the IT services market in 2009 which is forecast to decline modestly.
“Looking further ahead, our close long term relationships with major European customers, deep industry knowledge, and our innovative and flexible culture will provide a robust platform for future growth.”
For further information, please contact:
Logica Investor relations:
Karen Keyes/Frances Gibbons +44 (0) 20 7446 1338/+44 (0) 7801 723682
Logica Media relations:
Carolyn Esser/Anna Brog +44 (0) 7841 602391
Brunswick:
Tom Buchanan +44 (0) 20 7404 5959
1 All headline numbers relate to pro forma numbers as defined on page 19 of the attached PDF document