Logica results show improving trends
Headlines 1
- Orders up 2% to £2,142 million with continued strength in outsourcing orders, driving Group book to bill of 114%
- Revenue down 1%
- Outsourcing Services revenue up 9%
- return to growth in Financial Services and IDT
- improving trends through the first half in France, Northern & Central Europe and Sweden
- second quarter revenue unchanged on last year, underpinning confidence in return to modest growth in the second half
- Adjusted operating margin in line with last year at 6.7%
- Operating profit up significantly by £54 million due to reduction in amortisation and no exceptional charges
- Expected strong second half cash conversion to lead to net debt/EBITDA comfortably below 1.0x at year end
- Interim dividend to rise to 1.9p, up from 1.0p in 2009, with the dividend payout ratio steadily increasing to at least 40% by 2012
For the six months ended 30 June 2010, results were as follows:
| CONTINUING OPERATIONS |
H1 2010 ACTUAL |
H1 2009 ACTUAL |
GROWTH/(DECLINE) |
|
|
|
ACTUAL |
PRO FORMA |
| Book to Bill |
114% |
111% |
|
|
| Revenue |
£1,871m |
£1,876m |
- |
(1%) |
| Adjusted operating profit |
£125m |
£127m |
(2%) |
(2%) |
| Adjusted operating margin |
6.7% |
6.8% |
(0.1pt) |
|
| Basic adjusted EPS |
5.7p |
5.5p |
+0.2p |
|
| Dividend per share |
1.9p |
1.0p |
+0.9p |
|
|
|
|
|
|
| Statutory results: |
|
|
|
|
| Operating profit |
£93m |
£39m |
+£54m |
|
| Profit before tax |
£86m |
£24m |
+£62m |
|
| Basic EPS |
4.3p |
1.3p |
+3.0p |
|
For definition of pro forma, adjusted operating profit, adjusted operating margin and basic adjusted EPS, please see note on page 18 attached report.
Commenting on today’s announcement, Andy Green, CEO, said:
“This is a good set of results in challenging economic conditions. The balance of our business across geographies and sectors helped us to meet expectations and outperform the market.
“The guidance we set out in February remains unchanged. Gradually improving market trends underpin our view that revenues and adjusted operating margin for the full year will be at a similar level to 2009. We are pleased to be increasing returns to shareholders, with the interim dividend rising to 1.9p.”
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For further information, please contact:
Logica Investor relations: Karen Keyes/Jose Cano
+44 (0) 20 7446 1338/+44 (0) 7801 723682
Logica Media relations: Carolyn Esser/Louise Fisk
+44 (0) 7841 602391/+44 (0) 7798 857770
Brunswick: Sarah West/Giles Croot
+44 (0) 20 7404 5959
1 All headline numbers relate to pro forma numbers as defined on page 18.
