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LogicaCMG reports full year 2003 results

  • 04 March, 2004 12:14

<p>LogicaCMG reports full year 2003 results</p>
<p>4 March 2004</p>
<p>- Merger successfully completed
- Results at top end of expectations
- Second half margins increased as merger cost savings came through
- Wireless Networks returned to profit in the second half
- Merger cost-savings delivered
- Outsourcing up to 20% of revenues
- Confident we are well-positioned for successful 2004</p>
<p>Dr Martin Read, LogicaCMG group chief executive, said: “Our first year as a merged company exceeded our original expectations. Today, LogicaCMG combines the attributes for which both pre-merger companies were highly regarded; deep technical expertise, in-depth industry knowledge, highly proficient people and outstanding programme and delivery skills. Our increased scale, broader range of offerings and improved international presence has been reflected in a strong book-to-bill ratio for the year and an improving sales pipeline.</p>
<p>“Adjusted group margins increased from 5.2% in the first half to 7.8% in the second half of 2003 as Wireless Networks returned to profit and merger cost savings came through. IT Services margins improved to 8.1% in the second half.</p>
<p>“We saw signs of improvement in all our major IT Services markets except Germany where revenues continued to decline. Overall, the market environment is gradually improving, tempered by continuing constraints on capital expenditure and with outsourcing offering the best growth opportunity.</p>
<p>“The Wireless Networks business returned to revenue growth and profitability in the second half of 2003. We secured a significant number of MMS contracts and increased our market share, a trend that has continued into 2004, as evidenced by recent contract announcements.</p>
<p>“We enter 2004 confident that we are strongly positioned to further leverage the benefits of the merger and take market share in both IT services and wireless telecoms, whilst improving our financial performance.”</p>
<p>Colin Holgate, chief executive officer of LogicaCMG in Australia said: “Today’s results announcement confirms LogicaCMG’s position as a company committed to delivering complex projects across many specialised vertical sectors on time and budget.”</p>
<p>“Over the past year, LogicaCMG in Australia has worked on successful projects across government, energy and utilities, and telecommunications. We have delivered IT solutions for some of Australia’s most prominent companies including Optus, EnergyAustralia, Woodside Energy, Hydro Tasmania, IPART (Independent Pricing and Regulatory Tribunal of NSW), South East Water, Carlton &amp; United Breweries and Coles Myer,” Mr Holgate said.</p>
<p>“A notable achievement of the Australian business is the significant number of existing contracts that have been renewed over the past year. This really highlights the strength of both LogicaCMG’s customer relationships and services offering.” Mr Holgate concluded.</p>
<p>Financial Headlines
For the 12 months ended 31 December 2003, LogicaCMG plc financial results (adjusted for goodwill, restructuring charges and other exceptional items where indicated) were as follows^:
· Revenue was £1,706.6 million, (6.4% lower than 2002): strong order intake with a book to bill ratio of 1.12:1
· Adjusted operating profit# was £111.2 million, (5.8% lower than 2002)
· Statutory operating loss was £19.8m (2002: loss of £685.1 million)
· Group adjusted operating margin# was 6.5% (6.5% in 2002); 7.8% in second half
- IT services adjusted operating margin at 7.2% (7.7% in 2002); 8.1% in second half
- Wireless Networks adjusted operating margin at 3.1% (0.9% in 2002); 6.5% in second half
· Adjusted profit before tax# was £99.5 million, (10.8% lower than 2002)
· Statutory loss before tax was £33.0 million (2002: loss of £733.9 million)
· Basic earnings per share was (6.3)p compared to (102.9)p in 2002
· Adjusted basic earnings per share (EPS) 9.2p down 14.0% compared with 2002
· Adjusted underlying operating cash flow before project financing was £119.0 million, a cash conversion of 107%
· Net debt, at 31 December 2003, stood at £177.4 million (£107.1 million at 31 December 2002)
· Final dividend of 3.4p, making a total for the year of 5.7p (2002 final: 3.0p)</p>
<p>^ The 2002 unaudited comparatives are for the 12 months ended 31 December 2002, except where stated otherwise.</p>
<p># These results include the impact of accounting standard changes (FRS5 Application Note G) effective from December 2003 that were communicated to the markets at our business update on 11 December 2003. The relevant comparatives have been restated accordingly. Excluding those changes, the results were as follows:</p>
<p>Adjusted operating profit £114.9 million (2002: £121.7 million)
Adjusted operating margin 6.7% (2002: 6.7%)
Adjusted profit before tax £100.5 million (2002: £113.6 million)</p>
<p>About LogicaCMG</p>
<p>LogicaCMG is a major international force in IT services and wireless telecoms. It provides management and IT consultancy, systems integration and outsourcing services to clients across diverse markets including public sector, telecoms, financial services, energy and utilities, industry, distribution and transport. Formed in December 2002, through the merger of Logica and CMG, the company employs around 20,000 staff in offices across 34 countries and has nearly 40 years of experience in IT services. Headquartered in Europe, LogicaCMG is listed on both the London and Amsterdam stock exchanges (LSE: LOG; Euronext: LOG). More information is available from
Press Contacts</p>
<p>Bianka Demets Anthony Lowe
Marketing Communications Manager Account Director
E: E:
T: 02 9927 3015 T: 02 9955 1866</p>
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