Logica reports a strong finish to 2010
- Full year revenue up 1% pro forma at £3,697 million, with fourth quarter up 4%
- Outsourcing Services revenue up 10% in 2010, while the decline in Consulting and Professional Services revenue slowed to 5%
- Second half growth driven by a sharp recovery in Financial Services
- Adjusted operating margin in line with last year at 7.4% despite a challenging market in the Benelux
- Threefold increase in operating profit to £211 million due to reduction in amortisation and exceptional charges
- Net debt/EBITDA at 0.8x at year end, with net debt at £280 million (2009: £291 million)
- Full year dividend recommended to be 4.2p, up 27% over 2009
- Well positioned for growth and modest margin improvement as market recovers in 2011
- Consulting and Professional Services book to bill at 105% (2009: 108%)
- Major wins worth more than £475 million in the first two months of 2011, coupled with 2010 Outsourcing book to bill of 110%, underpin strong Outsourcing backlog
- Continued benefit of overhead reduction
For the twelve months ended 31 December 2010, results were as follows:
| Continuing Operations |
FY 2010 Actual |
FY 2009 actual |
FY 2009 pro forma |
Growth/(Decline) |
| |
|
|
|
Actual |
Pro Forma |
| Book to bill |
107% |
114% |
|
|
|
| Revenue |
£3,697m |
£3,702m |
£3,668m |
0% |
+1% |
| Adjusted operating profit |
£272m |
£272m |
£272m |
0% |
0% |
| Adjusted operating margin |
7.4% |
7.4% |
7.4% |
0% |
|
| Basic adjusted EPS |
12.3p |
12.5p |
|
(2%) |
|
| Dividend per share |
4.2p |
3.3p |
|
+27% |
|
| Statutory results: |
|
|
|
|
|
| Operating profit |
£211m |
£66m |
|
+£145m |
|
| Profit before tax |
£193m |
£43m |
|
+£150m |
|
| Basic EPS |
9.6p |
2.5p |
|
+7.1p |
|
For definition of pro forma, adjusted operating profit, adjusted operating margin and basic adjusted EPS, please see note on page 20 of the attached PDF document.
Commenting on today’s announcement, Andy Green, CEO, said:
“We finished 2010 in a strong position. The client and people focused strategy that we established at Logica three years ago has helped us to weather the downturn well. The well balanced nature of our business across geographies and industry sectors continues to bring us benefits, with a particularly strong performance in territories like France and the Nordics and a sharp recovery in Financial Services.
I am delighted with the significant contract wins of recent weeks with the Serious Organised Crime Agency (SOCA) in the UK, an important client in the Netherlands and Shell for commercial fleet fuel cards. These wins demonstrate our ability to compete successfully on some of the largest deals awarded so far in 2011.
Our good performance and strong order backlog allow us to look to the future with confidence. We are well positioned for revenue growth and modest margin improvement as the market recovers through 2011. We continue to invest in ensuring we are competitive and responsive to changing client needs, providing our people with the opportunity to build sustainable careers at Logica and delivering improving returns to our shareholders.”
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:
Tom Buchanan +44 (0) 20 7404 5959
1 All numbers in this release relate to pro forma numbers as defined on page 20 of the attached PDF document.
