London: IT consulting group Logica yesterday reported full year results in line with the profit warning it gave at the end of last year.
In the year to 31 December 2011, adjusted operating profit was down significantly on last year at £114 million including the impact of the £132 million of restructuring and contract charges announced on 14 December 2011. Full year revenue was up 3% to £3.9 billion.
Other highlights include:
- Full year orders up 13% to £4.6 billion, driven by outsourcing orders up 23% to £2.2 billion
- Underlying revenue was up 4% to £3.9 billion.
- Outsourcing revenue up 9%, with second half revenue up 7%
- Consulting and Professional Services revenue flat, with second half revenue down 1%
- Revenue in the commercial sectors was up 7%, offset by a 3% decline in Public Sector
- Fourth quarter weakness seen particularly in the Benelux and Sweden
- Underlying adjusted operating profit at £247 million was in line with December guidance
- Full year cash conversion of 92% resulted in operating cash inflow of £226 million
Andy Green, CEO, said, "2011 was a more difficult year then we had expected. While our order book at £4.6 billion was strong and revenue was up 3%, restructuring and contract charges resulted in a lower adjusted operating profit.
"Building on our successful long-term relationships with clients, we signed significant orders with clients such as Shell and Michelin. We had important wins with new clients such as BAE Systems and the Swedish Pensions Agency.
"The revenue outlook remains uncertain but we are on track in implementing the actions we announced in December. As a result, we expect our Benelux business to return to profit in 2012, our Swedish business to deliver an improved margin and our Outsourcing business to be strongly competitive. Even in tough market conditions, we expect our full year operating margin for 2012 to be above 6.5%."