Paris: Europe's biggest IT consultancy, Capgemini, has delivered solid 2014 results after a strong fourth quarter.
- Revenues of €10,573 million, up 3.4% like-for-like on last year and 5.5% in Q4
- Bookings up 13% year-on-year and 14% in Q4
- Operating margin rate of 9.2%, up 70 basis points on 2013
- Profit for the year attributable to shareholders of €580 million, up 31%
- Organic free cash flow of €668 million
Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group, commented: "Our performance in 2014 exceeded the objectives we set ourselves at the beginning of the year thanks to the impact of our two improvement levers: innovation and industrialization.
"2014 saw a solid return to organic growth (+3.4%), accelerating at the end of the year, a significant improvement in operating margin and strong free cash flow generation. This was achieved in spite of a difficult economic context in Continental Europe. We benefited in particular from our excellent performance in North America where we enjoyed 8.5% like-for-like growth and achieved the highest profitability in the Group (12.6%).
"In addition, revenues generated by our most innovative offerings surged 25% in 2014. In order to better meet our clients' expectations, we offer services not only in Cloud Computing, Big Data and Digital, but also in Cybersecurity with the recent launch of our new global service line.
"Bookings grew 13% compared to 2013 supported by a large number of major contracts (over €50 million) with leading global firms.
"The number of offshore employees continued to increase, growing nearly 20% in India, and represented 47% of the Group headcount at the end of December.
"In 2015, we will place more than ever innovation at the heart of the Group's priorities, through the evolution of our offerings, our talents and by acquiring reference clients."
The Group generated revenues of €10,573 million in 2014, up 3.4% like-for-like compared with 2013 (i.e. at constant Group structure and exchange rates). Adjusted for currency impacts and the acquisition of the French company, Euriware, revenues rose 4.8% on 2013 published figures. Organic growth reached 5.5% in Q4.
Consulting services (4.2% of Group revenues) contracted by 3.4% on a like-for-like basis, with a smaller fall in the fourth quarter. This was mainly due to activity slowdown in North America, the United Kingdom and Benelux, while France, Germany and the Rest of Europe were enjoying activity growth. The 2014 operating margin rate is 8.2% compared with 7.8% in 2013.
The Group forecasts revenue growth, of 3% to 5% in 2015 at current rates and an operating margin rate between 9.5% and 9.8%.