The Channel logo

News

By | Joe Fay 23rd January 2007 15:20

LogicaCMG cuts, boosts heads

Sub-contractors down, staffers up

LogicaCMG issued a bullish full year trading statement this morning that managed to combine satisfaction over the cutting of the use of contractors with concerns about capacity constraints.

Capping off the year to December 31, 2006, the services group said the market remained positive with "a generally improving price environment". Second half operating cash flow was strong, with full year cash conversion in line with expectations.

It cited the dampening effect of "capacity constraints" on revenue growth in a number of key territories in the third quarter. It said headcount improved steadily in the fourth quarter, and now believes it is better positioned for improved growth in the coming year. LogicaCMG warned about skills shortages last year as well.

At the same time, it said it boosted its IT services margin as it extended the use of its global service delivery operation and reduced the use of sub-contractors. ®

alert Send corrections

Opinion

Walking on water, image via Shutterstock

Chris Mellor

IDC stats reveal who's who in the backup appliance bearpit
Carry on Cleo

Gavin Clarke

Infamy, infamy, Amazon and Microsoft have all got it in for me!

Tim Anderson

Also signals stronger cross-platform tools, access to new markets

Features

Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers
single pain of glass