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

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals
Angus Highland cow
Pet carriers not wanted for whitebox stampede
FBcoldstoragearray
Sorry OpenStack and Open Compute, we're not all Facebook
Gary Kovacs, CEO of AVG. Pic: World Economic Forum
Scammy download sites? Government snooping? Run of the mill for Gary Kovacs