The Channel logo


By | Kelly Fiveash 29th August 2007 11:43

LogicaCMG still seeing grey clouds over UK

Hires new chairman, continues looking for elusive CEO

IT services group LogicaCMG admitted today that it needed to improve "operational performance" in the UK following an 8.3 per cent year-on-year profit slide at its British arm.

It said that first-half revenue from continuing operations was up 36.2 percent to £1.5bn, due in large part to a one-time gain following the sale of its Telecoms Products division in June.

Pretax profit from continuing operations was slightly up on last year to £29.2m while the interim dividend was raised 4.5 per cent to 2.3 pence.

Although the firm saw revenue growth above market expectations in France, Nordics, Netherlands and Germany, the UK continued to lag behind. LogicaCMG attributed the downturn to "weakness in commercial sectors."

Chief operating officer Jim McKenna said: "A key priority for the second half is improving the operational performance in the UK. We will also be working on recruiting the right people in the right places to grow the business and on expanding the use of common systems and processes throughout the larger group."

LogicaCMG was hit by a profit warning in May following a £13.6m "write-off" on a UK transport sector contract. The cost overrun led to Read's resignation and a reshuffle of board directors.

The Anglo-Dutch firm also confirmed that David Tyler, who joined LogicaCMG in July this year, will replace chairman Cor Stutterheim.

It added that the search is still on to hire a new chief executive following Martin Read's decision, in the face of investor criticism, to step down after 14 years at LogicaCMG. Read will leave the firm next month.

LogicaCMG shares are currently trading at 155.75 pence on the London Stock Exchange, down 1.89 per cent on the previous close. ®

comment icon Read 1 comment on this article alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe