The Channel logo

News

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

Opinion

Chris Mellor

How long before Blue Big HQ pulls the plug on the whole thing?

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust