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By | Kat Hall 11th November 2014 11:58

Are CSC's mega-costly NHS contracts finally turning a profit?

Stench of splurged billions still hangs over trust deals

CSC's troubled billion-pound NHS contracts finally appear to be turning around, chief executive Mike Lawrie revealed in a conference call.

However, it is unlikely the firm will ever recoup its money from the defunct systems, which have cost the company close to £2bn.

In a conference call for CSC's second quarter earnings Mike Lawrie, chief executive, singled out UK health care as being a "particular strength" for the company.

Revenue at CSC fell by 3.4 per cent to $3.08bn for the firm's second quarter as "transformation efforts" took hold at the IT giant.

He said: "During the quarter, CSC had another important win this time at the Sheffield Teaching Hospitals Trust, the largest teaching hospital in the UK, and this follows on the heels of our win at North Bristol last quarter and brings the total number of trusts that we have won to 14."

Lawrie was appointed chief executive of the firm in March 2012 and is widely believed to be tasked with turning the company around for a sale.

Co-founder of analyst firm TechMarketView, said most CSC-watchers believe the company will be sold off in some shape or form.

"But there are many moving parts to the company," he said. "The aim is to get [the loss making NHS contracts] in good enough shape so someone can take it off their hands - it has been a poisoned chalice - whether that's as part of CSC [as an overall sale] or dissociated from the company." ®

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