Logica reports full year results in line with 14 December guidance
Headlines
- Full year orders up 13% to £4.6 billion, driven by Outsourcing orders up 23% to £2.2 billion
- Full year revenue up 3% to £3.9 billion; adjusted operating profit down significantly on last year at £114 million including the impact of the £132 million of restructuring and contract charges announced on 14 December 2011.
- Underlying revenue was up 4% to £3.9 billion. Underlying performance was:
- Outsourcing revenue up 9%, with second half revenue up 7%
- Consulting and Professional Services revenue flat, with second half revenue down 1%
- Revenue in the commercial sectors was up 7%, offset by a 3% decline in Public Sector
- Fourth quarter weakness seen particularly in the Benelux and Sweden
- Underlying adjusted operating profit at £247 million was in line with December guidance
- Full year cash conversion of 92% resulted in operating cash inflow of £226 million
- Net debt/EBITDA at 0.9x, with net debt at £295 million at year end (2010: £280 million)
- Full year dividend recommended to be 4.4p, up 5% over 2010
For the year ended 31 December 2011, results were as follows:
|
Twelve months to December |
|
Twelve months to December |
| £’m |
2011 |
2010
Pro forma
|
Change |
2010 Actual |
Change |
| Orders |
4,633 |
4,090 |
13% |
3,972 |
17% |
| Underlying revenue |
3,950 |
3,806 |
4% |
3,697 |
7% |
| Underlying adjusted operating profit |
247 |
278 |
(11)% |
272 |
(9)% |
| Underlying adjusted operating margin |
6.2% |
7.3% |
(110)bps |
7.4% |
(120)bps |
| Operating cash inflow |
226 |
270 |
(16)% |
270 |
(16)% |
| Underlying adjusted basic EPS |
11.3p |
12.3p |
(8)% |
12.3p |
(8)% |
|
| Operating profit |
55 |
211 |
(74)% |
211 |
(74)% |
| Operating margin |
1.4% |
5.7% |
(430)bps |
5.7% |
(430)bps |
| Basic EPS |
1.7p |
9.6p |
(82)% |
|
9.6p |
(82)% |
Commenting on today’s announcement, Andy Green, CEO, said:
“2011 was a more difficult year then we had expected. While our order book at £4.6 billion was strong and revenue was up 3%, restructuring and contract charges resulted in a lower adjusted operating profit.
Building on our successful long-term relationships with clients, we signed significant orders with clients such as Shell and Michelin. We had important wins with new clients such as BAE Systems and the Swedish Pensions Agency.
The revenue outlook remains uncertain but we are on track in implementing the actions we announced in December. As a result, we expect our Benelux business to return to profit in 2012, our Swedish business to deliver an improved margin and our Outsourcing business to be strongly competitive. Even in tough market conditions, we expect our full year operating margin for 2012 to be above 6.5%.”
1,2All headline numbers relate to pro forma numbers as defined in Note 1,2 on page 15 of the attached PDF document
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For further information, please contact:
Logica Investor Relations: Karen Keyes / Jose Cano
+44 (0) 7801 723682 / +44 (0) 20 7446 1338
Logica Media relations: Louise Fisk
+44 (0) 7798 857770
Brunswick: Sarah West / Jonathan Glass
+44 (0) 20 7404 5959
