18th Jan 2005 07:00
18 January 2005LogicaCMG: FULL YEAR TRADING UPDATELogicaCMG has issued the following trading update for the twelve months ended31 December 2004. As previously indicated, LogicaCMG will announce itspreliminary results on 2 March.Overall trading for the second half developed in line with our expectations andwe anticipate the outcome for the full year will be within market estimates.IT servicesFollowing strong order intake in the first half and increasing billablecapacity in the key territories, revenues in IT services increased in thesecond half. The UK performed well, maintaining its strong first half margins.The Benelux achieved further revenue growth and strengthened its order book,with slightly weaker second half margins following increased bid costs. InGermany, we successfully implemented the cost reduction plan while holdingsecond half revenues stable. Second half progress in France was disappointingin a difficult market as we continued to change the profile of the business. Weopened our new offshore campus facility in Bangalore late in the year and bythe end of December had increased our staff there to 1,175.Wireless NetworksAs anticipated, the normal seasonal uplift was seen in Wireless revenues forthe second half, with good licence sales in December ahead of the Christmas/NewYear peak demand. Our cost reduction programme was carried throughsuccessfully, enabling us to deliver a full year operating result a littleahead of breakeven.We disposed of our interest in Migway, our messaging gateway joint venture withTeledenmark. We are in detailed discussions to exit the EPPIX billing business,the results of which will be reported for the year as discontinued.Commenting on the full year trading update, Dr Martin Read, LogicaCMG's GroupChief Executive, said:"We are particularly pleased that we reversed the first half losses in WirelessNetworks and met our tight timetable for the restructuring of our Germanbusiness. With good order intake continuing in the second half of 2004 and thesigning of our contract with Energias de Portugal in early January, we start2005 with a good platform from which to take our business forward."For further information please contact:Tony Richards/Frances Gibbons - investor relations 020 7446 4372 (mobile: 07733260393)Toby Mountford - Citigate Dewe Rogerson 020 7638 9571 (mobile: 07710 356611)Seb Hoyle - Citigate Dewe Rogerson 020 7638 9571 (mobile: 07799 476804)Mark Broughton - media relations 020 7446 1097 (mobile: 07880 506345)Will Cameron - media relations 020 7446 1786 (mobile: 07771 815414)ENDRelated Shares:
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