Despite the stock market events of October last year Logica Plc was able to report increased growth in the financial services sector, which now represents 25% of the company’s activities, up from 23% last time. Overall pre-tax profits rose 30.2% to UKP14.7m on turnover up 19.7% at UKP132.5m in a year that saw its two […]
Despite the stock market events of October last year Logica Plc was able to report increased growth in the financial services sector, which now represents 25% of the company’s activities, up from 23% last time. Overall pre-tax profits rose 30.2% to UKP14.7m on turnover up 19.7% at UKP132.5m in a year that saw its two major UK rivals CAP and Systems Designers involved in merger activities. Logica’s chairman Philip Hughes seems to be quite unperturbed by the alarming growth in size of his two rivals; it’s the size in vertical markets that counts, he says. Logica has done well in a number of markets as well as the financial sector. Mr Hughes was particularly pleased with developments in the work Logica has been doing for computer manufacturers worldwide. This sector accounted for 17% of the company’s activities, up from 15% last time. Projects include an international funds transfer system, developed by Logica in the US, for IBM Japan. The system combines fault-tolerant System/88 hardware from Stratus Computer with Logica software for banking and communications applications and has already been installed at an IBM client site. It has also supplied DEC in the UK with software which enables up-to-date financial information from a range of institutions to be made available on its value added network. The water industry proved another healthy market, which may be due to local authorities installing modern control systems in the run-up to privatisation. It was a pretty flat year in defence but space provided the worst disappointment following the government’s decision to withdraw from the Columbus project. Logica was involved in a number of contracts for the space station which collapsed following the withdrawal. The res ults include three months contribution from Data Architects Inc, Logica’s recent US acquisition. It has been merged with Logica’s 10 year old operations in the US and there are now over 500 people working in the US. Mr Hughes said that half of Logica’s busi ness is outside the UK and, in an oblique reference to Sema Plc, said it was vital to be represented in the US. Logica is anxious to widen its European act ivities and is holding talks with a number of French software houses with a view to possible collaborat ions – talks initiated by the French firms; but there is nothing definite. West Germany is another area where the company feels it is under-represented and may seek acquisitions. 1989 will see further in vestment in products for the finance industry, tele vision – Logica has recently installed a control system for CBS in the US – and for communications.
