Financial services drag down LogicaCMG

Financial services drag down LogicaCMG

A fourteen per cent downturn in financial services sector revenues contributed to an overall 26% decline in operating profit for LogicaCMG for the half year to end-June.

Across the group, revenues dropped three per cent, with cost-savings among financial insitutions a major contributor to negative growth.

In Europe, LogicaCMG reported an 11% decline in UK financial services revenue to £32.2 million, a 13% fall (to £50.3m) in Benelux, 24% drop-off (to £17.7m) in Germany and a 14% decline (to £18.1m) in France

The firms says it continues to win business in core areas of payments, messaging, card infrastructure and billing and has completed a number of scoping studies for banks in preparation for implementing Basel II compliance programmes. This latter is expected to feed through to increased IT systems investment and cross-selling opportunities over the next two years.

The company says its increased size post-merger has also enabled it to strengthen relationships with major financial services firms, such as ING, Aegon and ABN Amro.

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