Detica Group plc ('Detica' or 'the Group'), the specialist business and technology consultancy, today publishes its Interim Management Statement for the period from 1 October 2007 to 14 February 2008.
Current trading update
Performance in the third quarter was in line with the Board's expectations. Revenue in the nine months to 31 December 2007 grew by 31% compared with the same nine-month period in 2006.
Our UK Government business continues to perform very well and the market remains excellent. We recently announced an extension to our contract relating to the Home Office's e-Borders programme and now expect to recognise revenue of approximately £80 million over the life of the contract. This, combined with other recent wins, means that growth in our UK Government business is accelerating and we continue to recruit actively and to redeploy staff from other parts of our business to satisfy demand.
In our US Government business, following our first half investment in integration, we are seeing good progress. Former DFI clients, and potential new US government clients, are both showing growing interest in Detica capabilities ranging from advanced analytics, electronic systems and UK client best practice. As a result, our opportunity pipeline continues to strengthen.
Our Financial Services business is performing in line with the Board's expectations. Growing demand for services designed to detect and prevent fraud and misconduct, as exemplified by the recent sale of NetReveal to HSBC and the
market surveillance contract award at Turquoise, is encouraging. As expected, demand from the Investment Banking sub-sector remains subdued and this area of our business is trading in line with the expectations we established at our interim announcement in November 2007. In Telecoms, Media and Technology, we have seen a good increase in demand in the second half of the financial year.
There have been no significant changes in the financial position of the Group. Recent cash collection has been strong and Detica's balance sheet therefore remains robust with net debt of £17.7m at 31 December 2007 (30 September 2007: net debt of £25.2 million).
Detica has a broad portfolio of revenue streams and demand overall remains healthy, particularly in our Government markets. As a result, the outlook for the Group remains good and the Board's expectations for the current year remain unchanged.