Logica

History

2012: Logica is sold to the Canadian CGI Group

In June, 2012 the Canadian CGI Group announced agreement signature about purchase of the largest European system integrator Logica. Transaction amount was 2.8 billion Canadian dollars ($2.7 billion). Within the reached agreements of CGI also agreed to undertake obligations for debt repayment of Logica in the amount of 515 million Canadian dollars. Read more here.

2011

Reduction of 1.3 thousand employees

On December 14, 2011 it became known that Logica announced reduction of 1.3 thousand employees or about 3.2% of the state in response to expense reduction of clients on IT services^[1].

"Many of our clients postpone short-term capital investments and reduce investment volume to have hard times in economy", said in the statement of Logica. "We deeply regret that many people will lose the jobs, however we are convinced that this best solution for our clients and shareholders", - the chief executive Andy Green told.

Mainly reduction will affect the employees who are directly connected with customer service. It is about 1 thousand jobs. Dismissals will take place in Great Britain, Sweden and Denmark. For the end of 2011 in the company about 41 thousand people work.

Green added that they postponed staff reduction so much how many it was possible, however in November, 2011 it became obvious that any factors capable to increase demand for IT services, no. "Possibly, we already are in the center of recession of the Eurozone and we should act respectively, - the Financial Times edition tells Green's words. - I communicated with our clients, and most of them were never so strongly sure of the future".

The stock market negatively reacted to news: after the publication of the message the share price of Logica failed more than for 15%. At the end of Wednesday, December 14, the stocks Logica on the London Stock Exchange fell in price by 16.14% or 11.95 pounds up to 62.10 pounds apiece.

Growth of annual revenues by 3% to 3.9 billion pounds sterling

In November, 2011 the company announced that its income at the end of year will grow "more than by 3%", but not for 5%, predictably earlier.

As a result in 2011 revenue of the company grew by 3% to 3.9 billion pounds sterling. The main part of revenue of Logica arrives from customers in Great Britain, Germany and France and also from customers in Scandinavia.

According to the updated forecast, operating profit at the end of 2011 is expected in the range from 240 to 250 million pounds sterling. It is less than the independent forecast at the level of 260 million pounds sterling, Guardian notes. Losses are caused by a variety of reasons. First, the firm lost several transactions for the amount of 39 million pounds sterling. Secondly, 80 million pounds will be spent for the program for restructuring.

2009: Revenue of 3.7 billion pounds sterling

Revenue of the company in 2009 made 3.7 billion pounds sterling.

Notes