Wednesday, 29 August 2007

New Chairman at LogicaCMG

LogicaCMG has announced that David Tyler is to replace Cor Stutterheim as Chairman at LogicaCMG. Tyler only joined as an NED in July. He was FD at GUS. The move was widely expected and is being regarded as evidence of a fresh start at LogicaCMG.

However, today's interim results statement makes no new reference to any progress in the all important search for a new CEO.

I won't comment too much on the results themselves as they were widely anticipated and will be covered by others. It was the UK "whot done for them" with revenues down 8.3% at £334.2m and operating profit margin down from 9.1% to just 1.3% - not helped by a £13m write off for a project over run. LogicaCMG was slow to the offshoring table - they still have only 6900 of their 38496 people offshore. Competition from the Indian players in the UK space is cited as one of the reasons for the UK poor performance.

But as usual LogicaCMG is a 'curate's egg' ie it is actually quite good in parts! Netherlands, France, Germany and Outsourcing saw decent 'above market growth' performances.

As I have said many times "If only it could get all its cylinders firing at the same time" LogicaCMG could be a really great company. Problem is that it hasn't happened in my lifetime yet...and I'm getting older by the day. With the 'old guard' moving on and out, I do have increasing doubts that LogicaCMG will ever make it on its own. Which is...sad.

No comments: