Sopra Group may be little over one-tenth the size of compatriot Capgemini, but they grew faster. Indeed, Sopra’s revenues increased by 8% at constant scope and exchange rates (CSER) to €1.05b in 2011, vs 5.6% CSER growth from its much larger peer (see here). And here in the UK Sopra also pipped Capgemini in the growth stakes, increasing revenues by 2.5% CSER to €58.5m (c.£51m) vs Capgemini UK’s 2.0% CSER growth, to €1.91b (c.£1.67b).
The UK margin stories were quite different, though. As signalled at half-time (see Sopra UK needs to go fish-shooting!), Sopra’s UK profitability took a beating, with 2011 operating margins almost halving to 1.4%. Capgemini also found UK margins squeezed, though from 7.9% in 2010 to 7.1% last year. However, at group level, Sopra’s IFRS operating margin increased by 60bps to 9.3%, though adjusted margins (on recurring operations) fell by up 10 bps to 8.7%. This was ahead of Capgemini’s 7.4% group margin, which improved by 60bps over 2010.
The big question for Sopra UK is what effect the recent – and hugely significant – acquisitions will have on its business (see Sopra UK goes shopping (again) to double size). I shall be speaking with Sopra UK CEO, Pierre-Yves Commanay soon, and eligible TechMarketView subscription service clients will be the only ones to find out more!