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We may not get to see any financial detail on how Logica fared in the first half of the year, having ditched its reporting calendar once its acquisition by CGI passed muster (see CGI/Logica deal all but done and dusted). But its soon-to-be parent had mixed results in Europe in the quarter to 30th June (the Canadian firm’s Q3) with revenues falling by 2.1% yoy at constant exchange rates to C$52.8m, a 7.6% decline at the headline level.
European ‘adjusted’ margins were an improving story, at 4.6% but that’s mainly because the prior year’s were a disaster, at just 1.1%. Over the 9 month ytd period, European margins reached 5.9%, which means CGI needs a really good quarter to see European margins recover to the 6.1% level in FY11. That must surely be a challenge as it starts the Logica integration proper.
There is still nothing that changes my view that CGI simply does not have any idea what it’s getting itself into. Rumours are flourishing as to whom will succeed Andy Green as CEO of Logica (or as it will doubtless soon be known, CGI Europe) though in a sense it probably doesn’t matter, unless he/she comes with miracle worker credentials.