CGI’s Q3 results (to end June 2013) are the third full quarter of results with representation from Logica’s business (acquired on 20th August 2013). But as it is only the third quarter, we’ve got another couple of quarters before we can start comparing like-for-like quarters. And despite CGI highlighting organic revenue growth as one of the four pillars of its ‘Build and Buy’ growth strategy, the organic growth rate for the quarter is not provided. For the record, though, headline revenue growth was 141.1% to $2.57b (Canadian dollars), or 140.3% at constant currency. And the adjusted EBIT stood at $291.2m, up 113.7%, and representing a margin of 11.3%.
The book to bill ratio was looking particularly healthy at 107% for the quarter (up from 88% at the end of March), and standing at 101% for the trailing twelve month period. Bookings are split 50/50 between new business and extensions/renewals. 12% of bookings relate to the UK business (the same % as the proportion of quarterly revenues).
In the UK revenues stood at $283.4m for the quarter – an increase of $267.8m (due to the Logica acquisition). The top two vertical markets remain Manufacturing, Retail and Distribution (MRD) and Government, which, together, represented 72% of quarterly revenues. The good news in the UK is that the EBIT improved from 9.2% (in Q312 i.e. pre Logica) to 10.0%. This is a vast improvement on the 3.1% reported in Q113 (to end December) and the 6.8% reported in H113 (to end March – see CGI accelerates and expands Logica integration), and highlights the success in a) integrating the CGI and Logica businesses and b) implementing the CGI Group operating model in the UK. But there’s still work to do: the US and Canada businesses remain a step ahead; both increased their EBIT in the quarter reporting margins of 12.3% and 19.2% respectively. CGI UK President Tim Gregory is certainly being kept on his toes.