Capgemini slipped during second half of 2009

Stephen Withers
Tuesday, 23 February 2010 12:59

IT Industry - Listed Tech

Bucking the trend, Capgemini Group's 2009 results were down on the previous year, with growing weakness in the second half.

Consulting and services provider Capgemini Group reported a 3.9% drop in annual revenue to €8,371 million. On a like-for-like basis, the result was even worse: a 5.5% drop.

Prompt action to manage costs meant that even though revenue fell from the first to second half of 2009, the operating margin rose slightly, yielding approximately flat profits.

Taking the year as a whole, that 3.9% drop in revenue fed through to a 60% drop in profit to €178 million, due largely to restructuring costs of €213 million.

The company reports that the "substantial slump in demand" experienced during the second half of 2009 is "stabilising in the first half of 2010." Further falls in revenue are expected during the current period, with a return to growth (though not enough to deliver annual growth) in the second half of the year.