FINaNCIaLS
IT Services
LogicaCMG and Game Group downgraded
cont...
% month Mkt cap
Price ratio
10.03.08 - 10.04.08
change 4
P/E
m
contributed 7.2%, currency 7.5% of the growth. Revenues for the full year
were up 21.3% at $834m (€528m). European operations reported revenue of
$134m (€85m) for the fourth quarter or 51% of total company revenue. Europe
Ordina 10.49 12 432 14
delivered solid top line results with revenue increasing 8.7% on a constant
EDB Bus. Partner 5.17 17 473 10
dollar basis over the prior year including the benefits of the Alpha and SIDEP
Ementor 4.48 9 428 8
acquisitions in November 2007, and the ADS acquisition, which was concluded
in mid-quarter of fourth quarter of 2006.
Asseco 20.28 3 511 22
Comarch 33.58 0 253 21
Kesa Electricals, the household appliances distributor, announced that the
sale of BUT Group, the company’s electricals and furniture businesses, to
Computerland/Sygnity 3.28 28 34 14
Decomeubles Partners SAS, backed by a consortium composed of Colony
Prokom 37.09 6 515 21
Capital, Goldman Sachs and Merchant Equity Partners, is complete.
Novabase 3.94 18 124 20
Among US retailers, a fight has broken out over Office Depot, provider
Pararede 0.19 6 83 -
of office products and services, which has mailed a letter to stockholders
Indra 17.35 -6 2848 19
recommending that they vote to reject the two dissident directors nominated
by Alan Levan and his company Woodbridge. It cited concerns about the
Acando (B) 1.38 6 102 10
poor performance of Levan’s companies and the lack of qualifications of
Cybercom 4.68 3 105 10
his nominees, and concluded that Levan and his nominees have not proven
that they would be better able than Office Depot’s management to effect
HiQ 3.56 9 180 13
positive changes at Office Depot. It warns that “a difficult macroeconomic
IBS 3.27 -8 22 9
environment is undeniably affecting us all.” Office Depot’s customers,
LBI 2.88 -16 178 150
particularly those that are small and home office businesses, have been
especially hard hit.
Mandator 0.32 0 53 17
Sigma 0.31 -26 14 14 Analyst Numis Securities has downgraded LogicaCMG Plc to ‘reduce’ from
‘hold’ and changed its forecasts for the group, as it predicted challenges facing
Crealogix 46.30 -2 50 19
the group’s new CEO. In a note, the broker said it thinks new CEO Andy Green
Anite (£) 0.50 -7 169 7
has a good perspective on the significant challenges facing Logica, but that
Axon (£) 4.82 -12 304 9
executing the plan to tackle these will be his biggest hurdle.
Numis Securities noted structural challenges such as little competitive
LogicaCMG (£) 1.41 21 2058 11
differentiation and said it thinks as part of Green’s strategy, he will attempt
to minimise upfront financial costs and show increased willingness to sell
Misys (£) 1.83 5 923 10
non-core units. Actually delivering substantial change in a 40,000 person
geographically and culturally diverse professional services business is the key
challenge. For 2008, the broker raises its full-year EBITA forecast by 3% and
its EPS forecasts by 2%. Its December 2008 net debt forecast rises to £530m
Accenture 23.43 10 13858 16
(€659m) from £503m (€625m).
ACS 31.99 2 3017 19
Analyst Andrew Wade of Seymour Pierce has downgraded Game Group
BearingPoint 1.09 -3 227 -
from “buy” to “hold” a few weeks after upgrading it. In a research note, the
Ciber 3.26 12 196 11 analyst mentions that the company’s share price has risen sharply in the past
two weeks. Game expects to generate 5% to 10% like-for-like growth for the
Cognizant 17.64 -5 5086 24
current year, while the market expects the company to deliver mid-to-high
CSC 26.48 2 4163 12
single-digit like-for-like growth, Seymour Pierce says. It’s another sign that
EDS 10.91 5 5504 13
issues of consumer confidence and spending are what sales are all about.
OUr aNaLYSIS
Hewlett-Packard 29.21 -3 72018 16
IBM 57.04 -21 78967 13
Which way to turn? On the one hand we have purchases of IT business by
each other, which keeps prices up; on the other, the general slow-down is
Sapient 4.71 9 596 62
translating into downgraded forecasts. The key point will be later this year
Unisys 2.84 13 998
when we start to get the views on the pipelines of IT work. The decisions
on business being started now were taken last year when things were
Please note that for consistency, we are now showing all companies with
sunnier. Watch also the products actually shipping from distributors in
their share prices converted to Euros unless indicated
the mature parts of Europe. We expect the impact on the SMB areas of
business to start appearing in the figures. In the next issue we will have the

S

ource: Thomson Financial Datastream
latest Ingram Micro and arrow numbers. See News for avnet’s results.
30 18 apr 2008
It0807 - 26-31_financials.indd 30 16/04/2008 11:00:42
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