BWI: Steria third quarter 2010 Revenue Organic Growth of 5.2%

Press release from Business Wire India
Source: Steria
Tuesday, October 19, 2010 03:10 PM IST (09:40 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Information technology, Media & entertainment, Stock exchanges; Technology
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Steria third quarter 2010 Revenue Organic Growth of 5.2%


Noida, Uttar Pradesh, Chennai, Tamil Nadu and Pune, Maharashtra, India, Tuesday, October 19, 2010 -- (Business Wire India) -- . Consolidated revenue for the third quarter 2010 amounted to ?402.8 million, a growth of 8.0%.
. At constant perimeter and currency, organic growth for the quarter was 5.2%.
. The currency impact over the quarter made a ?10.0 million positive contribution to revenue growth.
. Within the framework of the review of the Group's contracts with the UK government, the two parties have reached an agreement which is in the final phase of formalisation within a Memorandum of Understanding. Pursuant to this agreement, all the existing contracts having been the subject of the review were confirmed.
. The Group expects for the 2010 financial year as a whole an organic revenue growth of around 1% and an operating margin rate of around 7%.

In the third quarter 2010, organic revenue growth was 5.2%, benefiting from a favourable comparison effect particularly in the United Kingdom and France. Growth remained strong in the Managed Services and Business Process Outsourcing businesses at 4.9%. The Consulting and Systems Integration businesses rebounded with growth of 5.3%. At 30 September 2010, the book to bill ratio was 1.03.

In the United Kingdom, the third quarter 2010 saw organic revenue growth of 5.9%. Over this period, the environment was difficult given the particular situation regarding the UK government with the announcement of a moratorium on new IT spending and negotiations on existing contracts. These negotiations resulted in an agreement between the Group and the Cabinet Office and allowed the Group to envisage the conclusion of new business aimed at helping the government to achieve its cost-cutting objectives. At 30 September 2010, the pipeline was solid and represented 2.2 times expected annual revenue (similar to last year's level).

In France, the positive growth dynamic seen since the beginning of the year was confirmed during the third quarter with organic growth of 8.0%. This good performance was supported by significant commercial success and a continued increase in the pipeline which represented 3 times expected annual revenue at end September 2010 versus 2.1 times one year previously. Orders entry is expected to be strong for the fourth quarter and the organic growth for the year as a whole should exceed 4%.

In Germany, the 4.3% organic decline in third quarter revenue is largely explained by deferred project start-ups in the public sector and delays in the deployment of new strategic solutions developed for the bank sector.

In the Other Europe area, growth was dynamic and the situation in Spain markedly improved with a return to growth of 5.7%.

Outlook

Pursuant to the agreement reached with the UK government, the Group considers that it has strengthened its position and can expect a positive trend for its activities in the UK public sector in 2011.

On the other hand, the particular situation in the UK public sector for the second half 2010 will affect the Group's results for this period, particularly given the lower-than-expected level of activity.

Outside the United Kingdom, the Group expects positive organic growth on average for its second half 2010 activities, albeit at a lower level than initially anticipated.

On this basis, the Group is revising its annual expectations indicated during the publication of H1 results: organic revenue growth of around 1% and an operating margin rate of around 7%.

Steria is listed on Euronext Paris, Eurolist (Compartment B)
ISIN code: FR0000072910, Bloomberg code: RIA FP, Reuters code: TERI.PA
CAC MID&SMALL 190, CAC MID 100, CAC Soft&CS, CAC Technology
SBF 120 general index, SBF 250, SBF 80, IT CAC, NEXT 150

For more information, please visit our website: http://www.steria.com

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CONTACT DETAILS
Isabelle Grange, Press relations, Steria, +33 (0)1 34 88 64 44/+33 (0)6 15 15 27 92, Isabelle.grange@steria.com
Olivier Psaume, Investor relations, Steria, +33 (0)1 34 88 55 60/+33 (0)6 17 64 29 39, olivier.psaume@steria.com

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, IT, MEDIA, STOCK EXCHANGES, TECHNOLOGY

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