Here is Paul in an interview this morning (7m26s):
To understand the performance of the UK and Ireland – which was headlined as a reduction of 15% (reported as 5% due to the strong GBP to Euro conversion) – this is largely due to the decision with HMRC to agree that our two main programme partners, Fujitsu and Accenture, can invoice HMRC directly. This decision has inevitably led to a significant reduction in UK revenues in 2015. It also came with an equivalent drop in costs, all of which have had little impact on profits, other than the expected reduction in the services delivered directly this year. The UK & Ireland is still a highly influential region, accounting for 18% of total Group revenues in H1 2015.
Tony Deans, Capgemini UK CFO (pictured right), said:
“There is so much to be positive about in the reported performance of the UK and Ireland, where we continued to maintain our own momentum, following an excellent 2014. Whether it is revenue or profit, all of our business units improved their year on year performance, capped by an excellent 280 basis points (to 12.7%) increase in our pofit margin, part of which was actually helped by the redesign of a big public sector contract, with the balance down to our excellent delivery record this year, together with the continued control of all support costs. I expect this growth impetus to carry through into the rest of this year.
“While bookings were slightly down on the same period last year, I don’t believe I have ever seen as much sales activity as there is now, and we have had some recent notable successes, including Manchester Airports Group and Zurich.”
You can read the full press release here: Strong growth in Capgemini earnings in H1 2015.
You can see the full presentation made to financial analysts at our Investor Relations pages.