Sema Group Plc has reported an 8% fall in pre-tax profits to UKP14m, on turnover up 10% to UKP412.5m. Group chief executive Pierre Bonelli is pleased that the group has managed to achieve the stated aims of consolidation and attention to profitability in an ‘extremely difficult climate’. Business was satisfactory in France, with 7.4% growth to UKP170.6m, Spain, at 3.8% growth to UKP30m, Belgium, at 2.1% growth to UKP21.5m, the Netherlands at 2.3% growth to UKP5.5m. The UK turnover soared by 17.1% to UKP145m, against a background of ‘no growth’, according to Bonelli. The German market poses problems, he says, although turnover remained static at UKP31.7m. Sema is the only software house to have the nerve to compete against SAP AG on its own turf, he added. Director of European operations Francois Dufaux explained that the group needs to find a partner for its software package business. An analysis of turnover by sector reveals that finance has dropped two points to 19%, industry likewise to 21%, and defence has risen by two points to 18%. Dufaux described the defence area as being a ‘niche’ market. The services sector is static at 8%. An analysis of turnover by activity shows that systems has risen to 59%, facilities management rose slightly at 14.5%, and consultancy stands at 7%. Marketing and products saw small drops to 10.5% and 9% respectively. Bonelli pointed to a number of new contracts that bode well for the future, including the contract to provide training simulators for French Navy submarines, the order for command and control systems in French nuclear plants and the UKP6m contract for information systems infrastructure for the Mercury Personal Communications network. The consulting group is going well, Dufaux says, and he has plans to ‘beef it up’. The net debt has been reduced to UKP18m from UKP27m. The restructuring programme during did not result in redundancies, Dufaux says, rather a natural wastage of about 100 people. The workforce now stands at around 7,500. The group maintained its research and development investment level at UKP14m.
