I '1 f Ii .
LOGICA ANNUAL a REVIEW 1987
Ia " «7 2 // (In. (2/): {NJ
LOGICA ANNU REVIEW 1987 Introduction -\s leadeis in the eld ol'compuler lte\ie\\ of the pear m soltuare and systems, Logica places considerable emphasis on qualit) A Business anal) sis the qualit) ofour staszuId our work, it liogica. engineering methods and Markets disciplines are the foundation for ell ectivc software solutions. | iuancc This )eai s Annual Re\ iew takes Post and telecommunications II engineering as its visual theme. The engineer has made a signi cant Broadcasting and media l3 contribution to many of the world s Central and local government 15 most important discm cries and inventions, and has had a substantial Defence 17 in uence on the quality of life today. Space IQ We haw tried to capture some of these momean in our review. Energy and utilities 21
Manufacturing 25 Transport 25
Computing and electronics 27
Consultancy
Research and de\ elopmenl SI
\nnuai lepon and accounts 1987 Company information 33 Report of the Directors 54
Financial results - Consolidated pro t and loss account 36
4 Consolidated balance sheet 37 ~ Consolidated source and application of fluids 38 ant and Back Cover The Great Fastem. Launched 1857. The > Company balance sheet 39 kingdom ship s engineer, lsambard Votes to the accounts 'l-O Brunei, revolutionized ship design through technical advances which Accounting policies eventually led to the triumph of steam Report of the auditors 46 over sail. Three-5 ear record 46 Coloured drain ing for engine by Bnnlton and Watt, 179d The appearance ol' ()l l'lce addresses amund lhe engineeringdraningst a lull) fledged uorld medium for communication in the engineering industry coincided \\ ith the Acknowledgements establishment in Matthew Boulton and James all ol'lhc rst Factor) in the world for the construction of stationar) steam engines in 1773.
Turnover was £111 million, up 27% A notable success in the year was thc In Germany, Ingica obtained by farits from £87 million in the previous year. renewal of pro table growth in the largest contract to date A for the ports Pretax pro t was £115 million. an [75, with sales. revenue and pro t of Bremen and Bremerhaven. The increase of 66% over the 1986 gure targets exceeded. The Massachusetts- technology being developed for the of £68 million The profit margin bascd division was constituted as a management and control of the exceeded 10%. its highest level since separate company, Logica Technology conuuner port is already being Logica s early days, The number of Systems Inc, a subsidiary of Logica considered by port operatorselse- staff employed. including those in Systems Inc. With its separate board where in the world. Iogica Svenska related companies. grew 14% to 2.682. and reporting structure, it is quali ed made excellent progress. with sales of to undertake a wide range of federal new business particularly strong Following a slightly reduced nor and defence projects. and work in this towards year end. The work on the charge of 37%, pro t after tax rose area has already started. In another SMART reservations network for the 68% to £71 million Earnings per important move. IBM has decided to Scandinavian airlines is highly share. at 14.41). were up 45% on an market the llogan Integrated Banking relevant to other international airline REVIEW OF THE YEAR expanded share base. Systems, and this is generating and travel companies. In Brussels. increased support work for our Logica SA/M continued to expand its In a highly successful year. Loglca The directors propose an increased specialist division based in southern already wide client base. particularly achieved its obiectites of strong nal dividend of 1.2p nct per share. California. in the banking sector, and gained organic growth, increased pro t making a dividend for the full year of further work on the European space margins and investment in infra 1.7p, compared with 1.0p last year. In Australia, there was continued programme. In Italy. Logica General strucurrc. whilst maintaining good rapid expansion and diversi cation. Systems played 1111 increasingly cash flow. Improved margins and good use of Work neared completion on the important role in the Logica group. working capital resulted in net year important BI'IS network for the four The company maintained its strong end cash balances £1 million up on leading Australian banks. This and presence in the important manufac- Theyearataglanoe last year. subsequent contracts have signifi- turing sector. Close cooperation cantly increased our business in the between 1me and the UI\' has led to Turnover £111m+27% Operations nance sector. In a recent restrucv important contracts in broadcasting Preetax profit £11.5m + 66% The split of turnover into categories luring. the head office was moved to and banking. showed much the same pattern as Melbourne and a new group Postetax pro t £7.1 m 4 68% previous years: 29% in consultancy, established to develop work in the Many major projects were under Earnings per share 14.4p + 45% 61% in customebuilt systems (of space and defence sector. taken in countries where Iogica does which 9% is supply of hardware) and not yet have operating companies. In Dividends per share 1.7p + 70% 10% in software products and systems In Hong Kong. Jardine logical won France. a large contract was obtained Staff at year end 2,682+ 14% kernels. In this latter category. it was further extensions for the extremely for Ell'l lCISAT to control the new decided to withdraw from the Xenix