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LOGICA ANNUAL a REVIEW 1987

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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 ellectivc software solutions. |iuancc This )eais Annual Re\ iew takes Post and telecommunications II engineering as its visual theme. The engineer has made a signicant Broadcasting and media l3 contribution to many of the worlds Central and local government 15 most important discm cries and inventions, and has had a substantial Defence 17 inuence 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 prot 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 ships 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' ()ll'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 protable growth in the largest contract to date A for the ports Pretax prot was £115 million. an [75, with sales. revenue and prot 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 Logicas 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 qualied 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%, prot 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 prot 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 diversication. 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 prot £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'llCISAT to control the new decided to withdraw from the successful Stock Exchange system. generation of communications satele operations which were sold to the and obtained a range of new clients. lites. and telecommunications . Logicas range Important sales of ON/Z. the retail software development was carried of systems kernels continues to be nancial transaction processing out [or CIT Alcatel. In Austria. two supplied and enhanced. The year saw system. were made in Thailand and networks are being developed for the further development and excellent in the Philippines. The new Jardine country's leading banks: an EFIPOS sales of GALLERY 2000". the digotal Logica operations were ofcially network; and a secure interbank picture library. Major investments opened in Taiwan. clearing and communications system. were started in two new systems Extensive teletext systems were sup, kernels. FASTKADE", the equities Work for clients in continental plied in Switzerland. And in Dene market-making system which has Europe expanded to reach 50% of mark, Logica has a permanent staff of already been insmlled for three Ingicas worldwide turnover. In the a dozen and we expect to move soon clients. is being extended to meet the largest operation, Irogica BV in the to establish a fill] operating company. requirements of dealers and traders Netherlands, expansion in the. Conditions in the Gulf area forced us across the whole spectrum of inter- government and banking sectors to withdraw from a major banking national securities and capital compensated for slower sales in the project; the, associated costs have markets. The CPIl-JXA'OO" communi» traditional control systems area. We been fully provided for. cations software is being developed to moved into a new purpose designed handle the growing number of ofce in central Rotterdam and In the UK. all six operating companies requirements to meet the emerging opened the rst regional ofce in showed good growth. reflecting both OSI standards. Groningen. the overall strength ofthe market and logicas leadership in a number of Turnover split. 54% for UK clients and sectors. 46% for cliean outside the Uh. remained as before. Growth was evenly balanced between inter- national and tilt business.

The Mammoth. 1900. During the early decades of photography if you wanted big pictures. you used a big camera! The Mammoth. the largest camera of them all. as designed to take a single picture ofa luxury exprch train. The picture won the Grand Prize ofthe World at the 1900 Paris Exposition.

Logica Communications and ILlece Logica Consultancy expanded very With the current state of technology A company is only truly international troriic Systems dramatically exceeded profitably. Many ol'its projects are it has now been possible for us, even when staff are able to move to sales targets. Highlights in the rapidly highlighted in a separate section on with our wide range of work, to responsible positions worldwide. In expanding broadcasting and media consultancy, an activity that spans all delirre a policy on what methods, Logica we place an increasing sectors included sales of GALLERY of Logicas markets. tools and techniques are preferred in emphasis on facilitating stall 2000 and the dcvcloprnent of picture Logica. We are supporting the movement in order to enhance both handling systems for . Major Logica Cambridge added a VLSI implementation of this policy by career development and the transfer tumkcy projects were won for the Lh custom design capability to its work training courses, reports and of technology and management government in Northenr Ireland, and in soltvvare engineering, knowledge, consultancy to all the operating expertise At any one time about 5% .vt'ltlr'f and Philips Telecommunie based systems and voice and image companies. of Logica stall' are working on assignv cations. Work for the transport sector recognition. The payoff from ments or on longer term secondment widened to add projects for the research undertaken in previous Successful application of formal with a Logica company in another airlines to those in urban transport years was demonstrated by the methods still depends on the skill and country: 0f Logicas more experi- and shipping. winning of commissioned projects for experience of our individual enced staff, about a third have the systems companies. members of staff. However, it will be worked for Logica in two or more Logica Energy and Industry Systems increasingly appropriate for those countries. further sticngthened its position in The continuing growth of the. UK involved in our software development the supply of data acquisition and operations has led in the past year to activities to be formally recogmized Directors control systems to the UK water major o'rce expansion. An Oppure for what they are amongst the Alter the end of the nancial year, industry. The very large British Gas tunity arose to purchase our ofce. at foremost professional engineers in Len Taylor, the Managing Director control system neared completion. Of Cobham Park. Whilst it is not the industry, with a sense of respone and Chief Executive. announced his great future importance was the normally our intention to purchase sibility to society as well as to our intention to step down. The company rapid growth in automation work for offices, the circrunstances at Cobham customers and shareholders. and its shareholders owe him a very the manufacturing industry. Major convinced us that the £2 million great debt for his leadership projects were undertaken for Ford investment was most worthwhile. Staff throughout the life of Logica. We are and Iaguar Cars. Logica Financial Systems moved into The number of stall employ ed by all very pleased that he has agreed to large new premises in central London Logn'ca worldwide has increased by remain involved with Logica as a Logica Financial Systems had an and Lognca Energy and Industry 14%, from 2,348 to 2.682. non-executive director The position excellent year, both in the L K and in Systems made a move outside of Managing Director and Chief exports. Many commentators felt that London, transferring most of its Logica attracts and retains high Executive has been filled by David alter the hectic rush before the 507 operations to in Surrey. quality stalT by prodding stimulating Marni. who was previously Head of called Big Bang in October 1986, We opened a new office to serve work and challenging career oppor- Operauons. David Mann has been demand in the nance market would nance, computing, communications, tunities. During the past year, with Logica from the companys be lower. This has not been our government, industry and energy approximately two thirds of the earliest days and has been a board experience. Requirements for auto- clients in the Manchester region. companys inmke of fee earning stall' member since 1976. mation and new services are so ltrrther plans are being drawn up were skill and application specialists demanding that banks and the both in and out of London. recruited from elsewhere in the During the year, Steve Stevenson who securities industry are increasingly industry: The other third came to has successfully headed operations in tuming to Logica for assistance, both Software engineering Logica through our graduate both the Netherlands and the US, was for entirely new systems, and for the For many years it has been recog- recruitment programme which appointed to the board. He continues redevelopment of previous systems. nized that software development continues to prove extremely as President of Logica Systems the, needed to change from a science or successful in providing highly Our defence business continued to an art into an engineering discipline. motivated entrants for our own smff The future grow profitably, despite pressures on The broad sense of direction for the development programme. Last year, and in years previous, we the defence market in the int necessary evolution has been clear, have pointed to the rapid expansion Funding in a number of specialist but progress on the establishment To sustain both individual career and of the computer software and systems went areas is on the up and togiea is very and application of practical company development, Logica industry around the world, We well placed in a good proportion of standards, tools and methodologies continues to build a comprehensive on to say we saw no sign of this these. Logica Space and Defence has until recently been painfully slow. training programme for all levels of slackening. This still holds true. Systems expects to obtain a good shall, covering technical, interpersonal share of the large, and very com~ Logica has a high reputation for and management skills, quality While our industry is now very well pctitive, UK and NATO programmes. project managementbased systems standards, software engineering established, with worldwide software Work in space expanded rapidly with relirred through many years of methodologies and project manage revenues in excess of USS 50 billion, our leadership in the software part of experience. To complement these, we merit and control procedures. great developments lie ahead. The the design studies for the proposed have for several years rim an internal world majors in this industry will Columbus Space Station. programme called Sesame. Sesame expand to positions where the scale has identied, evaluated and and importance of projects under, promoted smndards, tools and taken dramatically exceeds that at methodologies that have been present. successfully applied to software development both inside and outside In Iogica, we believe we are posi» Logica. tioned to be one of these world majors. That is our goal. A great deal has to be achieved to esmblish this, but we have in our eighteen years built up the capability. the reputation Almander Graham Bell, the iu\entor of and the staIT to achieve our goal. The the Iclcpbonc, making the rst telephone year ahead. and the years beyond, call between \cw tork and Chicago on I8 promise well. October 1892. Sta' numbers 2,682 Turnover (millions) 1 10.7

2,348

37.0

1,843

1563 62.3

L258 50.5 BU S I N ESS n A N A LYS I s

52.7

1985 1984 1985 1986 1987 1985 1984 1985 1986 1987

Analysis of turnover by client location Analysis of turnover by activity

USA 8%

Consultancy 29%

UK 54% Rest of Europe 50%

Systems kernels & Custom-bum Sohware products 10% Stem: Rest of World 8% Software St hardware 61%

Analysis of turnover by market sector Central it local government 8% Space 4% Other 2% Manufacturing 7%

Finance 23% Defence 14%

Broadcasting & media 4%

_ Energy & utilities 8% Computing & electronics 15%

Transport 5% Post&telec0nununications 10%

Grinding a locnmnuvc whccl. Symbol of the archetype of engineering invcntion.

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There is increasing international Logica fias added iniother system to GARE (Geldausgabcautornalen interest in building high performance its FAST family of wholesale nancial Umbl I). the Austrian bank services interbank networks. iogica has estab- prodich which are marketed world company. has awarded liogica a lished a strong position in this area. wide. IIASTIWE. as it is called. is a contract to develop a communie following the successful implemen- fmnt~ollice system which supports cations system for clearing for the tation of thc Clearing House trading in t.l\ and international \ustrian banks, The Electronic \utomated Payment System (CH APS) equities. futures, options and Banking Communications System in the tilt. currency markets. (EEK) will allow banks to receive Irogica is currently working for llASTRADE was originally devee instructions from their customers. the four major trading banks in lopcd in coniunction with stock- pass payments to one another and Australia w ho are developing an brokers Phillips at Drew in time for report settlement figures and rriake electronic system exchanging high last October's deregulation in the City account enquiries to the Austrian valire pay ments for same day value. of London. It prov ides a secure and l\ational Bank. EBK forms a common As the main software contractor. responsive solution to the varied interface between banks and their logica is dereloping the control part needs of' traders. sales staff and customers so that customers may use a of the system to win on 'Iandem management more than one bank if they wish. Irogit eri ices are directed at three hardware. The Bank interchange and FASTRADE has also been impler of the major streams in the nancial Transfer System (BITS) will be one of merited at the international Clients in this sector include: market: retail irance. corporate the most advanced systems of its kind investment bank. Dram] Bur-aha!" AER - Access- American Express - Bank nance and investment systems in the world. enabling the nancial Lambert who are using it for trading of - Ban-lays Bank ~ Bamlays De In retail finance, redevelopment community to move high value funds on the tilt and international equity Zoete Viledd ~ Chicago Board of Trade * of core systems is an important part quickly. easily and in a highly secure markets. The system runs on Stratus Citibank - Commonwealth Bank ~ Den of our work. although much of it is environment. and IBM fault tolerant hardware and Danske Bank * Drexel Burnham condential. Demand continues for is designed for growth and fast Lambert - Equitable Banking Corporation our 0le software product used for A rapidly growing area of logicas response times. (Philippines) eurocheque International - handling pointrofesale and airtonratic activity in retail banking is in our European Payment System Services ~ teller machine transactions. ON/Z support to users of llogan Sy stems' Funds Transfer Sharing ' GAEE ' llong sales made during the year include Integrated Banking System. This is a Kong and Shanghai Bank - Intcre one to the SIAMNET network in complex software package which American - Istituto Bancan'o San Paolo Di Thailand and one to Postbank in the rims on IBM mainframe equipment 'lorino ' ITEC Bank - .lllenry Schroder Netherlands. and provides l'mietionality for Wagg - Kredietbank - Llode Bank - liogica is well positioned for managing a customer information Lombard North Central - Marine growth in the corporate finance area. le. and for processing consumer. Midland ' Midland Bank - Midland which includes interbank sen ices commercial and mortgage loans as Montagu - Morgan Grcufcll ' National and international systems as well as well as demand and time deposits. Australia Bank - National Westminster commercial banking services for while supporting othercore banking Bank Oslo Stock Exchange - Phillips {<2 large organizations. Demand coir systems Drew - Postbarrk(Netherlands)* Savory tiriues for Logicas FAST IRE logica has built 11p considerable Milln - Spaiekassemes Damcenter - Stock product. developed in the ['5 for expertise providing users with Exchange of liong Kong - Torn Assicurae funds transfer and nressage switching comprehensive support throughout zioni - World Bank and sold worldwide. the systems development life cycle. Demand for investment systems from planning to implementation and is growing fast and Logica has built training. Wc have developed a special up considerable evpertise in this area product the Iogica Conversion We have recently worked on a design System. which automatically converts specification for futtuc communi~ customers loan and deposit data to cations systems for the Copenhagen the corresponding Hogan database Stock Evchange and have developed a formats while providing fast loading new trading system product, called capability for customer information FAS'I'PADE. records, Demand for l iogan consulting is high. not only in the US but world- wide. 1n the US, Logica is working for several organi7aijons who are implee menting the Hogan system. including Gibraltar Savings and Great Western Bank: In the UK. Logica is currently working With Lombard Ni)th Cemml. for whom we have developed a lloganebased product called the Business Information System. BIS serves as the basis for an entire management reporting subsystem. Banknote printing room at the Bank of providing arepository between the England. 1854. transaction and decision support systems. The digital counting machine was built by the French mathematician and physicist Hlaisc Pascal in [642 when he was It] years old.

For Télicrilcule/ in France. Logica is Logica has been Selected to lead a Logicas imolvement began when developing a s_\ stem application ['or multiemillion pound project for oe carried out the initial functional use by customers of their 2600 PM. EL 7PM: the liuropran 'l'elw requirements attalisis for the EePost The system. named Systeine communications Satellite Organizae sistem. More rcccntl). an important d.»\nnuaire et de Gestion dEnterprise tion. orking in collaboration with its part ol'l.ogicas nork has been on (SAGE). can be accessed b) tlStlS via main subcontractor. the French sot'toare acceptance and quality \idcotm terminals or thiough Wits compam. Alcatel Espace. logica is assurance of the soitvvare. In addition. switched via the |\BX. responsible for the suppl} ot' a system liogica has carried out uetoork logicas SAGE s) stem \\ ill for the inforhit control ola number of dimensioning and eurrenth has pro\ ide 'lelie-vtleatcls customers o ith llutclsats second generation satele responsibilit) for the requirements automatic cost calculation olcalls. lites. The satellites ate to meet and design specications for oneliuc data retrieval and update of telecommunications requirements in enhanCements to the communication telephone directories. le transfer in the atcas of television. telephon) and and Helost soil are. POST AND TELE- betocen dill'erent sites and \arious business seriices \n'thin Europe. COMMUNICATIONS statistical reports on HBX usage. The Aleatel lispaec is to suppb the Clients in this sector include: StSHm alloos customization of the entire telemetr). command and \Tl3\ British losttiilicc * lirilish l'ierce competition liillou ing the user interlaces and the structure of ranging ('ICR) baseband equipment 'l'elccom * (,\li'l'(l-'rancel ' lJutch ll'l - libe 'ali7ation of telecommunications the directories. \\ bile logica is to supph the Satellite l-Lutelsat - linnish l"l'l' (ll-1C serv icesin both the LS and [lb means Control Centre in Pat . the relevant l'elcconimnnicalions lnmarsal I'l'l ' that a high level of attention is ghen central system soltoaie and the 'lClt lhiiips Telesol't International ' Posherkel to cost and eliiciem). Ne tcclr station computers and softoare, (Sweden) - Siemens Belgium ' Siltltal) i nologics, such as integrated ser\ ices The control centre softoarc to he 'lelicrtlcatcl ' 'lclindus digital nctoorlxs. are being incr as de\eloped b) liogica M ill be based on high applied and liogi as c\pertise in the latest generation ot'the Multie this licld puts in a strong position Satellite Support S) stem originth to gain neu business Mines are no developed [or the European Space onderoa) in man} IZoropean \genc}. countries [or deregulation. gi\ ing Logira added opportunities for Since I985. logira has been imolved further penetration ol'tbe inter in a number of roles in the den-too national markets. Inent and mmlcmentation ol' In addition. telecomnnniications luxlmlio Posts public electmnic mail and postal services are l'acing public system. liePost. This is an enormous demand for non facilities and better proicci ohich has enabled Australia ser\ ice. encouraging them to look for Post to supplement its pli_\sical mail neo. marlvetroriented. approaches. serv ices \\ ith a nationwide and Logica is earning out \\or|\ for a international electronic te\t munber of post and telecommunie messaging ser\ ice. Considerable cations organizations \\orld\\idc. on c\'tcnsion of t he range of ser\ ices and projects ranging from real-time sistetn t'ttpatil) has been planned to control anti e\chzutge lewl s_\stems to occur over the ne\t l'eu _\ears. bark on data processing for large operational and administrative tasks.

'lhr lield installation ol'Maieonis Wireless. in 1885. Marconi transmitted morse code messages b) wireless telegraph) over a distance ofa mile near Bologna and too )ears later formed a company for its commrtx'ial exploitation,

Professor Alexander Graham Bells portable telephone.

Logicas GALLERY 2000, which was Logica has contributed to the dev ,- The initial challenge for the BBC launched in Summer 1986, is a digiml lopment of a news picture terminal was to gather data from a huge library system for the long term and for Reuters which will be supplied to variety of sources. including 15,500 secure storage of still picttu'es. The cl ienls of Reuters worldwide news schools and community groups. The rst customer was Television South pictrrrc services Based on standard data then had to be prepared for (TI 8), the independent broadcaster Reuters equipment, the new Reuters mastering on the \ideodiscs. Logica for the South of England, who bought News Picture Terminal (RNPT) can designed a database system to keep two systems for their production receive pictures from three incoming track of all the entries from volunteer centres at Maidstone and channels and store up to 120 shots on groups around the country and Southampton The main advantages disk. The system provides facilities for translated information from many of GALLERY 2000 to a television the selection and processing of different data sources to a common station such as TVS are the ability to pictures using a highouality video format. maintain the quality of pictures screen. Only the required images, togicas role has also been to BROADCASTING stored and broadcast, and the speed sized, cropped and ready for paste-up, implement the retrieval soltware. A AND MEDIA and ease of access and picture are output to thc wirephoto receiver great strength of the system is the manipulation for hard copy. ease with which the non computer The recent and radical changes in the The system works by converting To convert Reuters standard literate user can move around the media scene. including the intro a picture from an analogue television equipment into such a powerful Domesday discs, freely changing from duction of new printing methods. form to digital form and their storing image capture system, logica had to map to photograph to text to data electronic publishing and electronic it to be called up as needed. The develop special input/output boards display. The software had to be highly transmission (iii.ka and inrages. are problem of storing large amounts of and t a large 260 MB Winchester structured and written in modular beginning to provide new turd data was solved by using the, new disk. Tb accommodate the large form to make it as reusable and trans exciting opportunities for Logica. In technology of optical disks, which are amoruu of logic required within the portable as possible. the broadcasting area, Logit s resilient, easy to access and compact connes of a PC, Logica adopted the teletext system, PAVANE". continues Each GALLERY 2000 s_\ stem supplied rise of the latest programmable array Clients in this sector include: to be attractive, with new orders from to TVS is capable of handling up to logic elements, together with multi~ British broadcasting Corporation (BBC) ~ tlte Italian Bmudcasting Authority 55,000 pictu res. layer printed circuit boards Central TV - Elsevier Science Publishers - (H ~11) and from the 5 its Meter! With the GALLERY systems, TVS Esselte Pay»TV ' Fininvest - L'esprcsso - Corpomlimi. The increase in satellite can select pictures from their central In November 1986, 900 years alter La Starnpa- 0RF(Austria)- Ml(ltaly)~ broadcasting around the world is libraries and automatically transfer William the Conquerors original RCS (Italy) ' Reuters - Sender Frcies providing new developments in the them to a number of stills stores in Domesday Book. the British Bmadr Berlin - Swiss 'lelctcxtCorporation- nnu'ket, particularly in the eld of their studios. They can then sequence casting Corporation (BBC) launched Telen'sion South (TVS) ~ TV' Ontario - orreeway data transmission. Demand and manipulate the pictures for use the twentieth century Domesday \"Iaamse Llitgeversmaatschappij for Logicas television still picture on a particular programme. All project 7 a study of Britain in the library. GALLERY 2000, is growing transfer and processing is in digital 1980s The modern Domesday Book is fast with several sales already made. form thereby eliminating any degre- not a book at all but a pair of inter, includirtg Ti Sand Thames Tl 'in the daljon in picture quality. active videodjscsaccessible by micnr lb and Ti ' Ontario in Canada. computer. The whole project is an important rrrilestonc in the applir cation of advanced interactive video, a technology which allows a combination of moving and still pictures, sound and data. and computer programs.

Filming the famous MetroeGoldwynA Mayer lion. 1929. A number of pioneers, notably Muybridge, Marcy and Edison, contributed to the development of cinematography, but it was the Lumiére brothers who projected the moving picture on to a screen in Paris in 1895. This event marked the beginning of the cinema as we know it today.

Images of early printing presses by Leonardo da Vinci (left) and Albrecht Diiren

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Logica continues to work for the As part of the Columbus programme. Oier the last )ear. Logica in Belgium European Space {gencf on se\ cral Logica is also assessing human has worked in a \an'et) of roles on projects within the Columbus factors and ergonomic design the Anthrorack project. pan of ESA's programme. Columbus is the Euro requirements for the crew work Spacelab utilization programme. In pean contribution to the international stations. The important interface the Spacelab. which sits inside the space station, the aim of w hieh is to between man and machine in the Space Shuttle, are racks of electronic pro\ ide a permanent manned Columbus programme has been equipment and instrumentation for presence in earth orbit as a base for researched and a pmtot) pc of an use by astronauts. i\nthmrack scientific and technological e\peri» adapthc user interface ( r\tl) consists of a double tier of instrumen- ments and operations. de\elopcd for the British National tation, designed to so pporl research liogica's imohement has been Space Centre. into human physiolog) under micro» increased b} its appointment as The Al ll. based on intelligent gra\'ity. manager of. ~\stems software across knowledge based s)stem technology Logica has been imolved in the all elements of the programme. The allows the interface to adapt to software specication phase of the Columbus programme is \ast. \ariables such as the indi\ idual project. working for both hayser- inxolving ower 50 companies from ten characteristics of the user or the tasks 'l'lu'edc and \erospatiale. -\ Logica continues to be a leading European countries working ona to be performed The information. particularl) interesting part of lluropcan supplier of infornuition number of major elements. Great feedback. or explanation pro\ ided to logieas work has been the develop technology for space applications. \\e emphasis has to be placed, therefore. the user is then \aried to suit the ment ofa man machine interface hznc c\pcriencc of r *alrtjme s_\stems on commonalit) and standardization. specific situation Such a facilit} is prototype for Anthrorack. This prm iding high performance and Seven l-Iuropean software and space particularh important in space as it included the design ofa special high- reliabilit) as well as astrong back sislems companies are subcoir can support a crew member in leiel language called EVperiment ground in the planning and manage tractors to Logica. difficult and stressful situations. Description Language (EDL) which mcnt of large and technicalh MBBVERNO. the prime contractor allows experiment definition to be comple\ programmes. for the main Columbus project. entered in an Englishelike form. The Our imohement with the needed a contractor who could result is that astronauts haw far giea» limo/Jean Space lgcnry (ESU has ensure a trul) conuntm approach in tcr control over the progression of e\pandetl. and we are now working the design of software. logica was their work. in more progranuncs than H er chosen because of our recognized In addition. as a result of changes before. ()in' work in space is broad e\pertisc in the design and develop in the s_\ stem concepts on the project. and tli\ersc. and not dependent on ment of software. for our inter- logica has been contracted b} MBl-l- an_\ one programme. national standing and for our ERNO to work on adapting the specie [.ogica's space work is also experience in managing large ficatiun and tuchiteetural design of e\panding in the eld ofsatellite projects. One of the roles of s)stem the invt'light software, conununications for commercial software management invohcs applications. \\clta\e110\\ norked for anahsing the software de\elopment Clients in this sector include: an impresshe range of space use ' requiremean of the w hole pro \eritalia - Aerospatiale - British both pritate tmd international gramme. reviewing the enormous \cmspace - British National Space gm ernment»l'ttnded organizations, range of software lechniqu es Centre - DF\ LR (Germany) - European Our work [or El 'I'Hl Srtl' is described a\ailable and making recommend Space Agency - European Space in the Post and Telecommunications ations for the tools anti techniques to Operations Centre ' hatschhrcde section of this report. be used by all the subcontractors Vlatra - MBB-ERNO ~ UK Ministry of \\ hilc much ol'l.t)gica's work in in\ol\ed. Defence space has been centred in one compan). these skills are being e\panded geographicalh and new areas of work are emerging.

Tycho Brahe ( I54d1601) was a Danish astronomer whose planetary observations set new standards oiaccurac}. llis as. stant. Johannes Kepler. used the collected data in formulating his own laws ofplanctar) motion.

The discmcry of Neptune. 1846. hen Guile and d'krrest set out to look for \cptune. using calculations by Leverrier. they used a new star map of the area (right hand photo). The left hand photo shows the corresponding portion ofthe ski. Iieverricr's estimated position for \cptnnc is shown by across; the arrow indicates the planets actual position.

Logiea as anarded a eontraet in Logiea has also norked on the den» During the tear. liogiea was awarded 198) to (ltHlttl). install and eonr Iopment and installation ()l'tht- most a major eontraet h) the l k's \orl/I mission the ne\\ \ational (ias tt(l\£tltt((l water management system Heat llolerlnr its neo regional \lanagement S_\ stem lor Ht'IlIS/l (his, in South l-Jast \sia. logiea has telemetr) seheme. The initial order l)e\elopment is non eomplete and (le\el0ped, in eonjunetion \\ ith as [or some eighteen DEC-based the main system is undergoing eontraetor Bumi heinruteraan. a master stations running logiea's rigorous Iaetor) trials this _\ear. sophistieated remote monitoringr and \lstS'l'l'ilt Ct l\'l'lt( it t paekage plus Installation and site testing of a eontrol system, based on our \l.\SllClt se\eral hundred olour Ml<1|)|\\ nnlnher ol' the toeh e satellite Ct )NI'ROL paekage. tor the Sela/Igor outstations. This represents the rst proeessors in the regions has ahead) Hater Nor/M in \lalaisia. A eent all stage in \orth \\ests st 'ateg} tor the heen eompleted. system supplied In logiea eommune introduetion ol'an integrated The purpose oi'this sistem is to eates \\ ith 105 remote telemetry operational management s_\stem pro\ ide monitoring and rontrol for stations, \ia narron-hand L Hll (lio. throughout the region. ENERGY AND the llritish (ias supph netoork \\ hieh to monitor and eontrol the operation logiea has also non major He UTILITIES eomeys natural gas from four eoastal of one major dam, 100 miter reser- eontraels l'rom lnglian llutt'r'x terminals through some 3,300 miles \oirs, (it) pumping stations and 13 (Iolehester amt Uundle di\ isious for There is inereasiug demand tltttiss oi~ highypresstue pipeline to o\er 100 tr 'atment plants throughout the \lASl'l-ll COVTROl , s_\stems. 'l'his this seetnr tor the pro\ ision olopera olitakes \\ here the gas then passes hlang \alle). These installations eoniirms \nglian \\ater's deeision to tional management sisttms nhieh into the transm . on sistemsol'the eurrenth produee about LZOO million standardi7e on logiea telemetr) olier the elienl an integrated solution t\\e|\e (ias Re yions. 'l'lle eentral litres oi'drinking \iater dail). S}St(-ltt§ in all the di\ isions and elears to the manipulation Ultlttltt and the super\ isor) \stem is hosed on the \\a_\ for the introduetion of an \\orkings ol automated equipment. liogieas \l \lellt (jONl'ltftll tele» integrated operational management Logiras sltills in sistellts integration. metr_\ paekage running on a network sistem. »\ l'urther step in this direee eonpled \\ith the de\e|opment ul'our ol three Digital \ \\ it 783 processors tion was the completion of the full) \l \Sllllt (IOVI'HUIJ supen isor) to pro\ ide a \er_\ high lLNl ol'systeui automated outer treatment works at eontrol and data aeuu tion (Stltlnt atailaliilit) in dut_\. standh} and Mton. n here eontrol is no being kernels. haw non the etnnpan) a emergency de\elopment roles, performed In \llil)li\\ ontstations leading position in the market. llogiea The neo system is designed to \\ ith a ,\l lSl'l'lll (IUVl'ltOL sjstem hasearried out nork in sewral parts meet British Gas ' requirement tor linked to the di\ isional telemetr) ol'the \\or|t| on a numherol faster: more responsh -and more system at \om ieh. (the limo important proieets tor oil. gas reliable eontrol of gas snpph seheme is one of the largest auto, eleetrleit} and nater orgaut'latious. throughout (irat Britain. \oaljsis mated plants in Europ * and \\as In the oil industn. liogiea's and ptttllt'tltltt ot'the gas net\\orks opened |)_\ llltlll'he lrinress Ro_\al iniohenient has. tort-\ample, perlormam'e, taking into aeenunt ar|_\ in Juli). e\tended to seientie applitations. daih \ariation in eonstnnerdemand. lur tam-hurl (it'o (foam/Irons \\e Iaeilitates more eliieient manage (llients in this seetor inrlude: lime dewloped a palaentologiml ment of pipeline operations. Anglian \later lRCO British ' BF ' datahase s) stem. ealletl Slit YlS. British Gas ' Distrigas - [)0\H DSM hieh helps in the itlentilieation ol \ardgas - (lasume - (iearhart Geo roek stratilieation and the deter Consultants ' llamilton Brothers ' kimait mination oi geologieal histor\, Petroleum - \iarathon 0i] ' Mobil Oil - North West aler- \()H - Panhandle Eastern lipe Lille ' Laktank ' Petroleum De\elopment Oman P\li\l (Nether lands) - lra\is (\etherlandst Rotterdam \ntnerpen lijpleiding \lij Rotterdamrltiin lijpleiding Mij Rmal Shell ii\ploration and lmdnetinn [.ahorar tor) Selangor Hater Works ' Shell Shell Pipeline S}SltlttS Total Uil Marim- t l\ Atomie llnergi Authorit} - \alero

I rotor being looered into a halaneing pit.

(lolonred disrharges in (leissler tuhes tilled ith ratied gas. Imestigations of these phenomena led to disemer} oi' rathode tft) s. \Arays and electrons.

Jogu/uCms and quality hayc become Logica General Systems has supplied EMU, Europes largest coal and ore synonymous In its most recent and installed the Tzar package for handling centre, operates a trane commitment to quality assurance. Monro "Ibsi Industrial), an Italian shipment terminal in the port of Jaguar has awarded Logica a contract manufacturer of steam generators Rotterdam. Bulk cargoes are to develop a quality suneillance and turbines. hydraulic turbines. unloaded, stored. reloaded onto centre at its car assembly plant in pumps and thermal cycle com- smaller vessels, barges or trains, or Coventry in the L'k. Jaguar wanted a ponents, lzar is a manufacturing transported to a nearby power station. last. reliable method for identifying resource planning package. distrie l-LVlO uses acomplex networkof and correcting faults and for identify, biitcd by Ingica General Systems in conyeyor belts and traiishipinent iiig the source ofquality problems. llaly, which is of particularly benet equipment to handle the coal and ore. The challenge in designing a to iiiaiiul'acturers whose production logica is currently working with system to meet laguar's requirements is on a project basis against client EMO to introduce an integrated was in pioi idiiig an interface with orders. In addition. ngica General system to control all parts of its the inspectors. pl()(tSSlll;Z their Systems provided evtensive training. installation. A study recommended MAN ACTURING ndings and dealing with the support and consultancy to Franco that the operational system should information in realitime, The Tosi in an implementation pmcess include systems for process control, ltlanulacturing companies all over problem provided Logica with an that has continued over the past year. production planning, maintenance the world are hay irig to operate in an opportunity to put into practice our It has involved both implementation planning and storage management increasingly competitive inter- knowledge and experience in the ot'tlie package in the plant and and be implemented in phases. national iiiarket. They are therefore licld of speech technology. According integration with other client systems Logica is now working in close becoming more concerned with to .laguar Cars, Logica's solution One of the main benefits to cooperation with EMO on the design reducing the lead time of product rcprcsents a well balanced blend of Franco Tosi of the new system is that and implementation of the process (le\e|opment and their operating industrial business senseand e\pere by facilitating more etlicient manage- control and the planning systems. costs while increasing the quality of tise in the application ofathaiiced mentof production resources and Logica has also developed a their products. The benefits of technology. automatic handling ofdue dates. system which collects and integrates ithlllttd computing and the ellecthe The system changes the whole reductions in deliiery times and all information coming from use ol'iiilhriiialioii across the iiiaiiur way in which a production line production costs are achieved. At weighing devices within the terminal. facturiug enterprise are being inspector works. replacing the present. preparation is beginning for The system hasbeen designed to increasingly accepted. Logicas traditional clipboard and quality the next phase ofimplemcntation integrate with the process control e\perieiiee in consultancy and ill report card with a radio headset. The which is the installation ol'on-line system at a later date. developing integrated solutions computer sy iithesises human speech shop lloor data collection systems, together with our aliility to offer to direct the inspection proce. and Clients in this sector include: support on an international scale the inspector reports by speaking to Agfa Geyaert - Aldel - Braun - British ensures us a strong presence in this the computer Details of any faults Fermentation Products ~ Brown Biweri sector, found are rapidly fed back to the and Company Caterpillar - Cleanaway - lll addition, llogica has experi assembly lines wanting workers of Dow Chemical - EMU - Fiat Aviazione. - ence in apply iiig advanced teth developing problems ~ Franco 'Ibsi iiological e\ pcrtise to specific lndustriale ' GistBiocades ' lloechst ' manufacturing tasks. to e\aiiiple of For the Fold Motor Company, Logica lloler- llughes Aircralt- Interpharm - this is the l((tlll deyelopnicnt of an is . sting iii the development of a Jaguar Cars - Mannesman Demag- e\pert systcm to support the system which will control new model llutricia - Picanol ' Rolls Royce and loriiuilatiuii of industrial products. launches, enabling Ford to meet its Associates - Schering Agrochemicals - goal of bringing quality products to Scott ' SimerMontedison ~ SKF the market faster. This is the first (Netherlands) ' Sobemi - Solvay - phase of a project to de\clop inte- Stiipler - Tecnomasio Brown Bovcri - grated information systems to Thorn EM] Ferguson ' TNOVTPD ~ Volvo support Fords European engineering Parts - Vredesteiii - Wellcome - and manufacturing operations. The Whitbread systems will be based on an IBM mainframe using lMS database technology. In the past, Ford has deyeloped its my ll business cms software. but on a project as large as this. Ford needed the committed level of resource that liogica could offer. m llenelits of the new system include ell'icieiit scheduling and Model 1 Ford assembly line. Michigan, functioning of new part. standard 1927. The Model T was first manufactured ization and coordination of part in 1908. Filtccn million cars were sold procurement and scheduling control during 19 yeaisof production. With the of new vehicle launches. The first Model 'I. mass production could be said to phase has been operational since have come of age. October l98710 support the intro- duction of a new model. The second Maudslays lathe. In 1797. Henry Maudslay phase of the system will be imple~ set up his own workshop and became mciitcd in 1988. The system will also famous for the use of lathes and other monitor and control the llllplP' machines tools which he designed and mention of imprmcments to e\isting constructed himself. models.

In 1990. London I tumgmtuul In West Germany. logica is working Logica lras been commissioned by the Limiter/(LUL) plans to begin a w ith Brenrer LugrrharrereseIlsch(4/2 San Francisco Bay lira Raoul Tmrwit programme for the replacement of its (Ii/1}), the operating company for the District (BART) to de\elop and rolling stock. In a radical ren'eyy ot' ports of Bremen and Bremerhayen. implement a new Integrated Control the operation and design of the on the implemenmtion ol'a rnrurage- System (ICS) for the control of PARTs urrdergrorrnd trains. LUL commiss- merit system for the container port. highly automated 72 miles. 34 station ioned Logica to conduct a practical Tire system helps in the planning rail network. ICS is a complex real, deyelopment study to investigate of container storage and controls the time system which connects misting ady anced techniques [or fault day to day moyementof handling tr'ackside plant with a new central diagnosis and pcrformrurcc analys equipment. including trailers. cranes computer system driving alpha on the trains and straddle carriers. lt interfaces to numeric and colour graphics displays LL'L wants to introduce asystem the port's mainframe system and and large central display boards for whereby driiers. at the torrch of a operates oyer a network of many the lraineontrollcrs. lCS will enable button, can call up information on terminals around the porL Colour BART to increase the train capacity TRANSPORT the status of all equipment on their display stations in the control tower from the current 49 to 74. and train and receive adw'cc on what to are used for operations purposes. The ultimately to[15 trains, \lore atrd ntore people. \ehielcs. do if the train fails in seryice, in the new system eliminates the need for ljogieas involvement on this aircralt and ships are tra\elling in a dey'elopment study, Logica concerr manually prepach \yorklists. project started in 1986 providing linite area of road. track. airspace and trated on fault diagnosis of the safety assistance to BART in deyelupiug sea. 'lransport operators all oi er the brake system and performance soltware for the central comprrter world are therefore continually analysis of the traction control system of ICE. Since 1985. Logiea has concerned with improying elTrcieney system. The llogica solution irnoly ed been responsible for the direction and and ensuring optirnurrr use of brrilding an experimental micro, implementation of the die entire resources. This yery often leads to processor~based expert system. This project, which is being undertaken by intestment in computenhased prodded a means of using problem, a large team 01' Logica, BART and technology for streamlining the solying knowledge on board the train. subcontractor stall. operation and control ol transport. An interesting feature of the

Logic; . skills in adyaneed tele- Increased competition between project is Logicas use of computer conunuurcalion and realitirne control airlines means that adyanced aided soltware engineering tech- are being applied widely to (leyelop resenation systems and lleyihle data niques to control development of the systems for a rrrrmber of land. sea and communication networks are playing system architecture. Developmental air transport organizations an increasingly important role. ICS is due to be completed by throughout the world. Scandinavian lirlr'lres Systems has mid1989. decided. through its subsidiary S.llzlRT(S(rrrrdirraci(rn llrlllirtecrss Clients in this sector include: Hesrlr'alions System/or Truce! BremerLagerhausGesellschal'l British lgmlx), to replace the eyisting Airways - Civil Aviation Authority ' Hong S\l-\RT network with a new network Kong International Terminals - lNTlS - based on modern computer ' Sari Francisco llay technology. Area Rapid Transit (BART) ~ Schipperswal - S\l.v\R'l' is a terminal network SMART (Sweden) - 'lravel industry coy ering the w hole of Scandinay ia. Automated Systems enabling tra\ e] agents to make reseryations thmrrgh a large number of booking systems including air and lrairr tickets. hire cars. hotels. theatres and other services for the tra\eller: The existing \ernion ol' the SMART network is based on a technology which makes it diieult and costly to connect new booking systems and. consequently. limits the range of sery ices which can be proyided through traycl agents. To resolve this problem. S\l.~\ltl has contracted Logiea to design and implement a general gateway between the terminals and the The Wright Brothers making the rst booking systems. The main primosc powered llighton l7 December 1905. oi' the gateway is to switch the trallic Orville Wright at the controls. Wilbur on from a terminal to the desired foot. booking system when requested by the user and to adapt the protocol of Drawing of ying machine by Leonardo the SMART terminals to the different da \inei (1452-1519], His famous protocols used by the booking notebooks (published long alter his death} systems show that many ufhis ideas were far ahead of his time. being quite incapable ol' n ,rdl (split-TF- two) realization by the available technology of his day.

In \lest German}. IAigit'a is working In the t S. Logica is norking for a Clients in this sector include: for ()lireilito den-top a point-oilsale non l} tornictl conipan). HUIHQ Inc, kequ Computers ' \Tkl' lliilips ( [08) product t'or supermarket \\ hich dewtops and leases enduser Teleeonlmnnieations ' Data General checkouts. 'I'he Oliwtti Food Package. ststems appli atious on a custom Digital liquipment Corporation - Eriesson as it is alled. is a cash register s_\stem he \n unusual feature of Information Smems ' lcrranti Computer using all the latest hardnare. \AIJR \Qs business approach is that it 5 'tems ' UHUMtltt'Ulli - llollandse including hareode tenders. magnetic charges its clients on a per trans, Signaalapparaten ' llonemell Bull ~ card readers and electronic seales. action ha s. In addition. in order to lB,\l' lCl, lnlormatton'ltehnntogi Aimed at the international retail relieve its management of the Limited - Inter Innmation Bank Sistems market. the product has to he highl_\ eoneerns of establishing a large hoppens l\rupp Meiko' \Cll ' ile\il)le. allowing adaptatioli l'or teclini al slatt. \ \|)R;\Q ltas \i\tlurl" ()lnetti' Philips- Philips ltadio dilTerent national languages and appointed lugica as its sole source of Communication Sistcms' llessei customs, To cope \n'th this require, snltnare (le\e|0pment and S)stems IeleeomnnInieations- ltaeal lnink COMPUTING AND ment. Logiea de\eloped a generic integration ser\ ices. \ero\ ' Reuters Siemens ' Telettra

ELECTRONICS suite ol softuat'e packages \\ hieh HDR \Qs initial commitments 'Ieli l nis}s- \\|)lHQ - \(1 Electronics Oli\etti eatl use to gene ate user spe~ imohe the appli 'ation ot'speeeh \lang \\orniald logiea maintains a strong position in ('ilit packages, In addition. users can processing technologies and parallel this sector. norking for the industr) \\ rite their on n prog 'iunmes \\ llieh processing architectures for high of n hieh it is part, We ad\ ise san can eommnni 'ate with the food paclv speed database aeeess. The rst three pliers on their product strateg) and age. enabling them to tailor the sys- projects under the agreement were pro\ ide market forecasts for cutie tem to their o\\n specic needs. For begun (luring the )eat: "the rst puters electronics and coin example, as the package runs the) concerns the application of speech munieations equipment. can change data to alter the content recognition for a credit card It signili 'ant portion otonr nork and layout of information shon n on authorization processing system, is for computer manulaeturcrs \t ho the displa) s. resulting in substtmtial labour sa\ lugs depend inereasingh on sottnare sales The data tiles are also speeiall) for the end user. The second is the to pro\ idc them nith re\enue and designed for tle\ihilit_\r Records oil (le\elopmcnt ot' a s) stem to support a prot gronth. \\hi|e most of them data. such as methods of ]).1}m(t1l ne\\ cheque cashing ser\ ice at a ha\c their own inrhonse soltnare and t) pe of toodstnft". can he e\tended number of shops across the l S. The de\elopment teams. the} otten call on for user specic purposes and 'an be Stt'\t(t. n hich is self nancing for the the e\perienee and e\pertise of accessed h) the user at an) time. client. enables registered customers specialist outside resources to assist to cash age elfare and personal them in dewloping soi'tnare either cheques The third pioiect. tor a large for their standard s} stems or for their Count} SheritT department, is to applications catalogue. ()ne partie prtnide high speed enquir) support eularh interesting pruieet tor Logica into their eritne events database. The isoureontimting pork Ior [111/ I /\ sistem \\i|l alto police otticel's to IAIlIo/iiloi'im Limited on a graphics access \ ital information in a matter of soltnare product seconds. In addition the taet that Logiea can ghe international suppnit in the de\elopment ot'soltnare tor cone pnter mam]lactnrers places in in a strong position in this market.

liarh eomputer. The Mechanical Brain being worked by Doctor 'Ihilhnrn. lQAtS. The Brain eould arriVe at an answer in three weeks 7 it nonld hme taken three mathematicians, orking sewral hours a day 25 years to arrhe at the ansner.

Charles Balthages anahtieal engine. "433. A forerunner of modern digital computers. the engine was designed to compute and print mathematical and astronomical tables.

For the Hong Kong ope ations of the Telemalica. Logicas multi-client Forthe I Iiittelsiti'tgfl later; a single 7»I;'Iet~cn retail chain. liogica has sttidy of tclecommuuieations acadetnic institution operating on performed an information manage markets. continues tobe in high [our campus sites in Northern ment study to identify the computing demand and has further expanded Ireland. llomca undertook a strategic facilities and systems required to the product areas it cmers. timed at rey ten of telecommunications needs support the company is rapidly suppliers of intormation technology Logica identied a number of" expanding business. products and seryices in estcrn strategies each covering \oice. data. Europe. the 'l'clematiea service te\t and \ ideo comntuni 'ations and In 1986. when the UM Daily prm ides market forecasts and helped the L nitersity to select the 'lrgmph came under neo manage analyses of market trends and one ohieh most closely matclted its ment. liogiea has chosen to under deyelopments The 1987 report caters tequirentents. 'lhc tinnersity' ltas take an information technology study. the markets for electronic mail. accepted logicas recommendations 'laking into account the neo spapcrs public tutd priyate nclnorks. data and proposes to implement them. short and long term requirements. connection detices. PBXs and CONSULTANC the study cmercd printing. producv business telephones. For the public transport authority in lion. administration and linancial Rotterdam. the 3E7? liogica has l-or Logi as clients one of the key proccs. in all parts of their Logica assisted a major regiolml l '5 completed a strategy study fora new elements in the tit-\elopment of their organization. Folio ing the study. bun/fin choosing a communications communications infrastructure to husitu s their approach to iIIliirmtr [logica was retained to help architecture to integrate and support their plans to integrate tion management and inlormatimt implement packagevhascd solutions optimize the \arious separate data systems for the control and adminise technology attd this means that for its linancial systems. networks that had evolved as a result t'ation of bus. tram zutd underground demand for high |e\el consultancy is of bank mergers and gron th. sery'ices. increasing. in gene a]. logicas nork Logica has assisted the South is directed at the information tech- tonal/[mi GOl'lI'II/Illlll to detelop a For Lloytls Bun/rin the I l\. Logica Logica is conducting a study to nology or a of the management the year communications plan for 37 has helped \alidatc the technical pro\ ide impitned oltice automation consultancy business. lloneter. ne dcpattments and statutory authorie approach to the ledmeltnnncnt of its and intomtation handling facilities are also acti\e in other areas. such as ties. Logica identied a cost effecthe core systems This has imolyed for the L h Cabinet Otiicc. The study marketng and technology approach to the management and arry ing out a compiehcnsiye has in\ ol\'ed complemenutry system mamtgeman detelopment of diverse communi- strategic study ofthe user require and organizational solutions and the \llhough the international cations requirements. including \oicc. ments. Similar consultzutcy \\0Ii\ has development of di etcnt options for linance and central gmernmcnt data, facsimile. tele,\. \ idco. graphics. also been undertaken fora Sncdish e\aluation and decision at the sectors are particularly important. radio and microuavc operations bank. midpoint of the project, logica undertakes consultancy pro iects across all our market sectors. III the LS. liogica conducted a study For the Mk oral \amc |.ogi ais Clients in this sector include: The range oi proiects includes for a rim/or rtmtputcr inunit/helu/rr undertaking a communications Bank of England - Barclays Bank - HP strategic policy. equipment e\aluation on the quality ol'the sen ice its head nctyyork study. Based on identified International - British Aerospace British and procurement. tutd project and oliicc prm ided to its European sulr requirements. liogiea w ill produce a Airways - British \lational Space Centre - system audit. In addition. \\e proyidc sidiaries. liogica's report included netnork design and implementation British Post Otiice ' HUN ' tnarkct reports aitd multirclient Iecomntendations for remedying the plan co\ering the current and Central Computer and Telecommunications studies for the suppliers ol'sen ices diliicullies lound. planned data communications needs Agency - Credit Snisse First Boston - Daily and products in \arious industries 7 of the scrt ice. Telegraph ' Elcom Collieries- European such as broadcasting and communi When a I S lmn/t' migrated from one Space Agency ' GD] (Netherlands) ' 'ations e \\ here logicas c\pertisc is tnake of mainframe contputer system Heercnta - lloate Gorett ' ICL ' London internationth recognized. to another. logica proy ided coir Borough OfBesley ' London Underr sultaney on application-to-application ground - Nediloy'd ' New Zealand communications and terminal access Treasury ' - Rotterdam Public lie\ibility. Transport Authority - South Australia Public Sery icc Board ' State Bank of Just alter year end. logi 'a issued a \ictoria ' Uh Department ol'Health and lien publication \y hieh rc\ tens the Social Security ' UK licparttnentof current market situation and assesses industry ' tilt Ministry of Defence ' market trends in the c\panding lield t niversity of Llster ol mobile communications. The report co\crs all established scr\ ices and facilities including cellular radio telephony sery ices. cordless .lohn Logic Baird and The 'i'elcrison l92ti. telephones and radiopaging systems. Baird successfully demonstrates It pro\1'des an analysis ol'de\elo|r [(Itt isinn. the Electronic Eye. This mcnts. including technological demonstration in the studio was seen athances, regulations and stintdards. instantaneously on screen at the receiving and of supplier strategies. station.

The Einstein Tower at Potsdam, East Germany. asdesigned by Erich N'lendelsohn, 1919-1921. to symbolize. in architectural terms. Einsteins Theory of Relatit ity and to be the \yorkshop in \yhich Einstein tested the theory practically.

Thc thc cld ol'computcr urchitccr 'I'hc prolotipc aistcinx hu\c bccn Itogicu is dcicloping :1 «ct oi'luur turc lius liccomc u sccnc ol' ucliw so ~~uccc~~|u| tiiul u ucu conxortiuni. modulur portui)lc kkl'lll'iS \\ hich chungc und progrc purliculurh in 'Iuurt x no\\ hcingc. turcs b) both siniulution rind ii\pcrt Sixtcnm. \\ ith Logicu uguin hich lull} implcnicnt thc \urious Incumrcmcnt. [t ccntrcs on lhc \\iil'i\l|l§. ux prilnc mntructor. liuiut'cs ol' \. i0. 'l'lic) urc dcs" rncd rlcsign ol'u pout-rtul. i'ic\1hh intch i'or ilc\il)ilil_\. rcsilicncc und portr RESEARCH AND itllllltlth urru) oi trunsputcr~ und Logicuk inlcruul silii\\ili't cnginccn uhilit). und urc suiiultlc l'or DEVELOPMENT incluch signiiicunt oorlt on «oltuurc ing progrummc. Smuiiic. hus upplicutiom \\ hcrc u stundurtt tools to ussixt in thc dcwlopiucnt. coinplclcd its fourth succcssiul )cur product uuuid be too |imitcd.'i'ho} Logicu itua un c\tcnsi\t- progrummr tlchugging und periormuncc unuhsi< ot'opcrution. During liiut liinc. i'olloo the iuu-rcd urchitccturc ol' rcscurch und dcwlopincnt u hich oi' lurgc progruins, it is u tcstrlwd for Scsunic huscnsurcd thut Itogicu dci'incd i'orttSi und \\ii| opcrulc in t'mclk \\or|\ in three tiillcrcnt c I'cscurch into pcrl'orinum c i uca in continucs to tuld u(i\uuluge ot' thr conjunction oith othcr USI product» goricx. 'i'hc irst oi thcsc is rc ucquiicd it'tittlitlllm. \Iosl of this l)ét\lt c\p|oiting thc poucrol tiunnpulcrx. lun( cd progrununc: and oltcn lcuiis hu~ uorkcd \\ ith British ' clccoin calimuting. plunning uud control. \\c customile to u ttscr-dclinvd uppir lo c\pioilution i'or clicnt ~_\xtc|ns. iltMillIh Ituinirutoritw in dmcloping hu\c u|~o idcnlilicd Ntia ol tools for cution b) ['urthcrprm'cs ingol'luul's such ua \Ri CS und .luguur (urs tlllt' ol'thc 1 st c\cr iinplcnicnlutions coding. tcxting uud proicct uthninix'r oi'inctui on tho chip. The sonicc 'I'hc sccond cutcgol) ol our nu it oi thc (1(Ji'l'l's [Contilé nsuitulit' ll'ulion tor our moxt Ircuucnll) uacd oticrcd b) Logicu. both \\ ithin thc nor is the (icuiopmcnt oi tools und intcrnutionul 'l'cl gruphh uc ct soi'tuurc dciclopnicnl tllt ironnicuts. conlpuin and to mtcrnul clicnts. incl lotiologit hich cnublc us to 'Iilcplmniquc) iS[)\ ilntcgrutcd \lc min to u~c thcsc nicthod< und spuns u|| stugcs troin l'unctionul com uct busincxxs morc cll' icnt|_\ or Scr\ iccs |)igitu| \ctooriti primur) tools us mdcl) 11> possiliic. und to <|)ociticution to tho point oi niumr llll(lil'i(ll\i t ilicrcnt t)pc~ ol'\\ori\ in rutc intcrlucc rcctnnntciuiutionx build on tlicm. \\c shull oi coursc lucturc. thc 'utnrc. Scsuinc und liicgutc urru) l\no\\n u». lhc \|\c_\ IlighSpccd rctuin our t'|c\i|)iiit} lo udupt to oihcr 'i'hc ud\unccd trchnolng) from ticsign ~cr\ icr urc iinc c\ulnp|c~ ol \cl\\ori\ ( \||S\i, il Itl'mii c~u \itttpit. Inclliodx o hmc thc ~ituution this dcwlopincnl hus eincc liccn this twc ol'xmrk. \\\i[cht(i conncction wr\icc uud is dcmttltd~ it. upplicd to thc custom design olu chip Thc linrd cutcgor} cut-oinpuiicx intcndcd lo mch thc licct ~ oi lhc hich ['orm: il\(_i coinimncntol u our ticwlopmcut oi kcrnclwr l \|S()\ und \dmirul rcscurch 'I'hc C(Il'l'l'K \. illi) rcci)nnnciululions no iinunciui dculing tcrniinui bcing pro uctx. cmcriug intostincnt in thc projch bcing sopportcd h) thc \|\c} on uuwsugc hundling unti clcctronic (lcwiupcd in |.ogiru,l singugutc (imclopincnl oi hulduurc und or progrummc. muil urccmcrging us uuorldoidc urru) \\ i|i <11wttttL'Ultlpttiitllitosl. aol'tnurc n hich cun sulm'qucntl) lic Logicul rolc on tlic proicct |iu~ stundurd. 'i'hc slundurd ix being Imurd spucc und poucr rcquircincnts ticiiicrcd tou ciicnt on u product lltttt to dciclop u purl oi :ic \i |b\ udoptcd in public curricr~ lor thc und \\ ill ghc impimcd pcrlbrmunrc i)it\i\. (I||.ii\.it)tl iK dcwriln-d on liti< xoi'tuule und hurduurc. in\oh ing wiuling oi mcssugcs hcl\\ccn b) iinpirincnting sonic lunction< in "113thillit()littl'<\:ttttplt\t'ull bc ticsign oi' thc circuit ~\\ ilc l. orgunixutions und i'or inlcrconnccting hurduurc ruthcr lhun in mirror iound throughout this rcpiut iior u tut'icl} ol'computcrs \\ ithin un proccssor sot'tourc. c\ump|c l"\.\"i'lt\|)|.. \i \S'llllt During thc pust _\cu|: \Ri 18.41 proicct orguni7utton, 'ihc mcwigc t'ucilitics (7()\'l'li()lt.tNiki 200th. in ulidi iointl) l'undcd h) ihc \i\c_\ |)u'ccturr hundch in \,i(li]u|rcud} includcu lion. no hu\c i'urthcrdciclopcd our utc und :1 cluhoi'l i\ illstlliltltt o idc rungc of t]t(§stl,.{t l} pca. softmtlc product for tingcrprint compunics. hus ch rmcurch into thc including lucsiniiic. tcic\. tclclm und recognition (I-(ltii 5") us ucilusour [N' of uduinccd tccluiologics tor (iigitizcd \oicc. imugc procrssing (Li (Ill ) i und uppiicutions in thc insuruncc lliill'ixil. xpccch rccognitivin (LOGOS'i \s primc contructor lin' \IiiiiSi tho} products. nhich hu\ c\\ idcr limcurcli into Insurnncc |-L\pcrt upplicuhilit), Sistcnisl. Logicu hu dcxclopcd tuo protot) pc c\pcrt \)\ltitt,\ onc I'or I'Irc \lurie (juric ui hcr luborutoiw. \\ iiil hcr ri

Chr

COMPANY INFORMATION Dumcnms l A B Hughes ((lhait'inun) [A 4 Ta} lur (\lantlging Director) A l, harno} [ Maeleud l) \l \lann (Depui) \lanaging Director) H V Martin GG Moore (1 G Rowland P D C Slmensun P G Bosonnet (nnniewruthe) Cl F liiillvher (IlUWUCLUllW)

SECRETUH G G Moore

REGISTERED OFFICE 64 V0 man Street London \\ M 455

HEGIS'IRARS Close Registrars Limited Arthur House 803 High linad Lesion London Ii l0 7 \\

The meeting of the Great Shields of the SL Clair river railway tunneli Canada. R390. Two great 21«f00t shields. which excavated the tunnel, were pushed tagether and made in meet edge to edge, thus entirely nishing the work of excavation

REPORT OF THE

DIRECTORS The Directors present their report together with the accounts of the (Zompam and its subsidiaries for the tear ended 30 June 1987. These nill he laid before the shareholders at the Mutual General Meetng to be held on 11) hotembcr 1987.

PRINCIPAL \(I'IH I'l'lllS The business undertaken b) lngiea companies throughout the tear included:

the marketing. design. pmduction and maintenance of custom built software and associated hardnare systems eonsullanc} and pmieet management in the eld olinlormalion leehnolog}

the design. deielopment. implementation and marketing ulsoltnare products and the re-usahle elements of applications soltuare. called systems kernels.

RESULTS DJ) I)l\TDEl\l)S 'l'urnmer as £ll1 nlillion. up 27% from £87 million in the pie\ious )ear. lrclax prot was £113 million. an increase of 06% U\l'l the 1980 gure ofi million. The prot margin e\oceded l0%. its highest leiel since lAIgiea's earl) days. The numbernl' stall'employd. including those in related companies. grew 14% 1112082.

Folk) ing a slightly reduced ta\ charge of "57%. prot after tm rose 68% to £7.1 million. Earnings per share. at 14.4p. were up 45%. on an mpanded share base.

The directors propose an increased lial diiidend ol' 1.2p net per share. making a di\idend for the Full )ear of Up, compared with 1.0]: last .war.

Improved margins and good use of working capital resulted in net )ear end cash balances £1 millioll up on last )ear.

Bl SINESS RH IR A rewiew ofthc development ol'lhe business during the y r is gitcn on pages 3 to 31. Included in the re\ iew are reierenees to research and development acti\ ities and the Company's l'uture prospects.

DIRECTORS During the _\ear there ere the l'ollo ing changes in the composition of the board: DJ Stanley resigned on 15 tugust 1986. l l) C SICVCHSOH has appointed to the hoanl on 20 \larch 1987.

()n 15 Jul) 1987.11 \ Tailor announced his intention] to resign his position as Managing Director and Chief ll\eeuti\c \\ith ellcct from 30 September 1987. l Ie \\i|| remain a non-executiie director. D W Mann will become Managing Director and Chief Executive as from that date.

The interests of the directors in the shares of the company are shim n btlt). On 23 Jul_\ 1987. ] \laeleod sold 2.000 shares: there were no other changes in the period 1 Jul) to 24 September.

50 June 1987 51) little 1980 or date of appointment

\on- \oir Benecial lleneeial Options llenelicial Benecial Options P A l5 Hughes 2000.000 7815.575 0 2.771.287 215.088 0 L A 'laylor 1.700.296 250.001 4.906 2.043.296 230.001 4.906 t L Karrie) 49.696 0 29.966 53.090 0 29,906 I Vlacletid 22,345 0 25.000 22.545 0 25.000 1) Mann 465.000 128.912 30.960 500.000 93.912 39.966 1H Marlin 57.850 0 25.000 47.850 0 25.000 0 (} Vloore 10.000 0 25.000 0 0 25.000 (1 (j Rowland 110.960 128.912 54.9h6 112.560 95.912 54.906 1 DC Steienson 125.500 0 29.808 125.500 0 29.808 C .l l liiittelter 25.000 0 0 50.795 0 0 l G lmsonnct 0 0 0 0 0 0 Employee Shareholder Trusts 0 119.482 0 0 128.921 0

The Empltnee Shareholder'lrnsls' shares are held b). P A B Hughes. It A 'l'tolor and D \l' \1ann acting as trustees

\one 01' the directors had a material interest in an) eunlraet olsignieauce to which the parent Compan) or a subsidian was a part) during the nancial )ear.

SlliS'ltNll AL H()LDI\GS The directors' interests are described above. In addition the Company has been notied that Funds managed or ad\ ised by Scottish Amieable investments \ianagrrs Limited hold 6.55 percent of the Company's ordinary share capital.

DIStBLEl) PERSONS it is the Company 5 policy to give full and careful consideration to applications for employ ment from disabled persons, to continue it hereyer possible the employment of members ol'staiT who become disabled. and to ensure that their training and career deyelopment are encouraged.

EMPUnEE BtttllCltt'l'lOlV It is Company policy regularly to hold meetings with staff when matters concerning them and their area of business are discussed. All stall rerehe the annual report and accounts.

FRED ASSETS The changes in the fixed assets of the Company and in subsidiaries are disclosed in Votes 10 and it to the accounts.

Tt\»\TlO\ The Company is not a close company within the prny isions of the Income and Corporation 'laxes Act 1970,

tl DITORS Price Vtaterhonse have expressed their illingness to continue in ofce. A resolution will be proposed at the Annual General Meeting for their reappointment as auditors and authorising the directors to fix their remuneration.

\l iTHORJTY T0 \LLUI SECURITIES L nder Section 89 of the Companies Act l985 equity securities in the Company may not be allotted for cash (otherwise than in respect ol'an employee share seheme) ithout rst being o'ered pro rata to existing shareholders, unless the pnor approval of the shareholders in General Meeting is given. The Directors consider that it is in the best interests of the Company that the relevant authority given at the Annual General Meeting in 1986 should be renewed in similar terms. Accordingly aSpeeial Resolution to this eiTeet is proposed as Resolution ,No. 7 in the Notice of the forthcoming Annual General Meeting, The proposed authority expires at the date of the l988 Annual General Meeting and permits the Directom during this period to issue equity securities uth 2.5% oi'the authorised share capital without rst offering them to existing shareholders

liy order of the Board

GG Moore Secretary 24 September 1987 CONSOLIDATED 1987 | 986 PROFIT AND LOSS Note £001) 9000 m ACCOUNT Turnmt'r 110771 87012 For You less adiuslmenl In exclude lurnmer 01' wlmed mnlpanics 9281 7579 Ended 30.1mm Cunsolidnted lulnuwr 101493 6'5

()pemling pmfil

Iv 10313 7137 lmeresx root-i \ ahlt'r 1 payable) TTH 649) meil on ordinary aclh itics bcfurv taxation 11325 6808 Taxation on ordinar) am' ties 1211) 2574 lml on ordinary aLliulIrs ant-r Iaxaliun 7113 1251 Enrzwrdinar} charges 0 12175) Prot/(loss) allur laxatiun and euraordinar) chargcs T|13 (7941) I)i\i(1L-nds paid and proposed 8-11 _m Transfer 10/(frnm) rr'strus 6271 11/1513)

Earnings pil ShHYK on ordinal) arm Mics 111p 1011])

Dh idends per sharv 1.717 1.0;!

CONSOLIDATED 1 987 19116 BALANCE SHEET Fixedmb Vote 17000 [000

«\150111119 'l'angzil)l1a assets 10 106% 74-175 lmestments ll 1258 895 1 1894 8338

Currenl asseLs Stocks 13 586 1 Debtors 14 1 9-157 Cash and bank balances 8628 359-16

Creditors due ilhin one )ear Bank loans and mmdras 1195) (308) Other 232511 117763) 1251417") (18071)

\el rurrenl 21st 17895 1 5875

Total assels less currenl liabililics 29787 24213

Creditors due «her morc than our yar 16 (623) 11477) Dvl'crrvd lavation 17 (I51) 1178) 17741 (1655) Ncl zlssrls 111' ordinary actin'lies 291113 22538

Net assets m'discontinuid uLlh i111s 273 29013 22831

Capital and reserws S ("1 capital 19 4951] 4950 Share premium amuunl 20 8.005 8905 UUILI' resrrves 20 21-10 21 17 Prot and 1055 7111-1111111 20 15018 6859 29013 22831

P AB Hughvs l1 4 'I'aplnr

DirvL-lnrs 24 Sppu'mbcr 1987

CONSOLIDATED SOURCE AND APPLICATION OF 1987 t 986 FUNDS £001» $000 Profit on ordinary activities before taxation IISZS For tear Ended 301mm Extraordinary Charges before taxation. other than closure costs of discontinued activities rharged below ll (1985)

Adjustments for items not inmlving the movemenl of funds Depreciation and amortisation 1qu I728 loss/(prot) on sale of xed assets (ii ('5! Translation dilTrrenccs (309! 756 Share of related companies' prot 4232) (357) Illi 2 12 t holds generated by operations 127321 6919

Funds from other sources lhxation refunded 163 Sale of xed assets 186 Dividends received from related companies 0 m7 339 kppljeatinn of funds Iszna 7288 Purchase of xed assets (2385i Purchase of shares in trade imestments 0 "Emotion paid (1355) Payment of gmup tax relief (2070i Acquisition of minority interests (3) Dividends paid o 5818) H70 (Increaseydecrease in working capital Stocks ISM) (574; Debtors 4733 (3092; Creditors ["100 2741 » Hum (925; lnuease in net liquid funds from ordinary actitities 500 545

Funds generated on closure of discontinued actit ities 273 4552 um 5097 Issue of new shares tilt")

Increase in net liquid funds 20197

1987 1986 COMPANY BA Note 15000 5000 SHEET Fimi axem - lnvestmtms 11 18075 11574 A! 30 June

Currenl assels Deblurs 14 5427 2772 Cash and bank balances 262 716 5689 34-88

Creditors due within unc year 15 (5078) 12206)

Not mrrenl aswls 611 1282

Total assels loss rurrem liabi I861§ l 3856

Creditors due 211101 more than one year 1000 18686 14856

Capital and reserves Called up share capital 19 4950 4950 Share premium account 20 8905 8905 Prot and loss accounl 20 4-85 1 I 001 18686 14856

1 A B Hughes LA Taylor

Di rectors 24 September 1987

1987 1986 £000 £000 TURiO\ ER 'lurllmei by location 01' Client was as follows: 59051 17039 helherlands 9791 8144 Rest of Europe 23324 14576 [St 8575 8733 Asia and Australia 9655 7050 I 10774 8704-2 Less adjustment to exclude tnrnmer of related (om patties 9281 7379 Consolidated turnover 10|493 79663

2 OPERATING PROFIT

NOTES T THE Consolidated turnoter 101493 70603 Change in stocks ACCOU of nished goods and work in progress [1407i 610 Rewnuv 100086 80273

Raw materials and consumables 085 92 3 Other external t'harges 17703 1 5724 Stall (Usts 50750 40209 Depreciation and other amounts written 011' tangible and intangible assets 1801 1728 \uditors remuneration and e\penses 152 131) Hire 01' plant and machinery 48 73 Operating lease rentals 52 H- 4059 ()thor operating charges 13043 10327 Operating charges 89773 73173 10313 7100 Share of prot 01' related companies 252 357

Operating pmlit 10515 7457

STAFF STAFF NUMBERS Staemployed at 30 June were based as follows: \umher \'u in her United Kingdom 1090 14-04 \ietherlands 235 2 12 Rest of Europe 385 32 1 USA [66 | +8 Asia and Australia 208 203

Total Including related companies 2682 2348 Less employed in related compan s 230 218

Total mcluding related companies 2452 Z|30

The aterage number ntstalT entplo3ed in the Ut\ during the year was 1569 (1986 7 1402)

STAFF C0518 £000 9000 ages and salaries 14670 3 5805 Social security costs 4602 .3444 Other pension costs 1467 960 50750 40209

Their are voluntary pension sehemes in the UK. Netherlands and Australia t'tmded 1)} xed percentage and \oluntary contrib- utions 'l'herc are no unfunded liabilities in these schemes.

1987 1986 DlRl-ZClUHS i £ Direetms emoluments including employer's pension tonlrihutions and benvlils in kind 093050 400255

included in the above are the emolumonm of:

the chairman 83059 71l89 the highest paid (limtor | | I 107 83113

The table shous the nu mbcr ot'direetois. other than the chairman and the highest paid director, and higher paid employees in the [lnited Kingdom Whose remuneration excluding pension contributions were \\ ithin the bands stated.

Di rectors Higher paid employees l 087 1986 1987 l 986 £ 0-£ 5000 0 2 £ 500 I r£ 10000 3 5 £2000 l £25000 0 l £2500 l-£30000 I 0 £500017£55000 0 0 28 £35001A£40000 0 0 £4000 [£45000 0 1 £4 500 | £50000 0 0 £5000 I £55000 0 2 £ 5500 I {60000 I 0 £600017£65000 4 0 £6500 I-£70000 0 I £8000I £85000 l 0

cocoon»

cocoo-on

A loan as ouLstanding to an employee at the time of his appointment during the year as a director; it was repaid following his appointment to the Board

l987 1986 £000 £000 INTEREST Reeeii able 844 4 IS Paiable 66) 1067)

778 1649)

u. T tTlON Charge to UK corporation tax 35% (I986v38.75%) 5705 2066 UVeiseas taxation 267 28 Foreign ta n respect of overseas subsidiaries 299 684 Relief for overseas motion l 180) (28) Deferred taxation 6| 47 4 I44 2797 Uverpmvision in respeet of prior years (39) (55m Related companies 105 132 4210 2574

There are unutilised tax losses in the Group amounting to approximater £3 million whieh may be available for the relief of the prots oi'certain subsidiaries in future years.

EVTMORDIN ARV CHARGES Costs including closure eosts olthe ()ll'lee Automation business and capital restructuring 0 14912 Attributable taxation 0 2757) 0 12175

DIV IDENDS Interim dividend of0,5p(1986 nil) 218 Final di\idend of lt2p(I9867 L013) 594 495 Total net dividend 842 495

PROFIT/([088) A'I'I'RIBUTABLE TO MEMBERS OF THE HOLDING COMPANY Dealt with in the Accounts of the Company MI (16785)

is allowed by Section 228 (7) of the Companies Act I985. the Company has not presented its om] prot and loss account.

EtRNINGS lEH St] NE E nings per share of 14.41) are based on the prot aer tax ol'£7l 13.000 and on the capital ol'4-9.500,000 shares. Last year's earnings per share of IOtIp were based on the prot after tax before extraordinary eharges w hich amounted to £4,234,000 and on the weighted aierage ol'42.060.986 shares.

10 T\,\GIBLE {SSE'I'S Short Equipment Freehold Total Leaseholds and Plant land and Buildings 9000 [000 £000 $000 0 nod assels Cost 1 July 1986 2760 9055 0 I 1795 Translation dilferences 14 167 0 181 Additions B48 2400 1985 5251 Disposals (116) (949) 0 (1065) Reclassication 959) 0 959 0 50 June 1987 2567 10651 2922 16140

Depreciation Holt 1986 1069 5794 l) 4365 Translation dierenres 7 65 0 72 Provided 250 1492 0 I722 Released on disposals (79) r 528) 0 (607) Reclassication 265) 0 265 0 50.1une 1987 962 4825 265 6051)

Net book value 50 June 1987 1605 5828 2657 10090

4sscls under nance leases \ct book value 501mm 1987 0 546 0 546

Net book value all assets 50 June 1987 1605 657-1 2657 10656

Net book value at 50 June 1986 Owned assets 1691 5259 0 6950 4ssets under nance leases 0 515 0 515 1 69 1 5752 0 7445

11 NTSI'MENIS IN RELATED COMPANIES AND TRADE INVTSI'MENW Consolidated Related companies Trade 'Ibtal Shares Retained Invest- at cost prots Total ments £000 £000 9000 9000 £000 1 July 1986 624 242 866 29 695

Currency translation 0 15 15 0 15 Additions 0 0 0 265 265 Shave olretaincd prot for the year 0 87 B7 0 87 50 June 1987 624 542 966 292 1258

The, Groups share of the retained prots of related companies is slated aer deducting dividends received of £56,000. All investments are unlisted.

The Company Investments in group com panics Related Total Shares Loans "lhtal companies £000 £000 9000 £000 9000 Cost 1 July 1986 14245 8961 25206 624- 25850 Additions 0 5718 5718 0 5718 Reductions 0 (2578) (2578) 0 (2578) 50 June 1987 14245 10101 24546 624 24970 Provisions 1 July 1966 (787) (8469) (9256) o (9256) Provided in the year 0 2561 2561 0 2561 50 June 1987 (787) (6108) (6895) 0 (6895)

Net book value at 50 June 1987 15458 5995 17451 624 16075 Net book value at 50 June 1986 1 5458 492 15950 624 14574

1987 1986 £000 £000 12 C4PIT4L COMMITMENTS Capital expenditure authorised and contracted 474 617 Capital expenditure authorised but notcontracted 7 0

15 STOCKS Work in progress: at cost or net realisahle \aluc 29505 24944 altribumhle prot 869 2124 Progress payments on account 260 5 1 J 21 555) 4521 5715 Other stocks 0 148 4 52 1 5861

1987 1986 £000 £000 1-t DEBlORS Consolidated Trade debtors 22167 H462 Amounts owed by related companies 612 182 Other debtors 1071 677 Inwstment in nance leases: due in itlrin one year 26 70 due after more than one year 0 27 Prcpayrnents and acrrued income 1157 1752 'laiatiou recoverable 1079 952 Adyance corporation tax 664 552 Client contract deposits 654 983 MM

The Company Amounts owed by subsidiary companies 4459 2298 Other debtors 304 122 Advance corporation tax 664 552 5427 2772

CREDHURS Amounts falling due within one year

Consolidated Payments received on account 5971 2427 Trade creditors 5236 3189 Amounts owed to related companies 160 2 Other creditors 4241 351 1 Taxation and other state creditors 8273 4251 Adumce corporation lay 312 202 Aerruals 2317 3551 Finance lease liabilities 147 135 |)i\idends proposed 594 495 23251 17765

The Company Amounts owed to subsidiary companies 2892 Other creditors 1016 Taxation and other state creditors 256 Advance corporation tax 312 Accruals 8 lliyidends proposed 594 5078

The Company supports the banking Facilities of certain oyerseas subsidiaries by either direct guarantee (amount drawn at 50 June, 1987 £111,000 1986 £270.000) or by indemnify ing its bankch in respect of their guarzuitees (amount drawn at 30 June 1987 £ni| e 1986 £263.000). An overseas subsidiary has proyided its bankers with a charge on certain of its assets but had no relevant indebtedness at the end 01. the nancial periods covered by this report,

11)" CREDITORS tmonnts due after more than one year

Hank loans repayable between two and the years 74 0 Finance lease liabilities second to lth years 592 386 more than tire years 6 5 Other creditors 151 1086 623 1477

DEFERRED T \TIOV Proyision is made in the accounts or deferred la\ation at the full potential liability as follows:

tetrlcrated capital allou anccs 568 666 Other short term timing dierences (595) (476) Trading losse ' 0 0 Foreign subsidiaries 1421 (12) 151 178

1.1111) 1986 178 983 Translation dill'erence (11 (6) Provision in respect ol'currcnt year 61 (522] O\erpro\ision l'or prior years (87] (127) l~I\1raordinary item 0 "550) 151 I78

18 OTHER FIN \VCML (IOMMIIB '8 There were annual commitments under operating leases as follows: 1987 1986 Land and Other Land attd Other Buildings Buildings 000 000 9000 £000 Expiring Within one year 192 574 440 375 Ex ring in the seeond to 111th year 1505 1615 1126 862 FA) Iring a1\er live years 2605 0 21 15 0 4502 1989 3679 1255

I9 CALLED UP SHARE C APITAL 1987 1986 £000 £7000 Authorised share capital 66,000,000 ordinary shares of 10;) each 6600 5200

Called up share capital 49,500,000 Ordinary shares 01' 10p each 4950 4950

At 30 June 1987 options granted under share option schemes were outstanding as follows:

\lnmber of Price Normal dates shares of exercise

18,884 565 19874990 67,988 405 198771994 588,617 149 1988-1991 204,851 I65 198871995 640,000 I 55 198971996 249,798 186 19891996 200,000 206 1989-1996 177,578 207 19891996 18,584 279 19901997 252,000 510 19901997

20 SHAKE PREMIUM ACCOL \NI) RSI-II ES Share Other Prot premium reserves and loss riCCDlllit ZCCDIIHI Consolidated £000 £000 £000 1 July 1986 B905 2117 6859 Exchange ditTerence on translation of net assets at 1 July 1986 7 I7 (106) Retained profit for the year 7 6271 Transfers to other reserves i i 7 6 (6) 30 June 1987 8905 214-0 15018

The Company 1 July 1986 8905 1001 Retained prot for the year 7 5850 50 June 1987 8905 4831

21 CONTINGENT LIABILITIES Subsidiaries hate plmided indemnities to their bankers in support 01 pert'onnanee bonds and guarantees amounting to £3,011,503

22 PRINCEPAL 0|ERH'[V(} SUBSIDI ARIES Lugiea 111' (Netherlands) Logica UK Limited (Great Britain) Logiea SA (Belgium) Logica Space and Defence Systems Limited (Great Britain) logira Gmbll (West Germany) Logica Consultancy Limited (Great Brimin) Logiea Svenska AB (Sweden) Logiea Financial Systems Limited (Great Brimin) Logical Systems Inc (USA) Logiea Cambridge Limited (Great Britain) Logira Technology Systems lne (LISA) logiea Communications and Electronir Systems Limited (Great Britain) Logiea Pty Limited (Australia) Ingiea Energy and Industry Systems Limited (Great Britain)

At 30 June 1987 these companies were all wholly owned. During the year the name 01' Logiea Ine was changed to Logiea Systems Ine.

23 REIATED COMPANIES .lardine Logiea Limited (lion): hong) During the year the name ul'Jardine [ogiea Systems Limited was rhanged to .lardine Logiea Limited The Company holds 50% of the 4 ordinary shares 011th 1 eaeh 01'Jardine Logira Limited.

Ingiea General Systems Spa (Italy) The Company holds 49.8% oithe 793.550 ordinary shares of 1,000 lire each and 51.3% ufthe 204,550 preference shares 01' 1,000 lire earh oi' Ingiea General Systems Spa The business activities utthese eom parties are similar tn those undertaken by the other Logiea companies

BASIS OF ACCOlIl'I'ING AND CONSOLIDATION The accounts are prepared under the historical cost convention in accordance with the Companies Act 198). They are tlte result oftlte consolidation of the accounts of the Company and its subsidiaries and also include the relevant share ol'tlte results of related companies. Tire Group accounting policies conform with tilt accounting standards and when ncccssar). adittstmetlt is ntade to the statutory accounts ofoverseas subsidiaries in order to present the Group accounts on a consistent b

Tl Ftr\O\ ER Turnover represean amounts invoiced to clients net of amounts billed in advance attd excluding VAT.

RECOGNITION OF PROFITS Profit on contracts for the, supply of professional sen ices at pre-determined rates is taken as aItd vthen the work is billed irrespectiye of the duration of the contract.

Prolit is taken on li\ed price contracts whilst the contract is in progress, having regard to the proportion of the total contract ACC NTING which has been conrpleted at the balance sheet date. lro ision is made for all foreseeable future losses. POLICIES STOCK AND WORK IV PHOUIWSQ Physical stock attd work itt progress is valued at the loner of cost and net realisablc value.

The Valuation of nork in progress on lixed price contrae is adjusted to take up prot to date or foreseeable losses in accordance with pa aph 3 aboveThe irrcltrsiort of this attributable prolil supercedes the statutory valuation miles for cunent assets to enable the accounts to gi\e a true and fair View.

Uther norlx itr progress is talued at cost or at estilrrated net realisahle \aluc if lower. Cost comprises: 7 professional work in progress Valued at the cost of salaries and associated payroll expenses ofemployees engaged on assignments and a proportion ol'attribrrtahle overheads.

e ttrrbilled expenses incurred and equipment purchased for clients in connection with specic contracts.

RESEARCH AND DE\EI_L)PMENT Research costs are \\ rittert oll'in the )ear irt which the) are incurred unless they are to be reimbursed by third parties. Development costs are also written (thin the year in which the) are incurred unless they are to be reimbursed by third parties or they result iii the production of an identifiable. saleable product,

DEIRECMIION Depreciation is provided at rates calculated to vtrite down the cost ofall tangible xed assets over their estimated useful lites on a straighteline basis, The annual rates of depreciation used are as follows: Ofce equipment to% Computer equipment 20% Motor cars 25% Plant 20% [.cascltolds equally oyer life of lease

FOREIGN (Tl BRENCY TRtNSlATIOV The assets. liabilities and trading results of foreign subsidiaries are translated into sterling at the rate oferchange ruling at the date of the balance street.

Dillerenees arising on restatement of the net investment in foreign subsidiaries and related net foreign currency borrowings are dealt with as adjustments to msenes. All other dilfercnces on exchange a sing iii the year are taken to the prot and loss account.

DEFERRED TAXATION Provision is made for deferred taxation to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes. The provision is mainmined to the, extent that it is probable that an asset or liability will crystalise in the foreseeable future.

'ItNGfBLF. FIXED ASSETS Tangible fucd assets are shown at cost, Cost in this context inclttdes the initial capitalised values of assets funded by nance leases,

Assets nanced by leasing agreemean that give rights approximating to ownership are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term, The corresponding leasing commitments are shovm as obligations to the lessor Lease payments are treated as consisting of capital attd interest elements and the interest is charged to the prot and loss account on a constant periodic rate of charge basis.

l0 MIATED COtlltMES \ related company is a legal entity. not being a subsidiary. iIt which the Group has an interest of bet\\een 20 per eertt artd 50 per cent and oter whose commercial atrd nancial policy decisions the Group exercises signicant influence. The Gmnps share ofthe prots less losses ol'all signicant related companies is included in the Group's profit and los. account on the equity accounting basis. The results are calculated from the latest available attdited accounts adjusted to incorporate unaudited results for more recent periods.

R E PORT m T" E AUD 0 Rs Report of the Auditors to the Members of Logiea plc

We have audited the accounts set out on pages 56 in 4-5 in aermianee m'th approved Auditing: Standards. in our opinion the acemints give a true and lair HP! 01' the slate nlall'airs of the Company and the group at 30 June l987. and of the prot and sourre and application of funds of the group for the year then ended. and rnnipl). with the Companies Act 1985. Price Waterhouse Chartered Accountaan London

24 September 1987

illhT 19816 Illili £000 {000 9000

REE YEAR RECOR Turnuwr IIUTTI 87012 6222'

Uperatim,r prot lil'ii'» 7437 4525) Interest 778 1549) 487 Pml'll on urdinar) arlh ilies before un I i323 6808 iiil

'llnatmn on urdinar) activities Z7l7 lml'it on unlinar) 11 15 aller la\ _299

Shareholders funds 29013 22831 |879i

Earnings per ordinar) shan I Mp "Lip 7.011 |)i\ idends per shari- (net) |.Tp mp 035])

Slull' numbers at tear end lliHl 2518 I643

\ew glimpses nl' the steel llldllSlT}. Homestead Steel Works, the Carnegie plant of the, llnited States Steel Corporation. A View of [he shears at |he 140' plate mill.

[0mm plc Logica SA/NV Logica Pty Limited Logica Tia'hnology Place Stephanie 20/2 50 Collins Strecl Systems lnc Logica International Limited 1371050 Brussels Mclbourne 572 Washington Street lAigica UK Limited Belgium Victoria 5000 Wcllcsley llitls Logica Communications and to! + 52 2 512 9976 Australia VIA 02181 Electronic Systems Limited telex 65688 tel + 6156541555 USA lngica Consultancy Limited telex 51494 let 1- 1 617 255 2424 Logica Energy and Industry Logical Sienslta \B tclc\ 200287 Systems Limited Norm Stationsgatan 7978] 157 \lalkcr Street Logica Financial Systems 5-115 55 Stockholm North Sydney. NS 2060 Jardine lngica Limited Sweden Australia Limited Logica Space and Dcfcnrc tel ' 468 549110 tcl + 612 9571700 2401 Floor Systems Limited telex 14187 telcy 22652 World l'ratle Centre OF CE ADDRESSES Causeway Bay m ARO D THE WORLD 64 Newman Street lngica Gmbll 10 Rudd Strccl llnng Kong London \4 1/1 4811 Dolimstrassc 9 Canberra tel r 852 5 857 5858 United kingdom IJ6100 Darmsutdt .\.C.T. 2601 [(ltx 73406 tcl + 441657 9111 West Gcrmany Australia telex 27200 tel A 49 6151 88080 tcl ' 01 62 571822 .lardinc Logica Sdn. Bhd. telex 419248 tcle.\ 22652 Suite 224, 22nd Flour 2 Queens Gardens Vicnara KeWangan Aberdeen AB] 611) Utgica General Systems spa lngica Systems Inc Jalan Sultan Ismail \ia 51 Pin 27 666 Third :ttenuc 50250 Kuala Lumpur tel * 44 224 645575 10125 'I'urin l\e\y 101M 10017 Malaysia tcler 759228 Italy LSA tel 1 60 5 258 0011 tel r 59 11 650 2131 tel A l 212 5990828 tclcy 201.59 Logica Cambridge Limited telex 212520 tele\ 258559 Betjcman House .Iardinc Ingica Li ited 104 Hills Road Via Matteo liandelln ti 980 \Iaguulia Mcnuc 14th Floor Cambridge cm 11.0 20125 Milan larkspur. CA 94959 World Trade Building tel ' 44 223 66543 ltaly USA 50 Hsin Sheng S. Road fax (0235) + 44 225 322515 tel * 59 2 498 4441 tel + 141.5 461 50.58 Section 1 lelex 515454 Taipei Logica av 1900 Mcnuc of the Suns Taiwan Wiinhaicn 69 Via Cnrte dAssise 8 Suite 840 chublic 01 China 3011 W] Rotterdam 10015lyrea('10) Los Angclcs. Ci 90067 tel + 886 2 5951177 Netherlands Italy 1 51 telcy 11012 tel * 31 10 455 084-4 tel v 59 125 44557 tel r 12155510660 telcx 25519 tele\ 698218 [Argicu UK Brugstraat 32B Limited Filial 9711 HZ Graningen Kubmagergadc QB Netherlands DK 1150 Copenhagen 1\ tel 1 51 50 145666 Denmark tel 1 45 I 525 244 trier 21555

Ftunl and back covers p15 p22 p32 ACKNOWLEDGEMEN Trustees at me Science Musée BonnaL Bayonne BPCC/ Mdtts Arthi \ e 1mm SUIEN'I'IIIC A'VIEIIICAN Museum (london) Magazine, 15111 September. 1890 p14 p23 Inside front and back mvem from SCIENTIFIC AMERICAN The Manscll Collection M7 Magazine, 15th June. 1885 lopperfoto Birmingham Public Libraries. p24 Boultun and Watt Collection p15 Peter Vewark's Western p2 Evelyn Carey/Imperial College Americana The Lee Boltin Picture Library of Science and Technology, p25 Department of Civil The Mansell Collection P4 Engineering BHC llultnn Picture Library [126 [116 p7 lopperfoto Produced by Courtesy US Natal Institute/ Waiter Nurnberg OBE Logica Corporate Relations Department Weidenfeld & Nimlson Archiycs p27 Designed by p8 Trustees of the Science [:17 James Sutton FCSD Mary Evans Picture library Museum (London) 1mm DISCOVENB AND and Harry SutherlandrHawcs [19 lVVFXl'lONS ()F'l'llF. p27 Picture research by Ann Hanan Picture Library VINETEEVTII CENTLRY, by [)rlemny BtttgeswScience Brigitte AmréL SPREd, ASPP Robert [iontledge Photo Library Printed by p10/11 C11) Printers BBC Hulton Picture Library p18 p28 typesetting hy Mary Evans Picture Library BBC liulton Picture Library p 12 Paragraph Typesetting Ltd Bildenlienst Siiddcutscher p 19 p29 10,1987 CL 1. liniper Detmis Sharp Verlag Lugica is grateful to its clients p15 p20 p30 for their cooperation in fmm LEOVABIM'). DER Walter Vtirnherg our Harlinintchiollet preparing this Annual Review TECHMKER 1 ND EKFNIWK p21 p51 'trademark o1l41gica by Franz M4 Feldltaus from VATUML PHILOSOll It, Vinsée National des Mhniques ' trademark at Mirmsoh by A. Ganel du C.N.A.M.

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