Sema attributes growth to contract wins

Anglo-French services company Sema recorded an increase of 25 per cent in turnover to £668.6m for the six months ended 2 September, compared with £611m for the same period last year.

Contract wins and a 30 per cent rise in the turnover of its systems integration division were cited as the main drivers for Sema's good half-year. Pre-tax profit grew 35 per cent from £31.1m to £38.5m.

Sir Julian Oswald, chairman of Sema, attributed the jump in profit to several key contract wins, boosting the company's order book to a record £1.8bn. He said he expected the growth to continue, fuelled by lucrative contract wins, such as an eight-year contract for the Olympic Games.

The systems integration division recorded the strongest growth in turnover, with sales of £293m. There was growth in outsourcing, particularly in the UK.

In total, outsourcing accounted for 45 per cent of turnover, systems integration 44 per cent and products 11 per cent.

Oswald said turnover rose in Europe: the UK was up by 34 per cent to £251m; Spain rose 70 per cent to £45.5m; and France was up 19 per cent to £183m.

"Sema's order book suggests the company will not suffer any noticeable downturn due to year 2000 uncertainties. The Group is looking to expand into alternative markets and technologies, and the search for suitable acquisitions continues," Oswald said.

"Based on the order book and the extensive prospects list, the Board remains confident about the continued growth in size and profitability of Sema," he added.