French IT services and consultancy specialist Steria has posted a 7.2% year-on-year growth in revenue in the first six months of the year. The H1 results were driven by a strong growth in the UK and Scandinavia, it says.
The long cycle or recurring activities increased by 16.1% y/y, applications maintenance went up by 3.4% y/y and IT infrastructure management and business process services grew by 3% and 51%, respectively. However, the consulting and systems integration businesses declined by 6.5% year-on-year.
In the UK Steria saw a 19.6% y/y growth in revenue driven by activity in the public sector and telecommunications and utilities sector. However, as the company points out, the financial sector decreased. As far as Scandinavia is concerned, the revenue grew by 11.1% year-on-year with an 8.8% y/y rise in the financial sector, a 12.8% y/y growth in the public sector and a 10.5% y/y growth across the telecommunications, energy and transport sector. Also Scandinavia saw a significant staff increase, the company says.
In France the overall revenue in H1 dropped by 3.7% y/y and was driven down by telecoms and the public sector. However, the banking and energy sectors showed a positive development and increased by 6% y/y and 4% y/y, respectively.
Germany posted an 8.4% drop in revenue and witnessed a change in management as well as the cost-cutting measures were applied.
During the six months the net income for the year fell to €8.1m from €9.2m in the same period in the previous year. The operating margin went up by 17.6% year-on-year thanks to a positive development in the UK and despite the contraction in other regions.
Steria has confirmed its full year targets for 2014 and expects a growth between 6% and 8%. The operating margin increase in absolute value is expected to be around10%.
Earlier this year Steria announced plans to merge with Sopra to create a European leader in digital services with estimated revenue of €3.1bn. In April Steria also officially rejected Atos’ ‘friendly offer’.
The company has confirmed the approval from the EC regarding its merger with Sopra and says the tie-up between Sopra and Steria is progressing well.