Capgemini profit up fuelled by demand for CIO advisory services

Technology consultancy Capgemini has forecast improved profits and a growing demand for its CIO advisory services for the current fiscal year.

In a trading update today, the European Union's largest IT services group by market capitalisation said organic revenue growth for 2014 could be in the region of 2% to 4%.

Capgemini also sees this year's operating margin in the region of 8.8% to 9% and organic free cashflow in excess of €500 million (£412.1 million).

The upbeat forecasts were issued after the company said its annual profits for 2013 had risen by 25% to €442 million, up from €353 million the year before. Capgemini attributed the strong performance to a sales uptick in North America and continued improvement at its CIO services division in Europe.

The latest results included restructuring charges of €68 million. Bookings for last year totalled €9.65 billion while operating margin improved by 0.4 points to 8.5% from 8.1% seen in 2012.

Copyright © 2014 IDG Communications, Inc.

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