Quarterly Update
published on Nov 09, 2018
Report Overview:
NelsonHall’s Quarterly Update on CGI provides a snapshot of developments at CGI in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on CGI provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on CGI, looking at financial performance and key developments during the period.
Key Findings & Highlights:
Q4 FY18 Performance: strong end to FY18 with pick up in organic growth, continuing margin expansion, healthy bookings
Q4 FY18 revenues were up 5.0% in CC (4.6% in FY18 overall). Organic growth increases to 2% (1.5% for FY19 overall).
- The strongest performing segment continues to be U.S. Commercial and State Government
- France recovers to mid-single digit CC growth, all organic
- Northern Europe boosted by inorganic growth
- U.K. delivers its strongest performance for some time
- ECS growth, led by Germany, but softness in Belgium.
Adjusted EBIT margin up 0.4 pts y/y as the FY19 restructuring program completes
Book-to-bill strong, of which >50% new business, as in Q3. Very strong performance in U.S.
Confident outlook for FY19
Management expects to see
- A further increase in organic growth
- Further management expansion from the FY18 restructuring program
Expects to see a growth in outsourcing activity in the next three years