Capgemini achieves above average growth

Sales and profits were up at Capgemini

IT services company Capgemini says it has outperformed the market, increasing half-year sales more than 11 per cent to €4.4bn (£2.9bn).

Profits were also up, more than doubling from €71m (£47.7m) to €168m (£112.8m), despite a €3m (£2m) financial charge and €59m (£39.6m) tax charge.

The biggest growth was in the technology services division, which rose 15 per cent, with the French company attributing the growth to greater use of offshore resources.

Outsourcing services were also up 13 per cent, after large contract signings in late 2005 and early 2006, and professional services revenue grew eight per cent. But consulting services fell due to a reshuffle in North America.

Strong growth was achieved in the Nordic countries (up 21 per cent) and southern Europe (up almost 14 per cent), but Capgemini continues to struggle in its home country with just 2.5 per cent growth.

Capgemini predicts full year growth of nine per cent and improved profitability.