This morning Capgemini announced full year results for 2015. Capgemini Chairman and CEO Paul Hermelin announced what he called “a solid step forward delivering a very good set of results” which showed headline revenue growth of 12.7%, bookings up by 5%, operating profits increased by 20% and a record generation of cash of 815m euros.

Main points

  • North America, Capgemini’s first market following the acquisition of IGATE
  • Revenues of €11,915 million, up 12.7%
  • 22% of revenues in Digital and Cloud
  • Operating margin rate of 10.6%
  • Organic free cash flow of €815 million

You can read the full press release here: 2015 results support Capgemini strategy. You can also read the full year 2015 results presentation to analysts

In the video interview below, Paul Hermelin where he gives  highlights on our 2015 full year financial results and commented on the outlook and guidance for 2016:

From the press release, United Kingdom and Ireland (18% of Group revenues) reported a 13.9% decline in revenues on a like-for-like basis (2.2% after accounting for the appreciation of the pound sterling against the euro). This decrease is entirely due to the planned reduction in revenues from a major UK public sector contract. Driven by the financial services and retail and consumer goods industries, the private sector was extremely dynamic, helping to rebalance the relative weightings of the public and private sectors in this region. The operating margin rate improved 210 basis points to 13.4%.

I spoke to UK CFO Tony Deans about what our full year results mean for the UK & Ireland:

Having listened to the Group’s results presentation to the financial analysts this morning, I couldn’t help but feel very proud as to what the Group has achieved. By exceeding our previous guidance on all fronts, we seemed to surprise them, particularly with the margin achievement and the hugely impressive cash performance. In the UK we certainly played our part across all our business units.

Our own profit generation showed us increasing profits by 16% and saw our margin improve by 210 basis points (to 13.4%), with our Application Services business being particularly strong. I was also very pleased to see our consulting business return to growth in line with the rest of that business across the Group. This was a very impressive performance. So too was that of Sogeti Ireland, who led the way in terms of the highest percentage growth across the Sogeti Group. Infrastructure Services also delivered on its targets, despite operating in a very difficult market. In addition, our Financial Services business helped with our revenue growth by achieving a 22% year-on-year increase.
It was also pleasing to hear two of our deals highlighted on the analyst call. These were for the extension at Heathrow (an example of our multi-tower offering) and our Nationwide win (which demonstrated our capability in Cloud Services). There were, of course, many more than these two deals signed in the UK and Ireland and we improved our year on year bookings, which bodes well for the future.
Lastly, but always most importantly, we were able to deliver a significant increase in cash, far exceeding our targets.