CGI sees opportunities in the Brexit

CGI voit des occasions dans le Brexit

Photo: MTL Skyline / CC
The size of CGI in the Uk has increased significantly since 2012, when the company completed the acquisition of the firm’s anglo-Dutch Logica.

The turmoil surrounding the Brexit as well as a potential economic slowdown could lead to new growth opportunities for CGI Group, believes its president and chief executive officer.

According to George Schindler, the withdrawal of the United Kingdom of the european Union, which is fast approaching, and the economic conditions could prompt governments and firms to increase their efficiency. During an interview with The canadian Press on the sidelines of the annual meeting of the company on Wednesday, he added that as soon as there is change, there is a need for technological support.

The size of CGI in the Uk has increased significantly since 2012, when the company completed the acquisition of the firm’s anglo-Dutch Logica. Last year, the montrĂ©al-based company generated 12 % of its sales, or approximately 1.3 billion in this region.

In regards to the global economic environment, the executive chairman and founder of CGI, Serge Godin, explained that the company had tended to grow more quickly during periods of economic uncertainty since its creation in 1976. “Companies want to reduce their costs. Approximately 50 % of our revenue is derived from outsourcing contracts. This means that we represent a solution for these companies. “

Mr. Schindler has also minimized the financial impact, to CGI, for the paralysis of the u.s. government, which began on December 22 and continued for 35 days. In his opinion, only about 5 % of the company’s activities have been affected by this situation. The United States last year accounted for 28 % of the company’s revenues, which were $ 11.5 billion. The revenues attributable to the u.s. federal government amounted to $ 1.5 billion.

For the three-month period ended December 31, CGI has posted a net profit of 311,5 million, or 1,11 $ per share, an increase of approximately 9.2 % year on year. Revenues were $ 2.96 billion, compared with 2.82 billion in the first quarter of the previous fiscal year. Excluding non-recurring items, the adjusted earnings of CGI has climbed 9.3 % to reach 314,7 million, or 1.12 cents per share. At the end of the first quarter, the backlog of CGI totaled $ 23,34 billion, an increase of 2.23 billion compared to last year.

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