The Scandinavian nation may be a respectable economic basket case with the government deficit rapidly running out of control and a currency spinning into the ground, but Sema Group Plc’s chief executive Pierre Bonelli is one of Sweden’s biggest fans at present. The country was largely responsible for the 19% rise in turnover to ú596.1m, contributing ú116m against just ú24m last time. The other mechanical contribution to revenue growth came with the disposal of the loss-making German company I-Linie (CI No 2,381), and operations in Europe’s biggest market are profitable once more. Pre-tax profits for the Anglo-French software and computer services major grew by 29% to ú32.0m. In terms of regional turnover, the UK is still Sema’s biggest market with 38% of the total, France comes second and is shrinking – the political imperative to try to keep the franc in lock-step with the Deutschmark means that recovery is anaemic at best in France – and the flavour of the month Sweden third. Both Germany and the Benelux countries have shrunk slightly, and although South-east Asia remains at just 1% of the company’s total, it is the one to watch, according to Bonelli. The group has set itself an ambitious target that the region should contribute more than 5% of its turnover by 1998.
Telecommunications
The Anglo-French group has three areas of business, systems integration, including consultancy, products and facilities management. The last has shown the most spectacular growth with Sweden again mainly to thank. Systems integration is still the largest division, with 64% of turnover, but facilities management is the fastest growing, and the most profitable. Cuts in defence spending have resulted in a fall in Sema’s biggest market sector, but Bonelli is not worried. It has just won an order from South Korea for technology in frigates, which he believes has largely secured the future of the defence business: What will limit us in defence is our performance and not the opportunities, he said. Telecommunications, both fixed network, and especially mobile, are perhaps the key area of future growth for the group. It will build on last year’s orders for its CABS billing system for Groupe Speciale Mobile systems in South America, Europe, South Africa and Australia and the Far East and continue to grow as a provider of intelligent network systems, INS. Martin O’Byrne, managing director of mobile for Sema Group Telecom believes that the company is the only one in the world to provide billing, consultancy and network systems. As the market matures, value-added services such as short message services and beyond will mushroom. In regional terms, the Far East has seen the most rapid growth, and Sema has just won orders in India and China for CABS, INS and system integration. The target in 1995, however is the massive US market. An office has been established there for the personal communications services auctions. O’Byrne said that the market is so big it doesn’t matter; we just need to be there. The overall strategy for 1995 is to focus on its core systems integration business, to develop products in high-growth areas and continue worldwide expansion, particularly in the Far East and the US, and the area of facilities management. The final dividend will be 4.1 pence, a rise of 32% on last year.
