LogicaCMG: RFID on the Threshold of European Breakthrough
LONDON, April 15 /PRNewswire/ -- The key findings of an international study undertaken by LogicaCMG (LSE: LOG.L - news - msgs) ADVERTISEMENT


reveal that Radio-Frequency Identification (RFID) is high on the agenda for European retailers, food manufacturers and logistic service providers. A majority of the companies interviewed in the Netherlands, UK, Ireland, Germany, France and Belgium, gave RFID top priority in terms of planned IT investment.

RFID is seen as the successor to barcoding. By using RFID it is possible to electronically identify and track objects, such as supermarket goods, without time delays or the need for human intervention. As a result, supply chain logistics are more streamlined and efficient and this ultimately leads to lower costs and higher revenues.

The study shows that half of the 50 companies interviewed in Europe have or are planning to deploy RFID pilot projects throughout 2004, with the vast majority planning to start implementing the technology within the next three years. A number of major retailers, such as Tesco (LSE: TSCO.L - news - msgs) (UK) and Metro (Germany) will initiate large-scale rollout of RFID. Whilst these projects will be finalised by 2007, the research indicates that companies will not begin to tag consumer products until 2008 when prices of tags will have naturally lowered. The focus for the moment is on Returnable Transport Items (RTIs), such as crates and pallets. The tagging of these RTIs will be standard as of 2005. The research highlights when and how RFID will be used on a large scale for RTIs within European retail supply chains. Due to the large variety of RTIs in retail supply chains, the management, recording and administration is both complex and labour intensive. RFID is set to eliminate these concerns.

Since RFID will have great impact on the processes and IT systems of companies, it is necessary that they thoroughly prepare themselves. The use of RFID with RTIs will only take place if the financial benefits are greater than the cost of implementation. The cost/benefit analysis part of the research showed that based on a tag price of 50 eurocents the handling cost per pallet could decrease by 8.5%. This leads to a payback period of between two and three years.

A majority of companies that have trailed RFID prefer the EPC (Electronic Product Code) network as standard for information exchange and UHF (Ultra High Frequency) as frequency. In the short term there are a number of issues that should be solved before RFID can be broadly adopted. First, the EPC network has not been finalised yet. Second, limitations in European legislation mean that the use of UHF technology is currently restricted. Finally, the software to integrate RFID in the existing IT infrastructure is not mature yet. LogicaCMG anticipates that by the end of 2004, the main issues will be resolved. As volume deployments will increase in the next few years, the cost of RFID tags will be naturally lower.

Paul Stam de Jonge, Director Sales and Marketing of LogicaCMG: 'The research shows that we are on the threshold of a breakthrough of RFID technology in the European market. The quick introduction of the EPC network is key for the broad acceptance and implementation of RFID. For this reason we, together with many organisations within the sector, have put a lot of effort in the definition of the EPC network."

Since the whole supply chain is involved, the RFID implementations of the large retailers in 2005 will have a great impact on the food manufacturers, logistic service providers and retailers. According to Paul Stam de Jonge 'the RFID implementations will lead to an irreversible process in the retail market. In the short term, it is therefore of the up most importance for companies to gain knowledge and experience with RFID'.

About RFID technology

RFID technology is based on a relatively simple concept. It consists of two elements that communicate through radio transmission - a tag and a reader. The tag contains a small chip and an antenna and can be placed on any object. The information on the tag, such as an identification number, can be transmitted to an RFID reader over a distance of a few meters. The readers are placed in various locations throughout the supply chain. RFID allows objects to be electronically identified and followed throughout the complete distribution chain.

There are two main reasons for the application of RFID technology in RTIs. On the one hand it allows RTI pool organisers and logistic service providers to electronically follow the RTIs. On the other hand it allows manufacturers and retailers to follow and identify products. Both reasons result in a higher cost-effectiveness.

The dominant position of the retailers in the supply chain means that they have a leading role in the uptake of RFID. The study shows that retailers are particularly interested in tracking at an individual product level. Tagging at pallet level is not as crucial as they are often only used to transport the goods to the distribution centre, as opposed to throughout the entire supply chain.

NOTES TO EDITORS
About the research
- The research is an initiative of LogicaCMG in close co-operation with
EAN Netherlands and ECR D-A-CH and is sponsored by Checkpoint Systems (NYSE: CKP - news) ,
Euro Pool System, Intermec, Omron, Zetes, SAS and Container
Centralen A/S
- The geographies researched were the Netherlands, UK, Ireland, Belgium,
France and Germany
- The study consisted of 50 in-depth interviews with potential users of
RFID technology (retailers, manufacturers, logistics service providers
and RTI pool organisers) as well as extensive desk research
- As it is expected that Returnable Transport Items (RTIs) will be fitted
with RFID relatively quickly, the study focused on the application of
RFIDs in pallets, crates and containers within the supply chain

About LogicaCMG

LogicaCMG is a major international force in IT services and wireless telecoms. It provides management and IT consultancy, systems integration and outsourcing services to clients across diverse markets including public sector, telecoms, financial services, energy and utilities, industry, distribution and transport. Formed in December 2002, through the merger of Logica and CMG, the company employs around 20,000 staff in offices across 34 countries and has nearly 40 years of experience in IT services. Headquartered in Europe, LogicaCMG is listed on both the London and Amsterdam stock exchanges (LSE: LOG; Euronext: LOG). More information is available from www.logicacmg.com.

About EAN Netherlands

EAN Netherlands plays an active and leading role in the promotion and implementation of the global, open EAN-UCC standards for automatic identification and electronic communication in the Netherlands. EAN Netherlands is a non profit organisation, with 5.800 member companies from 30 industry sectors, and is a member organisation of EAN International www.ean.nl.

About ECR D-A-CH

Efficient Consumer Response (ECR) is a joint initiative by manufacturers, retailers and other partners in the supply chain. ECR aims to improve processes and provide consumers with optimum quality, service and variety of products at the best price www.ecr.de.

LogicaCMG added 8 pence to 171-1/4 after Deutsche Bank upgraded its
recommendation to 'buy' citing valuation. The broker believes that the
"worst-case scenario" for profit growth this year has been priced in

Strong results from Logica
MoneyAM
Anglo-Dutch IT services and wireless network group LogicaCMG reported stronger than expected H1 results and said the strength of its IT services order book means H2 margins and revenues in this business will be ahead of the first half.

The company reported pretax profits before exceptional items and amortisation of goodwill of 39.2m, compared with 38.9m a year earlier. (Analysts had expected a pretax profit figure of 24.7m.)

"Across our IT services business, both the order intake and the prospect pipeline continue to strengthen," said Martin Read, LogicaCMG's CEO. "We anticipate that margins in the second half will be ahead of those achieved in the first half despite the impact of poor performance in Germany and ahead of 8% for the year as a whole."

In its wireless networks business, LogicaCMG expects gross margins to be "similar to" those seen in the first half.

First-half revenue was 809.2m, down 5.1% from a year earlier while adjusted operating profit rose 3.8% to 46.1m.

Operating profit was 34.2m, compared with a loss of 52.7m a year ago.

The interim dividend was maintained at 2.3p.

LONDON (AFX) - Anglo-Dutch IT services and wireless network provider
LogicaCMG PLC sees the deal to take a majority interest in Edinfor, the IT
services arm of Electricidad do Portugal, "in the next few weeks," said chief
executive Martin Read.
"We're now down to the last two... up against a well-know American group and
in negotiations at the moment... and we expect to know the outcome I think in
the next few weeks," Read told reporters on a conference call.
The well-known American group referred to is Electronic Data Systems
Corporation ("EDS"), according to Electricidad do Portugal which has announced
that the shortlist is made up of LogicaCMG and EDS.
Read said there were originally ten companies bidding for the deal, which
would be part of a strategic partnership including an outsource contract for
continued work at the parent company.
Edinfor is a services provider in the Portuguese market and is developing
its business in Spain.
"This is a significant opportunity for LogicaCMG and is similar in concept
and structure to the Hyder deal won in 2001.
"At the time of writing we await EDP's decision as one of only two remaining
bidders in the final round of submissions," the company said earlier in a
statement.
The company earlier reported stronger-than-expected first-half results and
said the strength of its IT services order book means second-half margins and
revenues in this business will be ahead of the first half.
The company reported pretax profits before exceptional items and
amortisation of goodwill of 39.2 mln stg, compared with 38.9 mln a year earlier.
oliver.wagg@afxnews.com
ow/slm/

Hey guys is it just me following this? good medium term potential next stop 200 soon and the possible back to 250-300. All comments welcome. DYOR

i think you r de only one ,no scope 4 growth mate.

You maybe right Bash but still 200 within next few weeks. bought in @152 so in decent profit at the moment. I still have a feeling they will reach 250-300 trading range within next 5/6 months.

what makes you say "no scope 4 growth mate". I would be interested to here your negatives.

For someone that bought at 260 on the back of press and broker reports that the target was 330 Logica makes for good watching as it slumped during the lows of the last 2-3 months in the FTSE but has started to recover of recent times.

I would still bank on a long term high of 330 - 350 within 6-9 months time as the sector is a strong sector but also a highly volatile sector. As sharply it dropped will be as sharply it rises. This is unfounded however but just a hunch that Logica are a safe bet for more rises in the future.

Hey welcome to LOG thread Duncs. I was getting worried that i was the only one here. Yes I agree the only issue is with germany at the moment. LOG have stated that they will in profit by 2005 so that will be interesting to see. The last highs were reached cos LOG stated that they would be profit in 2004 which then became impossible and sp began to decline.

Tuesday September 21, 08:03 AM
LogicaCMG Enters Fast-Growing Algerian Mobile Market With Wataniya Next Generation Messaging Contract
LONDON, September 21 /PRNewswire/ --
- Siemens Mobile Networks and LogicaCMG Maintain Partnership Momentum With New Deal in Africa
LogicaCMG (LSE: LOG.L - news

- msgs) today announced it has been selected to provide a Next Generation Messaging solution to Wataniya Algeria. Wataniya has secured one of three GSM network licences awarded in Algeria, strengthening its position as a key mobile operator in the region. This is the first major mobile infrastructure project for LogicaCMG in Algeria and this deal has been won through LogicaCMG's longstanding strategic partnership with Siemens Mobile Networks.
Wataniya Algeria is deploying the Next Generation Messaging architecture that provides network operators with a cost-effective solution in every phase of market development whilst preparing networks to accommodate future service demands. LogicaCMG's Next Generation SMSC will support the launch of its range of value-added SMS and content delivery services targeting both consumer and corporate users. The ability to provide these advanced messaging capabilities will unlock new SMS market opportunities for Wataniya in Algeria, increasing potential revenue generation and enabling it to speed the return on investment for the region. Wataniya Algeria and Siemens Mobile Networks selected LogicaCMG for its proven experience in mobile messaging.
Mr. Joseph Ged, Chief Technical Officer at Wataniya Telecom, said: "The market for mobile services is growing at an astonishing rate in Algeria, creating exciting new opportunities for us as a major provider of SMS and other value-added mobile services. Our strategy to invest in new markets such as this has led to us operating GSM networks in several high-growth territories, including Kuwait and Iraq where we are also working with LogicaCMG. We are pleased to continue developing this business relationship in the confidence that we are building a solid platform for our mobile services."
Dr. Bhanu Sud, LogicaCMG's director and general manager for the wireless business in the Middle East and North Africa, said: "This project with Wataniya enables us to secure a firm footing in the Algerian market and we see this agreement as a precursor to similar deals in the region. The African continent is one of the fastest growing mobile markets in the world, with mobile phone usage rocketing in many countries. LogicaCMG's technology, in partnership with Siemens Mobile Networks, will enable Wataniya Algeria to deliver services that meet the growing demands of the region's users."
LogicaCMG is the global leader in telecom messaging and payments, delivering two out of every three text messages and supplying next generation messaging and billing solutions to 250 of the world's top operators in over 70 countries. These solutions serve more than 500 million active mobile phone subscribers. LogicaCMG also delivers one out of every four multimedia messaging systems, with commercially deployed MMS solutions serving over 130 million subscribers around the world.
Notes to Editors
About Siemens Information and Communication Mobile
The Siemens Information and Communication Mobile Group (Siemens (Xetra: 723610.DE - news) mobile) offers a complete range of mobile solutions including mobile devices, infrastructure and applications. Devices include mobile phones, wireless modules, mobile organizers and cordless phones as well as products for wireless home networks. The infrastructure portfolio includes GSM, GPRS and 3G mobile network technologies from base stations and switching systems to intelligent networks, e.g. for prepaid services. Mobile Applications cover end-to-end solutions for Messaging, Location Based Services or Mobile Payment. For fiscal 2003 (September 30), Siemens mobile recorded sales of EUR 10 billion and employed approximately 26,900 people worldwide. You can access press releases, photographs and further information on the Internet at: http://www.siemens-mobile.com/press
About LogicaCMG
LogicaCMG is a major international force in IT services and wireless telecoms. It provides management and IT consultancy, systems integration and outsourcing services to clients across diverse markets including public sector, telecoms, financial services, energy and utilities, industry, distribution and transport. Formed in December 2002, through the merger of Logica and CMG, the company employs around 20,000 staff in offices across 34 countries and has nearly 40 years of experience in IT services. Headquartered in Europe, LogicaCMG is listed on both the London and Amsterdam stock exchanges (LSE: LOG; Euronext: LOG). More information is available from www.logicacmg.com

Tuesday September 21, 08:30 AM
Related Quotes


Emblaze Ltd

Philips to merge MMS software ops with Emblaze unit
AMSTERDAM (AFX) - Royal Philips Electronics NV and Emblaze Ltd (LSE: BLZ.L - news) said they have agreed to merge their respective transcoding operations, which help facilitate mulitmedia messaging (MMS) on mobile phones.
Philips MP4NET Ltd and Emblaze Transcoding will be merged to form Adamind Ltd, based in Ra'anana Israel. After the merger, Emblaze will hold 70 pct in Adamind and Philips (Amsterdam: PHG.AS - news) 30 pct.
Transcoding software components are inherent in all MMS systems and facilitate messaging between different types of phones and devices.
Adamind will continue to work with resellers such as Ericsson (Stockholm: ERICb.ST - news) , LogicaCMG (LSE: LOG.L - news - msgs) and Openwave. The business has over 70 commercial operator customer deployments worldwide.
Financial details of the venture were not released.

All was going well until Broker puts an oar in - strange that so many small holders are selling day before ex Div - I have just bought in again and Div will pay my dealing costs (lets hope it dosn`t drop to 160p but bounces back to 190p)

LONDON, September 21 /PRNewswire/ --

- Traffic information service based on GSM network available in the
entire province



The province of Noord-Brabant in the Netherlands has announced the
extension of the Mobile Traffic Service (MTS), developed by LogicaCMG, to its
whole region for the next two years. MTS, provides information about speed
and journey times, drawn anonymously from the GSM network. From 2005 this
information will be available to motorists via the internet and route
information panels on provincial roads.



Last year a pilot programme was run in part of the province around the
Breda and Tilburg area - on and between the motorways A16, A58, A59 and
secondary road N261. A validation study by Goudappel Coffeng research and
consultancy has shown that MTS provides reliable traffic information. The
province wants to get better insight in traffic flows and wants to provide
motorists with real-time information about traffic jams and travel period of
vehicles.



Unlike other systems, MTS is capable of providing traffic information on
the entire road network - including both national and local road networks.
The present loop detection system only provides information on national
roads. What's more, the infrastructure is costly, logistically complex and
requires maintenance. MTS makes all of this superfluous. In addition
implementation of loop detection takes significantly more time than the
installation of the MTS software. The roll-out of MTS within the whole
province will only be three months. Also the client - usually the road
manager - does not have to set up an additional management organisation, as
MTS is subscription-based.



Haye Mensonides, managing director of LogicaCMG's public sector business
said: "We are very pleased that the Provincial Executive of the province has
decided to extend MTS to the entire region. This agreement is another step in
the right direction for our ambition for a national roll out of MTS."



MTS makes use of the GSM network and is implemented in cooperation with
Applied Generics and telecom operator Vodafone. The MTS traffic data is
calculated using data anonymously retrieved from the GSM network. A
representation of the movement of mobile telephones across the road network
is obtained by means of coded data. Travel times and speeds are then
calculated based on this information. Anonymous information is retrieved from
the GSM network via passive monitoring, without individual mobile telephones
actually being approached.



Notes to Editors

About LogicaCMG

LogicaCMG is a major international force in IT services and wireless
telecoms. It provides management and IT consultancy, systems integration and
outsourcing services to clients across diverse markets including public
sector, telecoms, financial services, energy and utilities, industry,
distribution and transport. Formed in December 2002, through the merger of
Logica and CMG, the company employs around 20,000 staff in offices across 34
countries and has nearly 40 years of experience in IT services. Headquartered
in Europe, LogicaCMG is listed on both the London and Amsterdam stock
exchanges (LSE: LOG; Euronext: LOG). More information is available from

www.logicacmg.com





For more information or to request an interview with LogicaCMG please contact:
Press Contacts Isabell Horvath Pete Hendrick/Matt Harris, +44(0)20-7446-1259
+44(0)20-7419-7000 Mobile: +44(0)7739-774512

http://www.ukwire.com/cgi-bin/newsalert?conf=680678490

NOTIFICATION OF MAJOR INTERESTS IN SHARES
THE CAPITAL GROUP COMPANIES, INC. has increased its holdings from 4.7% on 27/09/2004 to over 6% on the 28/09/2004. Do they know something that we don't?

tell us frankly how much you holding and we will join into ramp it up

Is that what you do Bash? How much do you charge for your services?

LONDON (AFX) - Shares in LogicaCMG PLC were 2.5 pct higher in midmorning
deals as Deutsche Bank urged clients to buy into the Anglo-Dutch IT group on the
back of recent weakness, dealers said.
The broker said the shares have underperformed the sector by 6 pct in the
past two weeks, which it regards as "unwarranted".
In a bullish note, Deutsche said concerns over growth in the UK were
"misplaced" as it gave a positive assessment of the group's German prospects and
Wireless division.
At 10.28 am, shares in Logica were 4-1/2 pence higher at 174-3/4.
rn/ra

it seems you eat lots of chillis
you sound very bitter for some reasons ,i was very sincere in my offer and for free.

1 October 2004, LogicaCMG: Negotiations with EDP in Portugal

LogicaCMG has today been informed by Electricidade de Portugal (EDP) that it
has been selected as their preferred outsourcing partner. This will include the
acquisition of a majority interest in Edinfor, their IT services subsidiary. We
look forward to finalising our due diligence and contractual agreements with
EDP over the coming weeks and ensuring a smooth and beneficial transition for
Edinfor employees, customers and partners.

LogicaCMG to buy 60 pct of Electricidade de Portugal's IT unit Edinfor UPDATE
AFX


(Adding analysts' comments)

LONDON (AFX) - Anglo-Dutch IT services company LogicaCMG PLC said it has been selected as Electricidade de Portugal's preferred outsourcing partner in a deal that will include the acquisition of a 60 pct stake in Edinfor, EDP's IT services subsidiary.

The company gave no terms, since it wants to complete due diligence and contractual agreements with EDP over the coming weeks.

Miguel Viana, an analyst at Espirito Santo Research, values the stake at 142 mln eur.

A LogicaCMG spokesman said the deal would give the company an 'Iberian footprint' and access to over 600 highly trained energy utility experts.

The deal will allow EDP to reduce its costs with IT services and to reduce net debt through the disposal of a non strategic business, Viana of Espirito Santo said.

Cazenove analysts said in a note after EDP said last night it was in the final stage of exclusive talks with LogicaCMG that Edinfor's margins will be lower in the future since it had been allowed to earn a high margin from its parent while part of the EDP group.

Although the situation has been corrected to some degree before the announcement, the price LogicaCMG pays must reflect the rate of future profitability, they added.

In 2002, Edinfor's margin was 14.9 pct compared with an average of 8 pct at European peers.

A premium takeover rating might be justifiable given the opportunity for LogicaCMG to use Edinfor as a platform of expansion into Portugal and Spain, although these benefits would accrue gradually, the Cazenove analysts said.

LogicaCMG was up against the US' Electronic Data Systems Corp in the auction.

There were originally 10 companies in the bidding.

oliver.wagg@afxnews.com

ow/jc

Merrill Lynch
The broker reiterates its buy rating for LogicaCMG