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.

33% rise in the last 3 weeks and an upgrade today.

Another good move today.

Logica clinches 113m contract extension with CPS
Business Financial Newswire
Logica's 10-year partnership with the Crown Prosecution Service of England and Wales is being extended by three years.

It said that following the success of the COMPASS programme the extension, worth 113m, will see Logica provide enhanced services to aid the modernisation of the CPS and support continuing business transformation.

The original partnership was signed in 2001, and has been extended to 2015 to support the CPS as it shifts to electronic case management.

The updated contract will deliver a set of services to support more mobile working and major enhancements to the national Case Management System (CMS), building on the desktop IT and infrastructure services provided by Logica.

Logica upgraded to neutral from sell at UBS, target price rising to 130p from 120p. Also upgraded to outperform from underperform at Cheuvreux with 145p target price.

Thursday's free share tip on UK-Analyst.com is from cautious, long-term blue chip investor Robert Sutherland Smith of UK350.com

StockMarketWire.com
Logica upgraded to buy from neutral at UBS.

StockMarketWire.com
"IT services group Logica today reported orders up 2% to 2.142bn in the half-year to end-June, enjoying continued strength in outsourcing orders.

Total revenue was down 1% but Outsourcing Services revenue up 9%.

There was a return to growth in Financial Services and IDT.

The group reported improving trends through the first half in France, Northern & Central Europe and Sweden.

Second quarter revenue was unchanged on last year, underpinning confidence in return to modest growth in the second half.

Adjusted operating margin in line with last year at 6.7%

Operating profit up significantly by 54m due to reduction in amortisation and no exceptional charges.

Logica said it expects strong second half cash conversion to lead to net debt/EBITDA comfortably below 1.0x at year end.

Interim dividend was hiked to 1.9p, up from 1p in 2009, with the dividend payout ratio steadily increasing to at least 40% by 2012"

In Clubby portfolio @ 102

StockMarketWire.com
Logica upgraded to buy from fair value at Singer, target price raised to 143p from 130p.

Some more broker targets from digital look....

Date Broker name New Price Old price target New price target Broker change

05-Aug-10 Panmure Gordon Buy 109.40p 160.00p - Reiteration

04-Aug-10 Evolution Securities Buy 109.90p - - Reiteration

160p SP target from Panmure.

Another Broker upgrade out this afternoon.....

Logica FTSE 250 Technology Overweight 141 117.2 20.3% Piper Jaffray

Target SP 141p Upside 20.3%

Good to see pro TAer Zak Mir following this stock.....

Zak Mir



Reged: 28/06/07
Posts: 1372
Re: LogicaCmg (LOG)
#468487 - 09/08/10 04:50 PM Edit Reply Quote



Log was my chart of the week on zaks-ta.com on Friday, so i am obviously a fan, the mid 120p's as a min in the near term seems likely.

Bye Bye LOG.

A bit of life in this old dog?

Logica reports revenue up 4% for the 9 months to Sept



Headlines

Group orders up 10% for the nine months to September driven by continued strong
growth in Outsourcing

Revenue for the nine months to September up 4%, with third quarter revenue up
2% on last year to GBP914 million

Outsourcing revenue growth still strong, up 10% on a year to date basis and up
8% in the quarter

Consulting and Professional Services broadly stable for the nine months to
September despite third quarter revenue down 3% and mixed trends across our
markets

Revenue up in all geographies except the Benelux on a year to date basis, with
particularly strong third quarter growth in the UK

Revenue growth expected to be above 3% for the year, with adjusted operating
margin now to be in the range of 6.5% to 7.0%

Year endnet debt/EBITDA expected to be comfortably below 1.0x; strong second
half cash conversion expected

Logica accelerates restructuring in a tougher climate

Results on the 22nd - doesn't look very good!

Logica reports full year results in line with 14 December guidance(1,2)

Up over 5% today - trading statement tomorrow!

1st Quarter Results.

Logica reiterates full year guidance with its first quarter results



At its Annual General Meeting being held today, Logica will comment on trading
for the first quarter of 2012. The following is the interim management
statement based on unaudited results for the three months ended 31 March 2012.





Headlines1

New orders totalling £1,057 million, 23% of 2011 record order book of £4.6
billion

Revenue stable at 2011 level

Good progress on delivering our 2012 objectives

Restructuring programme fully on track

Full year guidance remains unchanged.