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.

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.

28 May 2012

Tapiola Data and Logica sign a Letter of Intent to establish a new company

Tapiola Data, a subsidiary of the Finnish insurance company Tapiola Group, and
business and technology service company Logica have signed a Letter of Intent
to develop a new company to provide information and communication technology to
the Local Insurance companies of the Tapiola Group.

Negotiations relating to forming the new company will begin on 1 June 2012. The
aim is to establish the new company by October 2012. The purpose of the new
company is to develop and produce ICT services relating to banking and
insurance activities of Local Insurance - Tapiola Group in order to harmonise,
reshape and intensify operations.

"Local Insurance - Tapiola Group's business operations and tasks relating to
the merger require a partner with strong IT service knowledge and industrial
operating models. With a strong partner, we are able to ensure that the quality
and the cost structure of service production meet our customer service and
business requirements. The partner must also be able to provide enough
resources for the project," said Juha Suutala, Managing Director at Tapiola
Data.

"The letter of intent enables true partnership where both parties make
investments to meet our common goals. We are creating new operating models and
services by combining the knowledge in Tapiola Data with Logica's strong
experience and expertise in producing business and technology services in the
financial sector. The new company will also offer professional development and
new career paths to skilled employees both locally and via our global
operations," said Heikki Nikku, CEO in Logica Finland.

For further information, please contact:
Logica Investor Relations: Karen Keyes +44(0)7801 723682/Jose Cano +44(0)20 7446 1338
Logica Media relations: Louise Fisk +44(0)7798 857770
Brunswick: Sarah West/Jonathan Glass: +44(0)20 7404 5959

END

29 May 2012

Logica sells its stake in Silta Oy

Logica today announces the conditional sale of its 50% stake in Silta Oy to Private Equity company
Sentica Partners. The gross asset value is estimated at GBP1.1 million.
The transaction is subject to approval by the competition authorities.

Silta Oy is a venture with Finnish insurance companies Varma Mutual Pension Insurance Company and
Sampo Oyj. The disposal will allow Logica to focus on its core competencies of IT and business
services, in this particular instance around HR Business Process Outsourcing.

Silta Oy is the leading market provider of payroll outsourcing business and financial management
in Finland.

It really is bye bye LOG :- Offer For Logica.

Summary
· The boards of directors of Logica plc ("Logica") and CGI Group Inc. ("CGI") are pleased to announce that they have reached agreement on the terms of a recommended cash acquisition of Logica by CGI Holdings Europe Limited ("CGI Europe"), a wholly owned subsidiary of CGI, pursuant to which CGI Europe will acquire the entire issued and to be issued ordinary share capital of Logica (the "Acquisition"). The Acquisition will be implemented by way of a scheme of arrangement.

· Under the terms of the Acquisition:

Logica Shareholders will be entitled to receive 105 pence in cash per Logica Share.

The Acquisition price represents a premium of approximately:

· 59.8 per cent. to the Closing Price per Logica Share of 65.70 pence on 30 May 2012 (being the last Dealing Day prior to the date of this announcement);

· 49.6 per cent. to the average Closing Price of approximately 70.20 pence per Logica Share for the one month period ending on 30 May 2012 (being the last Dealing Day prior to this announcement); and

· 32.8 per cent. to the average Closing Price of approximately 79.05 pence per Logica Share for the six month period ending on 30 May 2012 (being the last D