Xansa merger dampens Steria results

Xansa merger dampens Steria results

UK sales have fallen five per cent to £51m

Sales at IT services company Steria grew three per cent to €308.3m (£214.9m) in the third fiscal quarter.

UK revenue fell 5.6 per cent to €73.7m (£51.4m), but France grew 1.8 per cent to €125m (£87m) and Germany rose 14.8 per cent to €57.7m (£40.2m).

Steria's results have suffered as a result of its recent merger with Xansa, but the effect is likely to be short-lived, according to Ovum analyst Cornelia Wels-Maug.

"The German operation as well as its subsidiaries in Belgium, Norway and Denmark had excellent results in terms of growth of revenues and profitability, " said Wels-Maug.

"The outlook for the remainder of the year and beyond is positive, with the order backlog at the end of Q3 2007 being up 6.6 per cent year-on-year and Steria aiming for an organic revenue growth rate of about four per cent for 2007 and an operating margin rate above eight per cent for 2008."