Investment: CMG proves its case on upbeat IT outlook
Thursday 03 September 1998
In the six months to June, CMG managed a 59 per cent jump in pre-tax profits on a 38 per cent increase in revenues. Admittedly some of this came from acquisitions, but CMG's organic growth was still an eye-popping 34 per cent.
What's more, the company was able to soothe worries on almost all the factors IT investors tend to worry about. Staff shortages? Sure, hanging on to skilled staff is tricky, but CMG is tackling this problem by opening up more regional offices, thereby giving workers the chance to move where they want to. Yes, wages are rising but the cost increases are being passed on to customers.
Indeed, CMG even managed to boost its margins by hiring more experienced staff who require less training. As a result, it now makes a 12 per cent return on sales - among the highest in the industry.
As for the year 2000 computer bug and the single European currency, fixing those problems accounts for just 10 per cent of CMG's turnover. And when these areas of business have worked their way through the system in a few years' time there will be new projects, such as electronic commerce and data mining, to keep the company busy.
Meanwhile, Mr Stutterheim is resisting the temptation to rush into expansion with potentially troublesome deals in the US and India. CMG shares soared 10 per cent yesterday, rising 187.5p to 1,862.5p.
The company remains one of the most solid stocks in the IT industry sector. But, with the shares still changing hands on a multiple of 64 times forecast 1999 earnings, it is hard to see them outperforming.
- 1 Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
- 2 Art Garfunkel calls Paul Simon a 'monster' with a Napoleon complex
- 3 Woman accidentally shoots herself in the head while posing for a selfie
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...