US services supplier CSC, which has £3bn worth of NHS IT contracts, has announced strong year-end results, with...
net profits of $1.12bn [£710m] for the 2009 financial year.
Its performance is in contrast to the results for BT, another main NHS IT supplier, which has written off hundreds of millions of pounds on its work as a local service provider on the NHS's National Programme for IT [NPfIT]. CSC and BT are the NPfIT's two remaining local service providers.
CSC's CEO Michael Laphen referred to the company's NHS contracts when announcing the results.
He said that despite a challenging economic environment, the company's achievements included "exceptional cash generation, realisation of our full-year goal of at least a 25 basis points margin rate improvement" and "successful execution and delivery of the National Health Service milestones".
CSC is one of two local service providers to the NHS, the other being BT. Its work for the NHS has included updates to legacy systems, and supplying the SystmOne product for GPs. It is due to roll out the Lorenzo system which Guy Hains, head of CSC's European Group, said is a "fantastic" product.
CSC's turnover was $16.74bn [£10.6bn], up 1.5% over the 2008 financial year. Pre-tax profit margins improved slightly from 5.6% to 5.7%. Fourth-quarter turnover was $4.11bn [£2.6bn], down 8.3% on last year.
The company's share price of about $37 is down on this time last year when it was about $47.