Civica Increases Profits by 19 Percent

Strength and focus in Public Sector endorsed by continued momentum

14th January 2004. London... Civica Limited, one of the UK's most experienced providers of public sector consulting, software systems and managed services, reported year-end results for the period ending 30 September 2003.

Revenues for the year were £90.1 million. Operating profit increased 19 percent to £9.2 million, compared with £7.7 million for the year ended 30 September 2002. (NB: During 2003, USA-based CMI became part of the Civica group and a pro-forma operating profit figure for 2002 including CMI would be £8.2 million).

"2003 has proved to be another year of strong performance and development for Civica, especially when benchmarked against many of our competitors" said Simon Downing, chief executive officer for Civica. "As well as a positive financial outcome, we have strengthened our position in our target markets, substantially enhanced our core product and service offerings and are well placed to meet future customer challenges. With an enormous agenda for change in the public sector, our focus in providing 'practitioner' expertise, software solutions and managed services will enable us proactively to support customers in their drive for service improvement and operational efficiency."

Civica secured contracts with more than 40 new customers in 2003 across all sectors of its business, including Addenbrooke's NHS Trust, Adelaide Hills District Council, the Cabinet Office, City of Mandurah, Essex County Council, The Guide Dogs for the Blind Association, Solihull Metropolitan Borough Council, Vehicle Operator Services Agency, VT Education, West Sussex County Council and WS Atkins. The company continued to secure many additional services contracts with existing customers.

2003 HIGHLIGHTS

• Software solutions now supplied to 5 out of the 6 largest local authorities in the UK, new customers including Essex County Council.
• Ten further Australian local authorities chose to implement Civica's AUTHORITY enterprise-wide solution.
• Dayton, Ohio-based CMI became part of Civica group, bringing over 400 system implementations in the United States and over 7,000 local government users covering a combined population base of close to 8 million.
• Growth of managed services, including contract with Manchester City Council to host its parking applications and first Australian managed services contracts including North Western and Mitchell Library Services.
• Ahead-of-time delivery of enhanced Housing Benefit solutions required for Department for Work and Pensions (DWP) Tax and Pension Credits, also Non Domestic Rates application for new Scottish legislation.
• Delivery of OFSTED inspection productivity tools for VT Education and partnership delivery of managed education services.
• Multi-million pound order for second year of 3-year agreement with the NHS Purchasing and Supply Agency to handle Microsoft software licensing.
• Applications development for Pathfinder projects at Coventry City Council and Teignbridge District Council, in support of Local Housing Allowance.
• Australian library system now deployed in more than 250 libraries with 14 new customers secured in 2003.
• Further success with Automatic Number Plate Recognition (ANPR), orders including in-vehicle systems for North Yorkshire Police and site system at the Trafford Centre, whilst the London Borough of Redbridge became the first local authority to deploy a mobile solution with Civica's Cobra vehicle.
  
• New infrastructure delivery, including assisting Barnardo's to migrate to a new systems architecture.
  
• Increased momentum in legal services, new public sector customers including West Sussex County Council, Thurrock Council and Horsham District Council.
  
• Guide Dogs for the Blind launched an interactive portal to improve operational efficiency, created by Civica for use also by the visually impaired.
  
• First UK local authority CRM (Customer Relationship Management) sale at Mansfield District Council, in partnership with Firstwave Technologies.
  
• Key partnerships developed with VT, HBS and Steria for services outsourcing.
• New fleet management software sales, including Greater Manchester Accessible Transport Ltd (GMATL) and WS Atkins.

OPERATING PROFIT SUMMARY

Note: During 2003, USA-based CMI became part of the Civica group and a pro-forma operating profit figure for 2002 including CMI would be £8.2 million.