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Microsoft LAR Civica Services seeking new boss

Microscope contributor

Microsoft LAR Civica Services is on the hunt for a successor to managing director Steve Reynolds who is set to leave the industry after more than two decades.

Reynolds was part of the management team - backed by Alchemy Partners - that led a buyout in 1999 of several public sector focused software businesses from Sanderson, which were subsequently rebranded Civica.

"My wife is fed up with me spending thirteen hours a day in the world of IT so it was time to do something different. We'll develop some properties and play more golf," Reynolds told MicroScope.

Group marketing director Tim Magness confirmed Civica is "going through the process" of finding a replacement but said Reynolds would remain with the business for two to three months yet.

Civica Group - an ISV operation Civica UK, software reselling and SAM business Civica Services and an international arm - continues to post growth.

Unaudited results for the year to 30 September 2010 show that Civica sales went up 15% to just over £170m and EBITDA rose at the same rate to £28.5m.

All of Civica's revenues in the UK and overseas were derived from public sector, specifcally local government where the spending cuts have been less pronounced than in central government departments.

"Tender volumes have held up pretty well in the last 12 months compared to the previous 12 but decisions had to be signed off at a higher level and took longer to get over the finish line," said Magness.

But the software reselling business was typified by "continued margin and pricing pressures", he added.

The loss of the BSF scheme will hit Civica but Magness said there were still opportunities in the government space as departments looks to outsource business processes to the private sector.

"We are in an environment where all organisations in the public sector are facing extreme financial pressures, but again the difference at the local level is that public services need to be sustained," he said.


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