IFS expects to double product sales by 2012

The firm’s announcement follows an improved financial and competitive position in 2007 – now it’s third consecutive year of profitable growth – following the difficult years between 2001 and 2005, when the firm was forced into cost-cutting and refocusing measures . Over the next five-years, the company says that it also plans to gradually improve its EBIT margin to 15% (up from 6%) with a return of 25% on average operating capital. It also expects to increase dividends to 50% of earnings after tax, while using surplus capital not required for expansion to repurchase shares. Growth in software sales to date has stemmed from spending in capital-intensive sectors such as the defence, energy, communications, construction and the process industries – with their focus on logistics, service, asset management and project-based manufacturing. In particular, the firm says that product revenue will now continue to increase at a higher pace than consulting revenue, because it intends to collaborate with partners to a greater extent to improve on delivery capacity.