US budget cuts dent revenue at Booz Allen

 
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BOOZ Allen Hamilton, the American management consultancy, yesterday blamed the US government for a five per cent fall in full-year revenues to $5.48bn (£3.25bn).

The firm said US budget cuts and the federal shutdown last October lowered its billable hours for the year. However, operating income rose 3.2 per cent to $460.6m as Booz Allen trimmed costs and shifted towards more profitable contracts.

The company cut seven per cent of its staff last year, taking its total headcount to 22,664.

“For fiscal year 2015, we are forecasting continued margin improvement and solid earnings with an expected modest decrease in revenue,” said boss Ralph Schrader. “We believe our federal clients have funds to spend as the end of the government fiscal year approaches, and based on recent contract wins, believe that Booz Allen will take share.”

The company, which celebrates its 100th anniversary this year, had a backlog of work totalling $9.84bn at the end of March, down from $11.54bn a year ago. This reflected a move towards shorter contracts, the firm said.