Logica predicts path to growth

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The Independent Online

Logica predicted a return to modest growth in the second half of the year as it yesterday reported a 1 per cent slide in sales for the first six months of 2010.

Shares in the IT services provider rose 6 per cent to 116p. Logica, whose shares had fallen 20 per cent in the wake of statements by the coalition government that it would slash public spending, reiterated its forecast for flat sales and profits for the full year after first-half results met market expectations.

Logica's first-half sales were £1.87bn, and adjusted operating profit fell 2 per cent to £125m. Outsourcing sales rose 9 per cent and revenue from financial services recovered, growing 4 per cent after a double-digit fall a year ago. France, where Logica won a billing deal for Orange, showed the strongest growth by country. Logica said it remained positive about medium-term prospects for the European public sector and was working with the UK government on how it could help it save money. The UK public sector accounts for less than 10 per cent of company sales.

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