Public spend boosts Logica
IT group Logica yesterday upped its forecast for sales growth after an increase in IT spending in the public sector boosted first-half revenues by 6 per cent.
Chief executive Andy Green admitted that the group was seeing a slowdown in financial services and consumer-driven sectors, but said other areas were holding up.
Logica said that revenue was up to £1.77bn in the six months to the end of June, compared to analyst forecasts for around £1.67bn.
Adjusted operating profit was also above market expectations of £115m, rising by 16 per cent to £118m.
According to Green, Logica is beginning to benefit from April’s restructuring, which saw the company move about 3,900 of its jobs to offshore centres in India, the Philippines and Morocco.
Analyst Derek Brown, from Seymour Pierce, said that the company’s broad industry spread was protecting it against the slowdown.
But others were less bullish about the company’s future. Investec Analyst Julian Yates said: “While it is pleasing that the group is able to increase its targets, this still implies that the momentum is set to markedly slow into the second half.”
