Logica ups profits on falling revenues
German jobs to go...
Logica managed to increase profits despite seeing revenues fall just over five per cent in the first half of the year.
For the six months ended 30 June 2004 LogicaCMG brought in revenues of £809.2m, down 5.1 per cent on the same period last year. Statutory operating profit was £34.2m compared to a loss of £52.7m for the first half of 2003. Interim dividends are unchanged at 2.3p per share.
The UK contributed 42 per cent of group revenues and saw good growth particularly in outsourcing and government. Benelux countries, 23 per cent of revenues, returned to growth and improved margins. Logica's German business faces restructuring and the loss of 300 jobs to return it to profitability in 2005.
Dr Martin Read, LogicaCMG's chief executive, said: "Both the order intake and the prospect pipeline continue to strengthen. We are pleased to report that the strong performance of the UK has been maintained and the Benelux has returned to growth with an accompanying margin improvement.
In IT services we achieved the highest book to bill ratio since the merger, providing us with a good platform for the second half. We anticipate that margins in the second half will be ahead of those acheived in the first half half despite the impact of poor performance in Germany and ahead of 8 per cent for the year as a whole. The actions we are taking in Germany will benefit the second half..."
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