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Computer services firm LogicaCMG reported a decline in its first half revenues, ended 30 June 2007, but expects the full year to be back on track.

Revenues in the UK fell nine per cent due to "anticipated weakness" in the commerical sector - half this was due to the loss of one contract.

The Anglo-Dutch firm had issued a profit warning in May predicting the UK revenue fall.

Logica said in a statement: "In line with our previous guidance, we expect sequential revenue growth in the second half, with full year UK revenue slightly lower than 2006."

Elsewhere in Europe, the firm said organic revenue growth continued to be strong - both Germany and France saw revenue grow by 10 per cent.

It expects to see European revenue growth of between four and six per cent in the second half of this year.

On the international front, which includes the Asian market, Logica said revenue remained the same as 2006 on a pro forma basis.

CEO Martin Read said in May that he planned to retire from the firm. Logica has now confirmed he will stand down on 21 September.

Jim McKenna, who is currently chief operating officer, will assume the role of interim chief executive while the firm continues its search for a replacement.

David Tyler has also joined the board as non-executive deputy chairman.

Logica said: "The board remains focused on appointing the best candidate to run the business and deliver value to shareholders."

Logica's headcount grew by two per cent in the period to 38,496 people.

The firm's interim results will be announced on 29 August. ®

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