Feeds

Logica profits plunge

Restructure hits bottom line

Protecting users from Firesheep and other Sidejacking attacks with SSL

Restructuring charges battered Logica's first half profits despite first half revenues growing by six per cent, figures released today show.

But the services vendor has shrugged off the bottom line slump and raised its prediction for full year revenues.

For the six months ended 30 June 2008 revenues were £1.8bn compared to £1.5bn for the first six months of 2007. Pre-tax profit was £13m compared to £29m for the same period last year.

New CEO Andy Green said it had been a good first half and the restructuring was going well. “Given the market environment, we remain alert to changes in customer sentiment but our first half performance gives us increased confidence that 2008 pro forma revenue growth will be closer to 4 per cent, compared to our previous guidance of around 3 per cent.”

But net profits were hit by exceptional charges of £46m relating to the company's restructuring and redundancy programme. Logica also wrote off £43m of intangible assets from acquisitions mostly due to currency changes.

In the UK revenue grew six per cent to £354m with £201m of this coming from public sector projects. Adjusted operating profit for the UK was £22m.

Logica shares were up almost nine per cent on the news at 122.5 pence.

The full release is available from here. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.