Feeds

Logica profits plunge

Restructure hits bottom line

Providing a secure and efficient Helpdesk

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.