Logica logs in with surprising 8% boost
IT services firm Logica posted a better-than-expected 8 per cent rise in adjusted operating profits for the first half today, helped by cost savings. On the back of a 6 per cent rise in turnover to £1.88 billion, profits jumped from £118 million to £127m. Analysts were expecting the group to report sales of £1.88bn and adjusted operating profits of £120m.
First-half pre-tax profits almost doubled, up from £13 million to £24m. Chief executive Andy Green said: "Logica has produced good results in a challenging market by executing on our strategy."
The impact of the company's investments in customer facing teams was particularly clear in outsourcing services where orders are up 18 per cent, and in the UK where revenues are up 7 per cent. "Our strong cost programme has ensured solid margin delivery despite volume and price pressure," said Mr Green. "While there is still uncertainty in the consulting and professional services market, we have taken swift action in more difficult geographies to protect margins.
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