Logica reports solid first-half figures
Date: 18-08-2008
Source: Consultant News
Revenue for the six months ending June 30 gained 6 percent to 1.8 billion pounds ($3.4 billion). The company returned to growth in the UK in the first half of 2008, with revenue up 6%. Growth in the UK Public Sector (which continued to account for over half of UK revenue), was 7%. Logica's major continental European geographies also performed well, with growth above the market in France, Germany, the Netherlands and the Nordics.
Net income fell to just 5 million pounds ($9 million) from 150 million pounds in the same period a year earlier, due to the cost of a 110-million-pound ($206 million) restructuring plan the company announced in April - 46 million pounds ($86 million) of which it paid in the first-half of the year. The other cost was a 43-million-pound ($80 million) amortization of goodwill charges from the company's recent acquisitions.
Adjusted operating profit was up 16 percent to 118 million pounds ($221 million), slightly beating expectations. An 18 million pounds increase in adjusted operating profit in the UK more than offset a net decrease of 2 million pounds in other geographies. Adjusted operating margin was 6.7%, with UK improvements the largest contributor to a year on year increase.
Logica currently expects 2008 revenue growth to be closer to 4% than its previous guidance of around 3%. Margin guidance remains unchanged at around the level of the 2007 underlying margin of 7.6%.
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