Logica sees light at the end of the gloomy tunnel

COMPUTER services firm Logica saw a boost in its declining revenue as client confidence and outsourcing recovered.

Logica said its first-quarter revenue was down two per cent to £939m, beating a market consensus figure of £919m.

Logica posted an average four per cent revenue decline in the previous three quarters. New orders at the firm, however, are strong.

Outsourcing performance was up 11 per cent, while consulting and professional services were down eight per cent.

Logica chief executive Andy Green said: “We saw some positive trends in the first quarter with particularly strong demand in France and continued revenue growth in the UK balancing the continuing difficult market conditions in Benelux [countries] and to a lesser extent, Sweden.”

The market update followed a positive outlook from French rival Atos Origin last month. Atos said it expected organic sales growth to return in the second half due to an increase in orders.