Tough banking regulation provides boost for Logica

BANKS seeking guidance on how to comply with tough new regulation helped push Logica to modest revenue growth in the third quarter.

The technology services company said it will maintain its full-year forecast despite admitting it has been forced to trim the value of a number of high profile government contracts.

The firm expects this to be offset in the fourth quarter by an increased demand for outsourcing of government contracts.

Revenue at the firm grew one per cent to £863m in the third quarter and orders rose eight per cent to £758m. Chief financial officer Seamus Keating said: “We are cautiously optimistic about our prospects for growth next year.”

The company has signed a “memorandum of understanding” with the coalition government to continue all of its existing contracts, which span 55 government agencies.

Public sector business accounts for about 10 per cent of Logica’s total sales.