Logica leaps on recovery from December despair
SHARES in London-listed Logica jumped over six per cent to 86.7p yesterday despite an 80 per cent drop in pre-tax profits to £32.7m, as the IT services provider reported improved trading since its December low point that led to a profit warning and 1,300 job cuts.
In 2011, the Anglo-Dutch company’s revenues grew four per cent to £3.9bn, but its underlying operating profit dropped 11 per cent year-on-year to £247m – in line with Logica’s December forecast.
Full-year orders were up 13 per cent to £4.6bn as outsourcing sales grew 23 per cent to £2.2bn.
Logica chief Andy Green said the company’s Benelux business, which dragged the group down, is expected to return to profit in 2012 after making a £73m operating loss in 2011.
Otherwise, revenue is expected to be flat in 2012 although margins will recover slightly to above 6.5 per cent from 6.2 per cent in 2011.