Logica's profits slump

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Logica's profits slump

Antony Savvas

Despite experiencing a 17% increase in sales for the year ended December, IT services firm Logica saw operating and pre-tax profits slump 22% and 48% respectively.

As a result, earnings per share were also halved. The bottom line was impacted by the costs of Logica's ongoing headcount reduction programme and other cost-cutting measures.

Sales for the year hit £3.58bn, whilst the operating profit was £86m, and the pre-tax figure was £44m.

Logica said, "We had a strong fourth quarter order intake and we have continued to sign significant orders into the first quarter of

2009.

"Our increased investment in sales and marketing has led to the overall volume of larger opportunities in our pipeline increasing, particularly in outsourcing services (which represented 32% of revenue in 2008)."

The firm added, "The UK public sector, Norway and Finland all had a particularly strong close to 2008 on orders."


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