Logica profit slumps but sales increase


Logica profit slumps but sales increase

Karl Flinders

Service provider Logica has reported an 11% drop in profit for the first half of 2011 but increased sales by 15% in the same period.

Three new deals in the UK with the Ministry of Defence, Scottish and Southern Energy, and Galileo Satellite Navigation Programme were announced alongside the results.

In the first six months of 2011 Logica made just short of £2bn in sales compared to £1.8bn in the first six months of 2010. Profits were down 11% at £83m.

Craig Boundy, CEO at Logica UK, said the UK business and technology service market is very competitive: "However, we are making good headway with a return to growth in the second quarter of this year, boosted by our strong performance in the commercial sectors which was up 12%."

Logica announced three major deals.

Energy supplier Scottish and Southern Energy has outsourced communication, data and pre-payment services for a smart meter system trials in the UK to Logica.

The Ministry of Defence has awarded a consortium that includes Logica with a contract to support a project known as Shepherd, which will improve information gathering in electronic warfare.

Logica has also won two contracts for the European Galileo satellite navigation Full Operational Capability programme.

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