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By | John Oates 14th November 2008 10:29

Logica jacks ups full year estimates

Still cautious and still cutting costs

Anglo-Dutch services firm Logica is upping estimates for the full year on the back of unaudited results for the third quarter ended 30 September.

Revenue for the three months is up 7 per cent and the firm reckons growth for the year will top 4 per cent.

Chief exec Andy Green said: "Although we are anticipating a tough economic environment in 2009, we continue to expect the IT services market to grow faster than GDP across Europe."

He said the numbers showed the success of the company's restructuring scheme, the Programme for Growth, which is expected to save the firm about £20m this year.

Revenue for the quarter was £845m, helped by currency changes, a 19 per cent increase. Orders were up 13 per cent in the quarter including big wins with BT and Norwegian retailer Reitan.

Logica said the outlook for 2009 showed "longer decision making and of contracts being broken into smaller orders". The company will speed up its cost-cutting programme to find £60m in 2009 rather than the £50m it had planned. It is also holding back a quarter of its planned £30m to £40m investments until the economic climate is clearer.

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